How to Measure Social Media ROI
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How to Measure Social Media ROI

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A great presentation done by JustinRamers

A great presentation done by JustinRamers

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  • 1. Measuring Social Media ROIJustin RamersDirector of Social Media
  • 2. Agenda• Social ROI Overview• Getting Smart About ROI• Identifying Key Metrics• Determining Value• Building Business Cases•Q&A
  • 3. Why are they doing it?• Creating value by communicating with customers• Saving money over traditional communication channels• Able to demonstrate results Skittles: 3,648,850 FB fans = 109,465,500 monthly impressions = $547,327.50 monthly value created
  • 4. Social ROIIf you don’t measure results, how can you know ifyou are successful?
  • 5. Blind Faith• 84% of organizations do not measure social media ROI• Easiest to measure compared to TV, newspaper, radio, etc.• More than 40% of respondents said they didn’t even know whether they could track ROI from their social tools• Peer pressure: adopting technology without knowing how it will impact your business and what value it will add
  • 6. Why it’s Rare• Marketers believe that measuring true ROI for social media is difficult• There are so many metrics available that it is difficult to choose which ones are the most important• Marketers do not start with clear objectives for using social media• Emerging technology adds to confusion and complexity
  • 7. Case Study – Dell Outlet“Our @DellOutlet (account) is now close to1.5 million followers on Twitter... and (has) earned$3 million in revenue. In total, Dell’s global reach on Twitter hasresulted in more than $6.5 million in revenue. In fact ourBrazilian and Canadian accounts are growing rapidly too – and itwas Canadian tweeters who asked to make sure Dell Canadacame online to Twitter. Dell Canada responded because the teamheard our customers. In less than a year, @DellnoBrasil hasalready generated nearly $800,000 in product revenues.Similarly, @DellHomeSalesCA has surpassed $150,000 and isincreasing at notable pace.” Lionel Menchaca Chief Blogger, Dell
  • 8. Getting Smart About ROI Social Media is a communications vehicle
  • 9. Getting Smart About ROI• You have many tools available to communicate with users: • Phone • Direct Mail • Direct Email • Newsletters • Social Media It’s important to measure the ROI of campaigns, not tools
  • 10. Getting Smart About ROI The S.M.A.R.T. approach to Social ROI Credit: Garry Przyklenk
  • 11. Get SMART• Socialize•M•A•R•TEngage & interact with your customers through social media channels. Create conversations around your programs or services. Credit: Garry Przyklenk
  • 12. Get SMART• Socialize• Monitor•A•R•T Listen to multiple sources & monitor theconversations around your brand. Understand the customer sentiment. Credit: Garry Przyklenk
  • 13. Get SMART• Socialize• Monitor• Analyze•R•T Analyze your social traffic using free or paid tools. Quantify the impact of your efforts and identify key trends. Credit: Garry Przyklenk
  • 14. Get SMART• Socialize• Monitor• Analyze• Report•T Report on real metrics like revenue, registrations, referrals and calculate ROI. Credit: Garry Przyklenk
  • 15. Get SMART• Socialize• Monitor• Analyze• Report• TargetContinually refocus your efforts based on the data and insights from the previous steps. Credit: Garry Przyklenk
  • 16. Get SMART• Socialize – Post regularly through FB, blogs & newsletters• Monitor – Use Twitter search to listen to the conversation• Analyze – Check number of clicks with Google Analytics• Report – Crunch numbers to see how results are paying off• Target – Try a new content strategy, or more of what’s working Rinse and repeat Credit: Garry Przyklenk
  • 17. Identifying Key Metrics Figure out the things that provide real value to your business.
  • 18. Sample Metrics• Total network size/subscriber base• Website visits• Orders/transactions• # Registrations for an activity/program• # Memberships (new, renewals)• # Facility rentals• Growth in newsletter list• Customer support resolutions• Fundraising goals
  • 19. Social Metric Confusionengagement - sentiment – reputation – differentiation –interaction - risk reduction – client retention – branding –perception shifting – exposure – customer satisfaction – trustbuilding – social impressions – viral coefficient
  • 20. Active’s Key Metrics• Grow total network size• Drive incremental visits• Drive incremental conversions Focus on what’s most Important to your business
  • 21. Active’s Challenges• Aggressively leverage social media without any proven results or case studies• Get buy-in from upper management• Quickly illustrate value• Prove that model is scalable• Make case for budget that doesn’t exist• Understand what resonates with our audience and what doesn’t• Demonstrate actual value, not theoretical
  • 22. Measuring Results• Unique tracking code appended to every social media post• Facebook provides impression counts for each post• We can then track number of views & number of clicks for each post• Clicks/impressions = CTR (click through rate)http://www.active.com/fitness/Articles/The_Best_and_Worst_ Exercises_for_Bad_Knees.htm?cmp=16-5195
  • 23. Measuring Results Visit Subsequent User Clicks Registered Actions are on Link in Analytics Tracked• Facebook tells us how many times a message was viewed• Analytics package tells us how many times a message was clicked• You can track any online actions through campaign codes• Registrations, Email signups, form submits, new accounts• Some development work is required for conversion tracking
  • 24. Determining Value• Assign values to each key metric• Use real money values; estimate if need be• Start at the end & work backwards• Determine value independently for each channel• Roll up channel data to see the global picture124 (# Registrations) * $5 (avg Registration Value) = $620 in registration value created
  • 25. Calculate Value per Unit (Advanced)• Calculate total value created for each channel based on values assigned to each key metric• Calculate the total subscriber count for each channel• Divide value created by subscriber count to determine value/subscriber• Calculate each month and compare data(Value created) / (# Subscribers) = Value/Subscriber $18,429 / 160,787 = $0.11
  • 26. Social Media Channel ProfileActive.com267,907 Fans (as of Jul 1, 2010)Active.com is the leading online community for people who want to discover, learn about,share, register for and ultimately participate in activities about which they are passionate. Key Metrics Jan Feb Mar Apr May Jun Network Size 53,325 62,688 96,054 111,840 123,381 137,907 Visits 71,134 81,249 155,748 130,137 160,028 162,001 Visits/Fan 1.33 1.30 1.62 1.16 1.30 1.17 Revenue/Fan $0.10 $0.14 $0.09 $0.05 $0.10 $0.09
  • 27. Building Business Cases• Provide market insight & relevant case studies• Project short & long term impact with trending data• Use real data to validate hypotheses• Illustrate impact to the bottom line• Justify increased development efforts
  • 28. Social Sharing Analysis Social Sharing Transactions per Day• Facebook product changes (red arrows) can greatly impact results: Averages Jul Aug 1-15 Aug 16-31 Sep 1-21 Sep 22-30 – Introduction of Places (8/15) added Likes/day 844 1,045 1,153 1,296 1,187 greater prominence of Likes Visits/day 1,822 2,056 2,718 2,774 1,997 – Introduction of Groups (9/21) Transactions/day 44 78 321 450 188 reduced prominence of Likes Value/Like $0.29 $0.44 $1.62 $2.03 $0.92• Seasonality may also be reducing number of Likes into October
  • 29. What Active Has Been Able to Accomplish• Illustrate the positive impact of efforts• Get approval for more budget to increase scale• Evaluate the value of each marketing channel individually and succinctly• Understand what resonates with our audience• Know where to allocate resources• Try virtually anything as long as results are measured
  • 30. Resources• Link shortening/tracking: http://www.bit.ly• Post scheduling: HootSuite (http://www.hootsuite.com)• Social monitoring: • Google Alerts (http://www.google.com/alerts) • Twitter Search (http://search.twitter.com)• Analytics packages: Google Analytics (http://www.google.com/analytics)• Engagement: Facebook Insights
  • 31. Questions @activenetwork If you have additional questions, please Email them to: Marketing.Global@ActiveNetwork.com
  • 32. Thank You for Attending!Marketing.Global@ActiveNetwork.com