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Social Media ROI: Formulas & Conversion Optimization Tips
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Social Media ROI: Formulas & Conversion Optimization Tips

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Are YOU measuring social media ROI? Now you can! Loaded with 14 formulas for quantifying social media benefits and over 17 case study examples of social proof facilitating conversion, this ...

Are YOU measuring social media ROI? Now you can! Loaded with 14 formulas for quantifying social media benefits and over 17 case study examples of social proof facilitating conversion, this presentation is a MUST-READ for any social marketer!

Still not convinced of the impact of social media on sales? Test it with the Unbounce landing page testing platform: http://try.unbounce.com/seschi (Use promo code ses503 to get 3 months at 50% off.)

Presented on Nov 13, 2012 at SES Chicago, #SESCHI.

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  • Add to CartPurchaseEmail sign-upLead gen formsSocial sharingPhone call
  • Objective:Prove the company/brand (portfolio and services) is the right choice for each persona.Basics:30-second summary of a case studyProblem/solution focusedMore broad than a specific product
  • Objective:Prove the specific product or service is the right choice for each persona.Basics:Specific product focused"Sells" product's Unique Value PropositionReviewer to persona relevance is hugeRecency, sentiment and keywords aid SEO
  • Objective:Prove the specific product or service is the right choice for each persona.Basics:Specific product focused"Sells" product's Unique Value PropositionReviewer to persona relevance is hugeRecency, sentiment and keywords aid SEO
  • Objective:Prove the specific product or service is the right choice for each persona.Basics:Specific product focused"Sells" product's Unique Value PropositionReviewer to persona relevance is hugeRecency, sentiment and keywords aid SEO
  • http://www.bazaarvoice.com/resources/case-studies/skechers-races-provide-key-answers-adds-powerful-social-tool-drive-onsite-conversion
  • http://www.bazaarvoice.com/resources/case-studies/conversations-lead-conversion-urban-decayhttp://www.bazaarvoice.com/resources/case-studies/chico-s-achieves-over-200-increase-conversion-bazaarvoice-conversations

Social Media ROI: Formulas & Conversion Optimization Tips Social Media ROI: Formulas & Conversion Optimization Tips Presentation Transcript

  • Social Media, Meet ROI How To Measure Social Media Benefits and Increase Conversion Angie Schottmuller - @aschottmuller SES Chicago - Nov 13, 2012 #SESCHI #socialproof
  • About UnbounceAngie Schottmuller | Chief of Conversion Marketing | angie@unbounce.com
  • YOUR MISSION:1.  Quantify social media benefits2.  Use social media to grow sales Angie Schottmuller | @aschottmuller
  • Social Media Benefits" QUANTIFIED < GEEK ALERT >The mathematical formulas in this presentation may cause extreme jubilation. Prepare to quantify.
  • Social Media Advertising Value IMPRESSIONS, TRAFFIC, ARTICLES, PHOTOS, VIDEOS... What would it cost toachieve the same, if you had to pay for it? Angie Schottmuller | @aschottmuller
  • SOCIAL MEDIA BENEFITS CALCULATION - REDUCE COSTSAdvertising Value - Social Mentions _____(#) brand/product social mentionsX _____ (CPI) equivalent display ad costs______________________________________= $ Display Ad Impression ValueCPM, or cost per 1,000 impressions, could also be used. Angie Schottmuller | @aschottmuller
  • SOCIAL MEDIA BENEFITS CALCULATION - REDUCE COSTSAdvertising Value - Social Web Traffic _____(#) social referral clicks to websiteX $_____ (CPC) equivalent social ad costs______________________________________= $ Social Ad Value Angie Schottmuller | @aschottmuller
  • SOCIAL MEDIA BENEFITS CALCULATION - REDUCE COSTSAdvertising Value - Search Web Traffic _____(#) search referral clicks to websiteX $_____ (PPC) equivalent search ad costs_______________________________________= $ Search Ad Value Angie Schottmuller | @aschottmuller
  • SOCIAL MEDIA BENEFITS CALCULATION - REDUCE COSTSSocial SEO Improved Search Rank ( _____% new CTR − _____% old CTR)/ _____% old organic search CTR X _____(#) monthly organic search impressions__________________________________________= Additional Organic Search Referrals Rank # CTR Rank # CTROptifys Study on Organic Search 1 36.4% 4 7.9%Click-Through Rates (CTR): 2 12.5% 5 6.1%http://bit.ly/organicctroptifystudy 3 9.5% 6 4.1% Angie Schottmuller | @aschottmuller
  • SOCIAL MEDIA BENEFITS CALCULATION - REDUCE COSTSAd Value - Social Influencer Mentions _____(#) social influencersX _____(#) average social network reachX _____(#) notable online brand mentionsX $_____ paid spokesman endorsement cost/ _____(#) ad network reach or volume___________________________________= $ Paid Endorsement ValueTip: Tier endorsement values by social influencer levels. Angie Schottmuller | @aschottmuller
  • SOCIAL MEDIA BENEFITS CALCULATION - REDUCE COSTSAd Value - Social PR Mentions _____(#) event-related online mentions X $_____ equivalent press event cost/ _____(#) avg. mentions from press event______________________________________= $ Press Event PR Value Angie Schottmuller | @aschottmuller
  • SOCIAL MEDIA BENEFITS CALCULATION - REDUCE COSTSContent Value - UGC Articles _____(#) brand-focused online articlesX $_____ equivalent content creation cost______________________________________= $ Article ValueTip: Tier costs by content quality (e.g. length, sentiment,images, uniqueness) and/or Domain Authority levels. Angie Schottmuller | @aschottmuller
  • SOCIAL MEDIA BENEFITS CALCULATION - REDUCE COSTSContent Value - UGC Photos _____(#) user-generated brand photosX _____% photo shoot qualityX $_____ equivalent photo shoot total costs/ _____(#) photos from average photo shoot _______________________________________= $ Photography Value HUGE! Angie Schottmuller | @aschottmuller
  • SOCIAL MEDIA BENEFITS CALCULATION - REDUCE COSTSContent Value - UGC Videos _____(#) user-generated brand videos X _____% brand-produced video quality X $_____ equiv. brand-produced video cost _______________________________________= $ Video Value HUGE!Be sure to include resource time, equipment rental, shootfee (e.g. location), and editing for video production costs. Angie Schottmuller | @aschottmuller
  • SOCIAL MEDIA BENEFITS CALCULATION - REDUCE COSTSResearch Value - Social Insights _____(#) brand online insights/commentsX _____% focus group insight qualityX $_____ equivalent focus group cost/ _____(#) insights from average focus group ________________________________________= $ Focus Group Value HUGE! Angie Schottmuller | @aschottmuller
  • SOCIAL MEDIA BENEFITS CALCULATION - REDUCE COSTSSupport Value - Online Self-Service _____(#) weekly support calls per topicX _____% calls likely solved by self-serviceX $_____ average support phone call cost _______________________________________= $ Call Support Value Angie Schottmuller | @aschottmuller
  • SOCIAL MEDIA BENEFITS CALCULATION - GROW SALESSales Value - Social Leads _____(#) qualified social leads identifiedX _____% lead-to-customer conversion rateX $_____ average order value (AOV)________________________________________= $ Lead Sales Value (Single Purchase) Angie Schottmuller | @aschottmuller
  • SOCIAL MEDIA BENEFITS CALCULATION - GROW SALESSales Value - Social Leads _____(#) qualified social leads identifiedX _____% lead-to-customer conversion rateX $_____ customer lifetime value (LTV)________________________________________= $ New Customer Sales (Lifetime Value)How To Calculate LTV: http://bit.ly/calculateltv Angie Schottmuller | @aschottmuller
  • SOCIAL MEDIA BENEFITS CALCULATION - GROW SALESSales Value - Social-Aided Conversion ( _____% new CR − _____% old CR)/ _____% old conversion rate (CR)X $_____ average product sales value___________________________________= Increased Sales Value HUGE!Ex: Increased conversion from usingsocial proof like reviews, testimonies, etc. Angie Schottmuller | @aschottmuller
  • Cost-Benefit Analysis§  SM Labor §  Awareness§  Tools & Software §  Web Traffic§  Opportunity Costs §  Advertising§  IT Labor §  Lead Generation§  Training §  Sales§  Risk §  Conversion §  Customer Retention §  Loyalty §  Advocacy §  Content (Images/Video) COST §  Satisfaction §  Market Research BENEFIT Angie Schottmuller | @aschottmuller
  • The only outcomes that matter... GROW REDUCE REVENUE COSTS IMPROVE SATISFACTION Reference: Jim Sternes book, "Social Media Metrics"
  • Use Social Media to" GROW SALES
  • Social Media Action Plan1.  Assess Current State2.  Map Strategic Plan (Cascade Business Goals)3.  Define SMART Goals w/ KPI Metrics4.  Inventory Tactics5.  Perform Tactic Competitive SWOT Analysis6.  Perform Tactic Cost-Benefit Analysis (CBA)7.  Select Best Tactics for Goal8.  Implement9.  Review & Analyze10.  Test & Optimize
  • Assessment§  Current State§  Metrics Collection AWARENESS§  Competitive Analysis CONSIDERATIONAsk: CONVERSIONØ  Whats currently being done?Ø  Whats working? LOYALTYØ  What funnel stages need the ADVOCACY most help? Angie Schottmuller | @aschottmuller
  • Strategic Plan Mapping Process1.  Determine Scope WHO?2.  Gather Business Goals 3.  Define Mission/Purpose WHY?4.  Cascade/Set Goals 5.  Define KPIs WHAT?6.  Choose Tactics 7.  Define Metrics HOW? Angie Schottmuller | @aschottmuller
  • Social Media Strategy Funnel Angie Schottmuller | @aschottmuller
  • Strategic Planning Map (Template) MISSION! GOALS! TACTICS! WHY ARE WE WHAT DO WE WANT HOW WILL WE ACHIEVE DOING THIS? TO ACCOMPLISH? OUR GOALS? A ü  <Metric> <TACTIC> ü  <Metric> <GOAL> <MISSION> <TACTIC> ü  <Metric> KPI: ü  <Metric> B ü  <Metric> <TACTIC> ü  <Metric><SCOPE> Goals: <GOAL> ü  <Metric>ü  <dept goal> A <TACTIC> ü  <Metric> KPI: ü  <dept goal> B C ü  <Metric> <TACTIC> ü  <Metric>ü  <dept goal> C <GOAL> ü  <Metric>ü  <dept goal> D <TACTIC> ü  <Metric> KPI: http://bit.ly/somostratplan Angie Schottmuller | @aschottmuller
  • Social Media Strategic Planning Map MARKETING SCOPE EXAMPLE:MISSION! GOALS! TACTICS!WHY ARE WE WHAT DO WE WANT HOW WILL WE ACHIEVEDOING THIS? TO ACCOMPLISH? OUR GOALS? ?To build andengage an army Increase YOYof advocates sales by 10% ?that in turn helpto build, KPI Metric:position, and $ sales in 2013 ?reconcile thebrand. ? Angie Schottmuller | @aschottmuller
  • How do we increase sales?
  • Sales Funnel Opportunitiesü  Boost Awareness AWARENESSü  Increase Market Shareü  Generate Leads CONSIDERATIONü  Acquire New Customers CONVERSIONü  Retain Customers LOYALTYü  Optimize Conversion ADVOCACYü  Boost Average Order Value Angie Schottmuller | @aschottmuller
  • Conversion Rate =The % of users that complete a presented action.
  • What can social media bring to the conversion table?§  Trust§  Content§  Real-Time Response§  Personalized Content§  Reduced Steps (Social Integration)
  • Different Types of Social Media...§  Social Networks §  Expert Q&A§  Blogging §  Review Sites§  Microblogging §  On-Site Reviews§  Bookmarking §  User-Generated Content (UGC)§  Media Sharing §  Social Sign-on§  Social Listening §  Star-Ratings§  Social Curation §  "Most Helpful" Ratings§  Discussion Forums §  Live Help§  Crowdfunding §  Geosocial Sites (e.g. Foursquare)§  Social Ads §  sCRM§  Streaming Content §  Wiki§  Social Gaming §  Social Commerce Angie Schottmuller | @aschottmuller
  • Social Tools to Boost Conversion§  Ratings - Stars / "Most Helpful"§  Social Share Counts§  Testimonials§  Reviews (Sites, On-Site, Geosocial)§  User-Generated Content (UGC)§  Social Sign-on§  Social Integration Angie Schottmuller | @aschottmuller
  • SOCIAL MEDIA TACTICS TO BOOST CONVERSION Star RatingsTip: Leverage Schema.org microdata (Aggregate Rating) forreviews to get rich snippets in search results!
  • "Less than 10% ofreviews are 2 stars or less." - Bazaarvoice, Jun 2012 (across over 2,000 clients)
  • SOCIAL MEDIA TACTICS TO BOOST CONVERSION Social Share CountsStrategicallyposition quantifiedsocial proof nearthe call-to-actionbutton and/orpage/product title.
  • SOCIAL MEDIA TACTICS TO BOOST CONVERSION Social Share CountsOnly display sharecounts for social buttonsthat regularly"quantify attention."Alternative:
  • SOCIAL MEDIA TACTICS TO BOOST CONVERSION Testimonials A testimony is simply a 30- second summary of a case study.Radian6 and MarketMotiveeffectively use video andaudio for testimonials.
  • RETHINK TESTIMONIALS... Image source: http://j.mp/rethinktestimonials
  • SOCIAL MEDIA TACTICS TO BOOST CONVERSIONBasecamp.com: TestimonialsGreattestimonial useon homepage. Social proof iseverywhere!
  • Good Testimonials Include:§  Use of "I" (customers view)§  Customer/persona info§  Problem/challenge info §  Solution/satisfaction specifics
  • SOCIAL MEDIA TACTICS TO BOOST CONVERSION Product ReviewsL.L.Bean Review: Persona Details!
  • SOCIAL MEDIA TACTICS TO BOOST CONVERSION Product ReviewsJ.Jill Review: Badges for Personas!
  • "68% of consumers trustreviews more when they see both good and bad scores." - Revoo Research Report, Jan 2012 - http://j.mp/badreviewscro67
  • "30% of consumers suspect censorship orfaked reviews when they don’t see anything negative." - Revoo Research Report, Jan 2012 - http://j.mp/badreviewscro67
  • SOCIAL MEDIA TACTICS TO BOOST CONVERSION Product ReviewsAltrec.com - Review Summary: Altrecs review template includes sub-ratings by benefits -- aiding speedy reviewsubmission as well as UX and SEO!
  • "Shoppers who seek outbad reviews convert 67% more than average consumers." - Revoo Research Report, Jan 2012 - http://j.mp/badreviewscro67
  • SOCIAL MEDIA TACTICS TO BOOST CONVERSION Product ReviewsOnlineShoes.com - Review Summary:
  • SOCIAL MEDIA TACTICS TO BOOST CONVERSION Facebook Comments (Widget)ThinkGeek.com:
  • SOCIAL MEDIA TACTICS TO BOOST CONVERSION User-Shared PhotosThinkGeek.com Action Shots:
  • "The more product action shots a customer sees... the higher the order value." - ThinkGeek.com, Nov 2012
  • SOCIAL MEDIA TACTICS TO BOOST CONVERSION Live HelpIconDirect.com displays actual employees by live chat!
  • SOCIAL MEDIA TACTICS TO BOOST CONVERSION Live HelpGemvara features Live Chat on checkout page:
  • SOCIAL MEDIA TACTICS TO BOOST CONVERSION Expert Q&ASKECHERS: (Nov 7, 2012) §  32% conversion increase for products.§  80% open rate of answer notification email.§  51% conversion rate from answer notification email.§  Reduced bounce rates§  Decreased customer support requests§  Resulted in removal of real-time chat (reducing costs)§  Assisted ability to rank on Google page 1 for "shoes"
  • SOCIAL MEDIA TACTICS TO BOOST CONVERSION Q&A and Review CombosSite visitors engaging w/ ratings, reviews, or Q&A:§  Urban Decay (May 2012) § 237% increase in conversion § 230% increase in AOV§  Chico’s White House Black Market (Jan 2012) § 200% increase in conversion § 300% increase in revenue per visitor § 250% increase in AOV
  • SOCIAL MEDIA TACTICS TO BOOST CONVERSION Social to Real World Connections HUGE! Engage social influencers in the physical world to reap amazing social and word-of- mouth PR benefits! Cheers to @HyattChicago for going out of their way this weekend to connect with me in real life! Angie Schottmuller | @aschottmuller
  • Action Plan1.  Assessment - Analyze current state, include SWOT2.  Strategy - Map out social media plan by scope3.  Pitch - Present top ideas to IMF 4.  Prep - Secure resources, budget, tools, training, etc.5.  Implement - Execute the plan (Abort if necessary)6.  Review - Analyze activity & ROI using multiple metrics7.  Optimize - Gather insights and improve for the sequel Angie Schottmuller | @aschottmuller
  • Only " Its time for20% of YOU to lead the way.marketers measuresocial media ROI. - eMarketer, 7 Guidelines of Achieving Social Media ROI, Feb 2010
  • Key Takeaways§  Measure your social media costs and benefits§  Leverage your social interactions for conversion§  Engage your audience for content§  Negative reviews add value§  Test the impact of social media/proof Angie Schottmuller | @aschottmuller
  • "The impossible can become possible," " IF... YOURE... AWESOME!" - Rhino [Disneys Movie, Bolt]
  • Not sure if socialmedia impactsconversion?TEST IT!
  • MISSION: Apply these tips, test social proof for conversion, and share this presentation so your social media plans dont self-destruct!