I know social customer service has value but I’ve struggled to come up with a consistent and ongoing metric that frames our social customer service program’s ROI in monetary terms. But I finally had my “Aha!” moment this week during a #PDXchat discussion, “What’s The Real ROI of Social Media”.
One of the lead facilitators, Terry Starbucker, recommended that we do two things: first, know the financial value of your customers; and then tie Social Media ROI to profit, sales or customer retention. And that got me thinking……….
One important measure that I use is “Ranter to Raver” which is modeled on a metric that Dell tracks in their Social Media program. It’s a great way to quantify how many unhappy customers you have turned around into brand champions. Like Dell does, I have been calculating this solely on a percentage basis: Ranters turned into Ravers/Ranters. Which is all good but it doesn’t convey our success in dollars & cents.
So when Terry advised us to frame ROI using the financial value of our customers tied with customer retention, the light bulb went off in my head! I finally have a way to calculate ongoing ROI for our social customer service program. I know what the financial value is for each Cancel/Save customer. All I need to do now is take that financial value and apply it to the number of Ranters-to-Ravers. Voila! I can now produce an ROI figure for our social customer service efforts.
Sweet! Thanks Terry!