Study: Social Media Marketing Reduces Reputation Crisis Costs by 33%
There are many ways to measure the ROI of social media marketing. One that Forrester recommends in its new report The ROI of Social Media Marketing is the “risk management perspective.”
Essentially, how does a social media marketing initiative help reduce the financial impact of a reputation management crisis?
The costs of a social PR crisis can be substantial. To generate a value for the risk management perspective, consider how your social media preparedness and assets can reduce these costs across several different social media crisis scenarios. For instance, a midsized company might consider the social implications of a batch of defective products caused by unforeseen manufacturing issues in an overseas plant — and find that involvement in social media helps insure them against an average annual possible risk of $25,000.