Chief Marketing Officers remain unsure of how to measure the impact of industry blogs on business metrics, new research has shown.
A new survey from Bazaarvoice conducted with the CMO Club claims the exact impact of social tools on business goals remains elusive.
Some 53 per cent of respondents were unsure about their return on Twitter and 50 per cent were unsure about the direct value of LinkedIn; while 50 per cent were found to be not sure how to measure the impact of industry blogs on business metrics.
Customer ratings and reviews were the best understood marketing activity from an ROI perspective.
As social spending grows, so do revenue expectations. More than 64 percent of CMOs reported that they plan to increase their social media budgets within the next year.
The number of CMOs who don’t hold social media accountable for sales will continue to dwindle, as nearly three-fourths of respondents (72 per cent) who did not attach revenue to social spend in 2009 reported they would create such a link in 2010.
CMOs who are already seeing a strong link between social media and revenue in 2009 expect this impact to be even more profound in 2010, with the majority of respondents (81 per cent) expecting to attribute up to 10 per cent of their 2010 revenues to their social media investments.
Social initiatives must now track to the bottom line: In 2009, the top metrics tracked for social media initiatives included site traffic (90 per cent), number of page views (85 per cent), and number of fans (83 per cent). In 2010,
CMOs also expect top metrics to track more closely to P&L business goals – not just web-related goals.
The fastest-growing metrics for 2010 include revenue, conversion, and average order value, which grew 333 per cent, 174 per cent, and 150 per cent respectively.
Consumer-generated content was also found to play a leading role shaping products or services.
Today, 80 per cent of CMOs use customer insights to shape decision-making at the executive level and 90 per cent of those surveyed use customer stories and product suggestions to shape a brand’s product or services.
By the end of 2010, almost all CMOs say they plan to incorporate a broader range of content sources including customer reviews (59 per cent increase), pre-sales Q&A (24 per cent increase) and Twitter (407 per cent increase) to influence product decisions.
“While 2009 may have been a trial run for many brands and social media, in 2010, CMOs expect social initiatives to directly impact their bottom lines, without exception,” said CMO for Bazaarvoice, Sam Decker.
“While not all brands know how to measure direct results, they strive to focus on business-generating impacts, rather than sheer volume of social interactions.”
He added, “More and more, brands will focus their social initiatives to drive commerce, blending social and e-commerce to build social commerce.”
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