Example idr1 social media ROI
Posted: Mon Feb 17, 2025 10:32 am
An example
I would like to illustrate this argument for a more business-economic approach and substantiation of the use of social media with a practical example. It concerns the purchasing process of a car insurance. For the sake of clarity, the example below is a considerable simplification of reality. The example starts with people who see an expression of an advertisement (expressed here in impressions). Some of these people have a positive image of the insurer and include the brand in their orientation for a new car insurance. Ultimately, the brand remains on the shortlist for 10% of these people. Half of these people go to the website with a purchase intention. Of these, half will actually take out the insurance. In the example, we go from 100,000 impressions to 2,000 sales.
By using social media in a targeted manner, it is expected that the dropout rate can be el salvador phone number list reduced in a number of steps. This will ultimately lead to more sales. In the example, we arrive at 2,250 sales with the use of the aforementioned social media initiatives. For the sake of convenience and clarity, matters such as repetition and loyalty effects have been disregarded.
This is not so much about the (correctness of the) numbers, but about the way in which you assess your plans and ideas. Behind every assumption and impact there is a substantiation; for example why the conversion is 0.5% higher if we use webcare. Through this type of analysis you have a better picture of what extra revenue can be achieved. In general, the costs for projects and activities are relatively easy to gain insight into. If you now compare this with the (extra) revenue, you can make a good assessment of the ROI.
The conclusion
Is this the ultimate solution? No, certainly not. Figures can always be manipulated, of course, but the core of my story is this: social media is a means and not a 'higher goal'. The same business economic principles apply to social media as are already applied in the rest of your organization. By approaching the use of social media in this way, you will get better plans and you can make more targeted decisions. So take some time to draw up a business case. Not just to secure the money for your fun project, but to make a good investment decision and seriously help your company.
I would like to illustrate this argument for a more business-economic approach and substantiation of the use of social media with a practical example. It concerns the purchasing process of a car insurance. For the sake of clarity, the example below is a considerable simplification of reality. The example starts with people who see an expression of an advertisement (expressed here in impressions). Some of these people have a positive image of the insurer and include the brand in their orientation for a new car insurance. Ultimately, the brand remains on the shortlist for 10% of these people. Half of these people go to the website with a purchase intention. Of these, half will actually take out the insurance. In the example, we go from 100,000 impressions to 2,000 sales.
By using social media in a targeted manner, it is expected that the dropout rate can be el salvador phone number list reduced in a number of steps. This will ultimately lead to more sales. In the example, we arrive at 2,250 sales with the use of the aforementioned social media initiatives. For the sake of convenience and clarity, matters such as repetition and loyalty effects have been disregarded.
This is not so much about the (correctness of the) numbers, but about the way in which you assess your plans and ideas. Behind every assumption and impact there is a substantiation; for example why the conversion is 0.5% higher if we use webcare. Through this type of analysis you have a better picture of what extra revenue can be achieved. In general, the costs for projects and activities are relatively easy to gain insight into. If you now compare this with the (extra) revenue, you can make a good assessment of the ROI.
The conclusion
Is this the ultimate solution? No, certainly not. Figures can always be manipulated, of course, but the core of my story is this: social media is a means and not a 'higher goal'. The same business economic principles apply to social media as are already applied in the rest of your organization. By approaching the use of social media in this way, you will get better plans and you can make more targeted decisions. So take some time to draw up a business case. Not just to secure the money for your fun project, but to make a good investment decision and seriously help your company.