Social Media ROI Explained In 140 Seconds

by Todd Chaffee on Mar 11, 2010

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I made this presentation at the London Twitter Developers Nest 7 (http://bit.ly/cyKgWd) in 140 seconds. The idea is that there are way too many people creating noise and unneeded complexity around the...

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Social Media ROI Explained In 140 Seconds — Presentation Transcript

Social Media ROI in 140 seconds

Social Media ROI What I'll cover

What is ROI?
Why do you care?
What you already have
What you need

What is ROI? Return on Investment from Investopedia (£100 – £80) / £80 =25%

What is ROI? Cost reduction or increase in sales: you need to get this info from your client What your client paid you (or your dept's budget or $$$ from your investor)

ROI Why do you care? Return On Investment

The Investment comes from either another department's budget -or- you are competing with other startups for $$$.
The other dept wants their budget back. Assume they can already prove Return .

What You Already Have VERY Accurate Activity Measures (Which is more than the people selling billboard space, who can show ROI) Visitors Return Visits Landing Pages Anon Visitors Converted to Members Retweets Videos Viewed Word of Mouth Comments Total Members vs Active Members Games Played Invites Sent to Friends Click-Throughs Page Views Conversation Size Messages Sent Followers & Following

What you need Social Media + ROI Tie “what you have” (social activity) into either cost reductions or increased sales. Over time:

Determine financial baselines (make allies in the finance dept) before you start
Keep activity timelines of social actions
Put it all together: baseline sales vs. new sales with social activity timeline as an overlay
If you can't get $$$ figures, try to get numbers that represent $$$ (e.g. new customers, quantity sold).

Social Media ROI Example Sales Start Twitter Summer Promo Sales No Correlation Seasonal Sales Dip Sales Dip Eliminated = ROI !!! Retweets This period is your baseline Apr 09 Jan 09 Jul 09 Nov 09 Jan 10 Apr 10 Jul 10 Nov 10

todd @ mikamai.com twitter: @chaffeet http: / / mikamai.co.uk blog.mikamai.com Questions?

Social Media ROI Resources Oliver Blanchard – Basics of Social Media ROI Excellent presentation, a bit longer than 140 seconds http://bit.ly/9ezggP iab - Social Media Ad Metrics Good resource for candidate Social Media Metrics http://bit.ly/8Xm1TT

Todd Chaffee , Social Media Consultant at MIKAMAI Thanks Chaitra for the compliment! 1 year ago

Are you sure you want to Yes No

Chaitra Vedullapalli , Customer Experience at Microsoft It is really a simple way of explaining in 140 seconds. Well done! 1 year ago

mlinnane Direct and to the point. Much like social media itself. Thanks for the presentation. 2 years ago

Todd Chaffee , Social Media Consultant at MIKAMAI I'm putting two and two together - 'Cosmetic Social Media' is Monique from LinkedIn. Thanks Monique! 2 years ago

Todd Chaffee , Social Media Consultant at MIKAMAI Thanks 'Cosmetic Social Media'! I'm glad you found it useful. 2 years ago

Cosmetic Social Media / Monique Ramsey at Cosmetic Social Media / Monique Ramsey It’s excellent way to visually explain- especially to a client who can’t understand social media in the first place... and how it can be measured. :) :) 2 years ago

Cosmetic Social Media / Monique Ramsey at Cosmetic Social Media / Monique Ramsey Love it Todd! It's excellent way to visually explain- especially to a client who can't understand social media in the first place... and how it can be measured. :) :) 2 years ago

Todd Chaffee , Social Media Consultant at MIKAMAI Thanks Vanina. Feel free to use it for yourself. 2 years ago

Vanina Abati , Web Communication Consultant at SIRIS MEDIA FACTORY - INSANA Great Job Todd! 2 years ago

Todd Chaffee , Social Media Consultant at MIKAMAI Thank you Jonathan. I hope you'll find it useful. 2 years ago

Social Media ROI Explained In 140 Seconds

by Todd Chaffee on Mar 11, 2010

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Social Media ROI Explained In 140 Seconds — Presentation Transcript