Social Media ROI: Formulas & Conversion Optimization Tips

1. Social Media, Meet ROI How To Measure Social Media Beneﬁts and Increase Conversion Angie Schottmuller - @aschottmuller SES Chicago - Nov 13, 2012 #SESCHI #socialproof

2. About UnbounceAngie Schottmuller | Chief of Conversion Marketing | angie@unbounce.com

3. YOUR MISSION:1.  Quantify social media beneﬁts2.  Use social media to grow sales Angie Schottmuller | @aschottmuller

4. Social Media Beneﬁts" QUANTIFIED < GEEK ALERT >The mathematical formulas in this presentation may cause extreme jubilation. Prepare to quantify.

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. The only outcomes that matter... GROW REDUCE REVENUE COSTS IMPROVE SATISFACTION Reference: Jim Sternes book, "Social Media Metrics"

22. Use Social Media to" GROW SALES

23. 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

24. 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

25. 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

26. Social Media Strategy Funnel Angie Schottmuller | @aschottmuller

27. 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

28. 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

29. How do we increase sales?

30. 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

31. Conversion Rate =The % of users that complete a presented action.

32. What can social media bring to the conversion table?§  Trust§  Content§  Real-Time Response§  Personalized Content§  Reduced Steps (Social Integration)

33. 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

34. 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

35. SOCIAL MEDIA TACTICS TO BOOST CONVERSION Star RatingsTip: Leverage Schema.org microdata (Aggregate Rating) forreviews to get rich snippets in search results!

36. "Less than 10% ofreviews are 2 stars or less." - Bazaarvoice, Jun 2012 (across over 2,000 clients)

37. SOCIAL MEDIA TACTICS TO BOOST CONVERSION Social Share CountsStrategicallyposition quantiﬁedsocial proof nearthe call-to-actionbutton and/orpage/product title.

38. SOCIAL MEDIA TACTICS TO BOOST CONVERSION Social Share CountsOnly display sharecounts for social buttonsthat regularly"quantify attention."Alternative:

39. 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.

40. RETHINK TESTIMONIALS... Image source: http://j.mp/rethinktestimonials

41. SOCIAL MEDIA TACTICS TO BOOST CONVERSIONBasecamp.com: TestimonialsGreattestimonial useon homepage. Social proof iseverywhere!

42. Good Testimonials Include:§  Use of "I" (customers view)§  Customer/persona info§  Problem/challenge info §  Solution/satisfaction speciﬁcs

43. SOCIAL MEDIA TACTICS TO BOOST CONVERSION Product ReviewsL.L.Bean Review: Persona Details!

44. SOCIAL MEDIA TACTICS TO BOOST CONVERSION Product ReviewsJ.Jill Review: Badges for Personas!

45. "68% of consumers trustreviews more when they see both good and bad scores." - Revoo Research Report, Jan 2012 - http://j.mp/badreviewscro67

46. "30% of consumers suspect censorship orfaked reviews when they don’t see anything negative." - Revoo Research Report, Jan 2012 - http://j.mp/badreviewscro67

47. 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!

48. "Shoppers who seek outbad reviews convert 67% more than average consumers." - Revoo Research Report, Jan 2012 - http://j.mp/badreviewscro67

49. SOCIAL MEDIA TACTICS TO BOOST CONVERSION Product ReviewsOnlineShoes.com - Review Summary:

50. SOCIAL MEDIA TACTICS TO BOOST CONVERSION Facebook Comments (Widget)ThinkGeek.com:

51. SOCIAL MEDIA TACTICS TO BOOST CONVERSION User-Shared PhotosThinkGeek.com Action Shots:

52. "The more product action shots a customer sees... the higher the order value." - ThinkGeek.com, Nov 2012

53. SOCIAL MEDIA TACTICS TO BOOST CONVERSION Live HelpIconDirect.com displays actual employees by live chat!

54. SOCIAL MEDIA TACTICS TO BOOST CONVERSION Live HelpGemvara features Live Chat on checkout page:

55. 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"

56. 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

57. 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

58. 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

59. Only " Its time for20% of YOU to lead the way.marketers measuresocial media ROI. - eMarketer, 7 Guidelines of Achieving Social Media ROI, Feb 2010

60. 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

61. "The impossible can become possible," " IF... YOURE... AWESOME!" - Rhino [Disneys Movie, Bolt]

62. Not sure if socialmedia impactsconversion?TEST IT!

63. MISSION: Apply these tips, test social proof for conversion, and share this presentation so your social media plans dont self-destruct!

Social Media ROI: Formulas & Conversion Optimization Tips

Angie Schottmuller

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