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Measuring Social Media ROI
 

Measuring Social Media ROI

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Paul Gillin presentation from Terametric Social Media ROI webinar, September 8, 2011

Paul Gillin presentation from Terametric Social Media ROI webinar, September 8, 2011

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    Measuring Social Media ROI Measuring Social Media ROI Presentation Transcript

    • Paul Gillin, Author The New Influencers Secrets of Social Media Marketing Social Marketing to the Business Customer Social Media ROI:Yes You Can!
    • It’s Simple, Knucklehead ROI = COST OF INVESTMENT (GAIN FROM INVESTMENT - COST OF INVESTMENT)
    • Return on Investment Or Risk of Inaction?
    • Types Of Financial Impact A. Revenue B. Costs Avoided Anything that leads to A or B, But only if you can directly equate its value to an action
    • These are NOT ROI Website Visitors Click-throughs Store visits Press coverage “ Buzz” Employment applications Retweets FaceBook friends Blog comments Video views Twitter followers Impressions Friends Coupons distributed But if you can quantify their financial impact, you have ROI!
    • Reconsider Customer Segments How Best Buy segments its customers High Low High Low Leading-Edge Technology Price Sensitivity Online Aficianados Practicals Ambivalent Aspirers Deal Drivers Who are your high-value customers? Enthusiasts
    • Start With the Business Business Goal Measurement Tactics Tools Generate 30% More Leads
      • Publish Six New White Papers
      • Initiate Monthly Webcasts
      • Sponsor Microsite on TechTarget
      • Build Targeted Twitter List (500)
      • Dedicated Monthly E-mail Blast
      • Promote To Trade Publications
      • List in Tech Directories
      • Hire Tech Freelancers
      • List Rentals
      • Create CoTweet Account
      • Increase PR Budget
      • Hire E-mail Marketing Firm
      • Initiate Blogger Relations Program
      • Increase Webcast/White Paper Reg’s by 60%
      • Increase Traffic to WP Landing Pages 120%
      • Increase 800-Number Calls by 80%
      Review and Revise
    • Stagger Activities White Paper Promotion Timeline   Task Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Home page link                         E-mail newsletter                         E-mail blast                         Blog promotion                         Twitter messaging                                                  
    • Look for Impact
    • Basic Business Metrics Lifetime Value of a Customer = (Longevity * Revenue) * Margin Conversion Rate = New Customers/ Visits or Leads Value of a Lead/Visitor = Visitor * Conversion Rate * Lifetime Value
    • OK, Let’s Make it Real Typical customer Curly spends $10,000/year with you Curly is with you for five years Your profit margin is 10% Lifetime value of Curly is ($10,000 * 5) * .1 = $5,000
    • CRM Essentials Must be used by everyone who touches the customer Must document online, offline and landline communications Must span the engagement lifecycle Must enable segmentation and grouping
    • Web Analytics Must track individual visitors Must document paths to desired destinations Must identify referring sources You must use them
    • Applying ROI: Value of a Visitor Monthly Visitors 10,000 Conversion Rate .5% Lifetime Value $5,000 Calculation (10,000 * .005 * 5)/10,000 Value of a Visitor $25
    • Value of a Blog Monthly Search Traffic 3,000 Estimated Traffic w/Blog 4,000 Value of a Visitor $25 Monthly Value of a Blog $25,000 Monthly Blog Expense $6,000 ROI ($25,000-$6,000)/$6,000 316%
    • Value of Twitter
      • You send 50 tweets a month…
      • Generating 1,000 visitors to your website…
      • 2% of whom become leads…
      • 5% of whom become customers.
      • Therefore, the value of a tweet is:
      (1,000 * .02 * .05 * 5000)/50 = $100
    • Value of a Community You want to launch a customer support forum to reduce your costs of telephone support Estimated admin costs: ½ FTE yr 1, ¼ FTE yr 2 1/10 FTE yr 3 Estimated savings: 1 FTE yr 1, 1.5 FTE yr 2, 2 FTE yr 3 Year Item Annual Cumulative 1 Forum Administrative costs $ 35,000 $ 35,000 Savings $ 70,000 $ 70,000 ROI 100% 100% 2 Forum Administrative costs $ 17,500 $ 52,500 Savings $ 105,000 $ 175,000 ROI 500% 233% 3 Forum Administrative costs $ 7,000 $ 59,500 Savings $ 140,000 $ 315,000 ROI 1900% 429%
    • Measuring the Immeasurable Lift Studies Store visits Headline Counts Employment applications Speaking Invitations Net Promoter Score Coupons redeemed If You Can Measure It, You Can Calculate Its ROI
    • Thank you! Paul Gillin 508-656-0734 [email_address] Site: gillin.com Blog: paulgillin.com Twitter: pgillin Free bi-weekly newsletter; sign up at gillin.com