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Unraveling the Mysteryof Social Media ROI<br />Paul Gillin<br />Author, The New Influencers<br />Secrets of Social Media M...
ROI<br />
Simple Equation<br />(GAIN FROM INVESTMENT - COST OF INVESTMENT)<br />ROI =<br />COST OF INVESTMENT<br />
Types Of Financial Impact<br />Orders<br />Subscriptions<br />Leads<br />Upgrades<br />Coupon redemptions<br />
Types Of Non-Financial Impact<br />Customer complaints<br />Website Visitors<br />Impressions<br />Positive press<br />Cli...
Bounty of Choice<br />
7  Steps to  Social Media ROI <br />Define the “R” – What are expected results?<br />Define the “I”  -- What’s the investm...
Key Performance Indicators (KPIs)<br />Cost savings<br />Efficiency<br />Cost per message communicated<br />Cost per new l...
Measurement Options<br />Traffic: unique visitors vs. page views<br />Technorati rankings<br />RSS subscriptions<br />Goog...
Social bookmark activity
Comments
Inbound links
Copycat or parody videos
Mashups
Blog mentions
Discussion group posts
Social network membership
Bloglines or Blogpulserankings
Video viewership
Mainstream media references
Referral links
Search engine results
Sentiment analysis
Contest entries</li></li></ul><li>Set Up to Measure<br />Define metrics; for social media marketing, the two key ones are ...
Sample Engagement Metrics <br />% increase or decrease in unique visits <br />In the past  month, what % of sessions were ...
Classifications of Discussion<br /><ul><li>Acknowledging receipt of information
Advertising something
Answering a question
Asking a question
Augmenting a previous post
Calling for action
Disclosing personal information
Distributing media
Expressing agreement
Expressing criticism
Expressing support
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Unraveling the Mystery of Social Media ROI

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Social media marketing is sometimes criticized for having questionable return on investment, but much of the skepticism arises from the fact that these platforms are so new. The Internet is the most measurable medium ever invented, which means that the online actions that lead people toward a desired goal can be tracked and refined.

The key is to start with the object and work backwards to define metrics and tools to measure it. A growing number of corporations are institutions are now doing exactly that. They are measuring not only transactions and leads, but also less tangible results like:

Better decision-making
Cost avoidance
Increases in brand equity
Improvements in customer loyalty
Crisis containment

This presentation describes a disciplined approach to social media measurement and offers case studies of b-to-b and b-to-c organizations that are applying metrics to deliver reliable ROI.

Published in: Business, Technology

Transcript of "Unraveling the Mystery of Social Media ROI"

  1. 1. Unraveling the Mysteryof Social Media ROI<br />Paul Gillin<br />Author, The New Influencers<br />Secrets of Social Media Marketing<br />
  2. 2.
  3. 3.
  4. 4.
  5. 5. ROI<br />
  6. 6. Simple Equation<br />(GAIN FROM INVESTMENT - COST OF INVESTMENT)<br />ROI =<br />COST OF INVESTMENT<br />
  7. 7. Types Of Financial Impact<br />Orders<br />Subscriptions<br />Leads<br />Upgrades<br />Coupon redemptions<br />
  8. 8. Types Of Non-Financial Impact<br />Customer complaints<br />Website Visitors<br />Impressions<br />Positive press<br />Click-throughs<br />YouTube views<br />Retweets<br />Coupons distributed<br />Visitors to a brick & mortar store<br />Positive WOM<br />Delivered emails<br />Negative press<br />Negative WOM<br />Employment applications<br />Blog comments<br />FaceBook friends<br />Social mention<br />Twitter followers<br />
  9. 9. Bounty of Choice<br />
  10. 10.
  11. 11. 7 Steps to Social Media ROI <br />Define the “R” – What are expected results?<br />Define the “I” -- What’s the investment?<br />Understand audiences and what motivates them <br />Choose metrics<br />Choose benchmarks <br />Pick a tool and undertake research<br />Analyze results, glean insight, take action, measure again<br />Source: KD Paine & Partners<br />
  12. 12. Key Performance Indicators (KPIs)<br />Cost savings<br />Efficiency<br />Cost per message communicated<br />Cost per new lead/customer acquired<br />Productivity: <br />Increase in employee engagement/morale<br />Lower turnover/recruitment costs<br />Engagement: <br />Ratio of posts to comments<br />% of repeat visitors<br />% of 5+ min visitors<br />% of registrations<br />Trust:<br />Improvement in relationship /reputation scores with customers and communities (Loyalty/Retention)<br />Thought leadership: <br />Share of quotes<br />Share of opportunities <br />Message penetration<br />Positioning on key issues<br />Improvement in favorable/unfavorable ratio<br />Source: KD Paine & Partners<br />
  13. 13. Measurement Options<br />Traffic: unique visitors vs. page views<br />Technorati rankings<br />RSS subscriptions<br />Google linkto: and allinanchor:<br />Delicious and Technorati tags<br />Trackbacks<br />WebsiteGrader.com, Xinu, Compete, Alexa scores<br />And more…<br /><ul><li>Search engine rank
  14. 14. Social bookmark activity
  15. 15. Comments
  16. 16. Inbound links
  17. 17. Copycat or parody videos
  18. 18. Mashups
  19. 19. Blog mentions
  20. 20. Discussion group posts
  21. 21. Social network membership
  22. 22. Bloglines or Blogpulserankings
  23. 23. Video viewership
  24. 24. Mainstream media references
  25. 25. Referral links
  26. 26. Search engine results
  27. 27. Sentiment analysis
  28. 28. Contest entries</li></li></ul><li>Set Up to Measure<br />Define metrics; for social media marketing, the two key ones are influence and engagement<br />Set up campaigns and event tracking for social media <br />Choose analytics software that can track specific events<br />Track fans, followers, etc. over time to measure growth in interest<br />Identify where visitors come from and how they interact. Feed back into marketing<br />Determine which social media channels are most effective<br />Research plug-ins and tools like Bit.ly, xinureturns, PostRank, and SocialToo for profile data<br />Aggregate analytics in one place<br />Source: KD Paine & Partners<br />
  29. 29. Sample Engagement Metrics <br />% increase or decrease in unique visits <br />In the past  month, what % of sessions were &gt;5 page views <br />% of sessions &gt;5 minutes in duration <br />% of visitors that return for more than 5 sessions <br />% of sessions that arrive at your site from a Google search/referral/link from your web site<br />% of visitors that subscribe<br />% of visitors that download content<br />% of visitors that provide an email address<br />Ratio of posts to comments <br />Source: KD Paine & Partners, <br />Eric Peterson<br />
  30. 30. Classifications of Discussion<br /><ul><li>Acknowledging receipt of information
  31. 31. Advertising something
  32. 32. Answering a question
  33. 33. Asking a question
  34. 34. Augmenting a previous post
  35. 35. Calling for action
  36. 36. Disclosing personal information
  37. 37. Distributing media
  38. 38. Expressing agreement
  39. 39. Expressing criticism
  40. 40. Expressing support
  41. 41. Expressing surprise
  42. 42. Giving a heads up
  43. 43. Responding to criticism
  44. 44. Giving a shout-out
  45. 45. Making a joke
  46. 46. Making a suggestion
  47. 47. Making an observation
  48. 48. Offering a greeting
  49. 49. Offering an opinion
  50. 50. Putting out a wanted ad
  51. 51. Rallying support
  52. 52. Recruiting people
  53. 53. Showing dismay
  54. 54. Soliciting comments
  55. 55. Soliciting help
  56. 56. Starting a poll
  57. 57. Validating a position</li></ul>Source: KD Paine & Partners<br />
  58. 58. Matching Goals & Metrics<br />Source: KD Paine & Partners<br />
  59. 59. Select Tools<br />Source: KD Paine & Partners<br />
  60. 60. Blogs: The Low-Risk Option<br />Cheap and easy to create and update<br />Have distinct personal voice<br />Can quickly build traffic through reciprocal links<br />Excellent search engine performance<br />Ability to control discussion<br />Fast, inexpensive alternative to press releases<br />
  61. 61. Blogging for Business<br />CEO<br />
  62. 62. Advise and Inform<br />
  63. 63. Event Promotion<br />
  64. 64. Publish Everywhere<br />44 million members<br />32 million members<br />300 million members<br />1 billion daily views<br />1 million daily visitors<br />6 million daily visitors<br />1.5 million daily visitors<br />10 million members<br />50 million members<br />
  65. 65. Many Uses for Twitter<br />
  66. 66. Engage Popular People<br />1.7 million followers<br />1.1 million followers<br />1.2 million followers<br />473,000 followers<br />980,000 followers<br />
  67. 67. Needs Definition<br />Peer Support<br />Product lifecycle<br />Viral Marketing<br />Product Architecture<br />Iterative Development<br />Field Testing<br />360° Of Value<br />
  68. 68. Facebook Fans<br />Repurpose media<br />Announcements<br />Feedback/testing<br />Mailing List<br />
  69. 69. Create Activity Timelines<br />Source: BrandBuilder<br />
  70. 70. Look at Sales Revenue<br />Source: BrandBuilder<br />
  71. 71. Net New Customers<br />Source: BrandBuilder<br />
  72. 72. Overlay All Timelines<br />activities<br />social data<br />web data<br />transactions<br />loyalty metrics<br />etc.<br />Source: BrandBuilder<br />
  73. 73. Look for Patterns<br />Impact<br />Uncertain Impact<br />Impact<br />Impact<br />No Impact<br />Before<br />After<br />Source: BrandBuilder<br />
  74. 74. Case Study: Clickable Gurus<br />
  75. 75. Case Study: Intel Insiders<br />
  76. 76. Case Study: Indium<br />
  77. 77. Case Study: Dell<br />
  78. 78. Case Study: Catapult<br />
  79. 79. Case Study: Stanford University<br />
  80. 80. Case Study: Sutter Medical Center<br />
  81. 81. Thank you!<br />Paul Gillin<br />508-656-0734<br />paul@gillin.com<br />www.gillin.com<br />Twitter: pgillin<br />Subscribe to my free weekly newsletter at gillin.com<br />Available on Amazon or from www.NewInfluencers.com <br />Available on Amazon or from www.SSMMbook.com<br />
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