Christopher Penn

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Christopher Penn

  1. 1. Internet Marketing ROI Christopher S. Penn, Director of Strategy www.WhatCounts.com
  2. 2. Fair Warning
  3. 3. Three Disclaimers X
  4. 4. How can a company be innovative and focus onROI? How do you make a business case forsomething thats experimental? Lets say Iwanted to my training team to spend two hours aweek answering questions on Quora to see whathappens, is it ok to do this without any ROIobjectives?- Scott Hemmons
  5. 5. I get a lot of analytics from various tools,including web site metrics, Bitly, Klout, Twitter,Facebook, LinkedIn, YouTube etc. It takes me aabout an hour+ to pull it together each month. Doyou have a one-stop shop solution that wouldmake it easier? Even if I had 1 thing plus our webanalytics that would make reporting so mucheasier.- Becky Livingston
  6. 6. What?When?How?
  7. 7. Return onInvestment
  8. 8. Earned - Spent = ROI Spent
  9. 9. Return on “influence”Return on conversationReturn on engagement
  10. 10. 1,000 - 500 = 100% 500
  11. 11. 250 - 500 = -50% 500
  12. 12. Earned - Spent = ROI Spent
  13. 13. Annual Income =Hourly 2,080
  14. 14. Annual Income =Hourly 2,080Hours x Rate = Time Spend in Money
  15. 15. $50,000 = $24.04 2,0805 x $24.04 = $120.20
  16. 16. 1000 - 620.20 = 61.2% 620.20
  17. 17. Worksheet 1 Money Earned: $_______ Money Spent: $_______ Hourly Rate: $_______ Time Spent: _______ Time Spent in Money: $_______ Total Spent: $_______ Total Earned-Total Spent _______% Total Spent
  18. 18. What?When?How?
  19. 19. ROI is noteverything
  20. 20. AudienceProspects LeadsCustomersEvangelists
  21. 21. ROI really important!
  22. 22. ROI not as important!
  23. 23. What?When?How?
  24. 24. Earned - Spent = ROI Spent
  25. 25. Worksheet 2 Method PPC Email Twitter Money Earned Money Spent Hourly Rate Time Spent Time as Money Total SpentEarned - Spent / Spent
  26. 26. Worksheet 2 Example Method PPC Email Twitter Money Earned $1,000.00 $12,563.00 $750.00 Money Spent $500.00 $5,000.00 $0.00 Hourly Rate $24.04 $24.04 $24.04 Time Spent 5 5 40 Time as Money $120.20 $120.20 $961.60 Total Spent $620.20 $5,120.20 $961.60Earned - Spent / Spent 61.24% 145.36% -22.00%
  27. 27. Worksheet 2 Example Method PPC Email Twitter Money Earned $1,000.00 $12,563.00 $750.00 Money Spent $500.00 $5,000.00 $0.00 Hourly Rate $24.04 $24.04 $24.04 Time Spent 5 5 40 Time as Money $120.20 $120.20 $961.60 Total Spent $620.20 $5,120.20 $961.60 ROI 61.24% 145.36% -22.00%
  28. 28. ROI is not necessarily ahelpful number
  29. 29. Keep or kill decisions
  30. 30. Last Touch Problem
  31. 31. EmailWebinar PPC Ad Blog Post Sponsored Tweet Which caused the sale?
  32. 32. Old school single channel ROI is broken
  33. 33. o t heB ack t boa rdd raw ing
  34. 34. Income Margin ExpenseNet Profit Audience Volume Action
  35. 35. Income Product Margin Expense OperationsNet Profit Audience Marketing Volume Action Sales
  36. 36. Marketing’s primary output is qualified leads, yes?
  37. 37. EPL
  38. 38. Earned - SpentNumber of Leads
  39. 39. Worksheet 3 Money Earned: $_______ Money Spent: $_______ Hourly Rate: $_______ Time Spent: _______ Time Spent in Money: $_______ Total Spent: $_______ Total Earned-Total Spent _______ EPL Leads
  40. 40. So what?
  41. 41. Yes, but so what?
  42. 42. Last Touch Problem SolvedGoo gle
  43. 43. One Phrase:MCF
  44. 44. Multichannel Revenue
  45. 45. Channel Last Touch MCF Twitter $59,084 $125,315Facebook $14,036 $22,388
  46. 46. Channel Last Touch MCF Twitter $59,084 $125,315Facebook $14,036 $22,388
  47. 47. Earned - Spent = ROI Spent
  48. 48. 59,084 - 50,000 50,000 = 18.2%
  49. 49. 125,315 - 50,000 50,000 = 150.6%
  50. 50. The Big Picture ofInternet Marketing ROI
  51. 51. Walkthrough/Case Study
  52. 52. Worksheet 1 Method Web Facebook Twitter Money Earned Money Spent $180.00 Hourly Rate $19.23 Time Spent 780 Time as Money $15,000 Total Spent $15,180Earned - Spent / Spent
  53. 53. Worksheet 1 Method Web Facebook Twitter Money Earned Money Spent $180.00 $0.00 Hourly Rate $19.23 $19.23 Time Spent 780 260 Time as Money $15,000 $5,000 Total Spent $15,180 $5,000Earned - Spent / Spent
  54. 54. Worksheet 1 Method Web Facebook Twitter Money Earned Money Spent $180.00 $0.00 $0.00 Hourly Rate $19.23 $19.23 $19.23 Time Spent 780 260 260 Time as Money $15,000 $5,000 $5,000 Total Spent $15,180 $5,000 $5,000Earned - Spent / Spent
  55. 55. Worksheet 1 Method Web Facebook Twitter Money Earned Money Spent $180.00 $0.00 $0.00 Hourly Rate $19.23 $19.23 $19.23 Time Spent 780 260 260 Time as Money $15,000 $5,000 $5,000 Total Spent $15,180 $5,000 $5,000Earned - Spent / Spent
  56. 56. Channel Last Touch MCF Twitter $4,800 $7,200Facebook $42,000 $51,000
  57. 57. Last Touch Version Method Web Facebook Twitter Money Earned $133,200 $42,000 $4,800 Money Spent $180.00 $0.00 $0.00 Hourly Rate $19.23 $19.23 $19.23 Time Spent 780 260 260 Time as Money $15,000 $5,000 $5,000 Total Spent $15,180 $5,000 $5,000Earned - Spent / Spent 777.47% 740.00% -4.00%
  58. 58. MCF Version Method Web Facebook Twitter Money Earned $133,200 $51,000 $7,200 Money Spent $180.00 $0.00 $0.00 Hourly Rate $19.23 $19.23 $19.23 Time Spent 780 260 260 Time as Money $15,000 $5,000 $5,000 Total Spent $15,180 $5,000 $5,000Earned - Spent / Spent 777.47% 920.00% 44.00%
  59. 59. Channel Last Touch MCF Twitter -4% 44%Facebook 740% 920%
  60. 60. If you remove Twitter, this sale goes away.
  61. 61. Now You Have The Big Picture of Internet Marketing ROI
  62. 62. Review What? When? How?
  63. 63. Webinar Tomorrow!www.WhatCounts.com/smplus
  64. 64. cspenn.com/book
  65. 65. Christopher Penncspenn@gmail.comTwitter: @cspennLinkedIn: cspenn.com/lFacebook: cspenn.com/fGoogle+: cspenn.com/gWeb: christopherspenn.com
  66. 66. Questions?

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