I have been mulling this for a while. Having led a social selling programme on LinkedIn for a global real estate firm and am now advising a number of firms, large and small, this is what I have come up with:
Of course, there are assumptions which have to be made. I wanted to illustrate what the art of the possible can be.
I believe, if you follow this LinkedIn model, either for your entire business or even just a business unit, it holds true to illustrate the potential $ value you can exploit through social.
What is the ROI on LinkedIn social selling?
If we take the number used for the first-degree network of $10m and you spend $1,000 per employee over the same 12-month period on social selling coaching and technology, the spend would be $1m.
That is $1m vs an opportunity value of $10m or a 10x return potential. Even if you took that down to 1/3 and assumed you could close $3m and still spent $1m on social selling coaching and technology, that is a 3x return.
If you start to play around with the AOV and move it to say $30,000, with the same 1,000 employees, your 1st-degree network of opportunity is now $30m and you are still spending the same amount on social selling coaching and technology – this never changes. Now your ROI on social is potentially 30, or at 1/3 is $9m – which is a 9x ROI.
This is the theory. But it is worth stressing that our clients are getting a clear, measurable ROI from this approach on LinkedIn and more widely on social (which is of course confidential). However, we do have a tool that we can use to work out your very own realised business value.
If you want to empower your organisation to unlock the power of its network, get in touch.
Digital Leadership Associates: We are a Social Media Agency. We do three things: Social Media Strategy, Social Selling and Social Media Management. Drop us an email and let’s talk about how we can make an impact on your organisation.