Post 6-Return on Investment

Dear Readers,

Well, its time for the latest episode of The Lyons Den and today I want to talk about Return on Investment of Web 2.0 Technologies.

Return on Investment can simply can simply be defined as what a company makes and gets back from the money or resources it spends on a project or idea. In this world that is increasingly integrating web 2.0 into everything it does, more and more companies feel (quite rightly) the need to invest money into social media and Web 2.0 to reach new clients, demographics and markets. In the same token, many companies want to see some tangible results from their efforts and to get something back from all they have invested.

Unfortunately, ROI is an issue that keeps recurring, is difficult to measure over mediums and ultimately difficult to define. Some companies do this less well than others. Below are some examples (not necessarily good but not necessarily bad):

The Cadbury company brought back into production its Wispa and Wispa Gold chocolate bars after a series of online petitions using venerable social media site Facebook. The most recent petition attracted a following of 22,000 people which caused Cadbury to release 40 million units of one bar for a limited period. Prior to this, the Wispa bar was re-released and sold approximately 41 million bars in 18 weeks…..a rate of nearly 4 per second over the period.

This is an example of an excellent return on investment from the company. They used a site that is largely (if not completely) cost free and sold many more units and made much more money than they could ever have hoped to spend on social media (the most widely used tools being used these days are without cost)….and they did it all without spending a cent AND they got to see just how popular their products were.

Another example which has worked really well and shows devotion to the brand is that of world-renowned Motorcycle builder Harley-Davidson.  Its devoted riders created a social networking hub run for riders by riders (and more importantly funded entirely by riders). There is the opportunity for Harley owners to share advice and knowledge as well as the opportunity to mingle and socialise with other riders. In addition, and in a win for Harley-Davidson owners, owners can get in contact with one of 7 professional mechanics who regularly access the sites..

Again, another example of the brand having such a following that they actually haven’t had to lift a finger to generate an excellent return from an investment in social media. This case in particular shows how social media has shrunk the world and enabled companies to gain a presence they would never have achieved using regular methods.

The point of this post can be summed up in a phrase from a recent promotional campaign for a breakfast cereal that will be more well known to some of my more “local” reader; “You only get out what you put in”.
Til next time,

That’s a wrap! 🙂

More info on this post can be found here


1 Response to “Post 6-Return on Investment”

  1. 20/09/2011 at 2:06 pm

    Social media plays a big role. companies like to see what the consumers want. by using social tools to create a petition or a “interests” list , it is a bold move. A lot of other companies are also doing it from the top of my head McDonalds 🙂

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