This is a webinar I did on looking at why ROI has become more important and how businesses can begin to look at how their social media monitoring activities are contributing to their bottomline. At the end of the day - there are two things that businesses must worry about: Increasing revenue and decreasing costs. Social media can do both, but you have to know how! The data from this presentation was created by using Crimson Hexagon's Platform.

1.
By Dr. Natalie Petouhoff
@drnatalie
www.drnatalienews.com/blog
Real Social Media
Monitoring Case Studies
Demystifying the
ROI of Social Media

2. This
presenta,on
is
about
how
to
set-­‐up
a
measurement
programs
to
calculate
the
value
ROI
of
Social
Media
And
get
more
business
value
out
of
social
media….
If
you’d
like
help…
Contact
Dr.
Natalie
Petouhoff
www.DrNatalieNews.com
@drnatalie

3. 3
Agenda
• Look at ROI Myths
• Set-up a social media
measurement program
• Calculate business impact & ROI
@drnatalie

4. •
Learning is the desire to discover new things
We are amazed by new things…
@drnatalie

5. •
@drnatalie
It’s the
new shiny
object
And Social
Media?
@drnatalie

6. But the amount of
information
– can feel like an
insurmountable blur
@drnatalie

7. It can generally be useless
@drnatalie

8. Today’s goal is to…
Provide…
• Marketers
• Brand Managers
• Product Managers
• Consumer Insights Teams &
• Market Research Professionals
w
An understanding of the
benefits of:
• Having deep, real-time insights
• Using insights to make business
decisions &
• Being able to be an invaluable
resource to CEO- suite@drnatalie

9. ssss
To TAKE
THE
CHAOS
TO
ORDER
Using context
@drnatalie

10. 10
Business As Usual
Executives want to know
what the business value
of social media is
@drnatalie

11. WHERE
ARE
WE
WITH
RESPECT
TO
BEING
ABLE
TO
CALCULATE
ROI
OF
SOCIAL
MEDIA?
Most
marketers
indicate
social
media
measurement
is
a
high
priority
&
48%
feel
pressure
to
report
qualified
outcomes
of
social
media.

12. Less
than
20%
of
marketers
can
calculate
the
ROI
of
Social
Media
MARKETERS
ARE
UNSURE
HOW
TO
CALCULATE
SOCIAL
MEDIA
ROI

13. Some
brands
forge
new
ground
by
ac,vely
making
social
media
part
of
their
cultural
DNA.
SOCIAL
IS
JUST
IN
SOME
BRANDS’
BLOOD
OTHERS
WANT
PROOF
BEFORE
THEY
TAKE
THE
LEAP

14. SOCIAL
MEDIA
ADOPTION
HAPPENED
QUICKLY
Companies
jumped
into
social
media
without
extensive
ROI
calculaRons
There
wasn’t
any
real
business
analysis.
It
happened
because
the
boss
said
so,
or
because
a
social
media
PR
disaster
could
cost
much
more.
Examples:

15. ARE
YOUR
SOCIAL
MEDIA
EFFORTS
WORTH
THE
MONEY?
Jus,fying
the
business
case
for
listening
&
engaging
on
social
media
is
a
BIG
ques,on.

16. BUT
IS
CALCULATING
SOCIAL
MEDIA
ROI
EVEN
POSSIBLE?
Skep,cs
think
social
media
is
too
“fluffy”
to
adequately
measure
return
on
investment
(ROI)

17. Misconceptions
of ROI
• That’s funny
• But ROI is not obvious to everyone
• And your boss would like a number
@drnatalie
You may have heard…
“Would you calculate the ROI of
your mom or your pants?
Then why would you calculate
the ROI of social media?
It’s obvious!”
http://www.flowtown.com/blog/what-is-the-roi-of-your-mom
@drnatalie

18. Social
Media
Myth
#1
“Social
media
ROI
cannot
be
calculated
because
there
are
too
many
unknowns…”

19. Social
business
is
s,ll
business…
…and
the
business
of
business
is
increasing
shareholder
value.
TRUTH
IS…

20. WHAT
IS
ROI?
A
NUMERICAL
VIEW
OF
STRATEGY
And
high
ROI
means
execu,ve
approval
for
your
ini,a,ve.

21. Enhanced
Brand
protec,on…
BeXer
Consumer
Insights…
Faster
lead
genera,on/
increased
lead
conversion
rates
Reaching
PR
objec,ves
faster,
beXer,
cheaper…
Increased
awareness,
reach,
relevance,
engagement…
Reduc,on
in
call
center
costs/
increase
in
customer
revenue
Decrease
in
customer
churn/
inc
customer
life,me
value
DOES
YOUR
STRATEGY
INCLUDE
BUSINESS
FUNDAMENTALS
LIKE
COST
SAVINGS
&
REVENUE
GENERATION…
If
your
strategy
includes…
Social
media
ROI
predicts
if
you’ll
reach
the
goal…

22. Social
Media
Myth
#2
“Would
you
calculate
the
ROI
of
pu^ng
phones
on
every
desk
in
your
company?
smROI
doesn’t
have
to
calculated!
”

23. Except
businesses
do…
Evaluate
produc,vity
benefits
vs.
costs.
And
also
the
systems
needed
to
support
the
business
ac,vi,es.
HMMM….

24. TRUTH
IS…
There
was
a
day
when…
Secretaries
answered
the
phones
and
typed
EVERYTHING
for
workers.
Along
came
phone
switches
and
desktop
computers…
Someone
did
ROI
calcula,ons
for:
Ge^ng
a
company-­‐wide
phone
switch
and
phones
on
every
desk
top.
(Ask
Nortel
and
Avaya…)
And
a
computer
on
every
desk.
And
apps
to
get
your
work
done
-­‐-­‐
like
email,
word
processing
programs.

25. Social
Media
Myth
#3
Metrics
=
ROI

26.
KNOW
WHAT
ROI
IS
AND
ISN’T
Many
people
mistake
social
media
data,
metrics
and
Key
Performance
Indicators
(KPIs)
for
ROI
Metrics
are
used
to
measure:
Reach,
Relevance,
Shares,
Likes,
Engagement,
Purchases
But
that’s
NOT
ROI

27. COLLECT
SOCIAL
MEDIA
DATA,
METRICS
&
KPIS
Website
analy,cs
and
marke,ng
automa,on
data
help
provide
insight
into
what
you’re
doing
right
&
how
you
can
improve.

28. TRUTH
IS…
Metrics
are
the
like
ingredients
in
a
good
recipe.
They
go
into
the
ROI
calcula,on,
but
they
aren’t
the
finished
dish.

29. Misconceptions
of ROI…
There’s a change in metrics!!
• We have 500 more “Likes”
• 10X click-thru rate on “Buy Now” button
• $5M in annual support savings & sales advocacy
• Viral videos increased company sales +700%
• Social microsites secured 1,000,000 fans and a 10%
increase in same-store sales
E
I have an ROI!!
e
Note to self:
Metrics are necessary…
But they are not ROI
@drnatalie

30. ROI
VS.
METRICS
Ac,vity
Metrics
#
of:
News
Releases
Media
Interviews
Analyst
Briefings
Blogger
Engagements
Blog
Posts
Video
Posts
Podcasts
Web
Site
Page
Edits
Reach
Metrics
#
of:
Earned
Media
Placements
Earned
Media
Impressions
Paid
Media
Impressions
News
Release
Downloads
Analyst
Report
Men,ons
Relevance
Metrics
#
of:
Key
Message
Penetra,on
Earned
Media
Share
Share
of
Conversa,on
Word
of
Mouth
Volume
Click-­‐Through
Volume
/
Rate
Return
on
Investment
• Earned
Media
Value
vs.
Marke,ng
Spend
• Lead
Value
vs.
Marke,ng
Spend
• Brand
Equity
Growth
vs.
PR
Spend
• Focus
group
vs.
Social
Media
Monitoring
or
Community

31. ROI
IS
LIKE
LOOKING
AT
AN
ESCHER
DRAWING
It’s
a
complexity
issue
•
Tradi,onal
business
goals
&
metrics
•
Social
media
business
goals
and
metrics
•
How
social
media
affects
tradi,onal
business

32. Myth #4
“ROI is too difficult
because
I’m not
a “math” person.”
@drnatalie

33. Real-world
Examples
@drnatalie

34. Analyzed online conversations:
• Their brand
• Key competitor
Ran nat’l ad campaigns & wants to understand:
• Effectiveness of messages and
• Drivers of consumer purchase intent
Case Study:
Major Insurer
Advertising Effectiveness & Competitor Evaluation
@drnatalie

35. Insurer Ad Effectiveness
• Insurer’s ad campaign is liked
• Didn’t generate conversation about
buying or switching insurers
@drnatalie

36. Insurer Ad Effectiveness
• Insurer’s ad campaign is liked
• Didn’t generate conversation about
buying or switching insurers
• Competitor ad campaign is more divisive
@drnatalie

37. Insurer Ad Effectiveness
• Insurer’s ad campaign is liked
• Didn’t generate conversation about
buying or switching insurers
• But spurs a conversation trend related to
purchasing
• Competitor ad campaign is more divisive
@drnatalie

38. Conclusion of social media monitoring
• Both campaigns generate
healthy “buzz”
• But positive sentiment doesn’t
reflect intent to purchase
• Using context avoids
misinterpreting positive sentiment
for a social buying gesture- intent
to purchase
@drnatalie

39. ROI of social media monitoring
ROI = Benefits - Costs x 100 = Percentage Return on the Investment
Costs
What is the cost?
• People- to do the analysis
• Process- process to compile the
information
• Technology- social media
monitoring tool
What is the benefit?
• If the commercial drove sales?
• Number of leads?
• What is a lead worth?
• Number of lead conversions?
• What’s a sale worth?
@drnatalie

40. Case Study:
Craft Company
Product Development & Marketing
Wants to understand:
• What topics dominate craft-related conversations?
• Is marketing having the desired effect?
• What’s lacking in the product line and accessories?
@drnatalie
cccccccccc

41. Identified New Product Opportunities
Discovered opportunity to
develop more male-centric
product line & accessories
Consumers’ expressed strong
desire for:
• More & better supplies &
accessories
• Improved access to
purchase those accessories
@drnatalie

42. • In-house Research
• Quickly and cost effectively
identifies new product & market
opportunities
• Prompts development of new
product accessories
• Enables additional sales
• Expands market share
• Marketing
• Gained increased confidence
leveraging social-media
• Confirmed effectiveness of current
messaging and promotional
approach
Conclusions of social media monitoring
@drnatalie

43. ROI of social media monitoring
ROI = Benefits - Costs x 100 = Percentage Return on the Investment
Costs
What is the cost?
• People- to do the analysis
• Process- process to compile the
information
• Technology- social media
monitoring tool
What
is
the
benefit?
• What
does
it
cost
the
company
to
go
to
market
with
a
product
that
isn’t
what
customers
really
wanted?
• What
would
this
type
of
market
research
normally
cost
the
company?
• How
long
would
it
normally
take
to
get
that
kind
of
feedback?
What’s
the
general
cost
for
product
dev
to
launch
a
product?
• What’s
the
value
of
finding
a
new
product
to
provide
their
market?
• What
was
the
value
in
revenue
of
the
new
products/
accessories?
• What’s
the
value
of
key
messaging
that
works?
Higher
lead
conversa,on
rate?
@drnatalie

44. Case Study:
Medical Device for Diabetes & Insulin
Product Launch Marketing
• What core messages will resonate most
with these consumers?
• How do patients discuss the complexities
of treatment & control?
• What is the significance for the new
product launches?
Wants to understand
diabetes & insulin:
@drnatalie

45. Lifestyle
Consumers’ Concerns
Top Conversations
Lifestyle
Treatment
Success
Support
Device comments?
LOWER
@drnatalie

46. Opportunity for brand to:
• Get more engaged
• Become trusted-partner
• Create a online Community for
• Advice
• Recommendations
• Shared-support
Conclusions of social media monitoring
@drnatalie

47. ROI
of
social
media
monitoring
ROI
=
Benefits
-­‐
Costs
x
100
=
Percentage
Return
on
the
Investment
Costs
What
is
the
benefit?
• What’s
the
value
in
knowing
what
to
put
the
emphasis
of
content
online?
•
I.e..,
to
create
an
editorial
calendar
that
has
content
that
specifically
addresses
why
people
might
not
use
their
medicine
•
And
which
means
that
don’t
feel
as
well
and
they
don’t
live
as
long
or
buy
the
medicine-­‐
which
affects
sales
• What
is
the
value
of
becoming
a
trusted
resource
for
pa,ent
concerns?
Enhanced
brand
trust?
• Did
the
online
community:
•
Deflect
any
calls
to
the
call
center?
• Increase
the
efficiency
or
effec,veness
of
the
calls?
• Did
the
company
use
the
content
in
the
community
to
update
their
FAQs
or
knowledge
base
which
helped
self-­‐service?
What is the cost?
• People- to do the analysis
• Process- process to compile the
information
• Technology- social media
monitoring tool
@drnatalie

48. Case Study:
Healthy Snacking & Kids
Campaign Planning: Product Launch & Marketing
Wanted to know the nature of online conversations:
• Concerns parents have providing kids a healthy diet
• What factors drive purchase decisions and habits?
@drnatalie

49. “Healthy” in Kids Snack Foods:
More Effectively Resonate
with Consumers
NutriRon
Allergies
Top
Conversations
Convenience
Taste
Not as High
@drnatalie

50. Opportunities for Brand:
• Better launch messaging
• Product packaging
• On-going campaign messaging
Conclusions of social media monitoring
@drnatalie

51. ROI
of
social
media
ROI
=
Benefits
-­‐
Costs
x
100
=
Percentage
Return
on
the
Investment
Costs
What
is
the
benefit?
• What’s
the
cost
of
market
research?
• Focus
group
of
12
people
=
15K
• How
many
would
you
need
to
do
to
get
the
same
volume
of
content?
• 12
x
$15K
=
$180,000
• What’s
the
value
of
targe,ng
the
message
for
a
campaign?
• What’s
the
value
of
being
able
to
run
an
AB
test
of
taste
vs.
allergies
to
see
which
one
really
gets
the
most
responses?
ROI
of
social
media
monitoring
ROI
=
Benefits
-­‐
Costs
x
100
=
Percentage
Return
on
the
Investment
Costs
What is the cost?
• People- to do the analysis
• Process- process to compile the
information
• Technology- social media
monitoring tool
@drnatalie

52. How to Set-up A Social Media
Measurement Program
6. Hone the analysis / teach the system
7. Analyze the information
8. Create appealing presentation of data
9. Present information to stakeholders
10. Take action on the data & repeat!
@drnatalie
How
to
Mone,ze
Facebook
With
Social
Commerce
By
Dr.
Natalie
1. Get executive buy-in & support
2. Choose Staff
3. Determine your business goals
• Product Development
• Product Launch
• Product Marketing…
4. Choose a social media monitoring system
5. Start listening to online conversations

53. Wayne St. Amand
Vice President, Marketing

54. SOCIAL MEDIA IS EVERYWHERE,
AND EVERYONE IS USING IT.
WE ANSWER THE QUESTIONS.

55. 1.75 BILLION
POSTS PER WEEK
100+ BILLION
POSTS TO DATE
250+ MILLION
POSTS PER DAY

56. MASSIVE OPPORTUNITY
NOT FULLY LEVERAGED BY MOST
• Social media is the largest source of unfiltered information
ever available about how consumers truly think and feel
• The vast majority of companies have yet to take
advantage of this intelligence to influence their business
decisions
Achieving Social Intelligence
The management and analysis of customer data from social sources,
used to activate and recalibrate marketing and business programs.

57. SOCIAL INTELLIGENCE CREATES ACTIONABLE
INSIGHTS
True Social Intelligence
Delivers
• Consumer insights to
drive business success
– Greater marketing effectiveness
– On-target product planning
– Deeper competitive insights
– Understand purchase triggers
However, most of today’s tools do a terrible job
of helping you achieve true Social Intelligence

58. MOST SOCIAL MEDIA MONITORING IS BROKEN
Keywords and semantics don’t work well in social media
• Traditional tools lack the ability to understand context
• A computer cannot replace human judgment
• Human analysts cannot scale or provide consistency
• Predefined rules cannot support the dynamic nature of the social media
conversation
• Surface-level monitoring lacks accuracy and deep insight
NLP
Semantic
Search
Manual-coding
Keyword
Sentiment
Monitoring

59. 59
THE CRIMSON HEXAGON FORSIGHT®
PLATFORM

60. Scalable
Accurate
Replicable
A REVOLUTIONARY APPROACH
Context
Nuance
Judgment

61. Posi,ve
Nega,ve
23%
66%
Major
Automo@ve
Brand
SENTIMENT ALONE IS INCOMPELTE
102,784
men,ons
11%
Neutral
11%
9%
18%
9%
11%
8%
11%
12%
11%
Love
Chevy
Legendary
Want
One
Looks
&
Design
Performance
Great
Business
Maintenance
Prefers
CompeRtor
Asking
advice

63. ANALYTICS BEYOND SOCIAL
CustomerFeedback
MarketResearch
SocialWeb
FacebookPages
PROPRIETARY ONLINE

64. GLOBAL CONVERSATION
‫اﳋﻴﺮ‬ ‫ﺻﺒﺎح‬
GrüßgoX
早上好
hej
bonjour
Γεια
σου
selamat
pagi konbanwa
안녕하세요
zdravstvuyte
merhaba
selam
boas
sawa
dee-­‐kanamaskar

66. ADDITIONAL RESOURCES:
Request an Online Demo:
http://www.crimsonhexagon.com/products/request-a-live-demo
Customer Case Studies:
http://www.crimsonhexagon.com/customers/#casestudies
Overview Video:
http://www.crimsonhexagon.com/products/overview-video/
Data Sheets & White Papers:
http://www.crimsonhexagon.com/products/whitepapers/

68. For
more
informa,on
on
how
to
calculate
the
ROI
of
Social
Media
Or
get
more
business
value
out
of
social
media….
Contact
Dr.
Natalie
Petouhoff
www.DrNatalieNews.com
@drnatalie