This article takes a look at social media’s value to C-Suite decision makers
Marketers habitually find it hard to quantify the value of what they do, and their use of social networks is the latest manifestation of this difficulty. Why is it so hard to determine the business value of social networks? This article explores the slippery slope of coming up with a useful ‘social media ROI’ and offers new ways to understand social networking’s value proposition.
LEVEL 3 – Qualitative measures
Tools to Support Product or Service Promotion
Aaron Magness, Senior Director – Brand Marketing & Business Development of Zappos, the Las Vegas-based clothing and shoe distributor famous for uncompromising on-line service, told us that Zappos’ social media investments build relationships. “We think about future relationship value compounding just like the time value of money. We build customer value similar to the way others build cash net present value,” he told us. “Metrics designed just for same day, or even for same month, results will tend to produce a lower return over time. Short term effects do not matter as much as long term value creation.”
Reprint from Ivey Business Journal
Reprint from Ivey Business Journal
[© Reprinted and used by permission of the Ivey Business School]