Olivier Blanchard Basics Of Social Media Roi

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91 comments

Comments 1 - 10 of 91 previous next Post a comment

  • + nareshkoka Naresh Koka 11 hours ago
    to the point and something businesses dabling in the social media space for marketing purposes should consider
  • + paolobax Paolo Bassetti 14 hours ago
    Brilliant and straightforward!
  • + OliGardner Unbounce 17 hours ago
    One of those golden pieces of ammunition to show to your boss. I particularly love slide #43. Even regardless of the context - keeping an activity timeline is a great way to be able to provide evidence of correlation between cause and effect.

    I would love to find/create a tool/mechanism for easily keeping an activity timeline that allowed you to plug metrics and trends against your actions for a reference timeline.

    Inspired to start tracking every social interaction I perform.

    Thanks for the great work - must’ve been quite the effort to source all those classic photos alone :)
  • + VfromG VfromG 18 hours ago
    recommended by unmarketing
  • + thebrandbuilder Olivier Blanchard 18 hours ago
    Thanks so much for all the kind words. You all rock. :)
  • + AnnLongley Ann Longley 1 day ago
    Love this - thanks for sharing it.
  • + thefoxtrotter thefoxtrotter 1 day ago
    very nicely done!
  • + ecater ecater 1 day ago
    Great work! Well done
  • + sangria Marc Laurin 2 days ago
    Great presentation. Insightful and entertaining. Love it. Felicitations Olivier
  • + Effectwebagency Effect Web Agency 2 days ago
    Great presentation Olivier. I agree that the general lack of understanding of ROI is what has lead 84% of social media programs to NOT measure ROI (Mashable).

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Olivier Blanchard Basics Of Social Media Roi - Presentation Transcript

  1. Enough with
    the Social Media BS.
    Give me the realz.
    Social Fresh Conference // 24 August 2009
  2. SOCIAL MEDIA IS NOT FREE.
  3. 1. It takes people.
  4. 2. It takes technology.
  5. 3. It takes time.
  6. We have… rocks.
    … all of which are limited resources.
  7. These resources
    =
    100%
    of your budget
    E-Marketing
    Each resource
    has a specific cost
    Head Count
    Advertising
    I.T.
    Inbound Call Center
    Each resource
    yields specific results
    Marketing
    Sales Dept.
    Accounting
    Public Relations
  8. These resources
    generate
    100%
    of your business
    E-Marketing
    Losing even 1%
    of your budget’s efficiency
    could seriously ruin
    your day.
    Head Count
    Advertising
    I.T.
    Inbound Call Center
    Marketing
    Sales Dept.
    Accounting
    Public Relations
  9. Okay fine. But if
    I’m going to take a chance
    on this social media thing,
    it had better make good business
    sense! Why should I allocate
    resources to it?
  10. Reason #1:
    It will result in a cost reduction.
    Maybe in customer service?
    You mentioned something about
    business intelligence and
    market research?
    Reason #2:
    It will generate more revenue.
    I want more transactions,
    more net new customers,
    more customer loyalty,
    etc.
  11. Now go figure out what
    Program you have to cut
    to fund this Social Media thing.
    Remember that our bonuses
    are on the line.
  12. Understand that a new
    Social Media program’s
    funding doesn’t appear
    out of thin air.:
    Which buckets do we empty
    to fill this new one?
  13. SAY HELLO TO:
    Business Justification
    R.O.I.
  14. R.O.I.
    RETURN
    ON
    INVESTMENT
  15. THE R.O.I. EQUATION
    Investment
    Expectation of return
  16. THE R.O.I. EQUATION
    (GAIN FROM INVESTMENT - COST OF INVESTMENT)
    ROI =
    COST OF INVESTMENT
  17. Truth about R.O.I.
    ROI is a business metric,
    not a media metric.
    ROI is 100% media-agnostic.
    Only measuring digital or social won’t get you anywhere.
  18. Reason #1:
    COST REDUCTION
    Reason #2:
    REVENUE GENERATION
    Remember what Mr. Bossman said…
  19. I shrank my PR budget by 20%
    and my outbound call budget by 40%.
    Now I can afford a team of social media
    Rock stars. Can I get a hellz yeah?
    Okay, hotshot,
    You have your Social Media doohickey.
    Now I’d better see some real results!
    Or else…
  20. Woohoo!
    I have a job!!!
  21. Dudes, we are
    ON THIS!!!
    Let’s start engagin’!!!
    I call dibs on the
    Corporate blog.
  22. Cool.
    ACCOUNTING
    One Month Later…
  23. What about our
    Twitternets?
    Oh my! Look at all the new
    visitors to our website!
    and all of our FaceBook friends!
    Hot Damn, we even have
    comments on the blog!
  24. This rocks!
    I never had it so
    good!!!
  25. Cool.
    ACCOUNTING
    Three Months Later…
  26. Yeah but…
    What about
    the P&L?
    Monitoring to base…
    Monitoring to base…
    Our Google Analytics are through
    the roof! Even our social mentions
    are wicked good!
    We have liftoff!
  27. Measuring media
    really rocks my
    world.
  28. Nope.
    Anything?
    Nada.
    ACCOUNTING
    Six Months Later…
  29. What kind of mood is
    The old man in today?
    Not good.
    He doesn’t care how many visitors
    the website gets, or how many
    eyeballs we estimate we’ve reached unless it means we’re selling
    more stuff.
  30. But why?
    Our website is getting
    mad hits, Jack!
    And we have 3,000 followers
    on Twitter now!
    I’m sorry, son.
    If your Social Media program
    is generating revenue, we aren’t
    seeing it. We need to allocate
    resources where we can
    make money.
    It’s just business.
  31. Darn it.
    This media measurement
    stuff isn’t working.
    We need to start
    tying this stuff to actual
    Business performance.
    Where to start?
    Let’s see…
    At the beginning?
  32. Things happen in sequence.
  33. Non-financial impact is not ROI (yet).
  34. Types of non-financial impact
    Customer complaints
    Website Visitors
    Impressions
    Positive press
    Click-throughs
    YouTube views
    Retweets
    Coupons distributed
    Visitors to a brick & mortar store
    Positive WOM
    Delivered emails
    Negative press
    Negative WOM
    Employment applications
    Blog comments
    FaceBook friends
    Social mention
    Twitter followers
  35. Non-financial impact = potential.
  36. ROI = actualized potential.
  37. Reason #1:
    COST REDUCTION
    Reason #2:
    REVENUE GENERATION
    Remember what Mr. Bossman said…
  38. I need proof that
    what we’re doing
    is actually working.
    Start with proof of concept.
  39. Step 1: Establish a baseline
    8% YoY Growth
  40. Baselines illustrate deltas (changes)
    Is something happening here?
  41. Step 2: Create Activity Timelines
  42. Step 2: Create Activity Timelines
  43. Step 2: Create Activity Timelines
  44. Step 3: Look at Sales Revenue
  45. Step 3: Also look at # of transactions
  46. Step 3: Also measure net new customers
  47. Transaction data should be specific
    F.R.Y.
    FREQUENCY, REACH, YIELD
    How often customers transact. (transactions per month)
    How many customers you are reaching. (net new customers)
    How much they spend. ($ per transaction)
  48. The latest numbers indicate
    that our YoY sales $ are up 60%.
    Our individual transactions have doubled,
    as have our transacting customers.
    Something’s working!
    Groovy!
    Let’s figure out what.
  49. Step 4: Measure transactional precursors
  50. Step 4: Measure transactional precursors
  51. Step 4: Measure transactional precursors
  52. We overlaid all of our timelines
    and noticed that since our social media
    activities began, our website visits are up,
    our social mentions are also up, and
    everyone seems to love us.
    So is there a
    discernable pattern
    in this?
  53. Step 5: Overlay all timelines
    activities
    social data
    web data
    transactions
    loyalty metrics
    etc.
  54. Step 6: Look for patterns
    Impact
    Uncertain Impact
    Impact
    Impact
    No Impact
    Before
    After
  55. Step 7: Prove relationships
    How was this group
    Touched by SM?
    Before
    After
  56. How long
    will all this
    analysis take?
    It’s all a process
    of elimination, really.
    Isolating patterns,
    quantifying deltas,
    proving ad-hocs…
    Then all
    we have to do is
    figure out what the cost
    savings and revenue gains
    are, and plug them
    into the equation.
  57. THE R.O.I. EQUATION
    (GAIN FROM INVESTMENT - COST OF INVESTMENT)
    ROI =
    COST OF INVESTMENT
  58. THE R.O.I. EQUATION
    Investment
    Expectation of return
  59. Oh wow.
    This R.O.I. thing
    wasn’t at all about
    measuring media,
    impressions and
    eyeballs!
  60. All things remaining the same…
    We may have
    proof of
    concept.
    Hot damn!
    ACCOUNTING
    First things first: Prove that Social Media works
  61. So it turns out that our
    Social Media program is impacting
    every aspect of our business except
    traffic in our brick and mortar stores.
    Can you get on that? Yeah. We need
    to find out why we aren’t having
    an effect there. Kthxbye.
    Then use what you know to make it work better.
  62. More store traffic.
    Roger that.
    Dudes, we are
    ON THIS!!!
    Let’s start engagin’!!!
    I’ll start crafting some
    wicked blog posts.
  63. Finally, someone with some
    real metrics for me to sink my teeth into!
    Good job, Sparky! You done gewd!
  64. So I guess Social Media
    is going to stick around a little while
    longer after all, isn’t it?
    Yessir.
    Looks like our budget
    is safe for now.
  65. Drinks for
    Everybody!
  66. Olivier Blanchard
    Principal, BrandBuilder Marketing
    864.630.7398
    www.thebrandbuildermarketing.com
    @thebrandbuilder(on Twitter)
    www.smroi.net
  67. Slideography
    Slide # Source
    3, 9, 10, 11, 18-31,
    37, 38, 48, 52, 56,
    59-65
    4
    6
    UFO (TV series)
    http://ufoseries.com/
    http://www.minnpost.com/stories/2008/06/18/2282/this_doesnt_compute_as_more_women_enter_scientific_fields_their_numbers_in_computer_science_are_declining
    Kim Jong Il puppet, from “Team America”
    http://blogs.rockymountainnews.com/bridget/kimjongil.jpg

+ Olivier BlanchardOlivier Blanchard, 2 months ago

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