So, maybe I have been hiding under a rock, but today was the first time I’ve heard the expression that “ROE” or “Return on Engagement” has replaced “ROI” or “Return on Investment” (in the marketing universe).<\/p>\n
Active vs. passive<\/strong><\/p>\n So what is ROE?\u00a0 It’s about focusing on engagement, and relationships, and attracting and rewarding the right kind of brand advocates to help spread your message.\u00a0 It is getting people involved in what you do and how you do it.\u00a0 Or at least that’s what I believe it means.\u00a0 The term is so new, it doesn’t even have a place in Wikipedia yet.<\/p>\n With social media and the new social networks it has changed how we build a marketing plan.\u00a0 Although social media does not have an upfront price tag like radio or TV, it is labor intensive and has a reputation (just for kids, not business worthy, etc)\u00a0 it still needs to get past.\u00a0 Using social networks for business practices is still new.\u00a0 There are stumbling blocks.\u00a0 But, for those that figure it out, the return can be big (as the early adopter that everyone else will try to mirror).<\/p>\n Should ROI ever have been used when it applied to marketing?\u00a0 Probably not.\u00a0 How do you really determine the ROI of a radio spot?\u00a0 Isn’t it more about the response?\u00a0 That’s why I think ROE is brilliant.\u00a0 It allows us as marketers to clarify a business who our best customers are and what we can do to continue to excite and engage them.\u00a0 No matter what the means or marketing channel.<\/p>\n Measurement<\/strong><\/p>\n Here’s the start of my check list for ROE.\u00a0 Should these be here?\u00a0 What others should be added & why?<\/p>\n * Value for advocacy:<\/strong> what is the cost per action as applied to advocacy or outreach (branding, education, etc) campaigns. Including being able to access as many people as possible when your version of a Katrina hits or you have a window of opportunity where the issue you’re working on hits the headlines.<\/p>\n * Recruitment:<\/strong> how many friends per week have been acquired?\u00a0 How many lost?<\/p>\n * Opportunity cost: <\/strong> how many hours per week have my staff or volunteers devoted to spending time in social networks?<\/p>\n * Viral benefit of social networks:<\/strong> if you have a network in place, you might increase your chances of reaching a lot of people to spread your news. Most social networks are set up to enable communications with a lot of people quickly.<\/p>\n * Demographics:<\/strong> is the audience you’re recruiting from the social network appropriate for your organization?<\/p>\n * Message control:<\/strong> your message is likely to get picked up by others, and to be successful, some amount of message control will likely need to be sacrificed.<\/p>\n * Investing in the future:<\/strong> Maybe the younger demographic of the social networks will be interested in your organization in the future, so start building awareness now.<\/p>\n","protected":false},"excerpt":{"rendered":" So, maybe I have been hiding under a rock, but today was the first time I’ve heard the expression that “ROE” or “Return on Engagement” has replaced “ROI” or “Return on Investment” (in the marketing universe). Active vs. passive So what is ROE?\u00a0 It’s about focusing on engagement, and relationships, and attracting and rewarding the … Continue reading Return on Engagement<\/span>