Marshall Sponder - How to Monitor and Measure Social Media ROIPresentation Transcript
Finding Return on Investment and Reverse ROI In Social Media Marshall Sponder Social Media Analytics Book Monitoring Social Media 2010 London November 22, 2010
Situation Today: We’re capturing a fraction of the data needed to measure Social Media ROI A good place to Start: http://www.scribd.com/doc/38176762/Tracking-Social-Media-ROI-using-Spectrum-Analytics
1) Social Media is about beginning and deepening relationships over time. Friends, Likes, Shares, Tweets, ReTweets are qualitative ; the value is “soft” and can be estimated, but not known precisely. ?? 3) Formulas for ROI and Social Media Metrics are immature, need further research. 2) “soft” values are difficult to plug into return on investment equations.
Where to Start? Analysts begin with their own initial assessment of a situation using qualative and quantitative research in order to ask the right questions … before meeting the client for the first time
Once you access situation you have enough information to pose the right questions to clients and get answers you need to move forward measuring ROI and Reverse ROI. Reverse ROI are actions in Social Media that strengthen brands, need to listen to those conversations online when we find them.
Use Listening Systems to Find common ground between analysts and organization. a) Find voices of Clients on The Web. b) Find how clients searched the web. C) Analyze Clients website
Getting our Business and Measurement Metrics goals / tactics aligned
Use Benchmarking Tools for initial Goal Setting How much traffic from Social Media should our business be getting? Compete.com Traffic Dashboard, October 2010 for Industry Category: Entertainment Guide: Restaurants and Dining
Tried Listening for Social Media ROI and Reverse ROI at a popular NYC Restaurant Chain, Havana Central
Initial Ask from Havana Central was ROI related but Social Data , while promising, failed to produce any true ROI numbers
Found Metrics to use but were they the Right Ones? Average Opentable Reservation = 3.6 people Average Reservation yields $186.00 Average meal costs $51.66 cents EST Value of a tweet = $51.66 x 2
Tweet for a Drink?
In pulling metrics data, reports too often focus on the wrong “diagnostic” information instead of the insight derived from it ..and much of the data is “ultraviolet”
Once we learn to ask the right questions We find out what the client really needs. If ROI is desired, it’s important to level set expectations. Still writing the book on how Social Media Builds Relationships, optimizing business communications, increases awareness of product and brand. Knowledge to find ROI or Reverse ROI still in it’s infancy and fragmented, need to work together to share our insights and refine out analytics tracking.