# Calculate ROI of social media – In a real case

Calculating Return on Investment (ROI) is a financial technique in budgeting and investment appraisal. However, when talk about the calculation of ROI of social media, it is much harder.

Firstly, we have to understand what’s business’ investment return (measured by money) and what’s the cost of investment (measured by money). Simply, the formula to calculate ROI of social media = (investment return – cost of investment) / cost of investment.

However, there have more barriers when you doing these measurement. For example, the organization of our second assignment is the Eventcorp, which is a licensed travel agency more focused on organizational assistant of creating program enhancements such as executive reward, team building, motivation, special events, gala events, product launches and major productions. The main problem is that they are randomly using social media to promote themselves. Still, several potential problems here:

1.         How to evaluate the Investment Returns

This should include calculate intangible benefits including the value of customer data, customer feedback, and value of the customer etc, also it should add up with tangible benefits like any increased revenues. Assume that each customer value is \$50, and social media platform has raised 51 likes in Facebook, and 38 followers only on the twitter. It should be noticed that, 6 of Facebook fans were actual customers, which is assumed as \$1000 value. Hence, the total value of customer on social media platform in Eventcorp is almost equal to (51+28)*\$50+6*\$1000=\$9950.

2.         Calculate the Cost of Investment

Cost of investment include the amount of money spend on the social media, and convert the resources spent into money to consider. However, some costs are unforeseeable and very hard to predict. Based on the organizational actual case, this cost could be evaluated as the 1 hour per week, with cost of 50 per hour for since Oct in 2010, which is 52*3*\$50=\$7800.

The ROI of social media therefore = (9950-7800)/7800 = 0.2756

However, the calculation has many limits. First, there is not enough insights into the customer value, and the revenue/ cost figure may not reliable enough, overestimate may occur. Next, research of social media usage is based on personal point of view, didn’t support by communication of the Eventcorp.

Chuan

# Risks and Risks Control of SMS

Social Media Sites (SMS) is now widely used in our daily life. However, because of its well recognition, there are more and more legal issues arose aligned with accomplishment of SMS, such as Confidential Information, Wrongful dismissal, Statutory risks, Occupation and organization specific risks and Reputation risk (Malcolm Burrows, 2011). And what is Social Media Policy (SMP)? A SMP is a policy that “supplements a contract of employment to be legally enforceable by an organization on its employees”. A SMP can therefore address most of the risks that have been discussed above. Further, risk matrix also include: Breach of copyright, defamation, false statements/ misleading and deceptive conduct and the tort of passing off etc.

China Merchants Bank (CMB) is one of the biggest bank in Mainland China. Its business operates like other banks are toward personal banking, corporate banking, online banking and electronic banking services.

• Reputation risk

In recent years, CMB has tried to participate more through SMS, one of the most important is Weibo. Weibo, as explained in the previous blog, is a new platform almost like twitter, which is widely used by Chinese internet users to gather informations from personal/ media channel.  As CMB participate in such SMS, it has a huge reputation risk. this is because SMS like Weibo is a platform that any simple idea could be widely shared. However, these ideas may be positive or negative, it also may be right or even wrong. Under this condition, SMB, acting an important part of people’s daily life, has a very complex relationship with its stakeholder. Any negative side of unsatisfaction of organization would be related to negative judgments and increase the risk to harm the reputation/brand. This risk could from all stakeholders, that is it is possible to be harmed by internal or external.

Relates this risk to SMP, it could be easier to protect organization’s reputation and control/ minimize the possibility through internal management. For example, set specific SMP statement to strict/ prevent any employees’ conduct about sharing any information relates to the work.  Or set-up a anonymity feedback to solve any internal problem and minimize the chance to let anyone speak outside.

• Loss and disclosure from confidential information

As mentioned, Weibo, for example, is a place to share and gather information. It could be personal, as everyone has his/her own page of messages; it also could be public, because everyone could access your page without leaving any visiting information. Thus, it is possible to say someone from CMB is sharing a personal information like he is processing a business loan to some listing company, but it is accessed by public visitor. On the other day, huge amount of money buying its share and organization got a lost. This information should be part of confidential, and as the result, risk of loss and disclosure from confidential information exists. Huge negative impact occur. So does CMB.

However, this could be prevent somehow by implementing SMP. As Borrows said, it is important to let staff who are involved in social media clearly understand legal risks and organizational SMP.  That could help to risk control as well internal organization management.

• Security risk

I found this particularly apply to banking industry. Banks, always need all sorts of security issue, from “how to access the treasury” to “does anyone else could access the system data”. And even on HR side, they also have such risk relate to security,  like “is there any eavesdropper from outside”? All these security risk may caused from internal and/or external. For example, system security risk could relate to virus from internet, or personal conduct.  And this is more significant aware by organization management team. Thus, SMP and other Privacy Act/ laws could take action against these security risk. For instance, SMP of CMB could generate some binds to let no access of any SMS or similar sites. As the result, it could reduce the risk of getting virus from exploring internet.

There must some more legal risks may generate while relating to SMS. However, this should not be totally prevent by setting a SMP, but it could be minimized by a successful implementation and understand.

Chuan

# How Lenovo does marketing and supporting?

Have you seen this YouTube before? Did you notice that how many ThinkPads are in the screen?

Well, the fact is that Lenovo ThinkPad is the only laptop permitted on International Space Station.  And as part of IBM’s personal computer division, ThinkPad was acquired by Lenovo at early 2005. But this does not the end of ThinkPad, instead, this is the beginning of reborn. After years of intention, ThinkPad’s sales has been doubled. Also, new innovation appears, such as ThinkPad Helix and ThinkPad Twist. However, the most thing I want to talk about today, is its customer services and marketing & sales.

Marketing and Sales

• Market research and customer insights. Recently,there is a more targeted approach to Lenovo’s digital marketing decisions and increased its returns. Thank for the Adobe’s marketing cloud, Lenovo received a huge increase on its recent rate of return.  A more targeted data was helping the corporation to decide spending more on digital campaign rather than traditional advertising. These Adobe solutions also let Lenovo well noticed on their current target market and design specific marketing decisions.
• Marketing communication and interaction. Lenovo’s communication between customers are well structured and well participated through all platforms such as Facebook, Twitters, Weibos (a Chinese twitter, widely used between Chinese internet users), official blogs and forums. These platforms are well established and manage by specific groups of marketing people. For example, on Lenovo’s Australia and New Zealand Facebook page, there are posts on a daily basis. They also promotes their new products, and releases news related to their CEO’s on the Facebook page, for instance, “CEO Sleeping outside” or some new decisions made by board. Further, through these social media platforms, such as Weibo, Twitter and Facebook, customers and people who interests in Lenovo could either chat with each other about their thoughts or sharing experiences. And the most important things I found is that the communication could be not related to any technical issue, but a good connection built.  At the same time, on each webpage, visitors could simply click and enter a short comment card about the web content, layout and ease of use.

• Social commerce. As one of the largest personal computer vender, Lenovo sold on a world basis operation scale and provide a professional online customized personal computer services. As trying to provide a good user experience, they also has a online based shopping assistant 24/7. Although these are part of customer care, but compare to one of its competitors: Dell, Lenovo’s customer is much supported and cared during online shopping.

Customer Services

• Customer care. To my point of view, Lenovo’s customer care is more than other similar computer manufacturers. For example, when you check with their online support, either technical support or after sale services, they are all provided in a professional manner. Different divisions of questions have linked to each other if there is anything related, and also the website provides their postal, telephone, and internet contact methods to meet different customer needs.

Maybe Lenovo does more than I mentioned. But they do targeted market and try to meet customer needs, as who said that, the customer is the king.

Chuan

# Enterprise 2.0 is on Fire.

When someone talks about Web 2.0 and its possible implementation, what will you think about its uses for today’s businesses？ Yes, it is much critical in nowadays as most of us are just using the Internet, but few of us are acting as a regular blogger or wiki-inputer. Thus, within Enterprise 2.0: The Dawn of Emergent Collaboration, there are six components are introduced to readers, which are Search, Links, Authoring, Tags, Extensions, and Signals (SLATES). Further, it should be noticed that, Wikinomics business models suggests there are four basic principles acts as central concepts of wikinomics of Enterprise. They are Peering, Openness, Sharing, and Acting Globally.

As I have already experimented with some social technology tools. I am here would like to talk about other two companies (based on weekly requirement) which are either using Web 2.0 to achieve their objectives, or applying Enterprise 2.0 principles as an important method.

ASOS first launched in 2000, after 12 years expansion, it is now the third largest online-only retailers in UK. ASOS has over 2000 employees, more than 7 different languages associated websites and two international offices. And its revenue in 2012 was more than £515.72 million! Obviously, ASOS gains a huge success, when we look deeper into its history and try to analysis their features, we could better gain more understanding and learning.

1. Fashion Blog and ASOS Magazine

ASOS runs a fashion blog with articles of celebrities and entertainment. And it should be noticed that ASOS links relevant items within these posts to their retail website. This is similar with Asos Magazine. People could read the magazine online and it is also linked all items to its webpage. Hence, when visitors found anything interesting in the blog, they could directly click these items and found ASOS website to buy it and keep it. Linking seems direct the whole activities and ASOS is particularly doing well in use this technology to gain more potential profits.

2. ASOS mobile, iphone and ipad app

It is important that an internet based website could follow up all new welcomed technologies to enhance its consumer experience. Up-to-dated Information Technology boosts user experience in a dramatic way, a good adaption is the key for an organization to control the target market under Enterprise 2.0 environment.

3. ASOS Life community

The site contains posts from members of employees, and a help forum that let customers to answer each other’s questions. In addition, it also permits them to submit suggestions for site improvements in a submission cart and they can rate each other’s suggestions as well. This is such more than an openness principle for ASOS to hearing others, and adoption of authoring also encourage people to be involved.

I would like to say Pinterest is a SNS of “photo bookmark”. Maybe not everyone are using Pinterest, so a little introduce of this first. Well, every user has their own pinboards, which can share with others and manage. While they found something freshly through a website and want to record on their pinboard, they could “pin it”, or they could “repin it” from others’ pinboard to theirs. During these activities, the original website of the image is stored along with it, so viewers could easily to access original website simply by a click.

Pinterest was found on 2010, and according to Reuters, till Feb 2013, there are more than 48.7 million users globally. And at the 2012 Webby Awards, Pinterest won best social media app and best functioning visual design.

So, what are the specials that push them to make such well attention? Well, as observed, it is important that easy functions attract large groups of people. Users can choose to share others’ images or make their own pin, it is much welcomed today that an image could be “re-traced” and original information (original website ) stored. Thus, it is quite pleased to find that people act globally and really enjoy this simple “pin” function. Further, all those “pin” and “re-pin” activities are supported by linking, tagging, and also do recommendations supported by extensions, which makes simple function generates larger attractions.

At last, these two examples of organization let me think that Enterprise 2.0 is not just technology or principle, it should be also recognized as engagement. When both organizer and users are engaging into Enterprise 2.0 through sorts of technology of social media, they could be well played in helping business doing much smoother under today’s Internet environment.  They are not compulsories, but they are essentials or shortcuts to hit better performance. So, maybe we can say that, Enterprise 2.0 is significant and should be noticed as fire which is ligten worldwide.

Ps, I would like to introduce one of ANDREW MCAFEE’s blog posts, which I found is quite helpful to think deeper. The post is related to SLATES’s last component, called The Signal Core.

Chuan

# Weekly blog strategy for Enterprise 2.0

Hi everyone, here is my first post for this blog. As mentioned in the About page, here is a free area that you can insert your ideas, whatever like or dislike through the comment. All suggestions will be fully welcomed.

In order to doing well in Enterprise 2.0 blogging, there are some special “strategies” I may apply:

1. Be confidence – English is not my first language, but I think many people have the similar situation. However, everything I am trying to express and share here is based on my research and personal experiences. I am not such a celebrity could be so popular, but there should be a confidential foundation to do blogging.
2. Trying harder – Yes, a good blog needs containing useful information. If you could not come up with useful tips at moment, then try harder. Maybe read more and think more, or talk with others, discuss some ideas with peers and make these ideas stronger.
3. Visit others’ blog – The fun of blogging I think is to share. Visiting others’ blog could share thoughts and exchange ideas. On the other hand, visiting could promote your own blog to others, and increase the visiting quantity.

Further, I would like to introduce a video about how to produce a website with WordPress 3.5:

It is critical to apply anything you want to a blog, sometimes, due to technical issue or something limits. Thus, fully understanding and implement functions that a platform already has is quite important. Besides, all these updates could help users to increase visitors’ reading experience and help bloggers to improve their blogs’ status.

There is one of popular blogs I always visit: MICHELLEPHAN.COM. I have to say Michelle’s success has many factors, and many years later over 4 million of followers subscribe her updates. In her websites, consistently updated daily blog is of the key factors that driven many followers. Even these updates are revision of previous years’ one, but still keep updating and shows her improvement in either content and post production.

She also promotes her blog, twitter, Facebook and video channel anywhere. While the appearance of “Instagram”, she took a chance to update frequently and soon enjoy this new fashionable platform to increase her influence.

Thus, at least two things I want to sum up for a self-reminder. Firstly, keep doing and show your improvement. There is nobody that could be a innate pro-blogger, all I need is to keep trying to do better. Second, follow the technical trend and well use them to promote. Maybe this is the hardest part as you have to speak in/ before somewhere new or someone who is not used to be included in your communities. But, you know what, everything has its all new beginning. After this, maybe I could enjoy this experience and implement these experience in the future studying and working.

Tired of reading? Lest’s have a bit of rest, enjoy some cutest animals on the planet.

(all these pictures are from Google Image.)

I love pandas, not only because they are one of national treasures form China, and their charming naivety. Seems they have kind of silly looking, don’t they?