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Social Media ROI: Formulas & Conversion Optimization Tips

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Social Media ROI: Formulas & Conversion Optimization Tips

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Are YOU measuring social media ROI? Now you can! Loaded with 14 formulas for quantifying social media benefits and over 17 case study examples of social proof facilitating conversion, this presentation is a MUST-READ for any social marketer!

Still not convinced of the impact of social media on sales? Test it with the Unbounce landing page testing platform: http://try.unbounce.com/seschi (Use promo code ses503 to get 3 months at 50% off.)

Presented on Nov 13, 2012 at SES Chicago, #SESCHI.

Are YOU measuring social media ROI? Now you can! Loaded with 14 formulas for quantifying social media benefits and over 17 case study examples of social proof facilitating conversion, this presentation is a MUST-READ for any social marketer!

Still not convinced of the impact of social media on sales? Test it with the Unbounce landing page testing platform: http://try.unbounce.com/seschi (Use promo code ses503 to get 3 months at 50% off.)

Presented on Nov 13, 2012 at SES Chicago, #SESCHI.

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Social Media ROI: Formulas & Conversion Optimization Tips

  1. 1. Social Media, Meet ROI How To Measure Social Media Benefits and Increase Conversion Angie Schottmuller - @aschottmuller SES Chicago - Nov 13, 2012 #SESCHI #socialproof
  2. 2. About Unbounce Angie Schottmuller | Chief of Conversion Marketing | angie@unbounce.com
  3. 3. YOUR MISSION: 1.  Quantify social media benefits 2.  Use social media to grow sales Angie Schottmuller | @aschottmuller
  4. 4. Social Media Benefits" QUANTIFIED < GEEK ALERT > The mathematical formulas in this presentation may cause extreme jubilation. Prepare to quantify.
  5. 5. Social Media Advertising Value IMPRESSIONS, TRAFFIC, ARTICLES, PHOTOS, VIDEOS... What would it cost to achieve the same, if you had to pay for it? Angie Schottmuller | @aschottmuller
  6. 6. SOCIAL MEDIA BENEFITS CALCULATION - REDUCE COSTS Advertising Value - Social Mentions _____(#) brand/product social mentions X _____ (CPI) equivalent display ad costs ______________________________________ = $ Display Ad Impression Value CPM, or cost per 1,000 impressions, could also be used. Angie Schottmuller | @aschottmuller
  7. 7. SOCIAL MEDIA BENEFITS CALCULATION - REDUCE COSTS Advertising Value - Social Web Traffic _____(#) social referral clicks to website X $_____ (CPC) equivalent social ad costs ______________________________________ = $ Social Ad Value Angie Schottmuller | @aschottmuller
  8. 8. SOCIAL MEDIA BENEFITS CALCULATION - REDUCE COSTS Advertising Value - Search Web Traffic _____(#) search referral clicks to website X $_____ (PPC) equivalent search ad costs _______________________________________ = $ Search Ad Value Angie Schottmuller | @aschottmuller
  9. 9. SOCIAL MEDIA BENEFITS CALCULATION - REDUCE COSTS Social SEO Improved Search Rank ( _____% new CTR − _____% old CTR) / _____% old organic search CTR X _____(#) monthly organic search impressions __________________________________________ = Additional Organic Search Referrals Rank # CTR Rank # CTR Optify's Study on Organic Search 1 36.4% 4 7.9% Click-Through Rates (CTR): 2 12.5% 5 6.1% http://bit.ly/organicctroptifystudy 3 9.5% 6 4.1% Angie Schottmuller | @aschottmuller
  10. 10. SOCIAL MEDIA BENEFITS CALCULATION - REDUCE COSTS Ad Value - Social Influencer Mentions _____(#) social influencers X _____(#) average social network reach X _____(#) notable online brand mentions X $_____ paid spokesman endorsement cost / _____(#) ad network reach or volume ___________________________________ = $ Paid Endorsement Value Tip: Tier endorsement values by social influencer levels. Angie Schottmuller | @aschottmuller
  11. 11. SOCIAL MEDIA BENEFITS CALCULATION - REDUCE COSTS Ad Value - Social PR Mentions _____(#) event-related online mentions X $_____ equivalent press event cost / _____(#) avg. mentions from press event ______________________________________ = $ Press Event PR Value Angie Schottmuller | @aschottmuller
  12. 12. SOCIAL MEDIA BENEFITS CALCULATION - REDUCE COSTS Content Value - UGC Articles _____(#) brand-focused online articles X $_____ equivalent content creation cost ______________________________________ = $ Article Value Tip: Tier costs by content quality (e.g. length, sentiment, images, uniqueness) and/or Domain Authority levels. Angie Schottmuller | @aschottmuller
  13. 13. SOCIAL MEDIA BENEFITS CALCULATION - REDUCE COSTS Content Value - UGC Photos _____(#) user-generated brand photos X _____% photo shoot quality X $_____ equivalent photo shoot total costs / _____(#) photos from average photo shoot _______________________________________ = $ Photography Value HUGE! Angie Schottmuller | @aschottmuller
  14. 14. SOCIAL MEDIA BENEFITS CALCULATION - REDUCE COSTS Content Value - UGC Videos _____(#) user-generated brand videos X _____% brand-produced video quality X $_____ equiv. brand-produced video cost _______________________________________ = $ Video Value HUGE! Be sure to include resource time, equipment rental, shoot fee (e.g. location), and editing for video production costs. Angie Schottmuller | @aschottmuller
  15. 15. SOCIAL MEDIA BENEFITS CALCULATION - REDUCE COSTS Research Value - Social Insights _____(#) brand online insights/comments X _____% focus group insight quality X $_____ equivalent focus group cost / _____(#) insights from average focus group ________________________________________ = $ Focus Group Value HUGE! Angie Schottmuller | @aschottmuller
  16. 16. SOCIAL MEDIA BENEFITS CALCULATION - REDUCE COSTS Support Value - Online Self-Service _____(#) weekly support calls per topic X _____% calls likely solved by self-service X $_____ average support phone call cost _______________________________________ = $ Call Support Value Angie Schottmuller | @aschottmuller
  17. 17. SOCIAL MEDIA BENEFITS CALCULATION - GROW SALES Sales Value - Social Leads _____(#) qualified social leads identified X _____% lead-to-customer conversion rate X $_____ average order value (AOV) ________________________________________ = $ Lead Sales Value (Single Purchase) Angie Schottmuller | @aschottmuller
  18. 18. SOCIAL MEDIA BENEFITS CALCULATION - GROW SALES Sales Value - Social Leads _____(#) qualified social leads identified X _____% lead-to-customer conversion rate X $_____ customer lifetime value (LTV) ________________________________________ = $ New Customer Sales (Lifetime Value) How To Calculate LTV: http://bit.ly/calculateltv Angie Schottmuller | @aschottmuller
  19. 19. SOCIAL MEDIA BENEFITS CALCULATION - GROW SALES Sales Value - Social-Aided Conversion ( _____% new CR − _____% old CR) / _____% old conversion rate (CR) X $_____ average product sales value ___________________________________ = Increased Sales Value HUGE! Ex: Increased conversion from using social proof like reviews, testimonies, etc. Angie Schottmuller | @aschottmuller
  20. 20. Cost-Benefit Analysis §  SM Labor §  Awareness §  Tools & Software §  Web Traffic §  Opportunity Costs §  Advertising §  IT Labor §  Lead Generation §  Training §  Sales §  Risk §  Conversion §  Customer Retention §  Loyalty §  Advocacy §  Content (Images/Video) COST §  Satisfaction §  Market Research BENEFIT Angie Schottmuller | @aschottmuller
  21. 21. The only outcomes that matter... GROW REDUCE REVENUE COSTS IMPROVE SATISFACTION Reference: Jim Sterne's book, "Social Media Metrics"
  22. 22. Use Social Media to" GROW SALES
  23. 23. Social Media Action Plan 1.  Assess Current State 2.  Map Strategic Plan (Cascade Business Goals) 3.  Define SMART Goals w/ KPI Metrics 4.  Inventory Tactics 5.  Perform Tactic Competitive SWOT Analysis 6.  Perform Tactic Cost-Benefit Analysis (CBA) 7.  Select Best Tactics for Goal 8.  Implement 9.  Review & Analyze 10.  Test & Optimize
  24. 24. Assessment §  Current State §  Metrics Collection AWARENESS §  Competitive Analysis CONSIDERATION Ask: CONVERSION Ø  What's currently being done? Ø  What's working? LOYALTY Ø  What funnel stages need the ADVOCACY most help? Angie Schottmuller | @aschottmuller
  25. 25. Strategic Plan Mapping Process 1.  Determine Scope WHO? 2.  Gather Business Goals 3.  Define Mission/Purpose WHY? 4.  Cascade/Set Goals 5.  Define KPIs WHAT? 6.  Choose Tactics 7.  Define Metrics HOW? Angie Schottmuller | @aschottmuller
  26. 26. Social Media Strategy Funnel Angie Schottmuller | @aschottmuller
  27. 27. Strategic Planning Map (Template) MISSION! GOALS! TACTICS! WHY ARE WE WHAT DO WE WANT HOW WILL WE ACHIEVE DOING THIS? TO ACCOMPLISH? OUR GOALS? A ü  <Metric> <TACTIC> ü  <Metric> <GOAL> <MISSION> <TACTIC> ü  <Metric> KPI: ü  <Metric> B ü  <Metric> <TACTIC> ü  <Metric> <SCOPE> Goals: <GOAL> ü  <Metric> ü  <dept goal> A <TACTIC> ü  <Metric> KPI: ü  <dept goal> B C ü  <Metric> <TACTIC> ü  <Metric> ü  <dept goal> C <GOAL> ü  <Metric> ü  <dept goal> D <TACTIC> ü  <Metric> KPI: http://bit.ly/somostratplan Angie Schottmuller | @aschottmuller
  28. 28. Social Media Strategic Planning Map MARKETING SCOPE EXAMPLE: MISSION! GOALS! TACTICS! WHY ARE WE WHAT DO WE WANT HOW WILL WE ACHIEVE DOING THIS? TO ACCOMPLISH? OUR GOALS? ? To build and engage an army Increase YOY of advocates sales by 10% ? that in turn help to build, KPI Metric: position, and $ sales in 2013 ? reconcile the brand. ? Angie Schottmuller | @aschottmuller
  29. 29. How do we increase sales?
  30. 30. Sales Funnel Opportunities ü  Boost Awareness AWARENESS ü  Increase Market Share ü  Generate Leads CONSIDERATION ü  Acquire New Customers CONVERSION ü  Retain Customers LOYALTY ü  Optimize Conversion ADVOCACY ü  Boost Average Order Value Angie Schottmuller | @aschottmuller
  31. 31. Conversion Rate = The % of users that complete a presented action.
  32. 32. What can social media bring to the conversion table? §  Trust §  Content §  Real-Time Response §  Personalized Content §  Reduced Steps (Social Integration)
  33. 33. Different Types of Social Media... §  Social Networks §  Expert Q&A §  Blogging §  Review Sites §  Microblogging §  On-Site Reviews §  Bookmarking §  User-Generated Content (UGC) §  Media Sharing §  Social Sign-on §  Social Listening §  Star-Ratings §  Social Curation §  "Most Helpful" Ratings §  Discussion Forums §  Live Help §  Crowdfunding §  Geosocial Sites (e.g. Foursquare) §  Social Ads §  sCRM §  Streaming Content §  Wiki §  Social Gaming §  Social Commerce Angie Schottmuller | @aschottmuller
  34. 34. Social Tools to Boost Conversion §  Ratings - Stars / "Most Helpful" §  Social Share Counts §  Testimonials §  Reviews (Sites, On-Site, Geosocial) §  User-Generated Content (UGC) §  Social Sign-on §  Social Integration Angie Schottmuller | @aschottmuller
  35. 35. SOCIAL MEDIA TACTICS TO BOOST CONVERSION Star Ratings Tip: Leverage Schema.org microdata (Aggregate Rating) for reviews to get rich snippets in search results!
  36. 36. "Less than 10% of reviews are 2 stars or less." - Bazaarvoice, Jun 2012 (across over 2,000 clients)
  37. 37. SOCIAL MEDIA TACTICS TO BOOST CONVERSION Social Share Counts Strategically position quantified social proof near the call-to-action button and/or page/product title.
  38. 38. SOCIAL MEDIA TACTICS TO BOOST CONVERSION Social Share Counts Only display share counts for social buttons that regularly "quantify attention." Alternative:
  39. 39. SOCIAL MEDIA TACTICS TO BOOST CONVERSION Testimonials A testimony is simply a 30- second summary of a case study. Radian6 and MarketMotive effectively use video and audio for testimonials.
  40. 40. RETHINK TESTIMONIALS... Image source: http://j.mp/rethinktestimonials
  41. 41. SOCIAL MEDIA TACTICS TO BOOST CONVERSION Basecamp.com: Testimonials Great testimonial use on homepage. Social proof is everywhere!
  42. 42. Good Testimonials Include: §  Use of "I" (customer's view) §  Customer/persona info §  Problem/challenge info §  Solution/satisfaction specifics
  43. 43. SOCIAL MEDIA TACTICS TO BOOST CONVERSION Product Reviews L.L.Bean Review: Persona Details!
  44. 44. SOCIAL MEDIA TACTICS TO BOOST CONVERSION Product Reviews J.Jill Review: Badges for Personas!
  45. 45. "68% of consumers trust reviews more when they see both good and bad scores." - Revoo Research Report, Jan 2012 - http://j.mp/badreviewscro67
  46. 46. "30% of consumers suspect censorship or faked reviews when they don’t see anything negative." - Revoo Research Report, Jan 2012 - http://j.mp/badreviewscro67
  47. 47. SOCIAL MEDIA TACTICS TO BOOST CONVERSION Product Reviews Altrec.com - Review Summary: Altrec's review template includes sub- ratings by benefits -- aiding speedy review submission as well as UX and SEO!
  48. 48. "Shoppers who seek out bad reviews convert 67% more than average consumers." - Revoo Research Report, Jan 2012 - http://j.mp/badreviewscro67
  49. 49. SOCIAL MEDIA TACTICS TO BOOST CONVERSION Product Reviews OnlineShoes.com - Review Summary:
  50. 50. SOCIAL MEDIA TACTICS TO BOOST CONVERSION Facebook Comments (Widget) ThinkGeek.com:
  51. 51. SOCIAL MEDIA TACTICS TO BOOST CONVERSION User-Shared Photos ThinkGeek.com Action Shots:
  52. 52. "The more product action shots a customer sees... the higher the order value." - ThinkGeek.com, Nov 2012
  53. 53. SOCIAL MEDIA TACTICS TO BOOST CONVERSION Live Help IconDirect.com displays actual employees by live chat!
  54. 54. SOCIAL MEDIA TACTICS TO BOOST CONVERSION Live Help Gemvara features Live Chat on checkout page:
  55. 55. SOCIAL MEDIA TACTICS TO BOOST CONVERSION Expert Q&A SKECHERS: (Nov 7, 2012) §  32% conversion increase for products. §  80% open rate of answer notification email. §  51% conversion rate from answer notification email. §  Reduced bounce rates §  Decreased customer support requests §  Resulted in removal of real-time chat (reducing costs) §  Assisted ability to rank on Google page 1 for "shoes"
  56. 56. SOCIAL MEDIA TACTICS TO BOOST CONVERSION Q&A and Review Combos Site visitors engaging w/ ratings, reviews, or Q&A: §  Urban Decay (May 2012) § 237% increase in conversion § 230% increase in AOV §  Chico’s White House Black Market (Jan 2012) § 200% increase in conversion § 300% increase in revenue per visitor § 250% increase in AOV
  57. 57. SOCIAL MEDIA TACTICS TO BOOST CONVERSION Social to Real World Connections HUGE! Engage social influencers in the physical world to reap amazing social and word-of- mouth PR benefits! Cheers to @HyattChicago for going out of their way this weekend to connect with me in real life! Angie Schottmuller | @aschottmuller
  58. 58. Action Plan 1.  Assessment - Analyze current state, include SWOT 2.  Strategy - Map out social media plan by scope 3.  Pitch - Present top ideas to IMF 4.  Prep - Secure resources, budget, tools, training, etc. 5.  Implement - Execute the plan (Abort if necessary) 6.  Review - Analyze activity & ROI using multiple metrics 7.  Optimize - Gather insights and improve for the sequel Angie Schottmuller | @aschottmuller
  59. 59. Only " It's time for 20% of YOU to lead the way. marketers measure social media ROI. - eMarketer, 7 Guidelines of Achieving Social Media ROI, Feb 2010
  60. 60. Key Takeaways §  Measure your social media costs and benefits §  Leverage your social interactions for conversion §  Engage your audience for content §  Negative reviews add value §  Test the impact of social media/proof Angie Schottmuller | @aschottmuller
  61. 61. "The impossible can become possible," " IF... YOU'RE... AWESOME!" - Rhino [Disney's Movie, Bolt]
  62. 62. Not sure if social media impacts conversion? TEST IT!
  63. 63. MISSION: Apply these tips, test social proof for conversion, and share this presentation so your social media plans don't self-destruct!

Editor's Notes

  • Add to CartPurchaseEmail sign-upLead gen formsSocial sharingPhone call
  • Objective:Prove the company/brand (portfolio and services) is the right choice for each persona.Basics:30-second summary of a case studyProblem/solution focusedMore broad than a specific product
  • Objective:Prove the specific product or service is the right choice for each persona.Basics:Specific product focused&quot;Sells&quot; product&apos;s Unique Value PropositionReviewer to persona relevance is hugeRecency, sentiment and keywords aid SEO
  • Objective:Prove the specific product or service is the right choice for each persona.Basics:Specific product focused&quot;Sells&quot; product&apos;s Unique Value PropositionReviewer to persona relevance is hugeRecency, sentiment and keywords aid SEO
  • Objective:Prove the specific product or service is the right choice for each persona.Basics:Specific product focused&quot;Sells&quot; product&apos;s Unique Value PropositionReviewer to persona relevance is hugeRecency, sentiment and keywords aid SEO
  • http://www.bazaarvoice.com/resources/case-studies/skechers-races-provide-key-answers-adds-powerful-social-tool-drive-onsite-conversion
  • http://www.bazaarvoice.com/resources/case-studies/conversations-lead-conversion-urban-decayhttp://www.bazaarvoice.com/resources/case-studies/chico-s-achieves-over-200-increase-conversion-bazaarvoice-conversations
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