Measuring Social Media ROI In the Real World for Business
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Measuring social media means a return to real business metrics. Stop measuring social media within the platforms and use meaningful Key Performance Indicators (KPI) to evaluate ROI. Included is a case study and sample Key Performance Indicators.
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Measuring Social Media ROI In the Real World for Business
- 1. Understanding Social Media Measurement: A Road Map Tara Coomans Akamai Marketing www.akamai-marketing @TaraCoomans #akamaimkting Wednesday, February 20, 2013
- 2. 27% of Businesses Measuring Social ROI 63% Measure Followers/Likes 61% Measure Click Through Rates 51% Measure Brand Mentions 35% of Companies Measuring Social ROI are Satisfied SOURCE: http://www.nectarom.com/assets/Social-Media-Study-Quick-Summary_0213.pdf Wednesday, February 20, 2013
- 3. •HOW to measure Social Media •WHAT to measure in Social Media •A sample ROI model Wednesday, February 20, 2013
- 4. Social Media is the Support Beam to Your Business Goals Wednesday, February 20, 2013
- 5. NO INVESTMENT, NO RETURN Wednesday, February 20, 2013
- 6. Not Everything That Can Be Counted, Counts Not Everything That Counts, Can Be Counted Word of Revenue Mouth Wednesday, February 20, 2013
- 7. What You Measure, Depends on Your Destination. Qualitative Quantitative Brand awareness Reduce Customer Service Costs Customer Feedback Increase web traffic Create community Increased sales Increase loyalty Increased leads Increase reach Website conversions Increase trust Shorter Sales Cycle Wednesday, February 20, 2013
- 8. What Value Does Word of Mouth Marketing Have? 65% of New Business Comes From Referrals 40% of Small Businesses Say Referrals Bring in Bigger Returns than Traditional Marketing 4X More Likely to Buy When Referred by a Friend. Source: https://s3.amazonaws.com/ambassador/downloads/infographic/netpromo-v5.jpg Wednesday, February 20, 2013
- 9. Social Media Supercharges Word of Mouth Faster More Nimble More Reach Wednesday, February 20, 2013
- 10. How Do We Quantify Word of Mouth X = McKinsey Quarterly Research Wednesday, February 20, 2013
- 11. How Do We Quantify Word of Mouth Volume X = Few Messages Many Messages McKinsey Quarterly Research Wednesday, February 20, 2013
- 12. How Do We Quantify Word of Mouth Volume X Impact = Network Few Closed/ Messages + Trusted Many - Large/ Dispersed Messages Sender + Influential - Not Influential McKinsey Quarterly Research Wednesday, February 20, 2013
- 13. How Do We Quantify Word of Mouth Volume ImpactX = Network Content Few Relevant Key Closed/ Messages Trusted +Buying Factor + Many Large/ Dispersed - Irrelevant - Key Buying Messages Factor Sender Message Source Influential + Personal + Experience Not Influential - - Secondhand, Hearsay McKinsey Quarterly Research Wednesday, February 20, 2013
- 14. How Do We Quantify Word of Mouth Volume ImpactX = WOM Equity Network Content Few Relevant Key Closed/ Messages Trusted +Buying Factor + Many Large/ Dispersed - Irrelevant - Key Buying Messages Factor Sender Message Source Influential + Personal + Experience Not Influential - - Secondhand, Hearsay McKinsey Quarterly Research Wednesday, February 20, 2013
- 15. Measure Success Outside of Social Platforms ROI Data Wednesday, February 20, 2013
- 16. conversion of sm followers INCREASED vs. LEADS other marketing programs #downloads + #webinars + lead generation from SM #downloads + #webinars + lead generation from other sources Wednesday, February 20, 2013
- 17. revenue INCREASED per SALES follower #followers + #fans + #subscribers revenue Wednesday, February 20, 2013
- 18. customer DECREASED resolution CUSTOMER time SERVICE COSTS social media comparison # customer service cases on social media/time # customer service cases on traditional methods/time Wednesday, February 20, 2013
- 19. CAMPAIGN EFFECTIVENESS cost per conversion digital methods cost per conversion other methods Wednesday, February 20, 2013
- 20. Data ROI Wednesday, February 20, 2013
- 21. ROI SAMPLE CASE STUDY: Menu Launch 30-Day Campaign • Invite 10 Food Bloggers, local and regional to review. • Choose variety of writers and photographers, write a minimum of 2 posts. • Bloggers also post on Facebook & Twitter • Average Twitter Audience: 5,000 Wednesday, February 20, 2013
- 22. ROI: Influencer Program Costs Set Up Social Media Assets Market Value Training of Personnel $3,000 Social Media Monitoring Platform $2,000 Social Media Consulting / Campaign Strategy / Blogger $7,200 Management/Costs/Analysis Cost of Content Creation $7,000 Cost of Brand Owned Content Creation $1,000 $20,200 Wednesday, February 20, 2013
- 23. ROI: Cost Savings Incoming Clicks EXAMPLE: •2500 New Non-paid Visitors •“Honolulu Restaurant” Keyword term • Average CPC . 71 •5% Made Reservations Online CPC Value: $1,775 Wednesday, February 20, 2013
- 24. ROI: Cost Deflection Media Equivalency EXAMPLE: •30 Blog Posts, local & regional •Total Page Views: 380,727 •Total Unique Page Views: 267,299 •Average Twitter Reach: 5,000 •Average Facebook Reach: 3,200 Media Equivalency Value: (Debatable) $6,480 Wednesday, February 20, 2013
- 25. ROI: Increased Revenues EXAMPLE: •Average check increase of $5.00/check •Increase of 10 checks/day •Increased total is 75 checks/day Revenue Increase: $17,400 (during 30-day campaign) Wednesday, February 20, 2013
- 26. ROI: Word-of-Mouth Value Independent Reviews (25) Independent Social Media Mentions (250) Based on: •Trust Factor - Low •Relevance Factor - High •Quantity/Volume - Medium •Network Value - Medium WOM Value: $5,600 Source: http://www.mckinseyquarterly.com/A_new_way_to_measure_word-of-mouth_marketing_2567 Wednesday, February 20, 2013
- 27. Total ROI Gain of Social Media Program- Social Media Program Cost Incoming Traffic Value + Media Equivalency Value + Word of Mouth Value + Product Development (savings) + Customer Service (savings) + Increase in Revenue (or other strategic goals) during campaign Wednesday, February 20, 2013
- 28. Measuring Set Up Social Media Assets Market Value Cost Deflection (Media Equivalency) $6,480 Cost Savings (Online) $1,775 Word of Mouth Value $5,600 Total Revenue Increase $17,400 $31,255 Total ROI $ 31,255 - $ 20,200 = 5% $ 20,200 Wednesday, February 20, 2013
- 29. KPI’s Worth Tracking •Restaurant traffic increases by 10 checks/day •Reservation rate up 20% •Geolocation “Check-ins” up 5% •Reservations spend up to 10% more •20% Increase in independent reviews (25) •10% Increase in positive independent reviews •5% Increase Unsolicited Positive or Neutral Social Media Mentions: (250) Wednesday, February 20, 2013
- 30. Don’t Measure Social Before We Press Media in the Social “Go” Channel Baselines in Place? Business Goals Established? Website Easy to Update? Landing Pages Up? Web Analytics in Place, Optimized? Wednesday, February 20, 2013
- 31. Thank You! Join me online for more resources and conversation: www.akamai-marketing.com @taracoomans facebook.com/AkamaiMarketing This Presentation is Available on My Slideshare Channel: Slideshare.com/TCoomans Wednesday, February 20, 2013