Yes, Social Marketing ROI  can be determined.
Kathy Herrmann    Measurement & Insight       (757) 497-4811kherrmann@boomyourbrand.com   www.boomyourbrand.com
ROI Considerations3
Start with Objectives   and Strategy……know where you want to go.
Measure results.The end goal of measurement is not to collect a         bunch of metrics but to gain
CXOs will look for    actionable intelligence in        monetary terms…    …revenues or cost savings.6
ROI Primer7
Agency costs in this          bucket8
Rocky Mountain Hotel    Case Study for Twitter9
Annual Results: Revenues = $31m Average Occupancy Rate = 60% Average RevPAR = $420Dec11 – Feb12 results: Revenues = $15m A...
Formula for Sales Revenue Gain from Social       Revenues =       Reach x Impact x Yield         Influenced        convers...
Reach metricsTweets sent = 365Average followers = 1,777Impressions* = 1,630,394Mentions/RTs = 876* Impressions measure the...
Impact metrics   Clicks = 3,606   (Click-through rate = 0.22%                                 13
Yield metricsLead Conversion Rate = 0.3%Conversions = 11Avg. Rev per room = $1,059.29                                14
Gains results                            Total Revenues    Revenues                              for period     Attributed...
CostsPersonnel = $5,667Social analytics solution = $7,500Total costs = $13,167                                     16
ROI FormulaROI= (Gains - Costs)/Costs x 100= ($21,900 - $13,167)/($13,167)x 100= 66%                                  17
Closing Thoughts18
It is possible to determine ROI           for social initiatives….                          …but it starts                ...
www.boomyourbrand.com
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Social ROI Case study of Rocky Mountain Hotel

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For the 2012 Mountain Travel Symposium, I joined a measurement panel to discuss Social ROI. The slide deck delves into a social ROI case study for a Rocky Mountain hotel.

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Social ROI Case study of Rocky Mountain Hotel

  1. Yes, Social Marketing ROI can be determined.
  2. Kathy Herrmann Measurement & Insight (757) 497-4811kherrmann@boomyourbrand.com www.boomyourbrand.com
  3. ROI Considerations3
  4. Start with Objectives and Strategy……know where you want to go.
  5. Measure results.The end goal of measurement is not to collect a bunch of metrics but to gain
  6. CXOs will look for actionable intelligence in monetary terms… …revenues or cost savings.6
  7. ROI Primer7
  8. Agency costs in this bucket8
  9. Rocky Mountain Hotel Case Study for Twitter9
  10. Annual Results: Revenues = $31m Average Occupancy Rate = 60% Average RevPAR = $420Dec11 – Feb12 results: Revenues = $15m Average Occupancy Rate = 79% Average RevPAR = $831
  11. Formula for Sales Revenue Gain from Social Revenues = Reach x Impact x Yield Influenced conversations 11
  12. Reach metricsTweets sent = 365Average followers = 1,777Impressions* = 1,630,394Mentions/RTs = 876* Impressions measure the reach of all tweets, i.e., totalpotential number of displays to followers. It equals the sumof the total followers PLUS their followers. 12
  13. Impact metrics Clicks = 3,606 (Click-through rate = 0.22% 13
  14. Yield metricsLead Conversion Rate = 0.3%Conversions = 11Avg. Rev per room = $1,059.29 14
  15. Gains results Total Revenues Revenues for period Attributed to Social Media initiativesRoom Revenues (rounded) $6,956,376 $ 11,700Food & Beverage (rounded) $3,473,075 $ 5,800Sundeck (rounded) $2,626,498 $ 4,400 Total Revenues $ 13,055,949 $ 21,900 15
  16. CostsPersonnel = $5,667Social analytics solution = $7,500Total costs = $13,167 16
  17. ROI FormulaROI= (Gains - Costs)/Costs x 100= ($21,900 - $13,167)/($13,167)x 100= 66% 17
  18. Closing Thoughts18
  19. It is possible to determine ROI for social initiatives…. …but it starts with good measurement practices…. …and good measurement starts19 with clear objectives & strategy.
  20. www.boomyourbrand.com
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