Social media ROI - Quantify and Justify your Social Media campaign

Social Media ROI
Myth or Measurable?
Arun Nair, Samriddhi 2010

ROI (Return on Investment)
Gain From Investment - Cost Of Investment
ROI =
Cost Of Investment

Myth #1
“Social Media and ROI are like Chalk and Cheese. It doesn’t work. There is no financial impact anyway” – Mr Doohickey, Chief Ignorant Officer

Most purchases are influenced by these very attributes of social media!

Social Media as a Catalyst
Conventional Campaigns
+
[ Social Media ]
=
Enhanced ROI
More Sales
Increased Campaign Recall
Reduced Costs

“What gets Measured gets Managed”
- Peter Drucker

Myth #2
“Social Media is about conversations, word of mouth, advocacy. How can you measure that?”
- MrBlahman, Clueless Consulting

Social Media is measurable
…just not with conventional success metrics
…because it benefits your organization, more than than just boosting sales!

Be clear about the Objectives and set Expectations accordingly.

Set the right Metrics and use the Right tools.
There are Freetools that make it Easy to Quantify Impact and ROI

The right metrics
Number of people that join a discussion
Reduction in support costs
Number of new customers / sales
Number of influential blogs that linked to us
Number of new things we discovered about customers that we never knew before
Number of influential people who tweet something about us
Ratio of positive comments to negative ones

The right tools
Google Analytics
Bit.ly
Alexa
Twitter Grader
Twitter Search
Technorati
Klout
Social Mention
Radian6

Case Studies

Intel Insiders
GoalTurn customers into fans
TacticsRecruit 10 prominent bloggers for access, trials
MetricsBlog posts, videos, tweets, traffic
ResultsOne video received 320,000 views, 6,200 downloads of Facebook app, Many blog entries
Program renewed for second year

Starbucks
GoalEngage with customers/prospects using social media and ask what they would like from you
TacticsLaunched the My Starbucks Idea website
MetricsNumber of good suggestion that Starbucks hadn’t thought of, % of the above that Starbucks actually implements
ResultsResults not known, but Starbucks generated over 70,000 ideas in its first year of implementation alone!50 of the ideas have been implemented already.

Dell
GoalImprove image
TacticsDirect response to all Dell mentions on blogs and Twitter
MetricsSentiment analysis
ResultsNegative comments reduced from 60% to 20% of online mentions over six-month period

Stanford University
GoalIncrease alumni & student affinity, Build reputation as major research center
TacticsFacebook fan page with multimedia and broad participation from across university departments
MetricsLikes, comments, removed fans, media consumption, surveys
ResultsFan count grew from 11,500 to 41,100 in six months, % of prospective students, students and alumni citing favorable impact ranged from 70% to 90%

Sutter Medical Centre
GoalBuild support for new medical center to replace aging but popular building and reduce misinformation
TacticsBroad outreach through blogs and nearly every available social networking channel
Metrics# of mentions, Sentiment analysis, surveys
ResultsSix months after program began, support levels for project exceeded 90%

That’s all folks!
indianeye.org |twitter.com/nairarun| arun.n.nair@gmail.com

Social media ROI - Quantify and Justify your Social Media campaign

by Arun Nair on Aug 31, 2010

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Social media ROI - Quantify and Justify your Social Media campaign — Presentation Transcript