10 Case Studies on the ROI of Social Media

Reducing customer service costs - number 10 - is the one that leapt of the page for me.

Not questioning the data - but I wonder how they managed the customer satisfaction element of the equation. Up by 10% from 5 to 15 - could for example be accounted for by customers FINALLY getting an answer. More date needed, but that’s going to cost nearly $500 from Forrester!

Our final case study might be viewed somewhat negatively by some, as it looks at ROI from social media being directly driven by saving on staff costs. As more brands open up through social media however, they find the communities they nurture often begin to answer each other’s queries with regards to product questions etc.. In the case of InfusionSoft, they used social technologies to better inform their customers and keep them up to date. Whereas they previously would have had one customer service agent to 72 customers, through social media they were able to reduce this to 1 agent per 172 customers. Along with this the satisfaction rating also increased by 10%, which would no doubt lead to more repeat business for the company and more customer referrals. Though this might be a slightly alternative way of viewing ROI, it shows that social technologies can make real business savings, allowing money to be invested elsewhere, or in developing these technologies themselves.

Full article here : The ROI of Social Media: 10 Case Studies. (thanks to NextWeb)

July 17, 2011