The ROI of Social Media

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Interested in learning how to measure the ROI of a Social Media Campaign? Here\'s an in-depth presentation that covers it all.

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  • Hi, Marni. Thanks for letting me know about the file.

    I tried it on my computer and it seemed to work. Hopefully, it was a one-time thing.

    That said, you can download an extended version of this presentation on my website here:

    http://www.60SecondMarketer.com/PDF

    Good luck. And let me know if you have any additional challenges.

    Best,
    Jamie Turner
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The ROI of Social Media

  1. 1. How to Measure the ROI of a Social Media Campaign Brought to you by Jamie Turner Author, “How to Make Money with Social Media” Chief Content Officer, The 60 Second Marketer
  2. 2. Jamie Turner • Chief Content Officer of the 60 Second Marketer, the Online Magazine for BKV Digital and Direct Response • Has helped AT&T, CNN, The Coca- Cola Company and Cartoon Network grow sales and revenues with new and innovative marketing programs • Profiled in the world’s best-selling advertising and promotions textbook • Co-author of “How to Make Money with Social Media,” reviewed as “the best social media book available.”
  3. 3. Jamie Turner • You can contact Jamie Turner for consulting and speaking engagements at Jamie.Turner@60SecondMarketer.com • You can buy his book by clicking here: Barnes & Noble, Borders or Amazon
  4. 4. The Gartner Hype Cycle The Gartner Hype CycleSocial Media is Here.
  5. 5. First the Bad News If you’re going to avoid the Great Social Media Crash of 2011, you’re going to have to know ... Math
  6. 6. How People Make Buying Decisions
  7. 7. Consumer Behavior Models Consumer Behavior ModelsConsumer Behavior ModelsConsumer Behavior ModelsConsumer Behavior ModelsConsumer Behavior Models Cognition Phase Attention Awareness, Knowledge Awareness Presentation, Attention, Comprehension Affective Phase Interest, Desire Liking, Preference, Conviction Interest, Evaluation Yielding, Retention Behavioral Phase Action Purchase Adoption Behavior
  8. 8. © Jamie Turner, the 60 Second Marketer How People Make Buying Decisions • A 30¢ pack of gum takes 30 seconds • A $300 TV set takes 3 days • A $30,000 car takes 30 days • A $300,000 house takes 3 months
  9. 9. © Jamie Turner, the 60 Second Marketer How People Make Buying Decisions
  10. 10. © Jamie Turner, the 60 Second Marketer How People Make Buying Decisions Female Brain Male Brain
  11. 11. © Jamie Turner, the 60 Second Marketer Why People Don’t Buy Products • I don’t need what you’re selling • I don’t have the money • I don’t have the time to investigate this right now • I don’t trust you
  12. 12. © Jamie Turner, the 60 Second Marketer What Are You Really Selling? • What you think you’re selling may be very different from what you’re actually selling • A health club isn’t selling fitness, they’re selling self- esteem, sex appeal and a longer life • A restaurant isn’t selling food, they’re selling camaraderie, escape from the ordinary and freedom • A mortgage broker isn’t selling low interest rates, they’re selling trust, confidence and a seamless transaction
  13. 13. © Jamie Turner, the 60 Second Marketer What Are You Really Selling? • Grab your pen and write down what it is that you’re actually selling
  14. 14. © Jamie Turner, the 60 Second Marketer How Social Media Fits into All This • Social media enables you to open up a dialogue with prospective customers • When you have a dialogue with a prospective customer, they grow to trust you • Once they trust you, they’re more likely to buy your product or service
  15. 15. The Evolution of Marketing
  16. 16. Evolution of Marketing Agency Power Company Power Retailer Power Customer Power Madison Avenue Research Companies Finance Public 1950s to 1970s 1980s 1990s 2000s Creative Strategy Value Reputation Source: Reshma Shah, Ph.D., Emory University
  17. 17. Yesterday: The Good Old Days
  18. 18. Today
  19. 19. Social Media Use by 18-29 Near Saturation. 65+ is Fastest-Growing Segment 0 23 45 68 90 Sept., 2005 May, 2008 Nov., 2008 Apr., 2009 Dec., 2009 May, 2010 U.S. Internet Users Who Use Social Network Sites, by Age, 2005-2010 18-29 30-49 50-64 65+ Source: Pew Internet & American Life Project, “Older Adults and Social Media,” Aug., 27th, 2010
  20. 20. © Jamie Turner, the 60 Second Marketer Social Media is Right for You If ... • You want to attract new customers to your business • You want existing customers to come back more frequently • You want an inexpensive way to connect with customers • You want customer feedback on a new product or service • You want to cross-promote one part of your business with another part of your business • You want to increase brand loyalty • You want to differentiate your brand from your competitor’s brand
  21. 21. How the Fortune 500 Make Money with Social Media
  22. 22. Social Media Business Models Branding: Use social media as a branding tool to build awareness and connect with customers
  23. 23. Social Media Business Models E-Commerce: Drive prospects to an e-commerce landing page and convert those prospects to customers
  24. 24. Social Media Business Models Research: Use social media as a research tool to generate customer input and feedback
  25. 25. Social Media Business Models Customer Retention: Use social media as a customer retention tool to reduce churn
  26. 26. E-Newsletter 60 Second Marketer Website YouTube Channel Speeches Events Blog Postings Online Seminars and Webinars eBooks Twitter Forums Mobile Media Books Social Media Case Study
  27. 27. Social Media Case Study
  28. 28. Social Media Business Models Lead Generation: Drive leads to a website and re-market to those leads, ultimately converting them to customers E-Newsletter Website YouTube Videos Speeches Events Blog Postings Webinars eBooks Twitter Forums Mobile Media Book Your Company
  29. 29. Social Media Overview
  30. 30. Social Media Overview
  31. 31. Social Media Overview LinkedIn is a Trade Show -- a slightly more formal place to meet other business professionals and connect with them primarily for business purposes Facebook is a Pub -- an informal place to talk casually with people and get to know people on a more personal basis YouTube is Times Square on New Year’s Eve -- a place where it’s hard to break through, but if you do, a lot of people will see you MySpace is like Woodstock -- wild, crazy and perfect for the younger generation or cause-oriented marketing Twitter is like a Cocktail Party -- it’s an energetic place where there are many conversations going on at once
  32. 32. Social Media Overview 1. Blogs 2. Bookmarking and tagging 3. Content aggregation 4. Crowdsourcing and voting 5. Discussion boards and forums 6. Events and meetups 7. Photosharing 8. Podcasting 9. Presentation sharing 10. Ratings and reviews 11. Virtual worlds 12. Widgets 13. Wikis 14. Email marketing Source: Mashable
  33. 33. Social Media Overview Casual Professional Infrequent Updates Frequent Updates
  34. 34. Social Media Tools and Techniques
  35. 35. How to Make Money with Social Media. Now available everywhere. Social Media Tools and Techniques Network Promote Share
  36. 36. How Not to Run a Social Media Campaign
  37. 37. How to Make Money with Social Media. Now available everywhere. How Not to Run a Social Media Campaign 1. Don’t upload your corporate YouTube video and claim you have a “social media campaign” 2. Don’t sit on the sidelines 3. Don’t downplay the importance of social media 4. Don’t think you can do social media in 10 minutes a day 5. Don’t think social media is just about YouTube, Facebook and Twitter 6. Don’t assume social media can’t be measured Source: http://60secondmarketer.com/blog
  38. 38. How Not to Run a Social Media Campaign 7. Don’t forget that social media is about mobile media, too 8. Don’t think that social media is like traditional marketing 9. Don’t believe the hype. Social media is one of many tools in the marketer’s toolbox 10. Don’t think that you can run a social media campaign in a silo. It’s about engaging across many platforms
  39. 39. Establishing Goals, Strategies and Tactics
  40. 40. Four Steps to Making Money with Social Media • Step #1: Build awareness • Step #2: Drive prospects to your website, blog, LinkedIn group, Facebook page, e- Newsletter or YouTube channel • Step #3: Build trust and increase demand • Step #4: Cash their checks
  41. 41. Goals, Strategies and Tactics • Your goal is your final destination. It’s the ultimate objective of your efforts • A strategy is the approach you’ll take in an effort to achieve your goals • A tactic is the tool you’ll use as part of your strategic approach
  42. 42. Goals, Strategies and Tactics The Coca-Cola Company (Large) • Goal: To increase demand for their soft drink among users and non-users throughout the globe • Strategy: To position Coca-Cola as the classic, authentic and genuine original • Tactics: To use TV, radio, point- of-purchase, mobile media and social media to constantly remind people that a refreshing Coke is usually just a few steps away
  43. 43. Goals, Strategies and Tactics Tony’s Italian Restaurants (Medium) • Goal: To encourage members of the local community to visit all the Tony’s locations more frequently • Strategy: To provide special offers to customers who frequent Tony’s more than once a month • Tactics: To use social media, including Foursquare and Gowalla, to distribute rewards to frequent diners Tony’s Italian Restaurant
  44. 44. Goals, Strategies and Tactics Jane’s Interior Design (Small) • Goal: To generate more leads for her business • Strategy: To position Jane as the local authority on interior design • Tactics: To use Twitter, LinkedIn, YouTube and Facebook to drive people to Jane’s website where they can download tips on interior design and to capture those leads so they can be re- marketed to in the future
  45. 45. Goals, Strategies and Tactics • The goal for my social media campaign is (e.g., to generate leads, to create buzz, to drive traffic to my website, etc.) • The strategy I’m going to use to accomplish my goal is (e.g., to offer a discount to people who sign up for my e-newsletter, to offer a helpful white paper to people who download it from my website, to provide reward coupons to people who read my blog, etc.) • The tactics I’m going to use as part of my strategic approach are (e.g., blog, e-newsletter, website, LinkedIn, Twitter, Facebook, YouTube, mobile media, etc.)
  46. 46. How to Measure a Social Media Campaign
  47. 47. How to Make Money with Social Media. Now available everywhere. Three Categories of Measurement Quantitative Qualitative ROI
  48. 48. Another Shameless Plug • Called the “best social media book” by three independent reviewers • Packed with tips, tools and techniques • Click the links below to take a peek inside
  49. 49. Quantitative
  50. 50. How to Make Money with Social Media. Now available everywhere. Quantitative: Traffic
  51. 51. How to Make Money with Social Media. Now available everywhere. Quantitative: Traffic
  52. 52. How to Make Money with Social Media. Now available everywhere. Quantitative: Traffic
  53. 53. How to Make Money with Social Media. Now available everywhere. Quantitative: Online Chatter
  54. 54. How to Make Money with Social Media. Now available everywhere. Quantitative: Online Chatter
  55. 55. How to Make Money with Social Media. Now available everywhere. Quantitative: Breadth of Engagement
  56. 56. How to Make Money with Social Media. Now available everywhere. Quantitative: Leads Generated E-Newsletter 60 Second Marketer Website YouTube Videos Speeches Events Blog Postings Online Seminars and Webinars eBooks Twitter Forums :60 Online University Blog :60 Online University Articles
  57. 57. How to Make Money with Social Media. Now available everywhere. Quantitative: Organic Search Rankings
  58. 58. How to Make Money with Social Media. Now available everywhere. Quantitative: Depth of Engagement
  59. 59. How to Make Money with Social Media. Now available everywhere. Quantitative: Depth of Engagement
  60. 60. How to Make Money with Social Media. Now available everywhere. Other Quantitative Metrics 1. Inbound links 2. Social bookmarks 3. Likes on Facebook 4. E-book downloads 5. Ratings 6. Participation in polls 7. Contest entries 8. New e-newsletter subscribers 9. E-newsletter unsubscribers 10. Bounce rate
  61. 61. Qualitative
  62. 62. How to Make Money with Social Media. Now available everywhere. Qualitative: Polls, Questions and Customer Feedback
  63. 63. How to Make Money with Social Media. Now available everywhere. Qualitative: Polls, Questions and Customer Feedback
  64. 64. How to Make Money with Social Media. Now available everywhere. Qualitative: Polls, Questions and Customer Feedback
  65. 65. How to Make Money with Social Media. Now available everywhere. Qualitative: Brand Sentiment
  66. 66. How to Make Money with Social Media. Now available everywhere. Qualitative: Brand Sentiment
  67. 67. How to Make Money with Social Media. Now available everywhere. Qualitative: Brand Sentiment
  68. 68. How to Make Money with Social Media. Now available everywhere. Qualitative: Brand Sentiment
  69. 69. ROI
  70. 70. How to Make Money with Social Media. Now available everywhere. ROI: Customer Retention It costs 3 to 5 times as much to get a new customer as it does to retain an existing customer. By keeping customers engaged, involved and active with your brand, you’ll be preventing them from changing their loyalty. 60SecondMarketer.com -> Videos -> Branding
  71. 71. How to Make Money with Social Media. Now available everywhere. ROI: Customer Retention
  72. 72. How to Make Money with Social Media. Now available everywhere. ROI: Conversion
  73. 73. How to Make Money with Social Media. Now available everywhere. ROI: Profits
  74. 74. Calculating Customer Lifetime Value The revenue generated by a customer during his or her lifetime with your brand. CLV for Scott’s Lawn Care: $80 per month x 12 months x 3.0 years CLV = $2,880 Allowable Cost Per Sale: $2,880 x 10% = $288
  75. 75. Calculating Customer Lifetime Value Scott’s Direct Mail: 200 pieces x 0.5% = 1 new customer $1.44 per piece x 200 = $288 Allowable Cost Per Sale = $288 1 customer for every $288 spent Scott’s Annual Direct Mail Spend: $2.8 million = 2 million pieces x 0.5% = 10,000 new customers per year
  76. 76. Calculating Customer Lifetime Value Testing Direct Mail vs. Social Media $2.8 million x 10% = $280,000 to test a social media campaign Social media campaign costs: Labor: $140,000 Production: $100,000 Miscellaneous: $ 40,000 Total: $ 280,000 Social media success: $280,000 spent in direct mail = 1,000 new customers $280,000 spent in social media = ?
  77. 77. What’s Next?
  78. 78. Mobile
  79. 79. How People Engage with Mobile • Short Message Service (SMS) • Mobile Web Sites • Mobile Ads • Bluetooth Marketing • Location Sharing • QR Codes • Mobile Apps
  80. 80. QR Codes • Smithsonian Museum • Real Estate Agents • Restaurants • In-Store Promotions • Instruction Manuals • Events
  81. 81. Mobile Apps
  82. 82. 10 Step Action Plan to Set Up and Manage a Social Media Campaign
  83. 83. Social Media Action Plan 1. Competitive Assessment: What are your competitors doing in this space already? What can you borrow from them? 2. Internal Situation Analysis: How much awareness is there of social media within your company? Is there an understanding that it can be measured and create a positive ROI? 3. Major Objectives: What are you trying to accomplish with your social media campaign? 4. Consumer Thought Process: What is the typical sales cycle for your product? How much trust do you need to build before you can make a sale? (Hint: The more expensive the product, the more trust needs to be built.) 5. Key Strategies: What approach are you going to take in order to have a successful program?
  84. 84. Social Media Action Plan 6. Brand Essence: What is your brand essence and how are you going to communicate that using Social Media? 7. Positioning: How is your brand currently positioned in the marketplace? Where do you want it to be positioned as a result of your social media campaign? 8. Essential Message: What is the essential take-away you want customers and prospects to have after engaging with your brand via Social Media? 9. Tactical Plan Overview: Which Social Media platforms are you going to use for your program? Which tools are you going to use to measure the success of your program? 10.Executional Roadmap: What are your SMART Goals for this plan? How are you going to be held accountable for them?
  85. 85. Questions Now available at fine bookstores everywhere (and a few not-so-fine bookstores, too). Follow me here: 60SecondMarketer.com/blog @60SecondTweets Contact me: Jamie.Turner@60SecondMarketer.com

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