Social Media ROI: Process, Challenges, and Requirements


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This is a more detailed version of a previous presentation I gave on ROI. We partnered with Biz 360 to provide some examples of how you can use a platform such as theirs to see ROI from your social media investments. The presentation talks about the ROI process, some of the challenges, and the requirements for an enterprise size company. Hope you enjoy it! Any questions let me know @Jacob on twitter.

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  • Here is a report of positive posts for Southwest airlines. Make money: Developing these people may increase their loyalty and encourage them to get them to spend more in Their public advocacy is better than advertising and will encourage others to spend
  • Here is someone who could not order something from a site… for their order, and others could be in jeopardy if the site has an issue.
  • We can show examples or demonstrate how to use SM monitoring to acquire customers; to further positive customer relationships; conduct faster and more efficient research to gain product and consumer insights
  • We won’t go into detail on the content of this second Hilton example but again, a LOT of in depth detail is provided by customers. This guy did a full analysis of hotels available by categories in the loyalty program. These posts provide you with valuable consumer insights that companies used to capture via traditional research means in the past. Both of these are examples of using Social media for ROI by saving time and money in customer feedback for product development.
  • Barnes and Noble recently launched their Nook, competes with Kindle Use trend reports or in this case sentiment reports to assess market receptivity and positive and negative feedback, saves you time and from having to conduct initial research. Also protects your investments….
  • Here is an example of a product finding which may warrant more research. Do a lot of people feel this way? Perhaps it warrants special marketing promotions? In the past, this would be handled through traditional research or by creating and testing advertising – both have costs associated with them. A product manager could do quick additional searches to see how big a factor free books are in making an ebook reader purchase.
  • And finally, this is b2b example for both saving and making money. Salesforce recently announced they will be launching a new (what they call) social platform, called chatter. This is a customized dashboard from the Biz360 social media measurement platform, Community Inisghts. If you were the product manager, you would want to track how the announcement is resonating and any feedback that would help you position the product as you rollout the launch. On the right side you can see examples of reports that are tracking specific conversations mentioning the new product. On the top right, you can watch for trends in positive and negative. You could drill into the trend report or the report below it to uncover specific comments and gather key insights about how the product announcement is being perceived. On the Left side, there are key terms that Salesforce is using to talk about this product – like social platform or collaboration cloud. The product manager could see if these terms are catching on, by tracking their trend. The last report ( a little cut off) lists the key communities that mention the key terms. Product folks could use this source report to guide where to participate in impactful conversations.
  • You can use discovery reports to uncover insights. In this case the product is being compared to competitors.
  • Social Media ROI: Process, Challenges, and Requirements

    1. 1. Social Media ROI Process, Challenges and Requirements Sponsored by: Twitter: #bizcmg Presented by: Jacob Morgan Chess Media Group December 22, 2009
    2. 2. Risk of Ignoring Risk of Ignoring
    3. 3. Return on Influence
    4. 4. ROI <ul><ul><li>R eturn </li></ul></ul><ul><ul><ul><li>O n </li></ul></ul></ul><ul><li> I nvestment </li></ul>
    5. 5. What is ROI? Gain from Investment – Cost of Investment Cost of Investment ROI = Financial
    6. 6. What is ROI? <ul><li>If you invested $200k into something and made $500k back 3 months later, is that positive ROI? </li></ul>
    7. 7. What If? <ul><li>What if after 3 </li></ul><ul><li>months you found </li></ul><ul><li>out that your </li></ul><ul><li>investment </li></ul><ul><li>damaged your </li></ul><ul><li>brand reputation? </li></ul><ul><li>Still positive ROI? </li></ul>
    8. 8. What is ROI? <ul><li>What does this mean? </li></ul><ul><li>ROI needs to make or save money AND strengthen your brand </li></ul><ul><li>This is why ROI AND Impact are both important! </li></ul>
    9. 9. Sales is Not ROI <ul><li>Making $3M is not ROI </li></ul><ul><ul><li>Especially if it cost $4M to make the $3M </li></ul></ul><ul><li>You can have positive sales and negative ROI </li></ul><ul><li>Must take into account costs/investment </li></ul>
    10. 10. I gave you money and I wanted money back, not followers! Look how many friends and followers I got with that money you gave me!
    11. 11. The ROI Number <ul><li>Meaningless without context </li></ul><ul><li>Must understand variables that affect ROI </li></ul><ul><ul><li>Presence on social networks </li></ul></ul><ul><ul><li>Amount of activity </li></ul></ul><ul><ul><li>Type of campaigns </li></ul></ul><ul><li>Tells you: </li></ul><ul><ul><li>What works, what doesn’t </li></ul></ul><ul><ul><li>Where should you be putting your money </li></ul></ul>
    12. 12. Where do You Invest Your Time and Money?
    13. 13. Types of ROI Make money Save money <ul><li>Save on research costs </li></ul><ul><li>Save on time spent, which translates to dollars </li></ul><ul><li>Save on technology or business costs </li></ul><ul><li>Save on product development costs </li></ul><ul><li>Increase number of customers </li></ul><ul><li>Increase how much customers spend </li></ul><ul><li>Increase how often customers spend </li></ul><ul><li>Increase customer retention </li></ul>
    14. 15. Make Money
    15. 16. Types of ROI Make money Save money <ul><li>Save on research costs </li></ul><ul><li>Save on time spent, which translates to dollars </li></ul><ul><li>Save on technology or business costs </li></ul><ul><li>Save on product development costs </li></ul><ul><li>Increase number of customers </li></ul><ul><li>Increase how much people spend </li></ul><ul><li>Increase how often people spend </li></ul><ul><li>Increase customer </li></ul><ul><li>retention </li></ul>
    16. 17. Save Money
    17. 18. Save Money
    18. 19. Save Money
    19. 21. <ul><li>Provided by </li></ul>@rmpapag
    20. 22. What is Impact? <ul><li>Clicks </li></ul><ul><li>Impressions </li></ul><ul><li>Page views </li></ul><ul><li>Comments </li></ul><ul><li>Re-tweets </li></ul><ul><li>Size of network </li></ul>Non-Financial
    21. 23. Lord Kelvin <ul><li>“ W hen you can measure what you are speaking about, and express it in numbers, you know something about it; but when you cannot measure it, when you cannot express it in numbers, your knowledge is of a meager and unsatisfactory kind: it may be the beginning of knowledge, but you have scarcely, in your thoughts, advanced to the state of science.&quot; </li></ul>
    22. 24. Take a Deep Breath Relax
    23. 25. Build a Foundation Stop trying to build this Without starting with this Or you get this
    24. 26. Measurement Foundation <ul><li>Doesn’t start AFTER a campaign. It’s baked into the strategy and all social business efforts. </li></ul>Social business strategy Measurement Foundation
    25. 27. Breaking and Building <ul><li>Have to break things down in order to build them up again properly </li></ul><ul><li>New platform, new game, new way of doing things </li></ul><ul><li>Don’t justify lack of measurement with old marketing methodologies </li></ul>
    26. 28. Traditional Media vs. Social Media <ul><li>Billboards, print, radio TV </li></ul><ul><li>Harder to measure ROI </li></ul><ul><li>No tracking </li></ul><ul><li>Based on art not science </li></ul><ul><li>Customer surveys and polls </li></ul><ul><li>Value measured with eyeballs, traffic, exposure </li></ul><ul><li>Analytics and monitoring </li></ul><ul><li>Sentiment and conversation analysis </li></ul><ul><li>Customer tracking </li></ul><ul><li>Social CRM </li></ul><ul><li>Data capturing </li></ul><ul><li>Based on science not art </li></ul><ul><li>Value measured in impact and ROI </li></ul><ul><li>Customer insight </li></ul><ul><li>Purchase behavior </li></ul>
    27. 29. New Game Provided by Biz360 Blogs 20% Discussion Forums/Boards 10% Micro-Blogs 33% Online News 32% Print News <1% Share of Coverage Volume Blogs 15% Discussion Forums/Boards 3% Micro-Blogs 1% Online News 80% Print News 2% Share of Impact
    28. 30. Short Term vs Long Term <ul><li>3 month + campaigns </li></ul><ul><li>Fragmented measurement </li></ul><ul><li>No framework in place </li></ul><ul><li>Scrambling to show results </li></ul><ul><li>Campaign is over, launch another </li></ul><ul><li>Only look at short term results </li></ul><ul><li>1 year + strategy </li></ul><ul><li>Integrated measurement </li></ul><ul><li>ROI and measurement framework </li></ul><ul><li>Results are clear across campaigns </li></ul><ul><li>Can keep launching campaigns based off of measurement </li></ul><ul><li>Look at short term and long term results </li></ul>
    29. 31. Measurement Foundation
    30. 32. The Social Business Process
    31. 33. Business Challenges <ul><li>Corporate culture </li></ul><ul><li>Customer information </li></ul><ul><ul><li>Sales data </li></ul></ul><ul><ul><li>Customer research </li></ul></ul><ul><li>Managing expectations </li></ul><ul><ul><li>Time frame, budget, capabilities </li></ul></ul><ul><li>Department fragmentation </li></ul><ul><li>Semantics </li></ul><ul><ul><li>What is ROI? </li></ul></ul>
    32. 34. Technology Challenges <ul><li>Customer tracking </li></ul><ul><ul><li>Social networks and over time </li></ul></ul><ul><li>Data and analytics </li></ul><ul><ul><li>Managed by multiple parties </li></ul></ul><ul><ul><li>How do you get all the data and make analytics/data platforms talk to each other? </li></ul></ul><ul><li>Making sense of the data </li></ul><ul><ul><li>Interpreting results from various data sources </li></ul></ul>
    33. 35. Requirements for Enterprise <ul><li>At least 1 year engagement </li></ul><ul><li>Social media team NOT 1 person </li></ul><ul><li>Budgeting </li></ul><ul><ul><li>Social media strategy </li></ul></ul><ul><ul><ul><li>$200k+ (comprehensive) </li></ul></ul></ul><ul><ul><ul><li>$10k+ ongoing for monthly engagements </li></ul></ul></ul>
    34. 36. Social Media ROI <ul><li>What is the ROI from social media </li></ul><ul><li>or </li></ul><ul><li>How long do I need to wait before I see the ROI from social media? </li></ul>
    35. 37. Thank You <ul><li>Chess Media Group </li></ul><ul><li>Jacob Morgan </li></ul><ul><li>[email_address] </li></ul><ul><li>Website: </li></ul><ul><li>Social Business Blog: </li></ul><ul><li>Twitter: @jacobm </li></ul>Twittfaced Available on <ul><li>Biz360 </li></ul><ul><li>Brad Brodigan & Tamairah Boylen </li></ul><ul><li>[email_address] </li></ul><ul><li>Website: ( free trial ) </li></ul><ul><li>Market IQ Blog: </li></ul><ul><li>Twitter: @biz360 </li></ul>Next Biz360 Demo: Wednesday, Dec 30t h 11am PT