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Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
Measuring Social Media: Where's the ROI?
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Measuring Social Media: Where's the ROI?

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http://www.spiral16.com Social media ROI is tough to calculate because its a financial metric, and social media's value is not inherently financial. But the challenge isn't new -- finding ROI is …

http://www.spiral16.com Social media ROI is tough to calculate because its a financial metric, and social media's value is not inherently financial. But the challenge isn't new -- finding ROI is difficult in other programs and campaigns as well. This presentation gives you 6 steps you can follow to measure an effective social media program.

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  • 1. Measuring Social Media: Where’s the ROI?<br />Tracy Panko<br />@TracyPanko<br />@spiral16<br />
  • 2. Social Media is a Game Changer<br />It gives people a voice.<br />Social media is radically changing <br />cultures all over the world. <br />*Egypt revolution, TedNguyenUSA.com<br />
  • 3. The Ability to Share Experiences Isn’t Going Away<br />An average of 900,000 blog posts a day<br />4-6 million tweets an hour on average<br />Over 30 billion pieces of content (videos, notes, status updates, pages) shared on Facebook in a month<br /> * AIGA.org<br />
  • 4. Social Media is Transforming Business Culture & Methodology<br />“In the future, there will be two types of companies:<br />Those that are agile and adapt to consumers’ changing business behavior …<br /> and those that go out of business.”<br />Of the 500 original companies listed on Standard & Poor’s 500 in 1957, only 17% remained in 2007. <br />- Forrester research, CMO Mandate: Adapt or Perish<br />
  • 5. Active Brand Marketing<br />“This is the approach that marketers must take to avoid extinction and thrive in the digital age.”<br /> Active brand marketing-A flexible approach in which marketers respond quickly to their environment to align consumer and brand goals and maximize return on equity.<br />- Forrester research, CMO Mandate: Adapt or Perish<br />
  • 6. Adapting is a Challenge …<br />64% of marketers experienced problems trying to implement digital marketing initiatives. <br />Only 4% of marketing leaders feel that they are prepared to exploit digital marketing opportunities.<br /> - Accenture Interactive 2010 study<br /> …but it’s also a huge <br /> opportunity.<br />Photo credit: stasisconsulting.com<br />
  • 7. Build Relationships and Develop Trust with Your Customers<br /><ul><li> People want to participate in conversation.
  • 8. People want to be part of a community.
  • 9. People don’t want to be marketed or broadcast to.</li></ul> Photo credit:www.flickr.com/photos/sadaiche/<br />
  • 10. Start With What You Know<br />You’ve identified your company’s business goals already.<br />Company goals<br />Social media campaign<br />Success<br />Now think about how you can achieve those goals through a social media program<br />
  • 11. Social Media Progam is a Component, <br />Use it to support your existing business strategy.<br /><ul><li> Create a structure for your program based on the unique needs of your company.
  • 12. Build it from the ground up.
  • 13. The more customized, the better.</li></li></ul><li>Social Media Isn’t Free.<br />It takes valuable time.<br />You need human resources for:<br />Planning<br />Creative insight <br />Content creation<br />Product management<br />Measurement <br />Monitoring<br />…and more.<br />
  • 14. Why Social Media ROI is Tough<br />ROI = (Gain from Investment) - (Cost of Investment)<br />                     Cost of Investment<br />                                     <br /> <br />Return on investment is a financial metric. <br /> <br />That financial aspect is not clearly defined in social media—it’s not built-in.<br />
  • 15. But This Challenge Isn’t New<br />                                     <br /> <br />Calculating ROI for print ads and radio ads has always been difficult.<br />Metrics relies on the people influenced by print and radio self-identifying themselves or coupon codes being recorded and collected. <br /> <br />Calculating ROI for social media is also difficult because it is integrated into your overall strategy—it is hard to separate.<br />
  • 16. There is no way to calculate social media ROI with a one-size-fits-all equation.<br />                                     <br /> <br />Image from glynndevins.com -- and modified<br />
  • 17. 6 Steps To An Effective Social Media Campaign<br />                                     <br /> <br />Identify business goals.<br />Align goals with social media program.<br />Establish benchmarks.<br />Set realistic targets.<br />Measure KPIs to determine success.<br />Look at results, find ways to improve.<br />
  • 18. 1. Identify Business Goals<br />Make sure your social media initiatives (nonfinancial) <br />are supporting your business goals (financial)<br />                                     <br /> <br />Think about this:<br />Where is the company now?<br />Where does it want to be?<br />What will it take to get there?<br />
  • 19. What Do You Hope to Gain?<br /><ul><li>Increase Total Sales
  • 20. Reduce Customer Service Expenses
  • 21. Acquire New Customers
  • 22. Reduced Cost Per Transaction
  • 23. Increase in Qualified Leads
  • 24. Higher Value Per Sale
  • 25. Increase in Customer Satisfaction
  • 26. Increase in Reach
  • 27. Introduce New Products/Service Enhancements
  • 28. Attract New Employees
  • 29. Encourage Repeat Purchases/Build Customer Loyalty</li></ul> <br />
  • 30. 2. Align Social Media Program with Goals<br />Avon tinkered with its well-known door-to-door and catalog-based direct sales model by empowering its salespeople with social selling tools like its FacebookeBoutique and iPhone app.<br />Social media platform <br />Avon Connects virtually <br />attaches consumers to their <br />local Avon rep, at which point<br />traditional face-to-face<br />service begins.<br /> <br />
  • 31. Tools Are Not Strategies<br /> <br />  <br /> <br /> <br /> <br /><ul><li> Twitter
  • 32. Facebook/MySpace
  • 33. Blogs
  • 34. Forums
  • 35. YouTube
  • 36. Foursquare/Gowalla
  • 37. Flickr
  • 38. Webinars
  • 39. Podcasts</li></ul>Being active on these platforms is only important <br />if <br />using them helps you reach your goal.<br />
  • 40. Listening Goals<br />Who is saying what, when, and where?<br /> <br />  <br /> <br /> <br /> <br />• Protect your reputation<br />• Facilitate customer support<br />• Invite innovation<br />• Build trust<br />• Market through conversation (promote and sell)<br /><ul><li> Gather business intelligence</li></ul> - Jason Falls, Social Media Explorer<br />
  • 41. Measurement Goals<br />What are you getting out of it?<br /> <br />  <br /> <br /> <br /> <br />• Improve branding and awareness <br />• Protect and improve reputation<br />• Build community or advocacy <br />• Increase customer satisfaction<br />• Harvest research & development<br /><ul><li> Drive sales or leads</li></ul>- - Jason Falls, Social Media Explorer<br />
  • 42. 3. Establish Benchmarks<br /> <br />  <br /> <br /> <br /> <br /> What does your online presence look like before the program? <br />There are numerous free and paid tools to determine this:<br /><ul><li>Free monitoring solutions – Google Alerts, Twitter Search, Social Mention, PeopleBrowsr, IceRocket
  • 43. Paid monitoring solutions – Lithium, Radian6, Sysomos, Trackur
  • 44. Online listening & research solutions – Spiral16, Crimson Hexagon, Cymfony, ConsumerBase
  • 45. Influencer tools – Alltop, Klout, mBlast, Postrank</li></li></ul><li>Common Metrics<br /> <br />  <br /> <br /> <br /> <br />Frequency and volume of:<br /><ul><li> Twitter followers
  • 46. Retweets
  • 47. Facebook likes
  • 48. Brand mentions
  • 49. Blog comments
  • 50. YouTube views
  • 51. Number of check-ins</li></ul>Are these things important?<br />Ask yourself which ones matter to your business.<br />
  • 52. Advanced Metrics<br /> <br />  <br /> <br /> <br /> <br /><ul><li> Volume of brand mentions
  • 53. Share of voice</li></li></ul><li>Advanced Metrics<br /> <br />  <br /> <br /> <br /> <br /><ul><li> Positive/negative sentiment ratios
  • 54. Positive/negative volume over time, correlation</li></li></ul><li>Advanced Metrics<br /> <br />  <br /> <br /> <br /> <br /><ul><li> Penetration of marketing keywords
  • 55. Create custom data sets to discover trends</li></li></ul><li>Advanced Metrics<br /> <br />  <br /> <br /> <br /> <br /><ul><li> Identify influencers in your topic or around your brand
  • 56. Discover how brand messages spread across the Web</li></li></ul><li>Advanced Metrics<br /> <br />  <br /> <br /> <br /> <br /><ul><li> Learn what types of sites are the most relevant</li></li></ul><li>4. Set Realistic Targets<br /> <br />  <br /> <br /> <br /> <br />Social media campaigns can be some of the least expensive ways to grow sales and awareness.<br />Set specific targets based on your company goals:<br />Increase total sales by 5% <br />Increase cost savings by 15% <br />10% increase in qualified leads <br />Convert 5% followers and “likes” to transacting customers<br />Grow online community to 10,000 members<br />20% increase in customer satisfaction <br />Increase total transactions by 7%<br />
  • 57. 5. Measure KPIs to Determine Success<br />Look only at the metrics that concern your goal.<br /> <br />  <br /> <br /> <br /> <br /><ul><li> Website metrics/traffic
  • 58. Social audience metrics
  • 59. Fans/Followers/Friends
  • 60. Conversions
  • 61. User-generated content
  • 62. Comments
  • 63. Ratings/Reviews
  • 64. Downloads
  • 65. Volume of conversation
  • 66. Search metrics
  • 67. Sentiment & tone
  • 68. Backlinks
  • 69. Competition comparison
  • 70. Share metrics
  • 71. Referrals
  • 72. Click throughs</li></ul> - Jason Falls, Social Media Explorer<br />
  • 73. Correlate Traditional with Online Metrics<br />This process requires detective work.<br />It isn’t always obvious.<br />Patterns reveal themselves as you sort and filter results.<br /><ul><li>Actual sales
  • 74. Retail traffic
  • 75. # of transactions
  • 76. New customers
  • 77. Amount per transaction
  • 78. Leads
  • 79. Surveys</li></ul>- Social Media ROI, Olivier Blanchard<br />
  • 80. Put Results on a Timeline<br />Did you see spikes in sales in correlation with your social media efforts?<br />What other patterns <br /> can you identify?<br />
  • 81. Measuring Social Media Programs Can Find Real Savings<br /> <br />  <br /> <br /> <br /> <br />In 2009, Ford built early awareness for the Fiesta with influential bloggers who tested and wrote about it<br />In 2010, Ford launched the Fiesta Project, an effort to capture user-generated video. <br />As a result, Ford learned it could reduce cost of subsequent launches by as much as 90%. <br />- Forrester research, CMO Mandate: Adapt or Perish<br />
  • 82. 6. Look at Results, Find Ways to Improve<br /> <br />  <br /> <br /> <br /> <br />The great thing about web measurement is …<br />You don’t have to wait for all your results. <br />They update as the program continues.<br />And you have every opportunity to view those results and make changes to your program along the way.<br />
  • 83. It’s Not Always Difficult<br />Sometimes just being able to illustrate that you have the ability to create business gains through social media is enough …<br />…to reach your goal.<br />
  • 84. Conclusions<br />Goal: Understand that social media represents a new set of measurements that can be correlated with your traditional financial metrics.<br />Challenge: Figure out which social media metrics can support your business objectives and be correlated to increase your ROI.<br />
  • 85. Thank you from<br />Special thanks to the organizers of<br />NAMA<br />Tracy Panko<br />@Spiral16<br />@TracyPanko<br />

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