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ROI and social media
 

ROI and social media

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How to use ROI in social media campaigns and everyday management.

How to use ROI in social media campaigns and everyday management.

This was presented at PodCamp Halifax 2011.

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    ROI and social media ROI and social media Presentation Transcript

    • The ROIof Social Media
      Maria McGowan
      Internet & Marketing Specialist
      Greater Halifax Partnership
      @mariamcgowan
      @greater_halifax
    • It’s all over the map
      Industry measurements are “suspect”
      • Geoff Livingstone
      …yet, measuring Social Media is “challenging”
      • Jeremiah Owyang
    • It doesn’t have to be
    • In 2011, here’s the focus
    • It’s not just about
      Facebook likes or followers on Twitter
    • But they’re good for measuring “engagement”
      For example
      Shares
      Mentions (positive, negative or neutral)
      Blog comments
      Retweets
      @mentions
      email opens and click through rates
      “likes” of a Facebook page
      … That kind of stuff
    • It’s really about
      Lowered cost of new customer acquisition
      Reduction in average customer serving costs
      Increasing customer satisfaction
    • Some people think
      “Show me the ROI
      or all this is a waste of time”
    • Here’s what you can do
    • Social Media Objectives
      You must measure social media against your
      social media objectives
      What are they?
      - awareness?
      - lead generation?
      - more relationships?
    • Design landing pages on your website to capture prospects and
      help convert them into paying customers. The landing pages
      would be designed specifically around the social media
      campaign, and you would need Google Analytics etc installed
      to track traffic and conversions.
      The key point is that all of your social media programs
      (Facebook, Twitter, YouTube, etc.) should drive people to the
      landing page on your website where you can convert them from
      tire kickers (prospects) to paying customers.
      Test, test, test…
      The ROI
    • 3 categories of measurement
      Quantitative Metrics
      Qualitative Metrics
      ROI Metrics
    • #1 Quantitative Metrics
      These metrics are data-intensive and
      number-oriented.
      3 categories of measurement
    • Good example
      Capitalizing on Twitter’s real-time nature for exclusive, limited – customer / limited-period offers
    • #2 Qualitative Metrics
      These metrics that have an emotional component
      to them.
      Here’s a campaign to increase Satisfaction
      3 categories of measurement
    • Good example
      Users who are part of this network feel that they have some role in the decision making process of the company and it makes them feel a part of it.
    • #3 ROI Metrics
      In the world of social media, all roads should
      lead to ROI.
      Conversion rates
      3 categories of measurement
    • Here’s how 5Fortune 500 companies use Social Media
    • Branding
      Create buzz
      180 million + total upload views on YouTube channel
      and sales increased 27% in six months (Nielson).
    • E-Commerce
      Drive people to their landing page then Dell can
      easily track their prospects' behaviour.
      In 2009, $6.5 million in revenue from Twitter
    • Research
      a tool to do simple,
      anecdotal research.
    • Customer Retention
      It costs 3-5 times as much to acquire a new customer
      as it does to keep a current one.
    • Lead Generation
      Don’t sell online? Use social media to drive prospects to a
      website where they can download a whitepaper, listen to a
      podcast, or watch a video.
      Once you've captured the prospect's contact information, you can re-market to them via email, direct mail, etc
    • Let’s do some math
    • Customer Lifetime Value (CLV)
      It’s the most important formula in social media
      CLV is the amount of revenue a customer will
      bring to your company over the course of his/her lifetime with your brand.
    • Customer Lifetime Value (CLV)
      Example:
      Cable TV provider knows that a typical
      customer spends $80 per month and that
      the average customer stays with the
      company for three years.
      $80 x 12 months x 3 years = $2,880 (CLV)
    • Customer Lifetime Value (CLV)
      Once you know the CLV, you can decide how
      much $ you'd like to invest to acquire a
      customer (allowable cost per sale)
      Many people use 10% of their CLV as a
      starting point.
      In the cable TV example, the CLV is $2,880 and
      10% of that is $288 (allowable cost per sale)
    • Applying ACPS to Social Media
      $288 is what it takes to get 1 customer.
      Let’s say you want to run a Social Media
      campaign to get 100 customers
      $288 x 100 = $ 28,800 campaign budget
    • What $28,800 can get you
      Create:
      Landing page?
      Mobile application?
      Monthly e-newsletter with cable TV tips to stay in
      front of prospects and new customers?
    • Pay off?
      More engagement with your customers.
      …listening, feedback, interactive, brand strength, and measurability!
      Thanks!
      Maria McGowan
      Internet & Marketing Specialist
      Greater Halifax Partnership
      @mariamcgowan
      @greater_halifax