Justin Flitter

Marketer | TEDxAuckland Producer | Juggler

Justin Flitter | CMO | TEDxAuckland Producer | Juggler. Follow on Twitter @JustinFlitter

Product Reviews increase Social Media ROI

In a Recent article on RWW  I pulled this exert from Augie Ray. His full blog post is here 

Ray suggests that we look at ROI in terms of four perspectives - financial, digital, brand and risk management. For each, however, Ray says that we should go beyond the surface to evaluate success. Financial ROI, for example, can be measured in terms of online coupon redemption, but also in other ways. He gives the example of online retailer Petco.com. It has found that "Products with reviews have return rates that are 20% lower than those without reviews - and the return rate is 45% lower for products with more than 25 reviews - saving on shipping, restocking, and customer service costs."

Social-media-balanced-scorecard

So using social media channels to encourage people to write reviews about your products is a very good tactic to help reduce your associated business costs with returns and customer service. Another interesting angle to think about ROI for your Social Media activity. Also reinforces the point that Social Media needs to be well integrated with the rest of your business to have full effect