May 10, 2012 By blogging

Social Media and ROI

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Each day creative marketers contrive new ways to use word of mouth influence and social media popularity to influence sales. We often get asked, “what is one ‘like’ worth?” and there are many companies that have come up with their own algorithms for this (Integrate Public Relations included!).

The C&A flagship store in Brazil has decided to put these numbers to use in an irregular but fascinating way. By equipping their store with special hangers, customers will be able to see how many people “liked” each particular piece of clothing on their Facebook page.

This is taking social shopping to a whole new level.

Social Media ROI is a topic that marketers are constantly re-evaluating and trying to answer.  In the recently publicized video for the Facebook IPO, Sheryl Sandberg suggests that adding social media into the marketing mix can produce measurable results. However, will these Facebook hangars truly track the influence social media has on purchase decisions? As social media constantly evolves, so will the measurement of ROI with new techniques and tools.

Would you buy something if you knew that your friend did not “like” it? The hangars state the number of people who like the item of clothing, but not which of your friends liked it. Will these numbers show that the public has a penchant for buying what is “popular”? It will be an interesting experiment to see if consumers are more or less inclined to buy an item with more likes.

Word of mouth is the biggest purchase influencer for consumers and this may be a way for retailers to actually monetize the value of peer opinions. We are really interested to see what happens here.