Through the organisational views, the implementation of social technologies is not only covered the expectation of the returns on the monetary side but also those intangible benefits. This might possibly include all changes in the working processes/structures that drive the organisation’s performance, especially communication and collaboration. In order to determine the ‘success’ on how the organisations adopt and apply the social technologies, 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 scope of the social technology implementations through my chosen organisation, ‘Comcept’ as a case example.
Comcept is an independent Japanese game company that works on both design and development. The company launched its Kickstarter project, ‘Mighty No.9’ at the end of August 2013. Its funded budget was set to be approximately $900,000 as its minimum goal. There was no specific monetary in details on how this amount of the budget could broken down into which sub-costs, but it might surely consist the cost of the game production elements (e.g. programmers, designers, artists) and the cost of the tiers’ physical products (if the company specified/stated them in its announced project).
During the funding period (Aug 31, 2013 – Oct 1, 2013) of the Mighty No.9’s project, Comcept had engaged both of its fans and gamers through its project’s social media channels (Facebook and Twitter) along with keeping the updates on its official Kickstarter page. At the current state of the project, the company has successfully reached its minimum goal (within 48 hours after the project launched) as well as some of its stretch goals. By using the social media monitoring tool such Topsy with the main keywords of Mighty No.9, the result really demonstrated that there are high active numbers of around 300 mentioned tweets about this project during the first 3-5 days after the project went live, not even mention its Facebook page (1,077 likes) and its search term (270 hits). These quantified results reflected the phenomenon on why the project could be able to reach its first goal within the short period of time.
On the final date of the project funding (Oct 1, 2013), the funded amount was completely ended with $4,046,579 (with Paypal amount included). According to the progress graph from Kicktraq, it visualized on the growth amount touched the pledged bar of $4M. From this, I decide to use the finalized numbers based on the Mighty No.9’s official Kickstarter page to do the ROI calculation. To calculate the actual social media ROI from this Kickstarter project, I would like to bring up the formula first, and it is “ ROI = ((Gain from investment – Cost of investment) / Cost of investment) x 100% ”. By substituting the mentioned numeric values, the equation is going to look like this:
ROI = ( ( [ $4,046,579 – [ $4,046,579 x 5% as Kickstarter fee ] ] – $900,000 ) / $900,000 ) x 100%
= ( $2,944,250.05 / $900,000 ) x 100% = 327.14%
About other related major benefits that the Comcept company gain from this project through the use of social technologies, they can be categorised and listed as follows:
– Being able to reach and go beyond the company’s goal with the amount of $4,046,579 through crowdfunding with the total of 67,226 backers, 16,088 Twitter followers (with 1,088 mentions), and 15,146 Facebook likes (with 6,129 mentions) within only a month.
– Being able to engage fans/gamers and gain their inputs for the new game ideas through the use of crowdsourcing
– Extending the online communication options through available social media channels (Facebook and Twitter) as approaching wider fans/games communities and promoting/informing the company’s project
– Gaining customers’ insights (especially the trends) and being able to improve/develop the products that meet the targeted audiences
– Exploring the new market through the use of crowdfunding
By basing on the outputs and benefits that I have mentioned above, I think that the case of the Comcept company is an interesting organisation’s model in terms of applying the current social technologies to maximize the company’s performances. From this, the company can be able to get connected with its loyal and new customers (as the contacts’ extension) much more easier than ever. Together, they can shape the organisation’s future in which bringing the quality of the products/ services into the next stage. That is also considered as another key value where it can be captured apart from the monetary returns.