Implementing social technologies will not only giving business tangible and intangible benefits, it will also lead to the return of investment. The return of investment (ROI) is somehow require to be measured for both quantitative and qualitative ways. For this post, I decide to discuss on the ROI of implementing social technology by luxury shoe designer, Jimmy Choo.
In a recent social campaign, Jimmy Choo used Twitter and Foursquare to run a “Trainer Hunt” in which the newly launched designer sneakers “checked in” from various upscale locations around London. FreshNetwork, hired by Jimmy Choo for this project, came up with a unique angle that set about creating an online community centered around a photo competition themed “Catch A Choo“. Thousands of people from 135 different countries entered the competition which had a grand prize of 7 pairs of Jimmy Choos and 2 Jimmy Choo bags.
There is no exact monetary figure that can be shown for overall cost that has been invested by Jimmy Choo for this social media technology campaign, however from brief overview, these are the costs that might involved :
- Service cost to FreshNetworks to come up with the idea, however the exact amount can’t be found
- Social Media Administrator (Twitter, Facebook, FourSquare)
- Valuable Prize (including 7 pairs of Jimmy Choos shoes and 2 Jimmy Choo bags)
- Video Advertisement cost
Though the cost seems big, but it significantly gives Jimmy Choo a big return on investment.
The blogosphere was awash with buzz, with over 9,165 mentions. Over 1,600 bloggers wrote about the campaign, helping to spread online word-of-mouth. The campaign run resulted in 500 new search terms, as well as thousands of organic visits to the JimmyChoo72 community. What’s more the conversion rate of people who engaged with the community was twice that of those that hadn’t, helping Jimmy Choo drive sales from this campaign. An increase of 40% in positive brand mentions was observed which was tied directly to an increase of 33% in in-store shoe sales during the campaign