Proving the ROI of social media


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Proving the ROI of social media: Marketing to the C-Suite

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Proving the ROI of social media

  1. 1. Proving the ROI of Social Media Marketing to the C-Suite Jake Wengroff Global Director, Corporate Communications Frost & Sullivan October 21, 2010
  2. 2. Where To Find Me Jake Wengroff Global Director Corporate Communications (210) 247-3806 mobile (917) 952-6816 [email_address] Follow Frost & Sullivan on Twitter @Frost_Sullivan @JakeWengroff
  3. 3. Got Content? <ul><li>Every minute: </li></ul><ul><li>24 hours of video are uploaded to YouTube </li></ul><ul><li>36,000 messages are tweeted on Twitter </li></ul><ul><li>600,000 pieces of content (links, news, photos, etc.) are shared on Facebook </li></ul>
  4. 4. Got Content? <ul><li>In two years, the content on the Internet will double every 72 hours. </li></ul>
  5. 5. The Evolution of Media Paid Earned Owned
  6. 6. Owned Media Example
  7. 7. The Evolution of Media <ul><li>Do you need a social media strategy, </li></ul><ul><li>or a content strategy? </li></ul>
  8. 8. The Evolution of Media <ul><li>What’s the ROI? </li></ul>
  9. 9. How Do Companies Use Social Media? Gain New Product and Service Ideas Brand/Corporate Positioning Engage with Customers and Receive Feedback Generate New Connections and Grow Business Use for Internal Communications and Training Key Uses
  10. 10. Why We Hate Social Media (Why We Hate Creating Content) <ul><li>“ Free” isn’t really free </li></ul><ul><li>Time, time, time! </li></ul><ul><li>Damage control ( or rather, how about any control in general?) </li></ul><ul><li>Who will be the voice? ( and who will be the voice when the voice resigns?) </li></ul>
  11. 11. Perceived Risks of Social Networking Sites Source: Frost & Sullivan Q15.Please rate the following potential risks of Social Networking Sites to your organization? Mean Scores 2.9 2.8 2.8 2.7 2.6 2.5
  12. 12. Perceived Value of Social Networking Source: Frost & Sullivan Note: Proportions less than five percent not shown in above chart. Q14. Please indicate the value you perceive your organization receives from any of the following benefit(s). Among Those Who Believe Corporate Social Networking Beneficial (Highly or Moderately) Mean Scores 3.4 3.5 3.4 3.4 3.4 3.4 3.4 3.4 3.3 3.4
  13. 13. Source: Frost & Sullivan Q9. Which of the following best describes the role(s) for the social networking communities that you use for corporate purposes with regard to client relations? (Multiple mention question) Among Those Using Web 2.0 Tools for Client Relations Corporate Roles in Social Networking Communities by Total Sample and Enterprise Size / Indicates significantly higher/lower than comparison group at the 95% level.
  14. 14. Anticipated Change in Corporate Use of Social Networking by Total Sample and Enterprise Size Source: Frost & Sullivan Q16. Thinking about the next 12 months, how do you anticipate your organization’s overall usage of social networking will change? / Indicates significantly higher/lower than comparison group at the 95% level.
  15. 15. Syndicate and Propagate Content Article, press release Video, podcast PowerPoint presentation
  16. 16. Tracking, Measurement, Reporting <ul><li>Choose Key Performance Indicators (KPIs) </li></ul><ul><li>Consider both free and paid tracking tools </li></ul><ul><li>It’s not all about sales (but it helps) </li></ul>
  17. 17. Key Performance Indicators <ul><li>What is valuable to you and your organization? </li></ul><ul><li>(What will make you look good?) </li></ul><ul><li>At least 100 social media indicators exist </li></ul><ul><ul><li>Fans, friends, followers, likes/favorites, comments, ratings, “buzz” </li></ul></ul><ul><ul><li>Pageviews, downloads, embeds/installs </li></ul></ul><ul><ul><li>Customer satisfaction, coupon redemption, job applications </li></ul></ul>
  18. 18. Free and Paid Tracking Tools <ul><li>Why You Need Both </li></ul><ul><li>Free Tools </li></ul><ul><ul><li>SocialMention, HowSociable, </li></ul></ul><ul><ul><li>Existing tools: Omniture, Webtrends </li></ul></ul><ul><li>Paid Tools </li></ul><ul><ul><li>Radian 6, PR Newswire, Sysomos, Nielsen BuzzMetrics </li></ul></ul>
  19. 19. Screenshot of Social Mention
  20. 20. Screenshot of Dashboard for PR Newswire’s SMM Tool
  21. 21. Sales <ul><li>Sales is the strongest indicator of social media ROI and proof of concept </li></ul><ul><li>Engages the sales and customer experience departments </li></ul><ul><li>Engages (and intrigues) the C-suite </li></ul><ul><li>Validates your social media programs and gets you resources (staff, budget) </li></ul>
  22. 22. Tracking, Measurement, Reporting <ul><li>Accept that you cannot track everything </li></ul><ul><li>Accept that you cannot do it alone </li></ul><ul><li>Accept that you will make mistakes </li></ul>
  23. 23. Tracking, Measurement, Reporting <ul><li>Are you comfortable with data and analysis? </li></ul><ul><ul><li>“ I went into marketing because I suck at math.” </li></ul></ul><ul><ul><li>“ I’m in PR, I’m a people person.” </li></ul></ul><ul><li>Are you a team player? </li></ul><ul><ul><li>“ My MIS department hates me.” </li></ul></ul>
  24. 24. Best Practices in Social Media <ul><li>Designate a Social Media Task Force within the company to train employees, design policies, study trends, implement tactics, and measure results. Select from various departments: public relations, marketing, sales, customer service, research and development, human resources, or administration. </li></ul><ul><li>Find existing content within the organization (press releases, articles, speeches, presentations) which can be repurposed for social media. </li></ul><ul><li>Understand that metrics are very important to all stakeholders in order for social media programs to be nurtured, supported – and funded. </li></ul><ul><li>Keep abreast of industry trends by reading as much as possible about new platforms and technologies, privacy policies (i.e., Facebook), and how other companies are effectively leveraging social media. </li></ul>
  25. 25. Remarks <ul><li>Always ask yourself, “Why is this valuable to my organization?” </li></ul><ul><li>Keep content organic, genuine, and authentic. </li></ul><ul><li>Your customers, employees, and investors will feel empowered. </li></ul><ul><li>Read….learn….engage! </li></ul>
  26. 26. For Additional Information Jake Wengroff Global Director Corporate Communications (210) 247-3806 mobile (917) 952-6816 [email_address] Follow Frost & Sullivan on Twitter @Frost_Sullivan @JakeWengroff