December 16, 2014 Leave a comment
There is a good chance that a compelling story won’t be enough to get you everything you need and if you have the data then you should be able to pull together the value of community engagement in order to establish a base line of opportunity. If you don’t have that don’t let it stop you! Getting funding for social business initiatives is never easy and until you can associate revenue to your initiative it is very hard to secure incremental investment to further your programs. Linking your social engagement activity to booked revenue in order to come up with a measurable ROI and justification is the best way to get the attention needed to have a funding conversation.
Welcome to the wonderful world of big data analytics. You don’t have to be a data scientist but knowing statistical information to back up your engagement strategy will work toward your advantage to secure executive support and funding.
In order to make this ROI association my team went through the exercise of pulling new community registrants for a given year then matched them to booked revenue over that same period.
“This information can be pulled from a users profile and or email domain extension in order to associate the user to their respective company. However, there will be a need to clean up the data excluding personal email domains like gmail and yahoo.”
Once this list is compiled, the average purchase price of those companies who had members in the community can be compared to those companies who did not have members. The data in this example concluded that customers with members in a community had an average purchase price 240% higher than those customers who were not engaged in the community.
This was all I needed to get the attention I needed and it wasn’t even the most compelling statistic. What we further determined was if we could increase the number of companies engaging in the community by just 1% we could increase revenue by $12M. But considering there were over 12,000 companies listed as customers that growth opportunity had the potential to be upwards of 2500%. Now we were talking Billions and those types of numbers catch executive’s attention.