Social Media ROI -- it's something everyone is interested in, but very few people know how to calculate. You can learn everything you need to know about social media ROI in this innovative PDF created and designed by Jamie Turner, Chief Content Officer of the 60 Second Marketer and co-author of "How to Make Money with Social Media."

1. You’re a fool, You couldn’t be
Turner. Social more misguided,
media can’t be my friend. And
measured on an I’ll prove it!
ROI basis!

2. Social Media ROI
Hey, kids! Want to
know how to calculate
the ROI of a social
• Many companies are still trying to
media campaign? figure out how to measure their social
media return-on-investment
• Jamie Turner, the co-author of “How
to Make Money with Social Media,”
covers this topic in detail in his book
• Which, oh by the way, is available at
fine bookstores (and a few crappy
ones) everywhere
• Here’s a quick snapshot of the method
he outlines in “How to Make Money
with Social Media”

3. Introductions
Hey, look! Our logos
• But first, a little background -- are on this page. What
a coincidence!
Jamie is the Chief Content Officer
for the 60 Second Marketer, the
online magazine for BKV Digital and
Direct Response
• He also writes for Mashable and is
invited to speak about social media,
mobile media and branding on TV,
radio and at industry events around
the globe

4. Introductions
• Who is BKV? Glad you asked
• BKV creates direct response, social
media, mobile media, email, paid
search and other campaigns for clients
like AT&T, Caterpillar, The Home Depot,
Mercedes-Benz and Six Flags
• Okay, enough about us. Let’ talk
s
about how you can calculate your
social media ROI

5. Social Media ROI
• Our story begins in a company that’ eerily similar to
s
your company
• And when we say “eerily similar,” we mean the “Are
these people watching me?” kind of eery
• But fear not. We’re not watching you. We just know that
what takes place in our story is happening at
corporations around the globe
• You see, many social media practitioners have a problem
-- they launched their social media campaigns without
tracking the three M’ : Metrics, Measurement and ... a
s
third M-word that we’ll come up with later

6. Social Media ROI
Barbara is going
• The challenge most to love all these
companies face with YouTube views.
Can you say
social media is that “Promotion”?
they can track
quantitative metrics
like page views, blog s
comments, Facebook YouTube View
Likes and re-tweets...
• But they can’t track
the ROI of their social
media campaigns

7. Social Media ROI
OMG! We did all that
work and all you can tell
me is that we got 12,573
• In order to calculate the ROI YouTube visits?
of a social media campaign,
you have to understand the No wonder I keep
concept of Customer Lifetime you in a cubicle.
Value (CLV) You are still in a
cubicle, aren’t you?
• CLV is the amount of revenue
a typical customer will
generate for your company
during his or her engagement
with your brand
• Barbara, the CEO of Barb’ s
Lawn Care, understands this
concept
• Unfortunately, Bob, of YouTube
chart fame, does not

8. Social Media ROI
• Barbara, being the CLV whiz that she is, knows that the
average customer spends $80 per month with her company
and that they typically stay with them for 3 years
• So her Customer Lifetime Value is $2,880. $80 per month x 12
months x 3 years = $2,880
• This raises another question -- how many marketing dollars
should Barbara spend to acquire a customer that generates
$2,880 for her company?
• A good starting point is 10% of her CLV
• In Barbara’ case, she’d spend $2,880 x 10% = $288 to
s
acquire a new customer
• This $288 is called her Allowable Cost Per Sale (CPS)

9. Social Media ROI
• Barbara’s lawn care
company uses direct mail
as its primary marketing Damn. Barbara
tool hated my YouTube
chart. Is it time for
• She spends $1.44 on each brunch yet? I need
direct mail piece they a drink.
send out
• Barbara’s conversion rate
on her direct mail
campaign is 0.5%
• So, for every 200 direct
mail pieces she sends out,
she gets 1 new customer

10. Social Media ROI
• Barbara knows that if she
Once again, gets 1 new customer for
Bob confused every 200 pieces she
YouTube sends out, and each piece
visits with
actual ROI. costs $1.44 to print and
mail, then her Cost Per
No wonder
he drinks. Sale is $288
• 200 direct mail pieces x
$1.44 each = $288 = 1 new
customer
• That matches her
Allowable Cost Per Sale
exactly!

11. Social Media ROI
How can I Fortunately, I
calculate the know just who
ROI of my to turn to for
campaign? the answer!
• However, in order to
accurately calculate the
ROI of her social media
campaign, Barbara is going
to have to find someone
who can help her tie it in
to her Customer Lifetime
Value

12. Social Media ROI
I’m off to re-
connect with
my old flame, Hmmm. I wonder
Stone Steele. what this glowing
green goop
tastes like.
Stone Steele ... the
only guy man enough
for Barbara’s love

13. Social Media ROI
Once Barbara is in
Stone’s lab, she hits Stone, we’re trying to
him up with the calculate the ROI of
big question... our social media
campaign.
Will it require a
super-human effort to
figure that out?

14. Social Media ROI
Calculating the ROI of a
social media campaign is easy.
But more important, what do
you think of my pecks? Can
you tell I’ve been working out?
• Barbara soon found out that
Stone was still the egomaniac
he’d always been
• Even so, she listened intently
as he explained how to
calculate the ROI of a social
media campaign

15. Social Media ROI
• Barbara’ direct mail budget is
s
$2.8 million per year. She knows
that if she uses that to send out
2,000,000 direct mail pieces, she’ll Even if the social
get 10,000 new customers each media campaign
year only generated 800
new customers,
• If she slices off 10% of that $2.8 that’ okay because
s
million budget and uses it for a results would
social media campaign, the social improve each year
media campaign would have to
generate 1,000 new customers for
it to match the success of the
direct mail campaign

16. Social Media ROI
• Stone explained that in order YouTube
to track the leads generated
from her social media Facebook Twitter
campaign, Barbara would have
to use the hub-and-spoke
system
• All of the social media spokes Barb’
s
would drive leads to the Lawn Care
Email Blog
landing page on her website Landing
Page
• From there, she could track
how many prospects converted
to actual customers
• Bingo. Barbara now had a way SlideShare E-Newsletter
to track and measure the ROI
of her campaign LinkedIn

17. She’ probably
s
wondering if
Social Media ROI that’ a rabbit
s
in my pocket.
He may be an
egomaniac, but he’
s
my egomaniac.
Now that Barbara had a way
to track the ROI of her
social media campaign, she
could get back to the task
at hand - rekindling her love
affair with Stone Steele.

18. Social Media ROI
I think Bob’
s
YouTube charts
are just dreamy.
Meanwhile, back at the office And Bob’ pretty
s
dreamy, too.
The end, almost ...

19. Social Media ROI
• Jamie’ book, “How to Make Money
s
with Social Media” is available at
Borders, 800CEORead.com, Amazon
and Barnes & Noble
• You also can contact him for speaking
engagements via his email address at
Jamie.Turner@60SecondMarketer.com
• You can download this presentation at
60SecondMarketer.com/SocialROI
• And, of course, you’ll also want to
find out about BKV Digital and Direct
Response, which generates a 10:1+
ROI on most campaigns it develops
for large brands around the globe

20. www.60SecondMarketer.com