How To Calculate the ROI of Enterprise 2.0

Calculating the Return On Investment of Enterprise Social Software With industry costs averaging 3-5 dollars per user per month, and with no hardware and low management costs, even small increases in key performance indicators driven by enterprise social software platforms produce significant ROI. WHAT CEOS AND HR EXECUTIVES WANT:*** Improve the top line Maintain top talent Allocate the workforce efficiently ► Increase productivity Manage labor costs Foster collaboration and knowledge sharing *** Based on the findings from Gartner's 2010 CEO and Business Executive survey and IBM's research with top HR executives. THANKS /EVERYONE! Great job! 1. Increased a Employee Engagement: Here's a thought... Perfect, lets call this done. Employees using enterprise social software in the workplace are more engaged than their less-connected peers, because knowledge and work become more transparent and employees are able to get real-time feedback. Why it's Important: What Happens to ROI When You Engage Employees? Research by Gallup and others shows that engaged employees are more productive, profitable and less likely to leave. Engaged workforces have an earnings per share 7,000% 6,000% 3.9X higher 5,000% than other organizations in the same industry. 4,000% 3,000% 2,000% How to Measure: 1,000% 1. Use the engagement ratings from your company's employee 0.05 ppt 0.10 ppt 0.15 ppt 0.20 ppt 0.25 ppt 0.30 ppt 0.35 ppt 0.40 ppt 0.45 ppt 0.50 ppt engagement surveys 2. Gather data about each employee's usage of your enterprise social network INCREASE IN EMPLOYEE ENGAGEMENT ppt = Percentage Point If implementing enterprise social software can increase employee engagement by as little as o.1 percent, based on Best Buy's correlation between engagement and operating income (see below), that would result in an ROI of greater than 800 percent.* 3. Gather data for other factors that could impact employee engagement 4. Using regression analysis, calculate the impact the usage of the enterprise social network "Almost every company we've studied says it values employee engagement, but some...can precisely identify the value of a o.1 percent increase in engagement among employees at a particular store. At Best Buy... that value is more than $100,000 in the store's annual operating income." -HARVARD BUSINESS REVIEW has on engagement 2. Decreased Turnover Rate Employees using enterprise social software in the workplace are less likely to leave the organization than those that don't. Social collaboration software helps employees adapt more quickly, and get the information they need to be successful in their position. SLOW FAST Why it's Important: What Happens to ROI When You Keep Your Employees? Estimated cost of employee turnover: 100% to 150% of base salary. 3,000% How collaborative software can help increase ROI: Supposing your organization's average salary = $45,000 2,500% 2,000% Enterprise 2.0 software reduces your turnover rate by at least 1%. I,500% Your organization saves at least $1 million a year. 1,000% 500% How to Measure: 1. Identify the employees that left 0.5ppt 1ppt 1.5ppt 2ppt 2.5ppt 3ppt since you launched your network. INCREASE IN EMPLOYEE RETENTION 2. Get data on employee usage of ppt = Percentage Point social software and other data that impact turnover rates. Even a 1 percentage point increase in employee retention driven by enterprise collaboration leads to an ROI** of over 800 percent* 3. Analyze results. **BASED ON A WORKFORCE OF 5,000 EMPLOYEES WITH AN AVERAGE SALARY OF $45,000. - OMG! 3. Sales FIRST! Enterprise social software platforms allow sales departments to react faster to customers' requests, news about the competition, and share insights into key customer accounts, resulting in more closed deals and an increase in sales volume. What's the RỒI of a Why it's Important: Collaborative Sales Teanm? Higher overall profit. $5m $4.5m How to Measure: $4m 1. Obtain the sales results for $3.5m each of your sales team members 2. Gather data to reflect each $3m person's usage of the enterprise social network $2.5m $2m 3. Account for other factors that could have impacted $1.5m sales results $Im 4. Analyze the relationship between the use of $0.5m enterprise social software and sales results 0.5ppt 1ppt 1.5ppt 2ppt 2.5ppt 3ppt 3.5ppt 4ppt 4.5ppt 5ppt Sources: INCREASE IN SALES ppt = Percentage Point Gartner.com 935.IBM.com Aabri.com Gallup.com With annual sales revenue of $100 million, a 1 percent increase in sales driven by the implementation of enterprise social software can bring a return of $960,000.* Harvard Business Review Oct. 2010, Competing on Talent Analytics, By Thomas H. Davenport, Jeanne Harris, and Jeremy Shapiro *All ROI calculations are estimates and based on the industry standard pricing of $3 user a month (with volume discounts no more than $o.50 a user per month) for a Sas deployment. Estimated implementation costs are included and thus numbers reflect ROI. ©2010 Socialcast inc., all other trademarks herein are recognized to be the property of their respective owners. O SOCIALCAST RETURN IN $ RETURN ON INVESTMENT RETURN ON INVESTMENT Calculating the Return On Investment of Enterprise Social Software With industry costs averaging 3-5 dollars per user per month, and with no hardware and low management costs, even small increases in key performance indicators driven by enterprise social software platforms produce significant ROI. WHAT CEOS AND HR EXECUTIVES WANT:*** Improve the top line Maintain top talent Allocate the workforce efficiently ► Increase productivity Manage labor costs Foster collaboration and knowledge sharing *** Based on the findings from Gartner's 2010 CEO and Business Executive survey and IBM's research with top HR executives. THANKS /EVERYONE! Great job! 1. Increased a Employee Engagement: Here's a thought... Perfect, lets call this done. Employees using enterprise social software in the workplace are more engaged than their less-connected peers, because knowledge and work become more transparent and employees are able to get real-time feedback. Why it's Important: What Happens to ROI When You Engage Employees? Research by Gallup and others shows that engaged employees are more productive, profitable and less likely to leave. Engaged workforces have an earnings per share 7,000% 6,000% 3.9X higher 5,000% than other organizations in the same industry. 4,000% 3,000% 2,000% How to Measure: 1,000% 1. Use the engagement ratings from your company's employee 0.05 ppt 0.10 ppt 0.15 ppt 0.20 ppt 0.25 ppt 0.30 ppt 0.35 ppt 0.40 ppt 0.45 ppt 0.50 ppt engagement surveys 2. Gather data about each employee's usage of your enterprise social network INCREASE IN EMPLOYEE ENGAGEMENT ppt = Percentage Point If implementing enterprise social software can increase employee engagement by as little as o.1 percent, based on Best Buy's correlation between engagement and operating income (see below), that would result in an ROI of greater than 800 percent.* 3. Gather data for other factors that could impact employee engagement 4. Using regression analysis, calculate the impact the usage of the enterprise social network "Almost every company we've studied says it values employee engagement, but some...can precisely identify the value of a o.1 percent increase in engagement among employees at a particular store. At Best Buy... that value is more than $100,000 in the store's annual operating income." -HARVARD BUSINESS REVIEW has on engagement 2. Decreased Turnover Rate Employees using enterprise social software in the workplace are less likely to leave the organization than those that don't. Social collaboration software helps employees adapt more quickly, and get the information they need to be successful in their position. SLOW FAST Why it's Important: What Happens to ROI When You Keep Your Employees? Estimated cost of employee turnover: 100% to 150% of base salary. 3,000% How collaborative software can help increase ROI: Supposing your organization's average salary = $45,000 2,500% 2,000% Enterprise 2.0 software reduces your turnover rate by at least 1%. I,500% Your organization saves at least $1 million a year. 1,000% 500% How to Measure: 1. Identify the employees that left 0.5ppt 1ppt 1.5ppt 2ppt 2.5ppt 3ppt since you launched your network. INCREASE IN EMPLOYEE RETENTION 2. Get data on employee usage of ppt = Percentage Point social software and other data that impact turnover rates. Even a 1 percentage point increase in employee retention driven by enterprise collaboration leads to an ROI** of over 800 percent* 3. Analyze results. **BASED ON A WORKFORCE OF 5,000 EMPLOYEES WITH AN AVERAGE SALARY OF $45,000. - OMG! 3. Sales FIRST! Enterprise social software platforms allow sales departments to react faster to customers' requests, news about the competition, and share insights into key customer accounts, resulting in more closed deals and an increase in sales volume. What's the RỒI of a Why it's Important: Collaborative Sales Teanm? Higher overall profit. $5m $4.5m How to Measure: $4m 1. Obtain the sales results for $3.5m each of your sales team members 2. Gather data to reflect each $3m person's usage of the enterprise social network $2.5m $2m 3. Account for other factors that could have impacted $1.5m sales results $Im 4. Analyze the relationship between the use of $0.5m enterprise social software and sales results 0.5ppt 1ppt 1.5ppt 2ppt 2.5ppt 3ppt 3.5ppt 4ppt 4.5ppt 5ppt Sources: INCREASE IN SALES ppt = Percentage Point Gartner.com 935.IBM.com Aabri.com Gallup.com With annual sales revenue of $100 million, a 1 percent increase in sales driven by the implementation of enterprise social software can bring a return of $960,000.* Harvard Business Review Oct. 2010, Competing on Talent Analytics, By Thomas H. Davenport, Jeanne Harris, and Jeremy Shapiro *All ROI calculations are estimates and based on the industry standard pricing of $3 user a month (with volume discounts no more than $o.50 a user per month) for a Sas deployment. Estimated implementation costs are included and thus numbers reflect ROI. ©2010 Socialcast inc., all other trademarks herein are recognized to be the property of their respective owners. O SOCIALCAST RETURN IN $ RETURN ON INVESTMENT RETURN ON INVESTMENT Calculating the Return On Investment of Enterprise Social Software With industry costs averaging 3-5 dollars per user per month, and with no hardware and low management costs, even small increases in key performance indicators driven by enterprise social software platforms produce significant ROI. WHAT CEOS AND HR EXECUTIVES WANT:*** Improve the top line Maintain top talent Allocate the workforce efficiently ► Increase productivity Manage labor costs Foster collaboration and knowledge sharing *** Based on the findings from Gartner's 2010 CEO and Business Executive survey and IBM's research with top HR executives. THANKS /EVERYONE! Great job! 1. Increased a Employee Engagement: Here's a thought... Perfect, lets call this done. Employees using enterprise social software in the workplace are more engaged than their less-connected peers, because knowledge and work become more transparent and employees are able to get real-time feedback. Why it's Important: What Happens to ROI When You Engage Employees? Research by Gallup and others shows that engaged employees are more productive, profitable and less likely to leave. Engaged workforces have an earnings per share 7,000% 6,000% 3.9X higher 5,000% than other organizations in the same industry. 4,000% 3,000% 2,000% How to Measure: 1,000% 1. Use the engagement ratings from your company's employee 0.05 ppt 0.10 ppt 0.15 ppt 0.20 ppt 0.25 ppt 0.30 ppt 0.35 ppt 0.40 ppt 0.45 ppt 0.50 ppt engagement surveys 2. Gather data about each employee's usage of your enterprise social network INCREASE IN EMPLOYEE ENGAGEMENT ppt = Percentage Point If implementing enterprise social software can increase employee engagement by as little as o.1 percent, based on Best Buy's correlation between engagement and operating income (see below), that would result in an ROI of greater than 800 percent.* 3. Gather data for other factors that could impact employee engagement 4. Using regression analysis, calculate the impact the usage of the enterprise social network "Almost every company we've studied says it values employee engagement, but some...can precisely identify the value of a o.1 percent increase in engagement among employees at a particular store. At Best Buy... that value is more than $100,000 in the store's annual operating income." -HARVARD BUSINESS REVIEW has on engagement 2. Decreased Turnover Rate Employees using enterprise social software in the workplace are less likely to leave the organization than those that don't. Social collaboration software helps employees adapt more quickly, and get the information they need to be successful in their position. SLOW FAST Why it's Important: What Happens to ROI When You Keep Your Employees? Estimated cost of employee turnover: 100% to 150% of base salary. 3,000% How collaborative software can help increase ROI: Supposing your organization's average salary = $45,000 2,500% 2,000% Enterprise 2.0 software reduces your turnover rate by at least 1%. I,500% Your organization saves at least $1 million a year. 1,000% 500% How to Measure: 1. Identify the employees that left 0.5ppt 1ppt 1.5ppt 2ppt 2.5ppt 3ppt since you launched your network. INCREASE IN EMPLOYEE RETENTION 2. Get data on employee usage of ppt = Percentage Point social software and other data that impact turnover rates. Even a 1 percentage point increase in employee retention driven by enterprise collaboration leads to an ROI** of over 800 percent* 3. Analyze results. **BASED ON A WORKFORCE OF 5,000 EMPLOYEES WITH AN AVERAGE SALARY OF $45,000. - OMG! 3. Sales FIRST! Enterprise social software platforms allow sales departments to react faster to customers' requests, news about the competition, and share insights into key customer accounts, resulting in more closed deals and an increase in sales volume. What's the RỒI of a Why it's Important: Collaborative Sales Teanm? Higher overall profit. $5m $4.5m How to Measure: $4m 1. Obtain the sales results for $3.5m each of your sales team members 2. Gather data to reflect each $3m person's usage of the enterprise social network $2.5m $2m 3. Account for other factors that could have impacted $1.5m sales results $Im 4. Analyze the relationship between the use of $0.5m enterprise social software and sales results 0.5ppt 1ppt 1.5ppt 2ppt 2.5ppt 3ppt 3.5ppt 4ppt 4.5ppt 5ppt Sources: INCREASE IN SALES ppt = Percentage Point Gartner.com 935.IBM.com Aabri.com Gallup.com With annual sales revenue of $100 million, a 1 percent increase in sales driven by the implementation of enterprise social software can bring a return of $960,000.* Harvard Business Review Oct. 2010, Competing on Talent Analytics, By Thomas H. Davenport, Jeanne Harris, and Jeremy Shapiro *All ROI calculations are estimates and based on the industry standard pricing of $3 user a month (with volume discounts no more than $o.50 a user per month) for a Sas deployment. Estimated implementation costs are included and thus numbers reflect ROI. ©2010 Socialcast inc., all other trademarks herein are recognized to be the property of their respective owners. O SOCIALCAST RETURN IN $ RETURN ON INVESTMENT RETURN ON INVESTMENT Calculating the Return On Investment of Enterprise Social Software With industry costs averaging 3-5 dollars per user per month, and with no hardware and low management costs, even small increases in key performance indicators driven by enterprise social software platforms produce significant ROI. WHAT CEOS AND HR EXECUTIVES WANT:*** Improve the top line Maintain top talent Allocate the workforce efficiently ► Increase productivity Manage labor costs Foster collaboration and knowledge sharing *** Based on the findings from Gartner's 2010 CEO and Business Executive survey and IBM's research with top HR executives. THANKS /EVERYONE! Great job! 1. Increased a Employee Engagement: Here's a thought... Perfect, lets call this done. Employees using enterprise social software in the workplace are more engaged than their less-connected peers, because knowledge and work become more transparent and employees are able to get real-time feedback. Why it's Important: What Happens to ROI When You Engage Employees? Research by Gallup and others shows that engaged employees are more productive, profitable and less likely to leave. Engaged workforces have an earnings per share 7,000% 6,000% 3.9X higher 5,000% than other organizations in the same industry. 4,000% 3,000% 2,000% How to Measure: 1,000% 1. Use the engagement ratings from your company's employee 0.05 ppt 0.10 ppt 0.15 ppt 0.20 ppt 0.25 ppt 0.30 ppt 0.35 ppt 0.40 ppt 0.45 ppt 0.50 ppt engagement surveys 2. Gather data about each employee's usage of your enterprise social network INCREASE IN EMPLOYEE ENGAGEMENT ppt = Percentage Point If implementing enterprise social software can increase employee engagement by as little as o.1 percent, based on Best Buy's correlation between engagement and operating income (see below), that would result in an ROI of greater than 800 percent.* 3. Gather data for other factors that could impact employee engagement 4. Using regression analysis, calculate the impact the usage of the enterprise social network "Almost every company we've studied says it values employee engagement, but some...can precisely identify the value of a o.1 percent increase in engagement among employees at a particular store. At Best Buy... that value is more than $100,000 in the store's annual operating income." -HARVARD BUSINESS REVIEW has on engagement 2. Decreased Turnover Rate Employees using enterprise social software in the workplace are less likely to leave the organization than those that don't. Social collaboration software helps employees adapt more quickly, and get the information they need to be successful in their position. SLOW FAST Why it's Important: What Happens to ROI When You Keep Your Employees? Estimated cost of employee turnover: 100% to 150% of base salary. 3,000% How collaborative software can help increase ROI: Supposing your organization's average salary = $45,000 2,500% 2,000% Enterprise 2.0 software reduces your turnover rate by at least 1%. I,500% Your organization saves at least $1 million a year. 1,000% 500% How to Measure: 1. Identify the employees that left 0.5ppt 1ppt 1.5ppt 2ppt 2.5ppt 3ppt since you launched your network. INCREASE IN EMPLOYEE RETENTION 2. Get data on employee usage of ppt = Percentage Point social software and other data that impact turnover rates. Even a 1 percentage point increase in employee retention driven by enterprise collaboration leads to an ROI** of over 800 percent* 3. Analyze results. **BASED ON A WORKFORCE OF 5,000 EMPLOYEES WITH AN AVERAGE SALARY OF $45,000. - OMG! 3. Sales FIRST! Enterprise social software platforms allow sales departments to react faster to customers' requests, news about the competition, and share insights into key customer accounts, resulting in more closed deals and an increase in sales volume. What's the RỒI of a Why it's Important: Collaborative Sales Teanm? Higher overall profit. $5m $4.5m How to Measure: $4m 1. Obtain the sales results for $3.5m each of your sales team members 2. Gather data to reflect each $3m person's usage of the enterprise social network $2.5m $2m 3. Account for other factors that could have impacted $1.5m sales results $Im 4. Analyze the relationship between the use of $0.5m enterprise social software and sales results 0.5ppt 1ppt 1.5ppt 2ppt 2.5ppt 3ppt 3.5ppt 4ppt 4.5ppt 5ppt Sources: INCREASE IN SALES ppt = Percentage Point Gartner.com 935.IBM.com Aabri.com Gallup.com With annual sales revenue of $100 million, a 1 percent increase in sales driven by the implementation of enterprise social software can bring a return of $960,000.* Harvard Business Review Oct. 2010, Competing on Talent Analytics, By Thomas H. Davenport, Jeanne Harris, and Jeremy Shapiro *All ROI calculations are estimates and based on the industry standard pricing of $3 user a month (with volume discounts no more than $o.50 a user per month) for a Sas deployment. Estimated implementation costs are included and thus numbers reflect ROI. ©2010 Socialcast inc., all other trademarks herein are recognized to be the property of their respective owners. O SOCIALCAST RETURN IN $ RETURN ON INVESTMENT RETURN ON INVESTMENT Calculating the Return On Investment of Enterprise Social Software With industry costs averaging 3-5 dollars per user per month, and with no hardware and low management costs, even small increases in key performance indicators driven by enterprise social software platforms produce significant ROI. WHAT CEOS AND HR EXECUTIVES WANT:*** Improve the top line Maintain top talent Allocate the workforce efficiently ► Increase productivity Manage labor costs Foster collaboration and knowledge sharing *** Based on the findings from Gartner's 2010 CEO and Business Executive survey and IBM's research with top HR executives. THANKS /EVERYONE! Great job! 1. Increased a Employee Engagement: Here's a thought... Perfect, lets call this done. Employees using enterprise social software in the workplace are more engaged than their less-connected peers, because knowledge and work become more transparent and employees are able to get real-time feedback. Why it's Important: What Happens to ROI When You Engage Employees? Research by Gallup and others shows that engaged employees are more productive, profitable and less likely to leave. Engaged workforces have an earnings per share 7,000% 6,000% 3.9X higher 5,000% than other organizations in the same industry. 4,000% 3,000% 2,000% How to Measure: 1,000% 1. Use the engagement ratings from your company's employee 0.05 ppt 0.10 ppt 0.15 ppt 0.20 ppt 0.25 ppt 0.30 ppt 0.35 ppt 0.40 ppt 0.45 ppt 0.50 ppt engagement surveys 2. Gather data about each employee's usage of your enterprise social network INCREASE IN EMPLOYEE ENGAGEMENT ppt = Percentage Point If implementing enterprise social software can increase employee engagement by as little as o.1 percent, based on Best Buy's correlation between engagement and operating income (see below), that would result in an ROI of greater than 800 percent.* 3. Gather data for other factors that could impact employee engagement 4. Using regression analysis, calculate the impact the usage of the enterprise social network "Almost every company we've studied says it values employee engagement, but some...can precisely identify the value of a o.1 percent increase in engagement among employees at a particular store. At Best Buy... that value is more than $100,000 in the store's annual operating income." -HARVARD BUSINESS REVIEW has on engagement 2. Decreased Turnover Rate Employees using enterprise social software in the workplace are less likely to leave the organization than those that don't. Social collaboration software helps employees adapt more quickly, and get the information they need to be successful in their position. SLOW FAST Why it's Important: What Happens to ROI When You Keep Your Employees? Estimated cost of employee turnover: 100% to 150% of base salary. 3,000% How collaborative software can help increase ROI: Supposing your organization's average salary = $45,000 2,500% 2,000% Enterprise 2.0 software reduces your turnover rate by at least 1%. I,500% Your organization saves at least $1 million a year. 1,000% 500% How to Measure: 1. Identify the employees that left 0.5ppt 1ppt 1.5ppt 2ppt 2.5ppt 3ppt since you launched your network. INCREASE IN EMPLOYEE RETENTION 2. Get data on employee usage of ppt = Percentage Point social software and other data that impact turnover rates. Even a 1 percentage point increase in employee retention driven by enterprise collaboration leads to an ROI** of over 800 percent* 3. Analyze results. **BASED ON A WORKFORCE OF 5,000 EMPLOYEES WITH AN AVERAGE SALARY OF $45,000. - OMG! 3. Sales FIRST! Enterprise social software platforms allow sales departments to react faster to customers' requests, news about the competition, and share insights into key customer accounts, resulting in more closed deals and an increase in sales volume. What's the RỒI of a Why it's Important: Collaborative Sales Teanm? Higher overall profit. $5m $4.5m How to Measure: $4m 1. Obtain the sales results for $3.5m each of your sales team members 2. Gather data to reflect each $3m person's usage of the enterprise social network $2.5m $2m 3. Account for other factors that could have impacted $1.5m sales results $Im 4. Analyze the relationship between the use of $0.5m enterprise social software and sales results 0.5ppt 1ppt 1.5ppt 2ppt 2.5ppt 3ppt 3.5ppt 4ppt 4.5ppt 5ppt Sources: INCREASE IN SALES ppt = Percentage Point Gartner.com 935.IBM.com Aabri.com Gallup.com With annual sales revenue of $100 million, a 1 percent increase in sales driven by the implementation of enterprise social software can bring a return of $960,000.* Harvard Business Review Oct. 2010, Competing on Talent Analytics, By Thomas H. Davenport, Jeanne Harris, and Jeremy Shapiro *All ROI calculations are estimates and based on the industry standard pricing of $3 user a month (with volume discounts no more than $o.50 a user per month) for a Sas deployment. Estimated implementation costs are included and thus numbers reflect ROI. ©2010 Socialcast inc., all other trademarks herein are recognized to be the property of their respective owners. O SOCIALCAST RETURN IN $ RETURN ON INVESTMENT RETURN ON INVESTMENT Calculating the Return On Investment of Enterprise Social Software With industry costs averaging 3-5 dollars per user per month, and with no hardware and low management costs, even small increases in key performance indicators driven by enterprise social software platforms produce significant ROI. WHAT CEOS AND HR EXECUTIVES WANT:*** Improve the top line Maintain top talent Allocate the workforce efficiently ► Increase productivity Manage labor costs Foster collaboration and knowledge sharing *** Based on the findings from Gartner's 2010 CEO and Business Executive survey and IBM's research with top HR executives. THANKS /EVERYONE! Great job! 1. Increased a Employee Engagement: Here's a thought... Perfect, lets call this done. Employees using enterprise social software in the workplace are more engaged than their less-connected peers, because knowledge and work become more transparent and employees are able to get real-time feedback. Why it's Important: What Happens to ROI When You Engage Employees? Research by Gallup and others shows that engaged employees are more productive, profitable and less likely to leave. Engaged workforces have an earnings per share 7,000% 6,000% 3.9X higher 5,000% than other organizations in the same industry. 4,000% 3,000% 2,000% How to Measure: 1,000% 1. Use the engagement ratings from your company's employee 0.05 ppt 0.10 ppt 0.15 ppt 0.20 ppt 0.25 ppt 0.30 ppt 0.35 ppt 0.40 ppt 0.45 ppt 0.50 ppt engagement surveys 2. Gather data about each employee's usage of your enterprise social network INCREASE IN EMPLOYEE ENGAGEMENT ppt = Percentage Point If implementing enterprise social software can increase employee engagement by as little as o.1 percent, based on Best Buy's correlation between engagement and operating income (see below), that would result in an ROI of greater than 800 percent.* 3. Gather data for other factors that could impact employee engagement 4. Using regression analysis, calculate the impact the usage of the enterprise social network "Almost every company we've studied says it values employee engagement, but some...can precisely identify the value of a o.1 percent increase in engagement among employees at a particular store. At Best Buy... that value is more than $100,000 in the store's annual operating income." -HARVARD BUSINESS REVIEW has on engagement 2. Decreased Turnover Rate Employees using enterprise social software in the workplace are less likely to leave the organization than those that don't. Social collaboration software helps employees adapt more quickly, and get the information they need to be successful in their position. SLOW FAST Why it's Important: What Happens to ROI When You Keep Your Employees? Estimated cost of employee turnover: 100% to 150% of base salary. 3,000% How collaborative software can help increase ROI: Supposing your organization's average salary = $45,000 2,500% 2,000% Enterprise 2.0 software reduces your turnover rate by at least 1%. I,500% Your organization saves at least $1 million a year. 1,000% 500% How to Measure: 1. Identify the employees that left 0.5ppt 1ppt 1.5ppt 2ppt 2.5ppt 3ppt since you launched your network. INCREASE IN EMPLOYEE RETENTION 2. Get data on employee usage of ppt = Percentage Point social software and other data that impact turnover rates. Even a 1 percentage point increase in employee retention driven by enterprise collaboration leads to an ROI** of over 800 percent* 3. Analyze results. **BASED ON A WORKFORCE OF 5,000 EMPLOYEES WITH AN AVERAGE SALARY OF $45,000. - OMG! 3. Sales FIRST! Enterprise social software platforms allow sales departments to react faster to customers' requests, news about the competition, and share insights into key customer accounts, resulting in more closed deals and an increase in sales volume. What's the RỒI of a Why it's Important: Collaborative Sales Teanm? Higher overall profit. $5m $4.5m How to Measure: $4m 1. Obtain the sales results for $3.5m each of your sales team members 2. Gather data to reflect each $3m person's usage of the enterprise social network $2.5m $2m 3. Account for other factors that could have impacted $1.5m sales results $Im 4. Analyze the relationship between the use of $0.5m enterprise social software and sales results 0.5ppt 1ppt 1.5ppt 2ppt 2.5ppt 3ppt 3.5ppt 4ppt 4.5ppt 5ppt Sources: INCREASE IN SALES ppt = Percentage Point Gartner.com 935.IBM.com Aabri.com Gallup.com With annual sales revenue of $100 million, a 1 percent increase in sales driven by the implementation of enterprise social software can bring a return of $960,000.* Harvard Business Review Oct. 2010, Competing on Talent Analytics, By Thomas H. Davenport, Jeanne Harris, and Jeremy Shapiro *All ROI calculations are estimates and based on the industry standard pricing of $3 user a month (with volume discounts no more than $o.50 a user per month) for a Sas deployment. Estimated implementation costs are included and thus numbers reflect ROI. ©2010 Socialcast inc., all other trademarks herein are recognized to be the property of their respective owners. O SOCIALCAST RETURN IN $ RETURN ON INVESTMENT RETURN ON INVESTMENT