Finally, Level Four is calculating the return on investment. The most advanced companies set out to achieve strategic business objectives with their social media analytics. According to the survey, only about 40 percent of companies have metrics in place today to measure ROI-focused key performance indicators, such as purchase intent, leads generated, conversion rates, or actual sales. A few corporate trailblazers are demonstrating already that social media can drive measurable business impact — in other words, they are turning “likes” and “fans” into real value. For example, Wendy Clark, senior vice president for integrated marketing communications and capabilities at Coca-Cola, has shared publicly that the beverage giant’s social media analytic capability is advanced enough to show that Coke social media fans are twice as likely to consume and 10 times as likely to purchase Coke as nonfans are.
Social media represents an enormous opportunity for unfiltered, direct consumer insights into branding, customer service, and product development. Because 56 percent of companies surveyed are investing actively to improve the quality and quantity of these insights from social media, this analytic capability should only grow stronger.
As more companies refine their use of social media, this more dynamic approach to marketing will dramatically transform how they connect their brands with consumers. By developing these distinctive capabilities, companies can not only create rich new social media experiences for their customers but, like Burberry, transform their organizations and unlock market-leading performance.
Reprint No. 00130