Pivot Conference: Show Me the Money: ROI of Social Meddia & The Third Phase of Social Media
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Pivot Conference: Show Me the Money: ROI of Social Meddia & The Third Phase of Social Media

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The ROI of Social Media seems to be something many people want, but few know how to calculate. As a specialty, in this presentation I look at why there hasn't been more focus on this topic and why......

The ROI of Social Media seems to be something many people want, but few know how to calculate. As a specialty, in this presentation I look at why there hasn't been more focus on this topic and why its time for people to learn how to do this. I distinguish the difference between metrics and ROI. ROI is looking at the actual value of the social media program vs the cost to deliver it. And I address why might happen if we as a industry don't focus on this more!

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  • 1. Transforming Social Media into Enterprise Social Business:
    Numbers into Business Insights
    By Dr. Natalie Petouhoff
    Author of Like My Stuff!
    Scan this QR Code for this preso + more good stuff!
    www.drnatalienews.com
    Learn Share Grow!
    Slide 1 -
    @drnatalie #pivotcon
  • 2. Where are we in social media?
    *Adopted from: Crossing the Chasm” by Geoffrey A. Moore,
    Roger’s Diffusion of Innovations 1962 and Gabriel Tarde 1890
    Social Media Adoption Curve*
    Phase 1 | Phase 2 | Phase 3| Phase 4 | Phase 5
    As an industry, we are in Phase 3.
    www.drnatalienews.com
    Learn Share Grow!
    Slide 2 --
    @drnatalie #pivotcon
  • 3. What does being in Social Media Phase 3 mean?
    Social Media Adoption Curve
    Phase 1| Phase 2 | Phase 3 | Phase 4| Phase 5
    • If you are a vendor, it’s the largest market.
    • 4. If you are in an org or selling to an brand,
    you’ll have to convince this large group, the
    early majority, why they should do social media
    www.drnatalienews.com
    Learn Share Grow!
    Slide 3 --
    @drnatalie #pivotcon
  • 5. If social media is an business changing paradigm, as a company you’ll have to get the
    early majority to buy-in
    The Social Media Adoption Chasm
    How can you get the early majority to believe?
    5
  • 6. Don’t Fall Into the Chasm
    Geoffrey Moore on technology adoption:
    • Technologies or products that cannot cross this chasm will die or remain niche.
    • 7. If successful, a vendor can create a bandwagon effect in which the momentum builds and the product becomes ubiquitous.
    Learn Share Grow!
    @drnatalie #pivotcon
  • 8. The Social Media Chasm Potential
    Dr Natalie says – about social media adoption:
    • If we cannot help the early majority understand the business value for social media, i.e., cross this chasm, social media initiatives die or remain niche.
    • 9. We will continue to see interdepartmental fighting to control social media initiatives, which results in fractured brand equity and confused social consumers
    • 10. Companies who are successful, will create momentum and fuel the fire and social media will becomes ubiquitous
    • 11. When the majority of the organization is collaboratively engaging in social media, employees and customers win
    • 12. When employees and customers win, so will the company.
    www.drnatalienews.com
    Learn Share Grow!
    @drnatalie #pivotcon
  • 13. Innovators and Early Adopters
    are the people who camp over nite
    at the Apple store to get the newest tech…
    5
  • 14. Pragmatists are SHOW ME THE MONEY people!
    Early Majority are:
    • Pragmatists
    • 15. They need assurances
    • 16. SHOW THEM: what they’re going to buy will work
    • 17. They dislike unpredictability
    • 18. They are hard to win over
    5
  • 19. If you can get the early majority to see what the innovators & early adopters see…
    Social Media Adoption Curve*
    Early Majority are:
    • Loyal once they become “sold” on an idea
    • 20. Pragmatist often become an Evangelist’s
    • 21. They influence others through WOM channels
    • 22. Especially the Late Majority
    5
  • 23. What if you could tell the early majority…
    We will…
    • Articulate the business case
    • 24. Calculate value & ROI
    • 25. Do more of the right things
    • 26. Put structure around what can seem unstructured
    • 27. Benchmark “As Is” and create a “Could Be” plan
    • 28. Justify the plan to upper management by showing them the business reasons
    • 29. Track the progress, gather the right metrics
    • 30. Assess the progress & iterate and
    • 31. Create and sustain a world-class social enterprise brand…?
  • Why haven’t we been totally focused on ROI?
    • In the beginning, few asked for it…
    • 32. Many innovators didn’t ask for budget, they just started doing social media
    • 33. Early adopters had a gut feel that this would be important…
    • 34. We’re trying to figure out what this all means…
    www.drnatalienews.com
    Learn Share Grow!
    Learn Share Grow!
    Slide 11 --
    @drnatalie #pivotcon
  • 35. Social Media Industry Phases & ROI
    Social Media Adoption Curve
    Phase 1 | Phase 2 | Phase 3 | Phase 4 | Phase 5
    www.drnatalienews.com
    Learn Share Grow!
    Learn Share Grow!
    Slide 12 --
    @drnatalie #pivotcon
  • 36. ROI Myths
    You can’t calculate social media ROI
    You can, but it requires learning some new things
    It requires complexity thinking… that you understand:
    Traditional metrics and ROI calculations
    Social media metrics and ROI calculations
    The affect social media has on business and what increases /decreases
    It’s hard to attribute what came from social media and what came from traditional venues
    It requires learning to how to assign attribution
    Metrics give you ROI
    You have to take the metrics and use them to calculate business value
  • 37. Metrics that get you to ROI… but aren’t ROI…
    Number of…
    Blog Posts
    Video Posts
    Podcasts
    News Releases
    Media Interviews
    Analyst Interactions
    Briefings / Inquiries / Consults
    Events Managed
    Direct Mail Campaigns
    Web Site Pages/Edits
    Web Site Pages/Edits
    What are you doing?
  • 38. Metrics that get you to ROI… but aren’t ROI…
    Number of…
    Earned Media Placements
    Print / Online / Broadcast
    Business / Consumer / Trade
    Earned Media Impressions
    Print / Online / Broadcast
    Business / Consumer / Trade
    Earned Media Prominence
    Headline Citations
    Lead Paragraph Citations
    Cover/Feature Stories
    Photo/Graphic Placement
    Paid Media Impressions
    # of Event Attendees
    # of Collateral Downloaded…
    Who are you
    taking to?
  • 39. Metrics that get you to ROI… but aren’t ROI…
    Number of…
    Key Message Penetration
    Earned Media Share
    Share of Voice compared to competitors
    Word of Mouth Volume
    Online Search Rank / Share
    Click-Through Volume / Rate
    Qualified Leads
    Who cares
    about what you are saying?
  • 40. Metrics that get you to ROI… but aren’t ROI…
    Value of…
    • Brand strength
    • 41. Awareness of brand/company
    • 42. Perceptions of brand/company
    • 43. Affinity for brand/company (favorability, preference)
    • 44. Advocacy for brand/company (Net Promoter score)
    • 45. Market strength
    • 46. Sales/revenue growth
    • 47. Market share
    • 48. Profitability
    • 49. Employee Retention
    • 50. Employee perceptions of brand/company
    • 51. Employee morale/engagement
    • 52. Advocacy (WOM)
    • 53. Awards
    • 54. e.g., Fortune Most Admired, Best Place to Work…
    What value are your bringing?
  • 55. ROI is… Learning what you got from your investment
    ROI = Benefit – Investment x 100
    Investment
    ROI = $10,000 – $5,000 x 100
    $5,000
    ROI = $5,000 x 100 = 100%
    $5,000
  • 56. Don’t let how you approach social business stop the progress of your company
    The chasm is a drastic lull in that occurs after the visionaries and innovators have done as much as they can
    And the pragmatists will not buy into this new paradigm unless they can reference other pragmatists
    Which is a catch 22 – because the pragmatists don’t care yet.
    Pragmatists dependent exclusively on references from others in their own industry and are highly support oriented
  • 57. 5 Steps to Take…
    Assess your needs
    • As Is, Could Be and Gap
        
    2. Create short & long term plan
    • Start by listening
    • 58. Then integrate interactions
    • 59. Unify traditional and social
    3. Create a business case
    4. Deploy and assess
    5. Review lessons learned and repeat.
     
     
     
  • 60. Don’t do the ostrich…
    Imagine how silly
    you might look…
  • 61. … take your
    head out of the sand… and cross the chasm… learn how to calculate ROI!!!
  • 62. @drnatalie
    www.drnatalienews.com
    310-910-1542
    Link to the Social Media ROI videos:
    http://www.drnatalienews.com/blog/did-u-see-the-videos-on-the-roi-of-social-media
    Thank you!
    Curious about
    The ROI of
    Social Media?
    Link to white papers on the ROI of Social Media:
    http://www.drnatalienews.com/blog/roi-of-social-media-white-papers-by-dr-natalie-petouhoff
    Get the book::
  • 63. Appendix…
    Getting Started on Social Media ROI
    What is Social Media Monitoring?
    Social media monitoring is a process by which you monitoring the conversations that your stakeholder groups are having. Stakeholder groups can be groups of customers, influencers, brand ambassadors, press, etc… These conversations occur between you and them and the stakeholder groups also talk amongst themselves on social channels. Some of the paid social media monitoring services also include print, radio and TV monitoring and conversations in those mediums.
  • 64. Appendix…
    You’ll want to look at how your company or department is collecting real-time feedback on the quantity, quality, tone of the ongoing social interactions. With this information you can several things.
    One is to avoid risk. There are many cases of social media brand damage- consider Dominos, Nestle, Gap, Motrin, United Breaks Guitars, Southwest Airlines, BP and now Netflix.
    If a brand is monitoring for what is being said –to and about your brand or company, you can detect a disaster and take it off line and resolve it before it blows up.
  • 65. Appendix…
    You can also use social media monitoring to be proactive in your outreach to various stakeholder groups.
    You can use monitoring to learn who your superusers are, i.e., the 1% out of your 1-9-90 principle in social media. The 1-9-90 principle is the ratio of people who post about your brand = 1%, the people who respond to those 1% are called the responders and they respond to what the 1% posts.
    The rest of your stakeholders are in the 90%. This 90% are called lurkers because they mostly read content. They don’t very often post or respond. But they are still important.
    (The ratio 1-9-90 may very depending on the vertical industry you are in, but it is a good baseline to understand that most of your stakeholder generate and spread and the rest just read it.)
  • 66. Appendix…
    Part of social media monitoring is to determine the value of social interactions to the brand and the business. It will be difficult for a company to get a larger share of the total communications expenditure without quantitative means that go well beyond measurement of media outputs.
    Things that you want to measure are:
    • Sentiment towards your brand
    • 67. Sentiment towards your competitors
    • 68. Share of voice of your brand compared to your competitor
    • 69. What are the top conversations and buzz around your company
    • 70. Are you interacting with the most important people- the 1 and 9%
    • 71. Is the content you are creating the type of content your stakeholders are interested in and have you make it social media oriented, meaning is it something they want to share with others?
    • 72. What channels are you syndicating the content on?
    • 73. How is the content driving your prospects through your marketing funnel?
  • Appendix…
    And you want to monitor and analyze these types of things over a long period of time.
    This will help you to see if your key marketing messages are getting picked up, if there are issues with your products and services, and can even give you ideas for your product development and roadmap. In the following table are some free tools.
    There are also paid for services like Radian6 and Sysomos. If you don’t have budget for social media, you might start by using some of the free tools.
    And once you start to show business value, you can decide if you want to make a proposal for a more advanced tool.
  • 74. Appendix…
    Here’s a blog post I did about social media monitoring and the affect it might have had on Netflix and Blockbuster if they had not only been monitoring but also taken the information about their company and integrated it back into the company.
    That doesn’t happen all that often. It’s a organizational change management issue and something that very skilled leaders are learning how to facilitate. Even in the best of situations, in the current environment, interdepartmental collaboration may be lacking.
    One of the best techniques to move things forward is to show a pocket of success. You might also take meetings with other like-minded individuals in other departments so that you can hear their point of view and discuss what their views and yours are in the arena of social media and social media monitoring tools.
     
     
    Here’s the blog post that might give you some insight into the power of social media monitoring:
    Could Social Media Monitoring Have Saved Netflix & Blockbuster from Themselves?
     
     
  • 75. Appendix…
  • 76. Appendix…