1. ROI & Social Media Christophe Ginisty Deputy Managing Director, Edelman EMEA European Digital / Tech Evangelist Twi<er : cginisty
2. Preliminary point: Before thinking about the « return » dimension, think about the « investment » parameter.
3. Why are you doing PR on social media?
4. It’s a new way to interact. It’s cool! My compeKtor has 1M fans. It’s key for the reputaKon. It’s a way to increase revenue. It’s a way to leverage trust. It’s a way to prevent crisis. Everybody does it. My boss urges me to do it. I might be promoted. No need to know.
5. The « returns » Experience • The new tools/soluKons require a personal experiment InteracKon • Dialog, engagement, inKmacy with the brand ReputaKon • Image, brand aUributes, trust Revenue • Traﬃc, new visitors, prospects, customers,… Control • Ability to locate conversaKons and prevent any major crisis
6. Based on the investment There are several elements to measure to beUer approach the noKon of ROI on social media
8. Experience • It’s all about using the tools that the stakeholders are using on their end. Community managers and partners need to be (or become) inﬂuencers themselves. Their inﬂuence level can be a measurable objecKve.
10. InteracKon • First measure : # of comments / # of posts #comments/#posts Situa0on Less than 1/10 Spectators : nearly no interacKon To 1/1 Friends : community builders, early fans, 2 to 10 Community members More than 10 Fans for life or enemies (upcoming crisis)
11. InteracKon • Second measure : # of answers / # of comments #answer/#comments Situa0on Less than 1/10 Danger: lack of aUenKon Up to 1/1 Right level of interacKon More than 1 Suspicious interacKon
12. InteracKon • Third measure : tone % of comments Tone 20% PosiKve 50% Neutral 30% NegaKve
13. ReputaKon • The three steps for measuring the reputaKon: – Conduct an iniKal survey BEFORE going online, – Monitor the web and tag info, – Create, maintain a glossary of associated terms.
14. ReputaKon • Tagging info
15. ReputaKon • Create a glossary: one way to measure the aUributes of a reputaKon is to pick up words that are frequently associated to the brand name.
16. Revenue • Make it easy: Prior to measure revenue, make sure to create a direct link between the social media campaign and the shop, • Trace new customers: make sure you will be able to map the internet users ﬂow, • Value new business
17. Revenue • Example of a formula: I x C New deal cost = 2 x (NC + 1/3EC) x A • I = Investment • C = Complexity factor (1 to 5) • NC = Number of new customers • EC = Number of exisKng customers • A = Awarness factor (from 1 to 10)
18. Revenue • Example of a formula: • I = 10.000 US$ • C = 4: users have to follow a long process to register • NC = 55 • EC = 200 • A = 7: the brand is famous 10.000 x 4 New deal cost = = 23,48 US$ 2 x (55 + 1/3(200)) x 7
19. Control • One way to anKcipate a crisis is to measure the evoluKon of the previous parameters. – Sudden loss of inﬂuence of the community managers, – Growth of the number of comments by post, – Decrease of the number of answers by comments, – The growth of the negaKve tone, – The growth of hosKle tags, – The appearance of new terms in the glossary – The conKnuous growth of the deal costs – All this can announce a crisis period.
20. To summarize Experience InteracKon ReputaKon Today’s inﬂuence level of #Comments/posts : 4,6 the team: # answers/coms: 0,56 35 Tone : -‐ PosiKve: 12% -‐ Neutral: 57% -‐ NegaKve : 31% Experience Control Last campaign deal cost : 55$
21. One more thing…
22. Let me give you an advice… Create and organize your presence online prior to measure something. And forget about measuring your very ﬁrst iniKaKve.