Social Business Justification & R.O.I.<br />olivieralainblanchard<br />@thebrandbuilder<br />Buzz 2010 Series<br />Washing...
What do I do?<br />Training<br />Social Media Program Integration<br />for C-Suite executives,<br />Managers and organizat...
First Rule: The tools are the tools. The tools are not the thing.<br />
Second Rule: Associations + NFPs are not like most businesses<br />
First things first: …<br />
Having “a presence” in Social Media<br />Is worthless unless you do something with it.<br />
Your organizationdoesn’t plug into Social Media.<br />Social Media plugs into your organization.<br />
Second…<br />
 Ways in which Social Media can help a business:<br />Sales<br />Net New Customers, Increased Frequency of Transactions, p...
 Ways in which Social Media can help an association:<br />Outcomes<br />Net New Members, Increased Frequency of Donationsa...
Brand Management: Momentum Drivers<br />Awareness<br />Do enough people know about us? Do enough people think about us?<br...
Leveraging Social Communications<br />Social media is there to drive, <br />amplify and reinforce all of these things:<br ...
Third: A note about vertical and lateral forces…<br />
Vertical Engagement= Org + Individual<br />Program/campaign-based, on-message, limited.<br />
Lateral Engagement = individual+ individual<br />This is how WOM and content really scale.<br />
Fourth: Okay, now…<br />
How do you rescue a fading brand?<br />
What if this had nothing to do with Old Spice?<br />
Facebook has over 500 MILLION users<br />Twitter now has over 100 MILLIONregistered users.<br />55,000,000 tweets per day....
But it doesn’t stop here.<br />
What if this were your message?<br />
What if this were your message?<br />The principles are the same.<br />
Brand Management: Momentum Drivers<br />Awareness<br />Do enough people know about us? Do enough people think about us?<br...
Catalyst: What you do.<br />
Reaction: What they do.<br />“We have to share this with friends.”<br />
How can I leverage Social Media to impact x:<br />Outcomes<br />Net New Members, Increased Frequency of Donationsand Volun...
But all of that is mostly talk.<br />And talk doesn’t pay the bills<br />or change much of anything.<br />
Organizations need to raise money<br />and/or get results.<br />Talk needs to impact behavior.<br />
NOTHING AN ORGANIZATION DOES IS FREE.<br />
1. Programs and campaigns take manpower.<br />
2. … and technology.<br />
3. And most importantly, time.<br />
We have… rocks.<br />… all of which are limited resources.<br />
These resources<br />=<br />100%<br />of your budget<br />These resources<br />generate<br />100%<br />of your outcomes<br...
Understand that a new<br /> marketing program’s<br />funding doesn’t appear<br />out of thin air.:<br />Which buckets do w...
Give me a good reason<br />why I should assign resources<br />to this thing.<br />The dragonwants to know how this will he...
It all starts with one question:<br />What are you trying to accomplish?<br />Define the objective FIRST.<br />THEN come u...
Tactics don’t dictate the objective.<br />You know…<br />What this team really needs<br />Is more WOM! <br />NO<br />
Objectives dictate tactics.<br />I need 3 more touchdowns<br />before half-time. <br />What are my options?<br />(How does...
Question #1:<br />Will it save me money?<br />Maybe in member support?<br />You mentioned something about<br />media costs...
Objectives should be specific.<br />F.R.Y.<br />FREQUENCY, REACH, YIELD<br />Increase how often customers buy from us each...
The Association version:<br />F.R.Y.<br />FREQUENCY, REACH, YIELD<br />Increase how often members give us each month/year<...
SAY HELLO TO:<br />Business Justification<br />R.O.I.<br />
R.O.I.<br />RETURN<br />ON<br />INVESTMENT<br />
THE R.O.I. EQUATION<br />Investment<br />Expectation of return<br />
THE R.O.I. EQUATION<br />(GAIN FROM INVESTMENT - COST OF INVESTMENT)<br />ROI =<br />COST OF INVESTMENT<br />
The Truth About R.O.I.<br />ROI is a business metric,<br />  not a media metric.<br />ROI is 100% media-agnostic.<br />Onl...
What if you aren’t “for profit?”<br />You still depend on some kind of revenue to function:<br />Grants, funding, donation...
I’m a Social Media guru.<br />Love isn’t about ROI, baby.<br />Forget your greedy ways.<br />The Problem.<br />
ROI is NOT:<br />Return on Inspiration<br />Return on Involvement<br />Return on Innovation<br />Return on Immersion<br />...
R.O.I. Confusion - A tale of operational silos<br />Engagement<br />R.O.I.<br />Different Focus + Different perspective<br />
Reason #1:<br />COST REDUCTION<br />(How can I do more<br />with less?)<br />Reason #2:<br />REVENUE GENERATION<br />(How ...
Let’s get people<br />Talking about us.<br />Dudes, we are <br />ON THIS!!!<br />Let’s start engagin’!!!<br />I’ll start c...
This rocks!<br />I never had it so<br />good!!!<br />
Things happen in sequence.<br />
Non-financial impact is not ROI (yet).<br />Too many agencies only measure here.<br />
Types of non-financial impact<br />Customer complaints<br />Website Visitors<br />Impressions<br />Positive press<br />Cli...
Yeah but…<br />What about<br />the P&L?<br />Monitoring to base…<br />Monitoring to base…<br />Our social mentions are wic...
Nope.<br />Anything?<br />Nada.<br />ACCOUNTING<br />Six Months Later…<br />
What kind of mood is <br />The old man in today?<br />Not good.<br />He doesn’t care how many visitors<br />the website ge...
Financial vs. Non-financial Impact<br />Non-Financial<br /> Financial      <br />Are you converting this        to this?<b...
Or in your world…<br />Way cool!<br />Yeah. Sign us up.<br />Oh cool!<br />Weeeerd!<br />Are you converting this        to...
What a Social Media win looks like:<br />
What a Social Media win looks like:<br />94,000 followers<br />Velocity: 8K to 66K in only 2 days<br />706,000 fans/likes<...
But will it “sell soap?”<br />
(It already has.)<br />Sales of body wash up 107% in the last month.<br />(It’s a good start, but will it be enough to jus...
Non-financial impact = potential.<br />
ROI = actualized potential.<br />Social Media Activity - Vertical/Lateral<br />Ultimately, Social Media activity has to po...
This is not the end of the line for you:<br />In your case (and unlike For Profit businesses,)R.O.I. is not where the narr...
This is not the end of the line for you:<br />In your case (and unlike For Profit businesses,)R.O.I. is not where the narr...
Step 1: Establish a baseline<br />8% YoY Growth<br />
Step 2: Create Activity Timelines<br />
Step 3: Monitor impact on conversations<br />What are people talking about and where?<br />Map topics, keywords, trends, l...
Step 4: Measure transactional precursors<br />
Measuring transactional precursors<br />
Measuring transactional precursors<br />Office?<br />Museum?<br />Kiosk?<br />
If you can, also look at # of transactions<br />
If you can, also look at # of transactions<br />Sales?<br />Donations?<br />Other?<br />
Also measure net new customers<br />NNC is a measure of effective reach,<br />not just media reach.<br />
Also measure net new customers<br />Net new members<br />NNC is a measure of effective reach,<br />not just media reach.<b...
Transaction data should be specific<br />F.R.Y.<br />FREQUENCY, REACH, YIELD<br />How often customers transact. (transacti...
The Association version:<br />F.R.Y.<br />FREQUENCY, REACH, YIELD<br />Increase how often members give us each month/year<...
Step 5: Finally, look at Sales Revenue<br />
Step 5: Finally, look at Revenue<br />Memberships?<br />Donations & Grants?<br />Sales?<br />
Step 6: Overlay your data onto a timeline<br />activities<br />social data<br />web data<br />transactions<br />loyalty me...
Step 7: Look for patterns<br />Impact<br />Uncertain Impact<br />Impact<br />Impact<br />No Impact<br />Before<br />After<...
Step 8: Prove & disprove relationships<br />How was this group<br />Touched by SM or WOM?<br />(And how was it not?)<br />...
Finally, someone with some<br />real metrics for me to sink my teeth into!<br />Good job, Sparky! You done gewd!<br />Make...
R.O.I. Case Study Brief: Association Launch<br />Problem:A new triathlon club with virtually no funding or resources wante...
R.O.I. Case Study Brief: Association Launch<br />Result: 	Starting budget – $120.	<br />			Membership $ - $25 apiece<br />...
R.O.I. Case Study Brief: Association Launch<br />We did this without Facebook, Twitter, MySpace, SMS or blogs.<br />
R.O.I. Case Study Brief: Association Launch<br />Social Media tools didn’t exist yet<br />but the principles behind “Socia...
R.O.I. Case Study Brief: Association Launch<br />We leveraged our social networks,<br />developed them with purpose,<br />...
R.O.I. Case Study Brief: Association Launch<br />We leveraged our social networks,<br />developed them with purpose,<br />...
R.O.I. Case Study Brief: Association Launch<br />We leveraged our social networks,<br />developed them with purpose,<br />...
R.O.I. Case Study Brief: Association Launch<br />We were successful<br />in great part due to this:<br />
R.O.I. Case Study Brief: Association Launch<br />We were successful<br />in great part due to this:<br />1. We had clear o...
R.O.I. Case Study Brief: Association Launch<br />We were successful<br />in great part due to this:<br />We had clear obje...
R.O.I. Case Study Brief: Association Launch<br />We were successful<br />in great part due to this:<br />We had clear obje...
R.O.I. Case Study Brief: Association Launch<br />We were successful<br />in great part due to this:<br />We had clear obje...
R.O.I. Case Study Brief: Association Launch<br />We were successful<br />in great part due to this:<br />We had clear obje...
Drinks for <br />Everybody!<br />
http://smROI.net<br />    Ask away.<br />Olivier Blanchard<br />864.630.7398<br />www.thebrandbuildermarketing.com<br />@t...
And now, an exercise…<br />
And now, an exercise…<br />Write down your organization’s<br />reason for being: … <br />
2. Write down your principal objective.<br />What is the most important thing you want to accomplish. (Not financial) <br />
2. … Now quantify this. <br />Give it a value. (Not $.)<br />Make it a specific target.<br />
3. Now give me two more.<br />
3. … Again, express them in terms of a specific value: Members, birds rescued, etc.<br />
4. Now write down your 3 top financial objectives.<br />
5. Write down how each financial objective plugs into your three main overall objectives.<br />
R.O.I. = maximizing enablement<br />In your case (and unlike For Profit businesses,)R.O.I. is not where the narrative ends...
How will you measure success every step of the way?<br />
Measuring success: Defining metrics early<br />A leads to B leads to C leads to D...<br />?<br />?<br />?<br />?<br />?<br...
Measuring success: Defining metrics early<br />?<br />?<br />?<br />?<br />?<br />Non-financial objective<br />Start here....
Measuring success: Defining metrics early<br />Now move here.<br />My $ target is $x.<br />Where do I measure changes in $...
Measuring success: Defining metrics early<br />Now move here.<br />My targetsare X, Y and Z.<br />My metrics are M, N and ...
Not here.<br />Measure here…<br />Plan first. Map out the route.<br />Identify relevant metrics every step of the way.<br />
Your metrics<br />Now start from the beginning. 1. Baseline. 2. Timeline…<br />You planned from outcome to catalyst.<br />...
Q: What is the 2012 objective?<br />
(Not 5,000,000 fans on Twitter)<br />
A: Re-election.<br />
Main non-financial objective(s)<br />Get elected in 2012<br />
Q: What is my most important resource?<br />
A: Campaign funding. (It enables everything.*)<br />* Understand your business and its mechanics. If you don’t, you are fl...
Main non-financial objective(s)<br />
Q: How does Social Media fit in?<br />
A: Above all else, it yields campaign contributions.<br />
A: How it yields campaign contributions.<br />Directly through vertical engagement<br />Indirectly, through lateral engage...
Main non-financial objective(s)<br />
Let’s plug-in F.R.Y., just for fun.<br />
Can we increase the frequency of contributions?<br />
Note: Most Obama For America online supporters gave little, but they gave often. Frequency was a key factor in the O4A str...
Can we increase the frequency of contributions?<br />YES.<br />Increase frequency of interactions<br />Ask more often<br /...
To specifically drive<br />Main non-financial objective(s)<br />
Can we increase our reach?<br />
Second largest search engine in the world, only to Google<br /> Millions of people are content publishers now.<br />Faceb...
Can we increase our reach?<br />YES.<br />Seed and grow our channels<br />Help our supporters share content<br />Ask our f...
To specifically drive<br />Main non-financial objective(s)<br />
Can we increase our Yield?<br />
Can we increase our Yield?<br />YEP!<br />Foster depth of engagement<br />Develop and build loyalty<br />Increase involvem...
To specifically drive<br />Main non-financial objective(s)<br />
Because the objectives dictate the tactics...<br />
… the objectives also dictate the metrics.<br />
The metrics are the vital signs of your program.<br />
Every measurement you take has its place and tells its part of the story. <br />
2<br />Ignore here.<br />1<br />Start here…<br />4<br />3<br />5<br />Connect the dots.<br />
R.O.I. is a crucial link in the measurement chain.<br />
I’m a Social Media guru.<br />Behold my army of followers.<br />My personal brand is golden.<br />Only measure<br />follow...
http://smROI.net<br />    Ask away.<br />Olivier Blanchard<br />864.630.7398<br />www.thebrandbuildermarketing.com<br />@t...
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  • Sometimes it is good to get hit over the head repeatedly with a 2 x 4...
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  • Thanks, guys.

    Jonathan, that's what my clients usually hire me to help them with. ;) Next time I am in Copenhagen, I will definitely look you up.

    Cheers.
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  • awesome - the key question how do you convert all that buzz into cash - could do with some detail on exactly HOW to do this i.e chaneling conversation into the sales funnel etc..apart from that you work seems to have taken me one step closer to being more competent so thank you so much.......if you're in Copenhagen ever please make contact.if wver I hear of any speaking opps i will recommend - therefore convertig your efforts into financial impact......
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Buzz 2010 presentation

  1. 1. Social Business Justification & R.O.I.<br />olivieralainblanchard<br />@thebrandbuilder<br />Buzz 2010 Series<br />Washington, DC<br />18 August2010<br />#buzz2010<br />
  2. 2. What do I do?<br />Training<br />Social Media Program Integration<br />for C-Suite executives,<br />Managers and organizations.<br />Consulting<br />- Brand Mgmt.<br />- Online Reputation Mgmt.<br />- Social Web & New Media<br />… and the blog.<br />Advisory Board Shenanigans <br />
  3. 3.
  4. 4. First Rule: The tools are the tools. The tools are not the thing.<br />
  5. 5. Second Rule: Associations + NFPs are not like most businesses<br />
  6. 6. First things first: …<br />
  7. 7. Having “a presence” in Social Media<br />Is worthless unless you do something with it.<br />
  8. 8. Your organizationdoesn’t plug into Social Media.<br />Social Media plugs into your organization.<br />
  9. 9. Second…<br />
  10. 10. Ways in which Social Media can help a business:<br />Sales<br />Net New Customers, Increased Frequency of Transactions, promo exposure<br />Increased yield (average $ value per transaction), and product penetration<br />Customer Support<br />Immediate feedback and response, positive impact in public forum, cost reduction<br />Human Resources<br />More effective recruiting, online monitoring of employee behavior (risk management)<br />Public Relations<br />Online Reputation Management, improved brand image via Social Web<br />Customer Loyalty<br />Increased interactions, better quality of interactions, deeper relationship with brand,<br />Increased trust in brand, increased mindshare of brand, greater values alignment<br />Business Intelligence<br />Know Everything. (No, really.)<br />
  11. 11. Ways in which Social Media can help an association:<br />Outcomes<br />Net New Members, Increased Frequency of Donationsand Volunteerism,<br />Increased yield (average $ value per donation), added exposure<br />MemberSupport<br />Immediate feedback and response, positive impact in public forum, cost reduction,<br />Increased interactions, more varied interactions, portable resources (mobile)<br />Human Resources<br />More effective recruiting, online monitoring of employee behavior (risk management)<br />Public Relations<br />Online Reputation Management, improved brand image via Social Web,<br />Clarification of purpose & value, Direct communication with public<br />MemberLoyalty<br />Increased interactions, better quality of interactions, deeper relationship with cause,<br />Increased trust in organization, increased mindshare of cause, greater values alignment<br />
  12. 12. Brand Management: Momentum Drivers<br />Awareness<br />Do enough people know about us? Do enough people think about us?<br />Context<br />Do people think of us in the right way?<br />Value<br />Do people understand our value? What we offer?<br />Relevance<br />Do people appreciate our value to them?<br />Catalysts<br />Do people have a reason to think about us? To engage with us? To buy into us?<br />
  13. 13. Leveraging Social Communications<br />Social media is there to drive, <br />amplify and reinforce all of these things:<br />Awareness<br />Context<br />Value<br />Relevance<br />Interactions<br />Transactions<br />
  14. 14. Third: A note about vertical and lateral forces…<br />
  15. 15. Vertical Engagement= Org + Individual<br />Program/campaign-based, on-message, limited.<br />
  16. 16. Lateral Engagement = individual+ individual<br />This is how WOM and content really scale.<br />
  17. 17. Fourth: Okay, now…<br />
  18. 18.
  19. 19. How do you rescue a fading brand?<br />
  20. 20. What if this had nothing to do with Old Spice?<br />
  21. 21. Facebook has over 500 MILLION users<br />Twitter now has over 100 MILLIONregistered users.<br />55,000,000 tweets per day.<br />37% of users tweet from their phones.<br />All talking to each other all day long.<br />
  22. 22. But it doesn’t stop here.<br />
  23. 23. What if this were your message?<br />
  24. 24. What if this were your message?<br />The principles are the same.<br />
  25. 25. Brand Management: Momentum Drivers<br />Awareness<br />Do enough people know about us? Do enough people think about us?<br />Context<br />Do people think of us in the right way?<br />Value<br />Do people understand our value? What we offer?<br />Relevance<br />Do people appreciate our value to them?<br />Catalysts<br />Do people have a reason to think about us? To engage with us? To buy into us?<br />
  26. 26. Catalyst: What you do.<br />
  27. 27. Reaction: What they do.<br />“We have to share this with friends.”<br />
  28. 28. How can I leverage Social Media to impact x:<br />Outcomes<br />Net New Members, Increased Frequency of Donationsand Volunteerism,<br />Increased yield (average $ value per donation), added exposure<br />MemberSupport<br />Immediate feedback and response, positive impact in public forum, cost reduction,<br />Increased interactions, more varied interactions, portable resources (mobile)<br />Human Resources<br />More effective recruiting, online monitoring of employee behavior (risk management)<br />Public Relations<br />Online Reputation Management, improved brand image via Social Web,<br />Clarification of purpose & value, Direct communication with public<br />MemberLoyalty<br />Increased interactions, better quality of interactions, deeper relationship with cause,<br />Increased trust in organization, increased mindshare of cause, greater values alignment<br />
  29. 29. But all of that is mostly talk.<br />And talk doesn’t pay the bills<br />or change much of anything.<br />
  30. 30. Organizations need to raise money<br />and/or get results.<br />Talk needs to impact behavior.<br />
  31. 31. NOTHING AN ORGANIZATION DOES IS FREE.<br />
  32. 32. 1. Programs and campaigns take manpower.<br />
  33. 33. 2. … and technology.<br />
  34. 34. 3. And most importantly, time.<br />
  35. 35. We have… rocks.<br />… all of which are limited resources.<br />
  36. 36. These resources<br />=<br />100%<br />of your budget<br />These resources<br />generate<br />100%<br />of your outcomes<br />E-Marketing<br />Head Count<br />Advertising<br />I.T.<br />Inbound Call Center<br />Marketing<br />Sales Dept.<br />Accounting<br />Public Relations<br />
  37. 37. Understand that a new<br /> marketing program’s<br />funding doesn’t appear<br />out of thin air.:<br />Which buckets do we empty<br />to fill this new one?<br />
  38. 38. Give me a good reason<br />why I should assign resources<br />to this thing.<br />The dragonwants to know how this will help the org.<br />
  39. 39. It all starts with one question:<br />What are you trying to accomplish?<br />Define the objective FIRST.<br />THEN come up with the tactics.<br />
  40. 40. Tactics don’t dictate the objective.<br />You know…<br />What this team really needs<br />Is more WOM! <br />NO<br />
  41. 41.
  42. 42. Objectives dictate tactics.<br />I need 3 more touchdowns<br />before half-time. <br />What are my options?<br />(How does WOM fit in?)<br />YES<br />
  43. 43. Question #1:<br />Will it save me money?<br />Maybe in member support?<br />You mentioned something about<br />media costs and CPI?<br />Question #2:<br />Will it generate more revenue?<br />I want more volunteers, <br />more net new members,<br />more exposure,<br />etc.<br />Fact: Ultimately, the P&L drives business decisions.<br />
  44. 44. Objectives should be specific.<br />F.R.Y.<br />FREQUENCY, REACH, YIELD<br />Increase how often customers buy from us each month<br />Increase the net number of transacting customers<br />Increase average spend per transaction<br />Etc.<br />
  45. 45. The Association version:<br />F.R.Y.<br />FREQUENCY, REACH, YIELD<br />Increase how often members give us each month/year<br />Increase the net number of active members<br />Increase average “give” per “transaction”<br />Etc.<br />
  46. 46. SAY HELLO TO:<br />Business Justification<br />R.O.I.<br />
  47. 47. R.O.I.<br />RETURN<br />ON<br />INVESTMENT<br />
  48. 48. THE R.O.I. EQUATION<br />Investment<br />Expectation of return<br />
  49. 49. THE R.O.I. EQUATION<br />(GAIN FROM INVESTMENT - COST OF INVESTMENT)<br />ROI =<br />COST OF INVESTMENT<br />
  50. 50. The Truth About R.O.I.<br />ROI is a business metric,<br /> not a media metric.<br />ROI is 100% media-agnostic.<br />Only measuring digital or social won’t get you anywhere.<br />
  51. 51. What if you aren’t “for profit?”<br />You still depend on some kind of revenue to function:<br />Grants, funding, donations, membership fees, etc.<br />Same thing.<br />Revenue is revenue. Budgets are budgets. Money is money.<br />
  52. 52. I’m a Social Media guru.<br />Love isn’t about ROI, baby.<br />Forget your greedy ways.<br />The Problem.<br />
  53. 53. ROI is NOT:<br />Return on Inspiration<br />Return on Involvement<br />Return on Innovation<br />Return on Immersion<br />Return on Imagination<br />Return on Importance<br />Return on Inbound<br />Return on Imbecility<br />Return on Ignorance<br />Return on Incompetence<br />ROI is:<br />Return on Investment.<br />
  54. 54. R.O.I. Confusion - A tale of operational silos<br />Engagement<br />R.O.I.<br />Different Focus + Different perspective<br />
  55. 55. Reason #1:<br />COST REDUCTION<br />(How can I do more<br />with less?)<br />Reason #2:<br />REVENUE GENERATION<br />(How can I make more<br />of an impact?)<br />So once again, to be clear. This is R.O.I.<br />
  56. 56. Let’s get people<br />Talking about us.<br />Dudes, we are <br />ON THIS!!!<br />Let’s start engagin’!!!<br />I’ll start crafting some<br />wicked blog posts and<br />online contests.<br />
  57. 57. This rocks!<br />I never had it so<br />good!!!<br />
  58. 58.
  59. 59. Things happen in sequence.<br />
  60. 60. Non-financial impact is not ROI (yet).<br />Too many agencies only measure here.<br />
  61. 61. 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 />
  62. 62. Yeah but…<br />What about<br />the P&L?<br />Monitoring to base…<br />Monitoring to base…<br />Our social mentions are wicked good!<br />The YouTube videos are scaling well.<br />Our blog even has comments!<br />We have liftoff!<br />
  63. 63. Nope.<br />Anything?<br />Nada.<br />ACCOUNTING<br />Six Months Later…<br />
  64. 64. What kind of mood is <br />The old man in today?<br />Not good.<br />He doesn’t care how many visitors<br />the website gets, or how many<br />eyeballs we estimate we’ve reached. How is it all helping grow the<br />Biz yo?<br />
  65. 65. Financial vs. Non-financial Impact<br />Non-Financial<br /> Financial <br />Are you converting this to this?<br />
  66. 66. Or in your world…<br />Way cool!<br />Yeah. Sign us up.<br />Oh cool!<br />Weeeerd!<br />Are you converting this to this?<br />
  67. 67. What a Social Media win looks like:<br />
  68. 68. What a Social Media win looks like:<br />94,000 followers<br />Velocity: 8K to 66K in only 2 days<br />706,000 fans/likes<br />… sharing videos with friends on their wall<br />16,000,000 views<br />Most response videos >200,000 views<br />Facebook.com/oldspice<br />
  69. 69. But will it “sell soap?”<br />
  70. 70. (It already has.)<br />Sales of body wash up 107% in the last month.<br />(It’s a good start, but will it be enough to justify the campaign’s expense?)<br />
  71. 71. Non-financial impact = potential.<br />
  72. 72. ROI = actualized potential.<br />Social Media Activity - Vertical/Lateral<br />Ultimately, Social Media activity has to positively impact customer behaviors and drive revenue in order to deliver R.O.I.<br />
  73. 73. This is not the end of the line for you:<br />In your case (and unlike For Profit businesses,)R.O.I. is not where the narrative ends. R.O.I. is a means to an end.<br />Main non-financial objective(s)<br />Plant 3,000,000 new trees in the US<br />Reduce teen pregnancy in Chicago by 3% this year<br />Preserve historic neighborhoods in Baltimore<br />Increase local recycling by 300 tons per year<br />Send 300 cleanup volunteers to the Gulf for one week<br />Attract Google Fiber to your city<br />
  74. 74. This is not the end of the line for you:<br />In your case (and unlike For Profit businesses,)R.O.I. is not where the narrative ends. R.O.I. is a means to an end.<br />Main non-financial objective(s)<br />Plant 3,000,000 new trees in the US<br />Reduce teen pregnancy in Chicago by 3% this year<br />Preserve historic neighborhoods in Baltimore<br />Increase local recycling by 300 tons per year<br />Send 300 cleanup volunteers to the Gulf for one week<br />Attract Google Fiber to your city<br />Enablement<br />
  75. 75. Step 1: Establish a baseline<br />8% YoY Growth<br />
  76. 76. Step 2: Create Activity Timelines<br />
  77. 77. Step 3: Monitor impact on conversations<br />What are people talking about and where?<br />Map topics, keywords, trends, links, etc.<br />
  78. 78. Step 4: Measure transactional precursors<br />
  79. 79. Measuring transactional precursors<br />
  80. 80. Measuring transactional precursors<br />Office?<br />Museum?<br />Kiosk?<br />
  81. 81. If you can, also look at # of transactions<br />
  82. 82. If you can, also look at # of transactions<br />Sales?<br />Donations?<br />Other?<br />
  83. 83. Also measure net new customers<br />NNC is a measure of effective reach,<br />not just media reach.<br />
  84. 84. Also measure net new customers<br />Net new members<br />NNC is a measure of effective reach,<br />not just media reach.<br />
  85. 85. Transaction data should be specific<br />F.R.Y.<br />FREQUENCY, REACH, YIELD<br />How often customers transact. (transactions per month)<br />How many customers you are reaching. (net new customers)<br />How much they spend. ($ per transaction)<br />
  86. 86. The Association version:<br />F.R.Y.<br />FREQUENCY, REACH, YIELD<br />Increase how often members give us each month/year<br />Increase the net number of active members<br />Increase average “give” per “transaction”<br />Etc.<br />
  87. 87. Step 5: Finally, look at Sales Revenue<br />
  88. 88. Step 5: Finally, look at Revenue<br />Memberships?<br />Donations & Grants?<br />Sales?<br />
  89. 89. Step 6: Overlay your data onto a timeline<br />activities<br />social data<br />web data<br />transactions<br />loyalty metrics<br />etc.<br />
  90. 90. Step 7: Look for patterns<br />Impact<br />Uncertain Impact<br />Impact<br />Impact<br />No Impact<br />Before<br />After<br />
  91. 91. Step 8: Prove & disprove relationships<br />How was this group<br />Touched by SM or WOM?<br />(And how was it not?)<br />Before<br />After<br />
  92. 92. Finally, someone with some<br />real metrics for me to sink my teeth into!<br />Good job, Sparky! You done gewd!<br />Make the case for Social Media’s value.<br />
  93. 93. R.O.I. Case Study Brief: Association Launch<br />Problem:A new triathlon club with virtually no funding or resources wanted to grow large enough to start sponsoring and organizing events to promote the sport in its area.<br />Advertising was too expensive and local media weren’t targeted enough.<br /> Solution: - Club officers leveraged personal networks to increase reach, and digital channels to share <br /> content.<br /> - Schedules, newsletters, photos, videos and other<br /> content was packaged to be sharable online.<br /> - Identified and exploited mid-level influencers,<br /> evangelists, volunteers and socially-motivated members.<br /> Result: Day 1 - 5 founding members<br /> Day 30 - 48 members<br /> Day 75 - 179 members<br /> Day 120 - 291 members<br />
  94. 94. R.O.I. Case Study Brief: Association Launch<br />Result: Starting budget – $120. <br /> Membership $ - $25 apiece<br /> 291 x $25 = $7,275<br /> Corporate Sponsorships for first year:<br /> 3 sponsors = $12,000<br />Within 4 months, the organization had generated <br /> almost $20,000 in revenue/funding. <br /> The club invested this funding into events/races, custom club/team uniforms, T-shirts, car decals <br /> and other swag. We upgraded the website.<br />Phase 2: The club launched a series of youth triathlons to benefit various charities and research.<br /> Participation soared. (We raised A LOT of money.) <br /> A state Triathlon series was launched within the year.<br />
  95. 95. R.O.I. Case Study Brief: Association Launch<br />We did this without Facebook, Twitter, MySpace, SMS or blogs.<br />
  96. 96. R.O.I. Case Study Brief: Association Launch<br />Social Media tools didn’t exist yet<br />but the principles behind “Social” did.<br />
  97. 97. R.O.I. Case Study Brief: Association Launch<br />We leveraged our social networks,<br />developed them with purpose,<br />engaged, recruited, promoted<br />and leveraged the ultimate app:<br />…? <br />
  98. 98. R.O.I. Case Study Brief: Association Launch<br />We leveraged our social networks,<br />developed them with purpose,<br />engaged, recruited, promoted<br />and leveraged the ultimate app:<br />People. <br />
  99. 99. R.O.I. Case Study Brief: Association Launch<br />We leveraged our social networks,<br />developed them with purpose,<br />engaged, recruited, promoted<br />and leveraged the ultimate app:<br />People.<br />(They come fully loaded.) <br />
  100. 100. R.O.I. Case Study Brief: Association Launch<br />We were successful<br />in great part due to this:<br />
  101. 101. R.O.I. Case Study Brief: Association Launch<br />We were successful<br />in great part due to this:<br />1. We had clear objectives.<br />
  102. 102. R.O.I. Case Study Brief: Association Launch<br />We were successful<br />in great part due to this:<br />We had clear objectives.<br />We understood this:<br />
  103. 103. R.O.I. Case Study Brief: Association Launch<br />We were successful<br />in great part due to this:<br />We had clear objectives.<br />(We understood...)<br />Our activities supported our objectives. <br />
  104. 104. R.O.I. Case Study Brief: Association Launch<br />We were successful<br />in great part due to this:<br />We had clear objectives.<br />Some were not financial. Others were.<br />Our activities supported our objectives.<br />We measured success in terms of outcomes:<br />- Financial<br />- Non-financial<br />
  105. 105. R.O.I. Case Study Brief: Association Launch<br />We were successful<br />in great part due to this:<br />We had clear objectives.<br />Some were not financial. Others were.<br />Our activities drove to our objectives.<br />We measured success in terms of outcomes:<br />- Financial<br />- Non-financial<br />5. Without revenue, we were cooked.<br />
  106. 106. Drinks for <br />Everybody!<br />
  107. 107. http://smROI.net<br /> Ask away.<br />Olivier Blanchard<br />864.630.7398<br />www.thebrandbuildermarketing.com<br />@thebrandbuilder(on Twitter)<br />
  108. 108. And now, an exercise…<br />
  109. 109. And now, an exercise…<br />Write down your organization’s<br />reason for being: … <br />
  110. 110. 2. Write down your principal objective.<br />What is the most important thing you want to accomplish. (Not financial) <br />
  111. 111. 2. … Now quantify this. <br />Give it a value. (Not $.)<br />Make it a specific target.<br />
  112. 112. 3. Now give me two more.<br />
  113. 113. 3. … Again, express them in terms of a specific value: Members, birds rescued, etc.<br />
  114. 114. 4. Now write down your 3 top financial objectives.<br />
  115. 115. 5. Write down how each financial objective plugs into your three main overall objectives.<br />
  116. 116. R.O.I. = maximizing enablement<br />In your case (and unlike For Profit businesses,)R.O.I. is not where the narrative ends. R.O.I. is a means to an end.<br />Main non-financial objective(s)<br />Plant 3,000,000 new trees in the US<br />Reduce teen pregnancy in Chicago by 3% this year<br />Preserve historic neighborhoods in Baltimore<br />Increase local recycling by 300 tons per year<br />Send 300 cleanup volunteers to the Gulf for one week<br />Attract Google Fiber to your city<br />Enablement<br />
  117. 117. How will you measure success every step of the way?<br />
  118. 118. Measuring success: Defining metrics early<br />A leads to B leads to C leads to D...<br />?<br />?<br />?<br />?<br />?<br />Non-financial objective<br />?<br />
  119. 119. Measuring success: Defining metrics early<br />?<br />?<br />?<br />?<br />?<br />Non-financial objective<br />Start here.<br />?<br />Define Metric/value.<br />What is my target?<br />How much $ do I need to do this?<br />
  120. 120. Measuring success: Defining metrics early<br />Now move here.<br />My $ target is $x.<br />Where do I measure changes in $x?<br />What behaviors leads to this?<br />?<br />?<br />?<br />?<br />?<br />Non-financial objective<br />?<br />
  121. 121. Measuring success: Defining metrics early<br />Now move here.<br />My targetsare X, Y and Z.<br />My metrics are M, N and O.<br />My channels are P, Q, R and S<br />What behaviors drive these targets?<br />?<br />?<br />?<br />?<br />?<br />Non-financial objective<br />?<br />
  122. 122. Not here.<br />Measure here…<br />Plan first. Map out the route.<br />Identify relevant metrics every step of the way.<br />
  123. 123. Your metrics<br />Now start from the beginning. 1. Baseline. 2. Timeline…<br />You planned from outcome to catalyst.<br />Now measure from catalyst to outcome.<br />R.O.I. = financial metrics within this process.<br />
  124. 124. Q: What is the 2012 objective?<br />
  125. 125. (Not 5,000,000 fans on Twitter)<br />
  126. 126. A: Re-election.<br />
  127. 127. Main non-financial objective(s)<br />Get elected in 2012<br />
  128. 128. Q: What is my most important resource?<br />
  129. 129. A: Campaign funding. (It enables everything.*)<br />* Understand your business and its mechanics. If you don’t, you are flying blind.<br />
  130. 130. Main non-financial objective(s)<br />
  131. 131. Q: How does Social Media fit in?<br />
  132. 132. A: Above all else, it yields campaign contributions.<br />
  133. 133. A: How it yields campaign contributions.<br />Directly through vertical engagement<br />Indirectly, through lateral engagement (WOM + peer influence)<br />
  134. 134. Main non-financial objective(s)<br />
  135. 135. Let’s plug-in F.R.Y., just for fun.<br />
  136. 136. Can we increase the frequency of contributions?<br />
  137. 137. Note: Most Obama For America online supporters gave little, but they gave often. Frequency was a key factor in the O4A strategy.<br />
  138. 138. Can we increase the frequency of contributions?<br />YES.<br />Increase frequency of interactions<br />Ask more often<br />Update swag more often<br />Repeat message more often<br />Engage more often<br />SM is more cost effective than paid media<br />
  139. 139. To specifically drive<br />Main non-financial objective(s)<br />
  140. 140. Can we increase our reach?<br />
  141. 141. Second largest search engine in the world, only to Google<br /> Millions of people are content publishers now.<br />Facebook has over 500 MILLION users<br />Twitter now has over 100 MILLIONregistered users.<br />55,000,000 tweets per day.<br />37% of users tweet from their phones.<br />Don’t forget…<br />All talking to each other all day long.<br />
  142. 142. Can we increase our reach?<br />YES.<br />Seed and grow our channels<br />Help our supporters share content<br />Ask our fans to share content<br />Arm our fans with tools<br />Make our reach strategy clear<br />Vertical + Lateral engagement<br />
  143. 143. To specifically drive<br />Main non-financial objective(s)<br />
  144. 144. Can we increase our Yield?<br />
  145. 145. Can we increase our Yield?<br />YEP!<br />Foster depth of engagement<br />Develop and build loyalty<br />Increase involvement of fans<br />Understand the value of timing<br />Build clarity of purpose<br />Ask when we need to ask<br />
  146. 146. To specifically drive<br />Main non-financial objective(s)<br />
  147. 147. Because the objectives dictate the tactics...<br />
  148. 148. … the objectives also dictate the metrics.<br />
  149. 149. The metrics are the vital signs of your program.<br />
  150. 150. Every measurement you take has its place and tells its part of the story. <br />
  151. 151. 2<br />Ignore here.<br />1<br />Start here…<br />4<br />3<br />5<br />Connect the dots.<br />
  152. 152. R.O.I. is a crucial link in the measurement chain.<br />
  153. 153. I’m a Social Media guru.<br />Behold my army of followers.<br />My personal brand is golden.<br />Only measure<br />followers, fans, visitors,<br />downloads, click-throughs,<br />mentions and web stats. <br />That’s Social Media<br />measurement, baby!<br />Dig it.<br />And please, no more of this.<br />
  154. 154. http://smROI.net<br /> Ask away.<br />Olivier Blanchard<br />864.630.7398<br />www.thebrandbuildermarketing.com<br />@thebrandbuilder(on Twitter)<br />
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