Return on Investment (ROI) of Social Technology implementations

Return on Investment is certainly one of the best metrics to indicate whether the social media tools you are adapting is really effective and worth it. Therefore, for this week’s blog post I will like to introduce ROI and the calculation of it.

This youtube video demonstrate a way of calculating ROI on social networks.

What is ROI?


Experts often say “Social media ROI can’t be calculated because there are too many unknowns” or “Don’t worry about the ROI, just get a strategy and start doing something.” They quote metrics and/or key performance indicators (KPIs), but few know how to take those metrics and convert them to ROI.An ROI calculation is just a way to put your metrics into formulas to show,in numbers, how your strategy is increasing revenue and decreasing costs. ROI calculations can also provide perspective on the potential strengths and weaknesses of your strategy.
Calculating the ROI of social media involves three variables:

1. Traditional business metrics

2. Social media metrics

3. Changes to traditional business processes and metrics when social media is used in a business
By understanding the relationships and dependencies between these variables, you can gain insight into the activities, reach, relevance, and behaviors of customers. (Petouhoff & Herrman, 2011).

Calculating ROI

A perfect way of calculating ROI is to calculate the savings and costs and put them into the classic ROI formula. Which is ((Gains-Cost) / Cost )*100. In this case, I will be calculating the savings that social media tools can save on basing on replacing call centre’s calls.


First of all, there are three mini-parts in saving. Indirect/direct deflections, first call handling, and average handling time. The formula of deflections is:

1. Direct Deflection Savings Formulas:
# New Questions answered by Super-Users = (# Total New Questions Answered) x (% New Questions Answered by Super-Users # of Direct Deflected Contacts = (# New Questions answered by Super-Users) x Est Direct Deflection Rate Savings per period= (# of Deflected Calls) x (Avg Cost/Call)

2. Indirect Deflection Savings Formulas:

# of Indirect Deflected Contacts = (# Total New Question Answered per period) x Estimated Indirect Deflection Rate
Savings per period = (# of Deflected Calls) x (Average Cost/Call)

For first call handling and average handling time is basically the same as indirect/direct deflections. All you have to do is calculate the questions answered by social media tool(forum, superusers). So you’ll know how much has been saved on.


The major costs for social customer service programs center on people and technology. The ability to scale your social program will be an important factor in providing efficient and effective customer experiences while containing operational costs. The key to success is to:
• Deploy the right-sized team to support your social program

• Implement well-defined work processes for your people

• Use the right technology solutions to support your people and processes
Additionally, as you prepare your program strategy, be sure to anticipate higher demands for people and technology resources as your program gains success.

An example of costs formula will be:

Payroll Cost Formulas:

Burdened Compensation per social team member = (Salary + bonus + benefits load) x (% time devoted to social)
Total Payroll Costs = Sum of Burdened Compensation/Social team member

To conclude, taking gains and costs and put them into ROI formula will give you the ROI of your proposal. I hope anyone who have interest in calculating ROI can leave your comment below and I will try my best to give you a satisfying solution. Moreover, to anyone who wants to dig in more into ROI please read Calculating the ROI for Social Customer Service from Dr.Natalie Petouhoff and Kathy Herrmann, which are also where most of the content above came from. Thanks for reading, See you all next week!



Social Networks and Social Media Monitoring

Hello, welcome to my week 9 post. This week I am going to use social media monitoring tool to monitor and analyse “Seven News Brisbane”‘s social media presence.



Seven News Brisbane is QLD’s leading news team and committed to provide quality television news service  for Queenslander.Seven News Brisbane has a strong  social media presence, they used Facebook,Twitter to get involve in online social network.


Social Media Monitoring tool: Social Mention


Social Mention is a social media search platform that aggregates user generated content from across the web into a single stream of information, it monitors 80+ social media properties directly including: Twitter, Facebook, FriendFeed, YouTube, Digg, Google etc.


Social Mention has a simple user interface, user just need to enter the organisation name then wait for the result :).Social Mention used a lot of  criteria to determine Seven New Brisbane’s social presence.

Please have a look at the following diagram.


From the results, we can see that the Seven News Brisbane’s strength is only 2% ,which means that they are being mentioned every two-hour and 60% of  those mentions will have been written by a same author. Next, Seven News Brisbane’s sentiment is 8:1, which means that they will receive positive mention more often than negative mentions. However, Seven news Brisbane received a greater number of neutral mentions over both positive and negative mention. Further, we can see that their reach is 16%, which means that they have not really wild range of influence.

To sum up, Social Mention is useful  media monitoring tool, it provided a sound insight of  “Seven News Brisbane”‘s social media presence. It is still lack of proper analysis  and more detailed insight like other commercial social media monitoring software like SocialBakers.

As Social Mention is free and open source so I don’t want to ask for too much :). So what tool do you think is the best social media monitoring tool?

Thais all for this week, have a nice weekend . Dont be shy to leave your comments here 🙂



Social Mention

Social Mention : Seven News Brisbane

what benefits can the social media bring to social sector

Hello everyone, it is good to see you guys again.  This week, I would like to talk about what benefits can the social media bring to social sectors. We were asked to select an organization from the social sector and briefly describes my selected organization and how some of the value leavers may apply to my chosen organization. 

My chosen social sector is Oxfam Australia.Oxfam Australia has been working with communities for more than 50 years, and we have learnt that simply giving hand outs is not the answer. Instead, we provide people with the skills and resources to help them create their own solutions to poverty. We fund long-term projects around the world and we work in a range of areas, from water and sanitation to education and health, to bring about positive change in people’s lives

McKinsy global institute have identified nine social-sector value levers that fall into four areas: collecting information and insights, mobilizing resources (including fundraising, executing mission, and organization-wide leavers). By applying McKinsy global institute’s model , Oxfam focus on “Moblizing Resources”, both money and personal is crucial to Oxfam, as they want to use social media to:

• Increase awareness of work
• Promote active citizenship
• Increase online donations


Oxfam Australia used Facebook and their official website to raise donation and promote their effort. It allows Oxfam Australia to maximize their fundraising potential because anyone,anywhere with a credit card or online payment account can donate to Oxfam, even they are too far away to offer any meaningful in-person and real-time support.



Besides, Oxfam Australia also used Facebook to promote their activity and get more volunteers to join them. Facebook allows more social technology user to participate in their event.



Oxfam Australia also used their official website, Facebook page to share news,responds,comments and interact with their supporter in order to retain supports and maintain a good relationship with their supporter.

Other than that, social media also offers many compelling benefits for Oxfam Australia such as:

• Learn what  supporters are saying and sharing about  organization.
• Drive traffic to Oxfam various web properties — websites, blogs, etc.
• Drive visitors to online donation pages.
• Enable supporters to distribute messages about Oxfam through their social web presence.
• Empower Oxfam most passionate and influential supporters to promote organization.
• Enable grassroots movements in real-time and rapidly respond to unforeseen events.
• Humanize Oxfam by not limiting communications to traditional methods or messages.
• Acquire new contacts and build supporter database.
• Increase trust and loyalty from  supporters by allowing them to share their voice through feedback forums.

Thats all for this week. Hope you guys like my post. I will see you guys next week 🙂 Cheers


Oxfam Australia Facebook

Oxfam Australia Twitter

Oxfam Australia Official Website

OXfam Australia Wikipedia