Sunday, October 14, 2007

Redefining ROI

According Paul Dunay, "I" no longer stands for investment. He coined a new term, "Return on Influence". When it comes to Marketing 2.0 this exactly the kind of ROI that should be measured. Influence refers to the ability to indirectly control or affect the actions of other people or things.

The time we dedicate to blogs, forums and social networks allow companies to build a more personal relationship with the the customer. These interactions have a direct impact in the tonality and overall feeling of a brand.
However the question still lingers - how do you measure it? For this I turn to Jeremiah Owyang, the web strategist guru. Jeremiah talks about 'measuring engagement' which can be defined by "the level of authentic involvement, intensity, contribution and ownership."

Now consider a mashup of these concepts. The time we invest in conversation needs to result in "authentic involvement" from our customers - they have to spend time interacting with the brand. This involvement we get the more likely we are influencing the customer and therefore improving our ROI.

2 comments:

Jeremiah Owyang said...

Excellent! I can't wait to tell you some other measurement tips I've picked up along the way.

mvm said...

This question of measuring engagement is an inflection point I think. If there was an industry agreed-upon metric such as this, it could have a big impact on ad spend, corporate thinking and move us all forward. Thanks for bringing attention to it.