Ladies and Gentlemen, welcome to the last week’s post for Enterprise 2.0, featuring the ROI generated through the implementation of social media by the Indian ice cream company, Hokey Pokey. It’s been fun, it really has; but the weeks’ tasks have run out, and I present to you my final post from QUT’s Enterprise 2.0 subject (fuelled and driven by the prestigious Jason Watson). Now that’s not to say I won’t continue to blog using my own thoughts to drive the direction of the blog, but I do hope to influence everyone’s views on social technology and enterprise / web 2.0’s favourable uses in today’s tech-saturated environment. But I digress, let us move to the meat of this post. I don’t usually post the task, but as this week’s topic is a little research-heavy (and my own case being a bit abroad) I will start the content with some background on the task.
To identify and discuss an additional ROI case example on your blog. What is your view on how ROI was calculated? Did they include all the tangible and intangible benefits? What are the strengths and weaknesses of their approach?
For those who love TLA’s (three letter acronyms), I wouldn’t need to spell out ROI, but as this isn’t a regular term associated with social media, it stands for return on investment, a metric to measure the favourable (or negative) returns of an investment made over an annual rate. Studying business analysis, I can happily say I fully understand the concept and hope to convey its meaning to my readers through its application with social media.
I scream, you scream
We all scream for…. a quantifiable measurement of the effects of social media through word of mouth (WOM), customer influence effect (CIE) and customer influence value (CIV). I’m pretty sure that’s how the song goes… The aim of this week’s post is to discuss the ROI of a social media implementation, through my chosen case study of Hokey Pokey, and to review the measurements made, both quantifiable and qualitative. I searched for an interesting case, as I usually do, and found this example, whereby a company set out to quantify the effect of word of mouth from two particular advertising campaigns, “Creations on the wall” and “Share your Brownies”. The campaigns focused on encouraging their customers to create their own signature ice cream, and then share it at the store’s location and online. Furthermore, gamification was added to the campaign to award points to people’s creations when they were purchased, earning the creator discounts and prizes. “That’s a pretty neat campaign, but how does ROI play a role in this?”.
The company spent six months observing the interactions and discussions people had in regards to ice cream. This provided a solid basis on how to best invest their money into a set of advertising strategies to be based within social media. For a brief synopsis of the case study, Adi Gaskell blogged about the successes realised through the seven steps Hokey Pokey undertook.
Word of Mouth as a figure
Now that we understand what it is Hokey Pokey was trying to achieve, let’s look at the manner by which they broke down these unquantifiable measures for analysis.
This is quite a new take on the measurement of unquantifiable attributes. The manner in which Hokey Pokey was able to utilise WOM, CIE, CIV and now customer lifetime value (CLV), allows for a greater understanding of the ROI of social media. Each of these factors is considered a value, and can be formed into an equation to generate a direct value. As this post is getting quite theory-heavy, I’ll refrain from embedding each equation for CIE, CIV and CLV, but I implore you to take a look at the case study and its many metrics to what we would assume is unquantifiable.
What was the final result?
Hokey Pokey, as a small business, was able to utilise this understanding of the different metrics to increase their sales by 40%. This may not sound like much (in comparison to say, Blend Tech’s 700%), but again, we need to look at the effect of these key indicators of social media.
As we can see, sales revenue is just one figure in the ROI of Hokey Pokey’s two advertising strategies. The effect of ‘growth in brand awareness’ and ‘number of positive WOM instances’ have been factored in to show the true nature of social media’s implementation in small businesses. What were the strengths of this case? Creating quantifiable measurements to show the impact of social media on small businesses. The weaknesses? One could argue the sales revenue of Hokey Pokey was increased by only a small amount, detracting from the total value of the strategies implemented. However, I hope this post (and its analysis) has swayed your perspective on the ROI of social media like it has for me, providing insight into the many other attributes and measurements that should be effectively analysed when determining the true value of any social media implementation.
When it’s all said and done
Thanks for sticking with me, everyone. I know this post has been a little theory heavy (and that’s with me withholding some of the other tables and figures I wanted to include), but I wanted to share this unique view on the quantification of certain elements of social media that is hard to write down as being of a particular measurable value. I’d like to thank all my readers, and Jason Watson for providing us all with a chance to create and improve our digital image. Shout outs to Conor and Adam for their quality blogs, useless facts and quotes of the week.
Thanks for reading, all. I hope to continue my posts in the future, and hope you can join me once again.
To end it all, here’s a Scottish band I was introduced to during my latest adventures abroad.
Sources from this link-heavy post
Hokey Pokey’s Site
The Case Study in question
Jason Watson’s LinkedIn Page
Adi Gaskell’s Blog
The study’s source –
Kumar, V., Bhaskaran, V., Mirchandani, R., & Shah, M. (2013). Practice Prize Winner—Creating a Measurable Social Media Marketing Strategy: Increasing the Value and ROI of Intangibles and Tangibles for Hokey Pokey. Marketing Science, 32(2), 194-212.