Show me the money
Selling the ROI of Social Media
Elisabeth Bitsch-Christensen
Marketing Manager Nordics
@echristensen42
There is only one boss.
The customer. And he
can fire everybody in
the company from the
chairman on down,
simply by spendi...
Why is ROI important?
What is ROI?
Understanding the value drivers
Happy to show you a few highlights
The New Marketing Mix
Paid Owned Earned
TV Ads Free InkDirect Mail
ConversationsContentDigital & Social Ads
You Need a Social Marketing Roadmap
Understand
Your Customer
150MM Brand
Conversations
Daily
Content
Marketing
35% of CMOs...
You Need a Social Marketing Roadmap
Listen
Publish
Advertise
CRM
Decentralized
Organized
Hub & Spoke
Optimized
No clear owner
Social “bubbles up”
One team runs
Social presences
Cross-func...
Start the ROI Conversation Early
Actively talk about ROI
Don’t deflect or “minimize”
ROI questions
Don’t ignore the ROI
el...
What’s the value of social media?
I need to quantify the potential impact on revenue…
We’re not sure we can afford…
I need...
Success In Social Marketing
+22%
Decrease in
Customer
Service Costs
Competitive
Intelligence
Product
Research/
Development...
What ROI do companies expect from technology?
Source: Gartner’s CFOs Top Imperatives 2013
Weighted Average: 16%
ROI is a Simple Formula...
Benefits
ROI =
Cost
Cost
-
Revenue:
Make A Buck
Cost Savings:
Save A Buck
…With Benefits Falling Into 2 Categories
Heavily Influenced by:
- Campaign ...
Cost Savings
Productivity increases in:
App Deployment
Reporting & Analytics
Listening and Publishing
Social Customer Serv...
Base Your ROI Discussions on Business Need
Productivity
Gains
Customer
Satisfaction
Customer
Retention
Crisis
Avoidance
Pr...
Listen: Use Cases & Value Drivers
Social Brand
Monitoring
Community
Engagement
Social
Customer
Care
Social Sales &
Lead Ge...
Listen Play 1: Social Brand Monitoring
Reduced time spent reporting
Reduced probability of PR
crisis attributable to socia...
Listen Play 2: Community Engagement
Reduced time to collect social
activity for response
Time saved to segment
influencers...
Listen Play 3: Social Customer Care
Improve customer satisfaction. Reduce attrition rate and call volumes. Increase servic...
Listen Play 4: Social Sales & Lead Gen
Increase in annual online leads
and offline trade show leads
Improvement in convers...
Publish: Use Cases & Value Drivers
Brand
Awareness &
Growth
Drive Behavior
& Conversions
Deploy & Manage
Social Presences
...
Reduced expense creating /
managing social presences
Reduced marketing employee
time spent reporting
Reduced time spent wi...
Publish Play 2: Behavior and Conversions
Redemption rate increase from
social offers
Conversion uplift from social CTAs
In...
Publish Play 3: Brand Awareness & Growth
Increase in social posts
Uplift in engagement per post
Conversions per engagement...
Advertise: Key Use Cases
Acquire Fans
& Followers
Drive Leads and
Direct Response
Promote Great
Social Content
3
1
2
Value...
Advertise: Drive Campaign Effectiveness
Reduce fan & follower acquisition cost. Increase marketing productivity through mu...
Process for Building a Business Case…
Identify primary
value drivers
Source
baseline
metrics
Model
efficiencies &
improvem...
ROI of Buddy Media for JetBlue
Interviewed JetBlue promotions team, with
6 active Buddy Media users
Key benefits for JetBl...
ROI of Radian6 for Cisco
Interviewed Cisco Corporate Social Media
team: supports 240 Radian6 users
Key benefits for Cisco ...
Learn more at #CCTNOR
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The ROI of Social Media - Show me the money presented at Sweden Social Web Camp 2013

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How do you explain and/or justify the investment in time and money behind your social media engagement? By metrics and hard and soft business values which you can base on realized results from other companies in your market.

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The ROI of Social Media - Show me the money presented at Sweden Social Web Camp 2013

  1. 1. Show me the money Selling the ROI of Social Media Elisabeth Bitsch-Christensen Marketing Manager Nordics @echristensen42
  2. 2. There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else. Sam Walton
  3. 3. Why is ROI important? What is ROI? Understanding the value drivers Happy to show you a few highlights
  4. 4. The New Marketing Mix Paid Owned Earned TV Ads Free InkDirect Mail ConversationsContentDigital & Social Ads
  5. 5. You Need a Social Marketing Roadmap Understand Your Customer 150MM Brand Conversations Daily Content Marketing 35% of CMOs overwhelmed creating fresh content Target and Optimize Social Ads +1.2B people on Facebook and Twitter Drive Business Results 55% of CMOs find it hard to link social to sales Sources: Twitter Chief Marketer 2012 Social Marketing Study IBM from stretched to strengthened
  6. 6. You Need a Social Marketing Roadmap Listen Publish Advertise CRM
  7. 7. Decentralized Organized Hub & Spoke Optimized No clear owner Social “bubbles up” One team runs Social presences Cross-functional team Global presence Center of Excellence Multiple global presences Scaling Social
  8. 8. Start the ROI Conversation Early Actively talk about ROI Don’t deflect or “minimize” ROI questions Don’t ignore the ROI elephant in the room
  9. 9. What’s the value of social media? I need to quantify the potential impact on revenue… We’re not sure we can afford… I need to show the value of this technology to my superiors… I need support to get buy-in for this solution… What’s the return look like for our business? What can you tell me about uplifts seen from existing customers? Do you have any research (external/internal) that prove the value… What’s the expected payback period? Do you hear any of the following: Does your company have a social media strategy?
  10. 10. Success In Social Marketing +22% Decrease in Customer Service Costs Competitive Intelligence Product Research/ DevelopmentSocial Lead Volume +30% Average Percentage Improvements Reported by Customers Source: Salesforce Marketing Cloud CSM Customer Study +32% +47% +37% Campaign Effectiveness Brand Monitoring +59%
  11. 11. What ROI do companies expect from technology? Source: Gartner’s CFOs Top Imperatives 2013 Weighted Average: 16%
  12. 12. ROI is a Simple Formula... Benefits ROI = Cost Cost -
  13. 13. Revenue: Make A Buck Cost Savings: Save A Buck …With Benefits Falling Into 2 Categories Heavily Influenced by: - Campaign effectiveness - Social strategy - Content quality & relevance - Efficiency through technology - Optimization of paid advertising - Cost of replacement technology
  14. 14. Cost Savings Productivity increases in: App Deployment Reporting & Analytics Listening and Publishing Social Customer Service Crisis Management Product Development/R&D Free social Impressions and Clicks There are many “Value Drivers” in each bucket Revenue Direct & In-Direct Social Sales Lead Generation Improved Customer Retention Optimized performance of Social Ads Drives The Most Benefit
  15. 15. Base Your ROI Discussions on Business Need Productivity Gains Customer Satisfaction Customer Retention Crisis Avoidance Product Development R&D Media Efficiency Social Sales Leads Revenue Cost Savings
  16. 16. Listen: Use Cases & Value Drivers Social Brand Monitoring Community Engagement Social Customer Care Social Sales & Lead Generation 3 4 1 2 Value Drivers Social Impact Measures Business Metrics Improved Social Reporting & Analytics Improved Product Development / R&D Time spent on reporting (-) Product market research costs (-) Customer focus group costs (-) - Competitive intelligence - Market Research Marketing Overhead Costs (-) Increased Marketing Productivity (+) Improved Community Management Reduced response time when PR crises occur Improve information flow and response capability between public comments on social and business teams Product market research costs (-) - Competitive intelligence - Market Research Time spent on Community Mgmt(- ) - Coordinating social activity - Audience segmentation - Influencer engagement & marketing Marketing Overhead Costs (-) Reduced Customer Churn (-) Increased Profits (+) Improved Social Customer Service Reduced Risk of Social Crises Improved Customer Retention Rate of response to company and product questions social (+) Social mentions monitored (+) Call center volume (-) Reduced Customer Churn (-) Increased customer satisfaction (+) Increased Profits (+) Increased service agent productivity (+) Increased Socially-Influenced Sales Increased Lead Generation % of inbound site traffic from social sources (+) Redemption rate of social coupons/offers (+) Increased marketing productivity (+) Increased sales force productivity (+) Decrease cost of customer acquisition (-)
  17. 17. Listen Play 1: Social Brand Monitoring Reduced time spent reporting Reduced probability of PR crisis attributable to social post Reduced cost of market research +56% +10% +10% Improve performance of marketing, sales and services by adapting your strategies and tactics in real-time. Reduce marketing overhead costs associated with reporting about your brands, products, industry, and competition.
  18. 18. Listen Play 2: Community Engagement Reduced time to collect social activity for response Time saved to segment influencers and detractors Decreased time to segment by sentiment Reduced time to gather and analyze competitive intelligence +40% +40% +40% +40% Reducing cost of external collaboration with your communities. Build networks of influential brand advocates and maintain an active role in defining your brand. Reduce time spent by community engagement team identifying relevant conversations, responding to them or routing them to appropriate business teams. Increase marketing productivity and improve profitability.
  19. 19. Listen Play 3: Social Customer Care Improve customer satisfaction. Reduce attrition rate and call volumes. Increase service agent productivity. Increase profitability across your business by demonstrating commitment to your customers publicly on social media. Decrease in questions on social and traditional media sites that go unanswered Increase in customer retention +67% +1%
  20. 20. Listen Play 4: Social Sales & Lead Gen Increase in annual online leads and offline trade show leads Improvement in conversion rate Increase in revenue per lead +18% +15% +20% Drive revenue by acquiring net new customers by listening and engaging at point of need. Increase marketing effectiveness by bringing marketing and sales operations closer. Decrease cost of customer acquisition by leveraging increases in brand and campaign awareness.
  21. 21. Publish: Use Cases & Value Drivers Brand Awareness & Growth Drive Behavior & Conversions Deploy & Manage Social Presences at Scale 3 1 2 Value Drivers Social Impact Measures Business Metrics Conversion from social offers Socially Influenced Sales Lead Generation Revenue from Social Sharing Redemption rate of social coupons / offers (+) % of inbound site traffic from social sources (+) Increase marketing productivity (+) Decrease cost of customer acquisition (-) Increased profits (+) Social Application Deployment: Social Reporting & Analytics Reduced agency costs (-) Reduced internal expense for shared creative & production services (-) Increase marketing productivity (+) Decrease cost of customer acquisition (-) Increase profits (+) Reduce Administrative Overhead (-) Fan and follower growth Earned Media from Social Sharing Redemption rate of social coupons / offers (+) % of inbound site traffic from social sources (+) Decrease cost of customer acquisition (-) Increased marketing productivity (+) Reduce Administrative Overhead (-)
  22. 22. Reduced expense creating / managing social presences Reduced marketing employee time spent reporting Reduced time spent with outside creative services Leverage lower cost per hour for internal employee time +50% +56% $200 / hr $60 / hr Publish Play 1: Deploying & Managing Maintain brand consistency across global markets and/or affiliates, repurpose effective content strategies & key learnings to drive efficiency and performance. Decrease costs of customer acquisition, increase marketing productivity by focusing activity on productive campaign execution.
  23. 23. Publish Play 2: Behavior and Conversions Redemption rate increase from social offers Conversion uplift from social CTAs Increase in average order value +27% +15% +20% Generate high value earned media and word of mouth at scale. Build a network of advocates who are an asset to the company. Decrease costs of your customer acquisition by building brand awareness across social. Increase marketing productivity by expanding brand reach.
  24. 24. Publish Play 3: Brand Awareness & Growth Increase in social posts Uplift in engagement per post Conversions per engagement Average value per sale from social sources +49% +47% +0.05% $50 Increase referral traffic, drive form completes, leads and other conversation types, or online sales. Decrease costs of your customer acquisition, increase marketing campaign productivity and business profitability.
  25. 25. Advertise: Key Use Cases Acquire Fans & Followers Drive Leads and Direct Response Promote Great Social Content 3 1 2 Value Drivers Social Impact Measures Business Metrics Earned Media from Social Sharing Fan and follower growth Redemption rate of social coupons/offers (+) % of inbound site traffic from social sources (+) Decrease cost of customer acquisition (-) Increased marketing productivity (+) Direct Social Sales Socially Influenced Sales Lead Generation Revenue from Social Sharing Redemption rate of social coupons / offers (+) % of inbound site traffic from social sources (+) Increase marketing productivity (+) Decrease cost of customer acquisition (-) Increased profits (+) Earned Media from Social Sharing Fan and follower growth Fan and follower retention % of inbound site traffic from social sources (+) Decrease cost of customer acquisition (-) Increased marketing productivity (+)
  26. 26. Advertise: Drive Campaign Effectiveness Reduce fan & follower acquisition cost. Increase marketing productivity through multi-ad optimization. Increase marketing team productivity by reducing time to manage multiple ad campaigns. Reduced cost per action Reduced third party advertising costs Decreased time spent reporting Increased marketing campaign effectiveness +25% +7% +19% +56%
  27. 27. Process for Building a Business Case… Identify primary value drivers Source baseline metrics Model efficiencies & improvements Validate assumptions & iterate model Prepare and present complete assessment
  28. 28. ROI of Buddy Media for JetBlue Interviewed JetBlue promotions team, with 6 active Buddy Media users Key benefits for JetBlue are: - Reduced creative services costs through bringing microsite and sweepstakes management in house - Increased marketing productivity through analytics and conversation management - Greater visibility into results & better promotion execution through easy to use application
  29. 29. ROI of Radian6 for Cisco Interviewed Cisco Corporate Social Media team: supports 240 Radian6 users Key benefits for Cisco are: - More focused use of outside agencies - Increased staff productivity through broad, multiuser (240) listening and engagement technology + SocialHub - Reduced investment in survey research - Improved partner management - Increased profits
  30. 30. Learn more at #CCTNOR
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