Digital Marketing and ROI - Colorado BMA

HDC / Making the world more active. What ROI is NOT •# Fans •# ReTweets •Total Impressions •Ad equivalency calculations •# Post views, clicks, likes, comments or burps •These are key METRICS. But they are not ROI. ©Copyright Hanson Dodge Creative. All Rights Reserved. 4Thursday, February 16, 2012

HDC / Making the world more active. What will your !"#$%&#$&(#%)#*+,# "-#%.(#/("0.&1#2)3.&4# answer be? %.56#"-#$%.0%#7"8# (9)&:;# ©Copyright Hanson Dodge Creative. All Rights Reserved. 7Thursday, February 16, 2012

HDC / Making the world more active. What’s How will you know if you succeeded? the point? What are you trying to do? How will you measure it? You can’t do everything. Focus. ©Copyright Hanson Dodge Creative. All Rights Reserved. 13Thursday, February 16, 2012

HDC / Making the world more active. Decrease •Reduction in customer acquisition cost costs •Reduction in customer service cost •Reduction in cost to innovate •Reduction in returns ©Copyright Hanson Dodge Creative. All Rights Reserved. 17Thursday, February 16, 2012

HDC / Making the world more active. Brand •Awareness objectives •Sentiment •Word of mouth •Loyalty •Recruitment / Talent retention ©Copyright Hanson Dodge Creative. All Rights Reserved. 18Thursday, February 16, 2012

HDC / Making the world more active. Risk management objectives •Reduction in exposure to risk •Improvement in response effectiveness •Speed of response ©Copyright Hanson Dodge Creative. All Rights Reserved. 19Thursday, February 16, 2012

HDC / Making the world more active. Measurement models •PR / Advertising model •CLV (Customer Lifetime Value) •SEO model •Customer service / satisfaction ©Copyright Hanson Dodge Creative. All Rights Reserved. 24Thursday, February 16, 2012

HDC / Making the world more active. Pick an objective. Measure it. •Identify / agree on key success metrics for this objective •Establish baseline levels •Track change •Ensure comprehensive measurement from all available data points ©Copyright Hanson Dodge Creative. All Rights Reserved. 25Thursday, February 16, 2012

HDC / Making the world more active. “Can we literally sell our product or service via social media Objective: channels?” Sell more product / service YES NO Integrate purchase functionality into your social Maybe your budget or channels: technology does not allow. F-Commerce module, mobile storefront application, tracking codes, e-commerce, cookies, etc. So what CAN you do to inﬂuence purchasing Measure sales volume and behavior? calculate ROI based on cost to sell. ©Copyright Hanson Dodge Creative. All Rights Reserved. 26Thursday, February 16, 2012

HDC / Making the world more active. Identify success •Deﬁne success: sum of parts = whole metrics •Let’s pick “Increase Product Awareness” •What data points would indicate success on this objective? ©Copyright Hanson Dodge Creative. All Rights Reserved. 27Thursday, February 16, 2012

HDC / Making the world more active. Identify success •Deﬁne success: sum of parts = whole metrics •Let’s pick “Increase Product Awareness” •What data points would indicate success on this objective? ✓Shares of product assets (images, video, etc.) ✓Online customer reviews of product ✓Traffic to product information page ✓Social comments, likes about product ✓Product mentions in third party media ©Copyright Hanson Dodge Creative. All Rights Reserved. 27Thursday, February 16, 2012

HDC / Making the world more active. Measure it • What were the baselines before digital initiatives? • Have there been other additions to the marketing mix? • What other factors could contribute to potential increases or decreases? ©Copyright Hanson Dodge Creative. All Rights Reserved. 28Thursday, February 16, 2012

HDC / Making the world more active. r ________ ) CLV: CLV = GC x ( Customer 1+d-r Lifetime Value GC: Gross contribution per customer r: annual retention rate (as a percentage) d: Discount rate, or cost of capital for the future value of a customer. Often roughly estimated w/ current interest rate. *This equation is a good estimate but doesn’t take into consideration costs to maintain a customer and assumes constant values for each variable. More complex CLV equations are required. ©Copyright Hanson Dodge Creative. All Rights Reserved. 29Thursday, February 16, 2012

HDC / Making the world more active. r ________ ) CLV: CLV = GC x ( Customer 1+d-r Lifetime Value GC = $50 per widget r = 80% d = 2.75% Then CLV = $175.82 You spent $100,000 to acquire 2,500 new customers through traditional channels. Cost per acquisition = $40 Customer acquisition ROI = ($175.82 - $40)/$40 = 339.5% ©Copyright Hanson Dodge Creative. All Rights Reserved. 30Thursday, February 16, 2012

HDC / Making the world more active. r ________ ) CLV: CLV = GC x ( Customer 1+d-r Lifetime Value GC = $50 per widget r = 80% d = 2.75% Then CLV = $175.82 You spent $75,000 to acquire 2,500 new customers through social media channels. Cost per acquisition = $30 Customer acquisition ROI = (175.82 – 30)/30 = 486.1% ©Copyright Hanson Dodge Creative. All Rights Reserved. 31Thursday, February 16, 2012

HDC / Making the world more active. Simple calculation (Sales – Investment) ÷ Investment = %ROI Sales = $ sold via that channel or due to that channel Investment = all $ costs related to acquiring the sale: development + design of platform, time to manage or staff it, maintenance costs, advertising to drive awareness of channel, etc. ©Copyright Hanson Dodge Creative. All Rights Reserved. 33Thursday, February 16, 2012

HDC / Making the world more active. Complex calculation (Revenue – Investment) ÷ Investment = %ROI Revenue = $ attributed to sales from leads through or assisted by digital initiatives Investment = all $ costs related to acquiring the sale: assign relevant costs to each level of lead nurturing required to close sale. Must include additional marketing, CRM, proposal development, presentation time, customer service activities, etc. ©Copyright Hanson Dodge Creative. All Rights Reserved. 35Thursday, February 16, 2012

HDC / Making the world more active. Customer service • Used Helpstream (defunct) as CS portal • Before: 1 rep to 55 customers, 77% satisfaction rating • After: 1 rep to 172 customers, 87% satisfaction rating • Cost reduction: $millions • Satisfaction rating: up 13% ©Copyright Hanson Dodge Creative. All Rights Reserved. 37Thursday, February 16, 2012

HDC / Making the world more active. Cisco social product launch •Comprehensive launch program for a new router -Second Life -Facebook -3D gaming -Social news releases -YouTube -Blog -Video conference -Tech Community -Mobile datasheet ©Copyright Hanson Dodge Creative. All Rights Reserved. 38Thursday, February 16, 2012

HDC / Making the world more active. Launch costs • 9,000 people attended virtually = 90x more attendees than in the past • Saved 42,000 gallons of gas • 300% more media coverage than traditional outreach methods • More than 1,000 blog posts and 40 million online impressions • 1/6 the cost of a traditional launch • Saved $100,000 ©Copyright Hanson Dodge Creative. All Rights Reserved. 39Thursday, February 16, 2012

HDC / Making the world more active. Objective: Increase brand awareness for Wilson Basketball and its NCAA Brand Tournament affiliation awareness Success Metrics: Impressions Engagement Community Growth Conversion to website ©Copyright Hanson Dodge Creative. All Rights Reserved. 40Thursday, February 16, 2012

HDC / Making the world more active. )2/(((% Visits to Wilson.com/Basketball (all traffic 2011 vs. 2010) )/(((% )(/(((% 4/(((% !"#"$#%&%())*%+,-*%./01% !"#"$#%&%()(% !"#"$#%&%())% 3/(((% 2/(((% /(((% (% 567% 8,9% :6;% <-;% :6=% 5>7% 5>?% <>@% +,-% AB$% CDE% F,B% ©Copyright Hanson Dodge Creative. All Rights Reserved. 41Thursday, February 16, 2012

HDC / Making the world more active. Success Metrics: Impressions Engagement Community Growth Conversion to website Brand Outcomes: awareness -50 million Facebook Impressions in 24 days. -Product page website traffic up 44% over previous month and 77% over March 2010. -Facebook became #2 source of all traffic to Wilson.com/ Basketball, after Wilson.com -Community grew from 0 to 23,200 in 24 days. -Feedback avg of .45% outpaced Facebook average .29% by 150% )2/(((% Visits to Wilson.com/Basketball (all traffic 2011 vs. 2010) )/(((% )(/(((% 4/(((% !"#"$#%&%())*%+,-*%./01% !"#"$#%&%()(% !"#"$#%&%())% 3/(((% 2/(((% /(((% (% 567% 8,9% :6;% <-;% :6=% 5>7% 5>?% <>@% +,-% AB$% CDE% F,B% ©Copyright Hanson Dodge Creative. All Rights Reserved. 41Thursday, February 16, 2012

HDC / Making the world more active. Aggregated metrics • Most tools make gathering and processing easier • Some include distribution • Some include analysis • Some make pretty pictures • They (nearly) all cost money ©Copyright Hanson Dodge Creative. All Rights Reserved. 43Thursday, February 16, 2012

HDC / Making the world more active. Want vs. need • Search / Aggregate mentions • Moderate conversation • Schedule / Publish content • Engagement management • Measure / Analyze • Language / Translation • Gamiﬁcation / sweepstakes tools • Pricing model ©Copyright Hanson Dodge Creative. All Rights Reserved. 44Thursday, February 16, 2012

HDC / Making the world more active. 1.Leads generated 10 Metrics 2.Website bounce rate to watch 3.Website behavior 4.Growth of active network / engaged base ©Copyright Hanson Dodge Creative. All Rights Reserved. 49Thursday, February 16, 2012

HDC / Making the world more active. 1.Leads generated 10 Metrics 2.Website bounce rate to watch 3.Website behavior 4.Growth of active network / engaged base 5.Brand mentions across social platforms ©Copyright Hanson Dodge Creative. All Rights Reserved. 49Thursday, February 16, 2012

HDC / Making the world more active. 1.Leads generated 10 Metrics 2.Website bounce rate to watch 3.Website behavior 4.Growth of active network / engaged base 5.Brand mentions across social platforms 6.Website visitors and sources of traffic ©Copyright Hanson Dodge Creative. All Rights Reserved. 49Thursday, February 16, 2012

HDC / Making the world more active. 1.Leads generated 10 Metrics 2.Website bounce rate to watch 3.Website behavior 4.Growth of active network / engaged base 5.Brand mentions across social platforms 6.Website visitors and sources of traffic 7.Conversion: subscriptions, email lists, etc. ©Copyright Hanson Dodge Creative. All Rights Reserved. 49Thursday, February 16, 2012

HDC / Making the world more active. 1.Leads generated 10 Metrics 2.Website bounce rate to watch 3.Website behavior 4.Growth of active network / engaged base 5.Brand mentions across social platforms 6.Website visitors and sources of traffic 7.Conversion: subscriptions, email lists, etc. 8.Time spent engaging: apps, time on site, etc. ©Copyright Hanson Dodge Creative. All Rights Reserved. 49Thursday, February 16, 2012

HDC / Making the world more active. 1.Leads generated 10 Metrics 2.Website bounce rate to watch 3.Website behavior 4.Growth of active network / engaged base 5.Brand mentions across social platforms 6.Website visitors and sources of traffic 7.Conversion: subscriptions, email lists, etc. 8.Time spent engaging: apps, time on site, etc. 9.Engagement ratio: active network / total network ©Copyright Hanson Dodge Creative. All Rights Reserved. 49Thursday, February 16, 2012

HDC / Making the world more active. 1.Leads generated 10 Metrics 2.Website bounce rate to watch 3.Website behavior 4.Growth of active network / engaged base 5.Brand mentions across social platforms 6.Website visitors and sources of traffic 7.Conversion: subscriptions, email lists, etc. 8.Time spent engaging: apps, time on site, etc. 9.Engagement ratio: active network / total network 10.Viral engagement: sharing, “people talking” ©Copyright Hanson Dodge Creative. All Rights Reserved. 49Thursday, February 16, 2012

HDC / Making the world more active. Sara Meaney Hanson Dodge Creative President, Strategy & Growth February 8, 2012 smeaney@hansondodge.com hansondodge.com ©Copyright Hanson Dodge Creative. All Rights Reserved. 50Thursday, February 16, 2012

HDC / Making the world more active. MAKING THE WORLD MORE ACTIVE. ™ Hanson Dodge Creative is relentless about pushing the boundaries of engagement to deliver integrated solutions that work. ©Copyright Hanson Dodge Creative. All Rights Reserved.Thursday, February 16, 2012

Digital Marketing and ROI - Colorado BMA

by Hanson Dodge Creative on Feb 14, 2012

Accessibility

Categories

Tags

Upload Details

Usage Rights

Statistics

Digital Marketing and ROI - Colorado BMA — Presentation Transcript