Posted by: Andrew Hemingway | November 26, 2010

Jive CEO Tony Zingale on Community ROI


In a recent discussion on Linkedin.com I mentioned ROI, and the need for Community Managers to prove ROI to their Executive team. In this discussion someone said that it may still be early for many who have not started thinking about ROI. I saw a link to this article on the Jive site and Tony the CEO of Jive Software made a very interesting observation in regards to ROI. (watch 1:19-1:44 if nothing else)  See it here.

Tony reports that members of the Nike Community are buying 40% more from Nike than others not related to the community. This is obviously for a number of reason none more practical than the fact that if an individual likes Nike so much they will join the community they are probably more inclined than most to purchase again. That aside it is an interesting piece of information that should be used to factor into the ROI discussion.

Community Managers need to be having the ROI discussion now. I am convinced that they should not be afraid of it, but rather embrace the discussion because a community built right, and managed right will yield a phenomenal ROI.

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Responses

  1. Hi again Andrew.

    Tony gives a good example of how a community can take action that is directly linked to ROI – in this case increased revenue. My company is a Jive Partner and I have a lot of respect for them. I also lead the deployment of one of their most successful installs prior to starting up 6kites. I ended up being one a few people that Jive had Forrester interview for their commissioned ROI report. I hope to talk about that in a blog post on my site before long. Anyway…

    The one thing I would add to the discussion here is that the only thing that drives community ROI is engagement. Engagement specifically being measured as actions by community members (posts, comments, likes, etc.). Some actions can be done by the community manager, but when the actions are taken by non-company personnel it is much better. As a CM you need to work to get the community to take the actions that drive the ROI.

    So, just like you said: identify the ROI, but then use CM to steer the crowd’s engagement.


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