Measuring Social Media ROI In the Real World for Business

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Measuring social media means a return to real business metrics. Stop measuring social media within the platforms and use meaningful Key Performance Indicators (KPI) to evaluate ROI. Included is a case study and sample Key Performance Indicators.

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Measuring Social Media ROI In the Real World for Business

  1. 1. Understanding Social Media Measurement: A Road Map Tara Coomans Akamai Marketing www.akamai-marketing @TaraCoomans #akamaimktingWednesday, February 20, 2013
  2. 2. 27% of Businesses Measuring Social ROI 63% Measure Followers/Likes 61% Measure Click Through Rates 51% Measure Brand Mentions 35% of Companies Measuring Social ROI are Satisfied SOURCE: http://www.nectarom.com/assets/Social-Media-Study-Quick-Summary_0213.pdfWednesday, February 20, 2013
  3. 3. •HOW to measure Social Media •WHAT to measure in Social Media •A sample ROI modelWednesday, February 20, 2013
  4. 4. Social Media is the Support Beam to Your Business GoalsWednesday, February 20, 2013
  5. 5. NO INVESTMENT, NO RETURNWednesday, February 20, 2013
  6. 6. Not Everything That Can Be Counted, Counts Not Everything That Counts, Can Be Counted Word of Revenue MouthWednesday, February 20, 2013
  7. 7. What You Measure, Depends on Your Destination. Qualitative Quantitative Brand awareness Reduce Customer Service Costs Customer Feedback Increase web traffic Create community Increased sales Increase loyalty Increased leads Increase reach Website conversions Increase trust Shorter Sales CycleWednesday, February 20, 2013
  8. 8. What Value Does Word of Mouth Marketing Have? 65% of New Business Comes From Referrals 40% of Small Businesses Say Referrals Bring in Bigger Returns than Traditional Marketing 4X More Likely to Buy When Referred by a Friend. Source: https://s3.amazonaws.com/ambassador/downloads/infographic/netpromo-v5.jpgWednesday, February 20, 2013
  9. 9. Social Media Supercharges Word of Mouth Faster More Nimble More ReachWednesday, February 20, 2013
  10. 10. How Do We Quantify Word of Mouth X = McKinsey Quarterly ResearchWednesday, February 20, 2013
  11. 11. How Do We Quantify Word of Mouth Volume X = FewMessages Many Messages McKinsey Quarterly ResearchWednesday, February 20, 2013
  12. 12. How Do We Quantify Word of Mouth Volume X Impact = Network Few Closed/Messages + Trusted Many - Large/ Dispersed Messages Sender + Influential - Not Influential McKinsey Quarterly ResearchWednesday, February 20, 2013
  13. 13. How Do We Quantify Word of Mouth Volume ImpactX = Network Content Few Relevant Key Closed/Messages Trusted +Buying Factor + Many Large/ Dispersed - Irrelevant - Key BuyingMessages Factor Sender Message Source Influential + Personal + Experience Not Influential - - Secondhand, Hearsay McKinsey Quarterly ResearchWednesday, February 20, 2013
  14. 14. How Do We Quantify Word of Mouth Volume ImpactX = WOM Equity Network Content Few Relevant Key Closed/Messages Trusted +Buying Factor + Many Large/ Dispersed - Irrelevant - Key BuyingMessages Factor Sender Message Source Influential + Personal + Experience Not Influential - - Secondhand, Hearsay McKinsey Quarterly ResearchWednesday, February 20, 2013
  15. 15. Measure Success Outside of Social Platforms ROI DataWednesday, February 20, 2013
  16. 16. conversion of sm followers INCREASED vs. LEADS other marketing programs #downloads + #webinars + lead generation from SM #downloads + #webinars + lead generation from other sourcesWednesday, February 20, 2013
  17. 17. revenue INCREASED per SALES follower #followers + #fans + #subscribers revenueWednesday, February 20, 2013
  18. 18. customer DECREASED resolution CUSTOMER time SERVICE COSTS social media comparison # customer service cases on social media/time # customer service cases on traditional methods/timeWednesday, February 20, 2013
  19. 19. CAMPAIGN EFFECTIVENESS cost per conversion digital methods cost per conversion other methodsWednesday, February 20, 2013
  20. 20. Data ROIWednesday, February 20, 2013
  21. 21. ROI SAMPLE CASE STUDY: Menu Launch 30-Day Campaign• Invite 10 Food Bloggers, local and regional to review.• Choose variety of writers and photographers, write a minimum of 2 posts.• Bloggers also post on Facebook & Twitter• Average Twitter Audience: 5,000Wednesday, February 20, 2013
  22. 22. ROI: Influencer Program Costs Set Up Social Media Assets Market Value Training of Personnel $3,000 Social Media Monitoring Platform $2,000 Social Media Consulting / Campaign Strategy / Blogger $7,200 Management/Costs/Analysis Cost of Content Creation $7,000 Cost of Brand Owned Content Creation $1,000 $20,200Wednesday, February 20, 2013
  23. 23. ROI: Cost Savings Incoming Clicks EXAMPLE: •2500 New Non-paid Visitors •“Honolulu Restaurant” Keyword term • Average CPC . 71 •5% Made Reservations Online CPC Value: $1,775Wednesday, February 20, 2013
  24. 24. ROI: Cost Deflection Media Equivalency EXAMPLE: •30 Blog Posts, local & regional •Total Page Views: 380,727 •Total Unique Page Views: 267,299 •Average Twitter Reach: 5,000 •Average Facebook Reach: 3,200 Media Equivalency Value: (Debatable) $6,480Wednesday, February 20, 2013
  25. 25. ROI: Increased Revenues EXAMPLE: •Average check increase of $5.00/check •Increase of 10 checks/day •Increased total is 75 checks/day Revenue Increase: $17,400 (during 30-day campaign)Wednesday, February 20, 2013
  26. 26. ROI: Word-of-Mouth Value Independent Reviews (25) Independent Social Media Mentions (250) Based on: •Trust Factor - Low •Relevance Factor - High •Quantity/Volume - Medium •Network Value - Medium WOM Value: $5,600 Source: http://www.mckinseyquarterly.com/A_new_way_to_measure_word-of-mouth_marketing_2567Wednesday, February 20, 2013
  27. 27. Total ROI Gain of Social Media Program- Social Media Program Cost Incoming Traffic Value + Media Equivalency Value + Word of Mouth Value + Product Development (savings) + Customer Service (savings) + Increase in Revenue (or other strategic goals) during campaignWednesday, February 20, 2013
  28. 28. Measuring Set Up Social Media Assets Market Value Cost Deflection (Media Equivalency) $6,480 Cost Savings (Online) $1,775 Word of Mouth Value $5,600 Total Revenue Increase $17,400 $31,255 Total ROI $ 31,255 - $ 20,200 = 5% $ 20,200Wednesday, February 20, 2013
  29. 29. KPI’s Worth Tracking •Restaurant traffic increases by 10 checks/day •Reservation rate up 20% •Geolocation “Check-ins” up 5% •Reservations spend up to 10% more •20% Increase in independent reviews (25) •10% Increase in positive independent reviews •5% Increase Unsolicited Positive or Neutral Social Media Mentions: (250)Wednesday, February 20, 2013
  30. 30. Don’t Measure Social Before We Press Media in the Social “Go” Channel Baselines in Place? Business Goals Established? Website Easy to Update? Landing Pages Up? Web Analytics in Place, Optimized?Wednesday, February 20, 2013
  31. 31. Thank You! Join me online for more resources and conversation: www.akamai-marketing.com @taracoomans facebook.com/AkamaiMarketing This Presentation is Available on My Slideshare Channel: Slideshare.com/TCoomansWednesday, February 20, 2013

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