You’re sitting in front of a CEO after pitching a killer entry strategy to get his company into social media when he drops the bomb on you. “So, how will all of this make me more money?” Instead of talking around the point with generic statements about how there are numerous benefits to using social media, attack it with data that will back you up. Here are 7 case studies you can use that prove the ROI of social media.
1. Old Spice increases sales with social campaign
The Old Spice campaign with Isaiah Mustafa is one of the most successful and well known social media campaigns of all time. Following the success of their hilarious TV commercials, Old Spice and Mustafa recorded personalized video messages and sent them to their social media fans and celebrities. According to the agency that executed the campaign, sales jumped by 27% year on year. Furthermore, in the three months after the height of the campaign sales were up 55% and a whopping 107% in the final month. These numbers show that a well executed social media campaign can drive significant ROI for a business.
2. Cisco saves $100,000
This case study shows how using social technology saved Cisco $100,000 on a product launch. A new product launch can be ridiculously expensive, involving high-profile appearances and costly ads, so Cisco decided to use social media instead. They launched a new router entirely online, using Second Life to hold a virtual pre-launch concert. This not only saved them money, but also widened their reach to new audiences. In the end, the online launch cost them a sixth of what a usual launch would and gave them better results. This is a perfect example of how social media can totally change the way a company does business and drive ROI in unexpected areas.
3. Social media performs better than banner ads
Though you can’t compare social media tools exactly to banner ads, you can compare the quality of traffic each drives to a website. In this case study from Ignite Social Media, they compare a banner ad campaign first to a social competition and then to a social game with a sweepstake all of which were driving traffic to the same website. The social contest alone was 6.5x more effective in terms of cost-per-visitor and drove 5.6x more traffic than the banner ads. This shows social media campaigns can drive higher-quality, more long-lasting value for brands.
4. Twitter supports an entire business
The Creme Brulee Man is a food truck in San Francisco that posts its upcoming locations on Twitter. In this case social media is actually what keeps the business that is always on the move going, allowing the owner to constantly reach new audiences and let them know where his business is located in real-time. In just over a year, the truck’s Twitter account accumulated more than 12,000 followers. Pretty impressive for a small business with an even smaller geographic target.
5. Cars.com uses reviews to increase conversions
There are a lot of articles out there that discuss how to moderate comments and reviews. The big take away from all of them is that first, it’s important to have the option to comment or review and second, that both good and bad reviews can be beneficial to consumers. This case study for Cars.com shows that pages on their website that had ratings and reviews added to them had a 16% higher rate of conversion and drove 100% more traffic through to the dealer’s sites compared to pages without ratings or reviews.
6. Customers that come through social media are more valuable
Social media is not a quick fix, it takes time to implement and develop value. But it can also provide more long term value to your business than just quick sales boosts. This study from CareOne Debt Relief Services shows how they used a social media team to track new members that came from social channels along the buying process, from filling out the consultation form to making their first payment. They found that these social members filled out the consultation form at a 179% higher rate than typical customers and were 217% more likely to make that first payment. This shows that having a personal connection with consumers can lead to more successful conversions down the road.
7. A single tweet increases J.C. Penney’s shares by 10%
Nina Garcia, fashion editor at Marie Claire and judge on Project Runway, recently tweeted “I’m @jcpenney’s HQ. Thank you Ron Johson for the walk through of JCP’s prototype. Get ready to shop! Its going to be a game changer!” Immediately afterwards, J.C. Penney’s shares briefly spiked by almost 10%. Of course, despite every social media manager’s dearest hope, the link between the tweet and the spike in stock can’t be made crystal clear. But, it gained some extra hype when an Ameritrade analyst referenced the tweet when explaining the jump.