Brand Reputation

ROI from social media listening

Let’s be honest… the number of marketing tools that promise fast revenue growth is just mind-blowing! We hear questions like “why do we need social listening?” quite often. It is a valid concern – and we wrote “10 reasons….” specifically to address that.

Now that we explained why social listening is so important, we can focus on another burning matter – “how can we monitor our ROI with the help of social monitoring solutions?”

A little bit of math never hurt anybody 

This is what we know:

84% of all households in the United States have an internet connection.

86% of European households had an internet connection in 2018.

So it’s safe for us to say that Internet Users = Clients

  • Consumers read an average of 10 online reviews before they feel able to trust a brand. 
  • 40% of consumers only take into account reviews written within the past two weeks – up from 18% last year. 
  • 91% of people regularly or occasionally read online reviews
  • 84% of people trust online reviews as much as a personal recommendation
  • 89% of consumers read businesses’ responses to reviews. 
  • 54% of customers are using social media to reach products (GlobalWebInex, 2018).

That’s a lot of numbers… how about some more? 🙂

When considering moving forward with a social listening tool (like SentiOne) you should consider these questions:

How can it help me and my company? Can it help me manage my brand reputation? What about crisis management? Maybe online sales, too?

In each case, you can accurately calculate the ROI using SentiOne. Doesn’t it sound amazing?

Before we dig into details, I would like to make sure you understand what the main components of our formula are.

If you decided to buy SentiOne because:

…you want to monitor your brand’s reputation online – monthly ROI  

  • Check your brand’s reach (1 month)
  • All negative mentions (in %)
  • MRR (monthly recurring revenue) or Average Order Value (if you operate an online shop or service)
  • Win back ~1% (well… as we mentioned earlier, most of us read and believe in reviews. It’s more than likely that at least 1% of internet users will change their opinion about your company after reading a number of positive comments, recommendations, or, perhaps, a good piece of content based on your target group’s needs.) 

Keep in mind that you need to consider your social media listening costs (SentiOne pricing) as well.

Then you will receive your potential income.

((Brand reach monthly *  negative mentions % * MRR * Win Back) *5 projects)  – Social media listening costs = income

…you want to generate more sales – monthly ROI

  • Number of mentions monthly (purchase intents, questions about what to choose etc.)
    • Serviced mentions – you have to estimate how many online mentions you are able to service (in %) – that means answering them publicly.
  • MRR (monthly recurring revenue) or Average Order Value (in case you have an online shop or service)
  • Win back ~10% (mentions like “Where can I buy” are leads! Take them and sell your services or products. Yes – it’s that simple! One for ten is more than sure) 

Don’t forget about social media listening costs (SentiOne pricing)!

Then you will receive your potential income. 

(Number of mentions monthly *  Serviced mentions % * MRR * Win Back)  – Social media listening costs = income

I believe that the return on investment is obvious! Of course, you can add other variables to the formula. The most important thing to know is the main purpose of SentiOne in your business and how to collect the metrics we mentioned. So, you have to start by identifying your company business goals. Afterwards, determine which ones SentiOne is able to help you with. In case you don’t have a business strategy, you can create it based on a quantitative report from social media listening.

Social media listening is an incredible tool which helps you achieve important outcomes for your business!

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Put insights into action!

Do you like what you read? Give online listening a go and see how you will benefit from efficient reputation management.