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ROI of business blogging : Forrester Report

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Forrester published a report on “The ROI Of Blogging: The “Why” And “How” Of External Blog Accountability”.

From the excerpt :

Many large companies stand on the brink of blogging, yet they are unwilling to take the plunge. Others, having dove in early, now face the challenge of managing existing blogs without the ability to show that they effectively support business goals. While blogging’s value can’t be measured precisely, marketers will find that calculating the ROI is easier than it looks. Following a three-step process, marketers can create a concrete picture of the key benefits, costs, and risks that blogging presents and understand how they are likely to impact business goals. This, in turn, enables marketers to answer the key questions, such as whether to blog or not to blog, or to make smart choices about an existing blog.

From Charlene Li’s Forrester Blog

We developed a framework that allows companies to track and measure the benefits of external blogs. From the companies and individuals we spoke with, the most common benefits are; increased brand visibility, savings from customer insights, reduced impact from negative user-generated content, and increased sales efficiency. The hard part is coming up with metrics that reflect these benefits, and more importantly, how to value those metrics. Here’s the graphic from the report:

Blog ROI : Forrester

From Steve Rubel

In Forrester’s interviews, the most frequently mentioned benefits of corporate blogging were: greater brand visibility in mainstream media on the Web, word of mouth, improved brand perception, instantaneous consumer feedback, increased sales efficiency and fewer “customer service-driven PR blowups.”

Forrester also published supplemental material where they take a closer look at GM’s Fastlane blog. Forrester estimates that GM saw 99% return for 2005 for its investment in blogging. In other words, the GM Fastlane blog generated $578,000 in value on an investment of $291,000.

FInally, the research firm also put together a terrific model for assessing blog risk: a) identify the three things that could happen, b) model the scenario and c) estimate its probability. This is very similar to preparing for a crisis in PR and good advice when venturing into a blog program.

Written by anol

January 28th, 2007 at 5:30 pm

Posted in Social Media

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