ROI and social media
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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