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Social Media: ROI Possible
 

Social Media: ROI Possible

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Learn how to plan, justify, and measure the value of your social media initiatives. (Presented at SES San Francisco, Aug 14, 2012 to the theme of Mission Impossible!)

Learn how to plan, justify, and measure the value of your social media initiatives. (Presented at SES San Francisco, Aug 14, 2012 to the theme of Mission Impossible!)

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    Social Media: ROI Possible Social Media: ROI Possible Presentation Transcript

    • HOW TO PLAN, JUSTIFY AND GAUGE THE VALUE OF SOCIAL MEDIA MARKETING EFFORTSAngie Schottmuller | @aschottmuller | SES San Francisco | Aug 14, 2012
    • MISSION: Define ROI or tangible business value to justify use of social media.
    • SOCIAL MEDIA: The intersection of technologyand social interaction to create, share, or connect online.
    • What is ROI?Formula: (BENEFIT - COST) X 100 ROI % COSTExample: ($2000 - $500) X 100 300% $500
    • Seems easy enough...So why is it so "impossible"?
    • 77% of businesseslack sufficient resources for social media. Awareness Inc., State of Social Media Marketing, Jan 2012
    • 70% of businesses plan to expand socialmedia presence in 2012. Awareness Inc., State of Social Media Marketing, Jan 2012
    • Growing Types of Social Media...•  Social Networks •  Social Sign-on•  Blogging •  Geosocial Sites•  Microblogging •  Crowdfunding•  Bookmarking •  Social Ads•  Media Sharing •  Streaming Content•  Discussion Forums •  Social Gaming•  Social Listening •  sCRM•  Review Sites •  Wiki•  Social Curation •  Social Commerce•  User-Generated Content
    • Top 3 Reasons Social Media ROI Measurement is Rare:ü  Unclear Objectivesü  Too Many Metricsü  Difficult ROI Measurement - eMarketer, 7 Guidelines of Achieving Social Media ROI, Feb 2010
    • Whos feeling the pressure? Yup. Yeah! BIG TIME.
    • So heres the plan:q  Clarify and align objectives/tacticsq  Prioritize meaningful metricsq  Simplify measurement
    • Strategic Planning Process1.  Determine Scope WHO?2.  Gather Business Goals3.  Define Mission/Purpose WHY?4.  Set Goals5.  Define KPIs WHAT?6.  Choose Tactics7.  Define Metrics HOW?
    • Social Media <Scope> Strategic Plan 2012MISSION GOALS TACTICSWHY ARE WE WHAT DO WE WANT HOW WILL WE ACHIEVEDOING THIS? TO ACCOMPLISH? OUR GOALS? A ü  <Metric> <TACTIC> ü  <Metric> <GOAL> ü  <Metric> <MISSION> KPI: <TACTIC> ü  <Metric> B ü  <Metric> <TACTIC> ü  <Metric> <GOAL><SCOPE> Goals: ü  <Metric> <TACTIC> ü  <Metric> KPI:ü  <dept goal> Aü  <dept goal> B C ü  <Metric> <TACTIC> ü  <Metric>ü  <dept goal> C <GOAL>ü  <dept goal> D ü  <Metric> <TACTIC> ü  <Metric> KPI:
    • Step 1: Determine ScopeWhat aspect of the business will use social media? Marketing & PR IT Research & Development Human Resources SOCIAL Customer Service MEDIA Sales Executives & Management Market Research See more: http://j.mp/6socialmedialisteners
    • FOCUS. You can onlywear one smartlens at a time.
    • Step 2: Gather Business GoalsWhat are this years [SMART] business goals?(Specific to each scope)CUSTOMER SERVICE: (Example)•  Reduce average response time on inquiries•  Improve average satisfaction rate•  Reduce call volume costs via web self- service alternatives
    • START Here:80% of marketersincorrectly beginwith tacticsinstead of goals. DO NOT START Here: Image credit: Jay Baer - http://j.mp/socialmediagoalfunnel
    • Step 3: Define SM Mission/PurposeWhy are we bothering with social media?(Specific to each scope)MARKETING: (Example)To build an army of advocates thatin turn help build and maintain thebrands position.
    • Step 4: Set GoalsWhat do we want to accomplish? A <GOAL> Merge Mission with <MISSION> B <Scope> Goals to <GOAL> create social media- specific Goals. C<SCOPE> Goals: <GOAL>ü  <dept goal> Aü  <dept goal> B Note: Some <scope> goalsü  <dept goal> C may NOT be relevant forü  <dept goal> D social media.
    • ALL time must be accounted for.If what youreworking on doesnt ABORT!align to a goal..... ABORT!
    • Strategic Planning:Balanced Scorecard (BSC)1-2 goals for each perspective. 1.  Customer 2.  Financial 3.  Learning & Growth 4.  Business Process
    • Step 5: Define KPIsHow will we measure goal success?Examples:OBJECTIVE KPI MEASUREMENTAwareness % share of voice (SOV) for online mentionsConsideration # of total "social" interactionsLeads/Sales # of conversions driven from social mediaRetention # of repeat blog visitorsAdvocacy # of total positive mentions, reviews, or UGC shares Image credit: DragonSearch http://j.mp/awarenessroi
    • More KPIs...OBJECTIVE KPI MEASUREMENTInnovation $ saved or generated as a result of social feedbackMarket Research # of "focus groups" providing feedbackCustomer # of social support inquiries resolvedServiceSocial PR # of negative brand mentions resolved (Bonus: # converted to positive mentions)HR Recruiting # of candidates driven from social media Note: These KPIs are just examples. Select a metric thats most indicative of progress for your organizations goals.
    • Social Media <Scope> Strategic Plan 2012MISSION GOALSWHY ARE WE WHAT DO WE WANTDOING THIS? TO ACCOMPLISH? A Our planning <GOAL> progress thus far... <MISSION> KPI: B <GOAL><SCOPE> Goals:ü  <dept goal> A KPI: Remember:ü  <dept goal> B C Plan separate treesü  <dept goal> C <GOAL> for each scope!ü  <dept goal> D KPI:
    • Step 6: Choose Tactics How will we accomplish our goals?
    • •  bBalance risks: resources, technology, timing...
    • Understand & Chart How Social Channels Serve Your Goals... Insert your goal HERE! @MagicLogix: http://j.mp/smmchannelsbygoal
    • Step 7: Define Metrics How will we measure tactic success? A safety net with multiple metrics would be nice...
    • Social Media <Scope> Strategic Plan 2012MISSION GOALS TACTICSWHY ARE WE WHAT DO WE WANT HOW WILL WE ACHIEVEDOING THIS? TO ACCOMPLISH? OUR GOALS? A ü  <Metric> <TACTIC> ü  <Metric> <GOAL> ü  <Metric> <MISSION> <TACTIC> ü  <Metric> KPI: B ü  <Metric> <TACTIC> ü  <Metric> <GOAL><SCOPE> Goals: <TACTIC> ü  <Metric> KPI: ü  <Metric>ü  <dept goal> Aü  <dept goal> B C ü  <Metric> <TACTIC> ü  <Metric>ü  <dept goal> C <GOAL> ü  <Metric>ü  <dept goal> D <TACTIC> KPI: ü  <Metric>
    • Calculations
    • "ROI can only be calculated AFTER the investment hasyielded a return. It cannot and must not be estimated beforehand. Ever. Under any circumstances." ~Olivier Blanchard, @thebrandbuilder, Social Media ROI [Book]
    • Why Measure SMM?1. Justification/Feasibility2. Value-Basis for Comparing Tactics
    • What we really need to do is: Cost-Benefit Analysis (CBA)BENEFIT - COST = VALUE CBA: http://j.mp/costbenefitanalysis
    • Cost-Benefit Analysis§  SM Labor §  Awareness§  IT Labor §  Web Traffic§  Tools & Software §  Lead Generation§  Opportunity Costs §  Sales§  Training §  Conversion§  Risk §  Customer Retention §  Loyalty §  Advocacy §  Satisfaction §  Market Research COST BENEFIT
    • All that matters...GROW REVENUE IMPROVE REDUCE COSTS SATISFACTION Reference: Jim Sternes book, Social Media Metrics
    • GROW REVENUE - SOCIAL METRICSWhat can you impact via social?•  # of QUALIFIED LEADS•  # of NEW CUSTOMERS•  # of REPEAT CUSTOMERS•  % of CONVERSIONSSocial Proof Examples:Star-ratings, reviews, user-sharedphotos/videos, # comments, # shares Image credit: http://j.mp/awarenessroi
    • GROW REVENUE - SOCIAL MEDIA ROI CASE STUDY Cars.com Online ReviewsPages with reviews had:• 16% higher conversion rate• 100% more traffic driven to dealer sites Case Study: http://j.mp/carscomsmmroi
    • GROW REVENUE - SOCIAL MEDIA ROI CASE STUDY CareOne Social Sales SupportCustomers coming through social channels:• 179% higher conversion rate to complete a consultation form• 732% higher rate of completed first payment Case Study: http://j.mp/careonesmmroi
    • REDUCE COSTS - SOCIAL METRICSQuantify the equivalent value as if you had topay for these: How much•  MEDIA VALUE would a photo/video –  # of Website Visits (social referrals) shoot cost? –  # of Online Mentions –  # of Articles / Social PR –  # of User-Shared Content (Photos, Videos, Testimonies)•  WEB SELF-SERVICE•  REQUIRED STAFF TO CUSTOMER RATI0
    • GROW REVENUE & REDUCE COSTS - SOCIAL MEDIA ROI CASE STUDY Old Spice VideosCorrelation impact of social buzz:• 27% sales increase year on year (since original Mustafa campaign)• 55%-107% sales increase during the social media campaign Case Study: http://j.mp/oldspicesmmroi
    • SATISFACTION - SOCIAL METRICSSurvey users for feedback and crunch LifetimeCustomer Value (LTV) numbers.•  % of POSITIVE SENTIMENT IN MENTIONS•  AVERAGE % of STAR-RATINGS (EACH LEVEL)•  CUSTOMER SATISFACTION SCORE•  % WHO FOUND WHAT THEY WERE SEEKING•  LIKELIHOOD TO RECOMMEND %•  # REPEAT WEB VISITS / WEB RECENCY Compute LTV with Avinash: http://j.mp/calculateltv
    • REDUCE COST & IMPROVE SATISFACTION - SOCIAL MEDIA ROI CASE STUDYInfusionSoft Social Customer Service• 1:72 to 1:172 reduced agent to customer ratio• 10% higher customer satisfaction Case Study: http://j.mp/infusionsoftsmmroi
    • Multichannel canadd confusion...
    • Quantify "Social Attribution"•  Web analytics tracking•  URL shortener (e.g. Bit.ly)•  Social-specific promo codes•  Third party tool analytics (e.g. Bazaarvoice)•  Online surveys (e.g. Foresee, KISS Insights)•  A/B tests•  ASK the customer!
    • ACTION PLAN1.  Assessment - Analyze current state, include SWOT2.  Strategy - Map out social media plan by scope3.  Pitch - Present top ideas to IMF4.  Prep - Secure resources, budget, tools, training, etc.5.  Implement - Execute the plan (Abort if necessary)6.  Review - Analyze activity & ROI using multiple metrics7.  Optimize - Gathers insights and improve for the sequel
    • Only Its time for YOU to lead20% of the way.marketers measuresocial media ROI. - eMarketer, 7 Guidelines of Achieving Social Media ROI, Feb 2010
    • KEY TAKEAWAYS•  Define separate strategy for each scope/dept•  Set clear objectives before picking tactics•  Select high-level annual goal KPIs (resilient to tactical changes)•  Use cost-benefit analysis (CBA) for justification and comparison•  Focus on measuring the 3 key objective buckets•  Recalculate CBA and ROI after implementation
    • "The impossible can become possible, IF... YOURE... AWESOME!" - Rhino [Disneys Movie, Bolt]
    • MISSION: Apply these tips and share this presentation, so your social media initiatives dont self-destruct!
    • Agent Angie Schottmuller @aschottmuller QUESTIONS?