Measuring Social Media ROI

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While Twitter, Facebook and YouTube are the current rage, most marketers are struggling with how to measure social media effectiveness and maximize ROI. Solving this challenge is the key to long-term success for not just social media – but for all of marketing.

Larry Weber of W2 Group and Alexander Mouldovan of Crowd Factory discuss how marketers can answer the measurement challenge.

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Measuring Social Media ROI

  1. 1. <ul><li>October 30, 2009 </li></ul><ul><li>#SMROI </li></ul>
  2. 2. Today’s Speakers Larry Weber Chairman Digital Influence Group and Racepoint Group @thelarryweber Alex Mouldovan CEO Crowd Factory @amiam 2
  3. 3. Agenda <ul><li>Larry’s perspective </li></ul><ul><li>Alex’s perspective </li></ul><ul><li>Dialogue between Larry and Alex </li></ul><ul><li>Audience Q&A </li></ul><ul><li>#SMROI </li></ul>3
  4. 4. Introducing Larry Weber Chairman Digital Influence Group and Racepoint Group @thelarryweber
  5. 5. About Us Full service digital agency that is social media at its core A global public relations agency that helps clients harness the power of both traditional and social media to build and protect reputation and drive business
  6. 6. Integrated Social Marketing 6
  7. 7. Creating Sustained Social Marketing ROI 7
  8. 8. Using Data to Manage Your Campaign 8
  9. 9. Choosing the Right Tools
  10. 10. 10 10 10 Community Destination Earned Media Outreach NYC Public Library Event Blogger Contest Widget PROGRAM STRATEGY Proprietary and Confidential SonyStyle <ul><li>In <90 Days: </li></ul><ul><li>1.57 million mentions and links on Twitter </li></ul><ul><li>29,539 unique product page visits </li></ul><ul><li>178,070 page views </li></ul><ul><li>1,866 registered words move me members </li></ul><ul><li>11,600 users driven to Reader product pages resulting in significant online sales impact </li></ul>
  11. 11. Introducing Alex Mouldovan 11 CEO Crowd Factory @amiam
  12. 12. Measuring ROI of Social Media add
  13. 13. <ul><li>84% of business buyers say Word of Mouth is #1 influencer of purchase decisions </li></ul>13 Social Media is Transforming Business
  14. 14. 14 Fail early, fail often Measure every point of conversion, and build social equity in your brand.
  15. 15. <ul><li>Social Web Presence </li></ul><ul><ul><li>Facebook </li></ul></ul><ul><ul><li>Twitter </li></ul></ul><ul><ul><li>Myspace </li></ul></ul><ul><li>Social Network Ads </li></ul><ul><li>Listening platforms </li></ul><ul><ul><li>Radian 6 </li></ul></ul><ul><li>Collaboration </li></ul><ul><ul><li>Wikis </li></ul></ul><ul><ul><li>Basecamp </li></ul></ul>15 <ul><li>Sharing </li></ul><ul><li>Sharethis, addthis, etc. </li></ul><ul><li>Ideation </li></ul><ul><li>MyStarbucksIdea.com </li></ul><ul><li>Customer Service </li></ul><ul><li>Message boards for self service </li></ul><ul><li>@zappos </li></ul><ul><li>Brand communities </li></ul><ul><li>Photo Contest </li></ul><ul><li>Comments, boards </li></ul><ul><li>Widgets </li></ul>Experimentation - Precursor to ROI
  16. 16. <ul><li>Increased Revenue </li></ul><ul><ul><li>Lead generation driven by word of mouth </li></ul></ul><ul><ul><ul><li>Conversion driven by user endorsements </li></ul></ul></ul><ul><li>Increased Reach for Lower CPA </li></ul><ul><ul><ul><ul><li>Brand advocates drive more reach and influence than emails / ads </li></ul></ul></ul></ul><ul><li>Network Value of Customer </li></ul><ul><ul><li>Customer Lifetime Value = their direct value + their network’s value </li></ul></ul><ul><ul><li>WOM marketing 3X as effective as traditional marketing (Harvard Business Review) </li></ul></ul>16 Social Marketing is Explosive
  17. 17. 17 Feed – the New Email Feed user actions on brand website to social web Brand reaches further with less marketing spend Traceable links and customizable templates for Facebook posts Great idea Ashton. Maybe we should all do it. Ashton listened to Coldplay’s new single Ashton listened to Coldplay’s new single. Visit pop.to/billboard to listen too! Ashton Kutcher Oprah Winfrey
  18. 18. 18 Lower cost of acquisition Leverage influence Automate word of mouth Map influence Feed Marketing
  19. 19. <ul><li>$2,000,000+ in sales from sending special offers from its Dell Outlet store to 600,000+ Twitter followers ~ Dell, 2009 </li></ul><ul><li>Grew its Gen X customer base by 55% by introducing products tailored to their needs (manage expenses long term savings, not retirement) learned through community dialog </li></ul><ul><li>Marriott has made more than $5 million in bookings from people who clicked through to the reservation page from Marriott's blog ~ Marriot, ’08 </li></ul><ul><li>CDW increased customer value 17% using decision maker communities to inspire new lead gen approaches… new account managers using community best practices bring in more new customers… these customers are 4X more valuable than through other channels </li></ul><ul><li>Ebay found in 2006 that participants in online communities spend 54% more than non-community users. </li></ul>19 Example ROI
  20. 20. <ul><li>Best Practices </li></ul><ul><ul><li>Develop and monitor social brand presence </li></ul></ul><ul><ul><li>Engage users to increase time on site and conversion </li></ul></ul><ul><ul><li>Incent desired behaviors with reputation & rewards </li></ul></ul><ul><ul><li>Track influencers, campaign performance, feed marketing </li></ul></ul><ul><li>Measure Social Marketing ROI </li></ul><ul><ul><li>Optimize marketing mix </li></ul></ul><ul><ul><li>Create viral loops through feed marketing </li></ul></ul><ul><ul><li>Illuminate and leverage influence </li></ul></ul><ul><ul><li>Segment + target actions </li></ul></ul>20 Call to Action
  21. 21. <ul><li>Integrated view of all the social activity (brand and customer) and impact </li></ul><ul><ul><li>Traffic / customer growth </li></ul></ul><ul><ul><li>Activity / engagement </li></ul></ul><ul><li>Social analytics </li></ul><ul><ul><li>Top influencers </li></ul></ul><ul><ul><li>User segments </li></ul></ul><ul><ul><li>Social conversion funnel </li></ul></ul><ul><ul><li>Content performance </li></ul></ul><ul><ul><li>Campaign a/b testing </li></ul></ul><ul><ul><li>Network performance (FB vs. twitter) </li></ul></ul><ul><ul><li>Trending </li></ul></ul><ul><li>Customer Network Value = customer lifetime value + customer network value </li></ul>21 Track Progress
  22. 22. <ul><li>Social is reshaping business </li></ul><ul><ul><li>Tune in to what’s working and test it for your business </li></ul></ul><ul><li>Social marketing = fastest growing and highest value </li></ul><ul><ul><li>Greater reach and lower CPA than traditional marketing alone </li></ul></ul><ul><li>Use tracking capabilities to identify what’s working and optimize </li></ul><ul><li>Start simple and iterate rapidly </li></ul>22 Conclusions
  23. 23. Crowd Factory Can Help [email_address] www.crowdfactory.com @crowdfactory Crowd Factory Can Help … engage with Social Onsite –––––––––––––––––––––––––––––––––––––– Power unique social website experiences with go anywhere APIs. Get to value quickly with widgets. Leverage Social Connect (e.g. Facebook Connect, Twitter) to acquire /authenticate, and improve registration conversions. … acquire with Social Connect ––––––––––––––––––––––––––––––––––––––––– Seamlessly generate word of mouth. Quickly launch social marketing campaigns for lead generation. Social Connect integrates your marketing and community with Facebook, Twitter, Yahoo! and Myspace. … optimize with Social Insight ––––––––––––––––––––––––––––––––––––––– Actionable Analytics. Identify influencers to acquire and retain customers. Build segments based on social behaviors, and then launch campaigns against those segments. Turn insight into revenue.
  24. 24. Larry and Alex Discussion Larry Weber Alex Mouldovan
  25. 25. Questions from the Audience Feel free to type in your questions for Larry and Alex.
  26. 26. Additional Resources 26 <ul><li>To get a copy of our white paper on “Measuring Social Media ROI” </li></ul><ul><li>Email: [email_address] </li></ul><ul><li>To share the recording of this webinar </li></ul><ul><ul><li>www.racepointgroup.com /digital/resources.cfm </li></ul></ul><ul><ul><li>www.crowdfactory.co m </li></ul></ul><ul><li>Other questions, contact: </li></ul><ul><li>Jackie Lustig at [email_address] com </li></ul><ul><li>Scott Rozic at [email_address] </li></ul>

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