Social Media ROI Process, Challenges and Requirements Jacob Morgan Chess Media Group November 18, 2009
Risk of Ignoring Risk of Ignoring
Return on Influence
What is ROI? Gain from Investment – Cost of Investment Cost of Investment ROI = Financial
Sales is Not ROI <ul><li>Making $3M is not ROI </li></ul><ul><ul><li>Especially if it cost $4M to make the $3M </li></ul><...
Types of ROI  Make money Save money <ul><li>Save on research costs </li></ul><ul><li>Save on time spent, which translates ...
The ROI Number <ul><li>Meaningless without context </li></ul><ul><li>Must understand variables that affect ROI </li></ul><...
What is Impact? <ul><li>Clicks </li></ul><ul><li>Impressions </li></ul><ul><li>Page views </li></ul><ul><li>Comments </li>...
Lord Kelvin <ul><li>“ W hen you can measure what you are speaking about, and express it in numbers, you know something abo...
Take a Deep Breath Relax
Build a Foundation Stop trying to build this   Without starting with this   Or you get this
Breaking and Building <ul><li>Have to break things down in order to build them up again properly </li></ul><ul><li>New pla...
Short Term vs Long Term <ul><li>1-3 month + campaigns </li></ul><ul><li>Fragmented measurement </li></ul><ul><li>No framew...
Measurement Foundation
The Social Business Process
Business Challenges <ul><li>Corporate culture </li></ul><ul><li>Customer information </li></ul><ul><ul><li>Sales data </li...
Technology Challenges <ul><li>Customer tracking </li></ul><ul><ul><li>Social networks and over time </li></ul></ul><ul><li...
Requirements for Enterprise <ul><li>At  least  1 year engagement </li></ul><ul><li>Social media team  NOT  1 person </li><...
Thank You <ul><li>[email_address] </li></ul><ul><li>Blog:  JMorganMarketing.com </li></ul><ul><li>Website: ChessMediaGroup...
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Social Media ROI Presentation

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This is the presentation from the online keynote I did for Social Media Tools Week. The presentation addresses what ROI is and isn't, the social business process, the business and technology challenges for enterprise companies, and requirements for enterprise companies that want to get involved in the social business space.

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  • Thanks a lot Walter, glad you enjoyed it!
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  • Nice job. In your presentation I particularly liked your point that it is not about ’getting an ROI’ per se, it is about using the ROI to optimize your return by directing where you spend your resources. So ROI as an input tool rather than an output. Walter @g2m http://xeesm.com/walter
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Transcript of "Social Media ROI Presentation"

  1. 1. Social Media ROI Process, Challenges and Requirements Jacob Morgan Chess Media Group November 18, 2009
  2. 2. Risk of Ignoring Risk of Ignoring
  3. 3. Return on Influence
  4. 4. What is ROI? Gain from Investment – Cost of Investment Cost of Investment ROI = Financial
  5. 5. Sales is Not ROI <ul><li>Making $3M is not ROI </li></ul><ul><ul><li>Especially if it cost $4M to make the $3M </li></ul></ul><ul><li>You can have positive sales and negative ROI </li></ul><ul><li>Have to take into account investment and return </li></ul>
  6. 6. Types of ROI Make money Save money <ul><li>Save on research costs </li></ul><ul><li>Save on time spent, which translates to dollars </li></ul><ul><li>Save on technology or business costs </li></ul><ul><li>Save on product development costs </li></ul><ul><li>Increase number of customers </li></ul><ul><li>Increase how much people spend </li></ul><ul><li>Increase how often people spend </li></ul><ul><li>Increase customer </li></ul><ul><li>retention </li></ul>
  7. 7. The ROI Number <ul><li>Meaningless without context </li></ul><ul><li>Must understand variables that affect ROI </li></ul><ul><ul><li>Presence on social networks </li></ul></ul><ul><ul><li>Amount of activity </li></ul></ul><ul><ul><li>Type of campaigns </li></ul></ul><ul><li>Tells you: </li></ul><ul><ul><li>What works, what doesn’t </li></ul></ul><ul><ul><li>Where should you be putting your money </li></ul></ul>
  8. 8. What is Impact? <ul><li>Clicks </li></ul><ul><li>Impressions </li></ul><ul><li>Page views </li></ul><ul><li>Comments </li></ul><ul><li>Re-tweets </li></ul><ul><li>Size of network </li></ul>Non-Financial
  9. 9. Lord Kelvin <ul><li>“ W hen you can measure what you are speaking about, and express it in numbers, you know something about it; but when you cannot measure it, when you cannot express it in numbers, your knowledge is of a meager and unsatisfactory kind: it may be the beginning of knowledge, but you have scarcely, in your thoughts, advanced to the state of science.&quot; </li></ul>
  10. 10. Take a Deep Breath Relax
  11. 11. Build a Foundation Stop trying to build this Without starting with this Or you get this
  12. 12. Breaking and Building <ul><li>Have to break things down in order to build them up again properly </li></ul><ul><li>New platform, new game, new way of doing things </li></ul><ul><li>Don’t justify lack of measurement with old marketing methodologies </li></ul>
  13. 13. Short Term vs Long Term <ul><li>1-3 month + campaigns </li></ul><ul><li>Fragmented measurement </li></ul><ul><li>No framework in place </li></ul><ul><li>Scrambling to show results </li></ul><ul><li>Campaign is over, launch another </li></ul><ul><li>Only look at short term results </li></ul><ul><li>1 year + strategy </li></ul><ul><li>Integrated measurement </li></ul><ul><li>ROI and measurement framework </li></ul><ul><li>Results are clear across campaigns </li></ul><ul><li>Can keep launching campaigns based off of measurement </li></ul><ul><li>Look at short term and long term results </li></ul>
  14. 14. Measurement Foundation
  15. 15. The Social Business Process
  16. 16. Business Challenges <ul><li>Corporate culture </li></ul><ul><li>Customer information </li></ul><ul><ul><li>Sales data </li></ul></ul><ul><ul><li>Customer research </li></ul></ul><ul><li>Managing expectations </li></ul><ul><ul><li>Time frame, budget, capabilities </li></ul></ul><ul><li>Department fragmentation </li></ul><ul><li>Semantics </li></ul><ul><ul><li>What is ROI? </li></ul></ul>
  17. 17. Technology Challenges <ul><li>Customer tracking </li></ul><ul><ul><li>Social networks and over time </li></ul></ul><ul><li>Data and analytics </li></ul><ul><ul><li>Managed by multiple parties </li></ul></ul><ul><ul><li>How do you get all the data and make analytics/data platforms talk to each other? </li></ul></ul><ul><li>Making sense of the data </li></ul><ul><ul><li>Interpreting results from various data sources </li></ul></ul>
  18. 18. Requirements for Enterprise <ul><li>At least 1 year engagement </li></ul><ul><li>Social media team NOT 1 person </li></ul><ul><li>Budgeting </li></ul><ul><ul><li>Social media strategy </li></ul></ul><ul><ul><ul><li>$200k+ (comprehensive) </li></ul></ul></ul><ul><ul><ul><li>$10k+ ongoing for monthly engagements </li></ul></ul></ul><ul><ul><li>Technology </li></ul></ul><ul><ul><ul><li>Integrating and aggregating data (one time) </li></ul></ul></ul><ul><ul><ul><ul><li>$50k for minimal work </li></ul></ul></ul></ul><ul><ul><ul><ul><li>$200k+ for comprehensive work </li></ul></ul></ul></ul>
  19. 19. Thank You <ul><li>[email_address] </li></ul><ul><li>Blog: JMorganMarketing.com </li></ul><ul><li>Website: ChessMediaGroup.com </li></ul><ul><li>Twitter: @JacobM </li></ul><ul><li>Book: Twittfaced /Amazon </li></ul>
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