How social media makes its mark on the bottom line

Word-of-mouth and consumer engagement cultivate happy customers—and repeat business

It’s a tough conversation to have. You know the one. Senior management is sitting across the table asking what the return will be on this social media investment of time and resources you’re proposing. How what we say on Twitter, Facebook and other social networks will translate into real, bottom-line dollars.

It’s the elephant in the room. The ROI question, right? And few companies have found a definite answer.

To make matters worse, the numbers aren’t helping.

According to a recent WorkPlace Media report, only 25 percent of people polled would recommend a product or service based on their interactions on social networks. Only 18 percent acted upon a recommendation through a social site.

Those aren’t impressive figures, but I don’t think they matter—at least not as much as management may think.

Social networks aren’t tools designed to drive sales and bottom-line dollars.They’re meant to facilitate conversations—candid discussions between companies and customers.