The Path to Social ROI - Facebook Marketing Success Summit 2012

1,713 views

Published on

Chris Treadaway from Polygraph Media discusses how marketers should tackle social marketing measurement, analytics, and the ROI question.

Published in: Business
0 Comments
4 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,713
On SlideShare
0
From Embeds
0
Number of Embeds
200
Actions
Shares
0
Downloads
0
Comments
0
Likes
4
Embeds 0
No embeds

No notes for slide
  • Interesting reading: http://www.digiday.com/brands/ceos-to-cmos-enough-with-the-likes-already/ http://www.digiday.com/brands/the-no-1-concern-of-digital-marketers-roi/ http://www.marketingweek.co.uk/brands-unable-to-measure-roi-in-social-media-says-social-media-expert-solis/3028361.article http://www.mycustomer.com/topic/marketing/no-excuse-being-unable-measure-social-media-roi/142380 http://marketingtoday.com/research/accenture/cant_measure_roi_1101.htm
  • http://www.mediabistro.com/alltwitter/value-social-following_b19416
  • The Path to Social ROI - Facebook Marketing Success Summit 2012

    1. 1. The Road to SocialROI: Measurement, KPIs and “Return” Presented ByChris Treadaway (@ctreada) October 19, 2012 Design ©2012 Social Media Examiner Content Copyright Presenter • Do NOT distribute
    2. 2. IntroductionChris Treadaway Founder & CEO of Polygraph Media Facebook Marketing analytics & ROI product – v2 release November 2012 Have assessed over 120,000 Facebook Pages & counting Services help companies with social measurement, KPIs, studies, etc. Co-author of two editions of FacebookMarketing An Hour a Day with Mari Smith Page 2 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    3. 3. A Brief History of Social 2007-2009 Age of Wonderment Social channel is new experience for customers, marketers Experimentation -- anything goes Basic rules of Engagement created 2010-2012 Picks & Axes Excitement wears off Scale becomes foremost concern Tools created to enforce best practices, policies Page 3 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    4. 4. 2013 & beyond – Rationalization Slower growth for key, maturing social platforms Maturing social platforms = more complicated to “get exposure”, more “pay to play” Integration into the broader marketing mix, alongside Web, search, e-mail – metrics will converge More pressure to perform “The Post Social Era” Page 4 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    5. 5. Facebook & Else Page 5 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    6. 6. Social a Viable Channel Page 6 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    7. 7. Debate Page 7 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    8. 8. Debate Page 8 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    9. 9. Debate Page 9 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    10. 10. What We Do Know about ROI Marketers want it Executives are demanding it Marketers struggle with measurement, much less effectively calculating & proving ROI Marketers have ALWAYS struggled with it Page 10 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    11. 11. The Business Problem Make social data & measurement truly useful and actionable Tie data to meaningful, real-life business metrics where you can Grow revenues and profits using the social channel for “transactional” businesses Deliver relevant comparisons across social & real life impressions for “brands” Move from IDEAS to ENGAGEMENT to $$$ value Page 11 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    12. 12. Action, Measurement, KPIs, ROI Adjustment How We Get Better Page 12 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    13. 13. 4 Stages of Measurement Page 13 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    14. 14. Stage 1 – Rainbows & Unicorns Talk about social in qualitative, descriptive terms Ideas, concepts, “right-brain” dominant Know what to do, but not necessarily why from a KPI perspective Little/no assessment of time trending performance beyond Fan Count Little/no understanding of Facebook Insights Page 14 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    15. 15. Stage 2 – Awareness Unafraid of discussing “numbers” with superiors, clients, etc. Can combine creative concepts and apply content strategy with an understanding of KPIs and basic data analysis skills Mix of “right-brain” and “left-brain” approaches to problem solving Uses Facebook Insights and other basic measurement tools, but may seek additional clarity Page 15 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    16. 16. Stage 3 – Data Geek Extremely comfortable with social metrics, likely some knowledge of web site metrics & concepts Combines the two as needed -- experimentation with URL shorteners and possibly Google Analytics/Overture to understand click behavior, customer funnel, friction points Firm grasp on Facebook Insights, aware of strengths & weaknesses, likely has downloaded XLS export from Facebook and has manipulated data Page 16 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    17. 17. Stage 4 – Data Scientist Knowledge of metrics, KPIs, and best practices for measurement and management of most/all digital marketing activities Regularly conducts a/b and multivariate tests – and can do so on Web, social, e-mail, and mobile (if applicable) Responds best to custom dashboards and has likely built his/her own Regularly conducts correlation and regression analyses to conduct data driven customer profiling and to optimize marketing efforts Develops his/her own KPIs and is a “go-to” person Seeks alternatives to Facebook Insights Page 17 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    18. 18. Poll What are you? Tweet it out!! “Rainbows & Unicorns” Data Literate Data Geek Data Scientist Page 18 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    19. 19. Facebook Insights Facebook statistics available to Page administrators, most frequently used tool – and it’s FREE! Good directional metrics – a starting point Demographic rollups (M/F, age, geography) Like sources Who is Talking About your page Check-ins detail http://ads.ak.facebook.com/ads/FacebookAds/Page_Insights_en -- Detailed Guide -- 15 pages Page 19 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    20. 20. Insights Example Page 20 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    21. 21. Demographics Page 21 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    22. 22. Download Insights Data Page 22 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    23. 23. Weaknesses of Facebook Insights Not real-time – updates 2 days after the fact No competitive data or benchmarks Does not specifically tell marketers about effectiveness of posting strategy, promotions or clicks to Web sites Not connected to Facebook Ads system – causing “data silos” Talking About, Reach, other metrics hard to understand, and hard for marketers to know how to improve Extra work needed to massage into effective KPIs Vendors/startups fill in the gaps Page 23 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    24. 24. Setting Key PerformanceIndicators Key Performance Indicators (KPIs) are used by many brands to measure the effectiveness of their marketing activities Determine bonuses, raises, promotions, etc. Some advanced businesses will set KPIs with social/creative agencies, consultants and hold them to a high standard It’s coming!! Best when aligned to business objective Page 24 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    25. 25. Key Performance Indicator Tips SMART Specific Measurable Actionable Realistic Timescaled Make sure people understand their role & responsibilities in improving each KPI Page 25 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    26. 26. Most Common Problem with BadKPIs They’re designed to make people behave the right way, but all too often end up creating the wrong incentives for employees Don’t effectively measure things marketer can control through social or web marketing execution Metrics I’d avoid Fans (as a single KPI) Reach People Talking About Page 26 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    27. 27. Sample Good Metrics for KPIs # of Fans Talking About Were Here Fans Added By Week Comments By Month Likes Shares By Quarter Posts By Year Posts/Day Since Changing Strategy Activity/Fan Activity/Post Since Running Ad Campaign Comments, Shares, Likes per Fan Since New Agency/Consultant Comments, Shares, Likes per Post Since Hiring New Community Manager Page 27 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    28. 28. Simple Annual KPI Example Fans Increase Fans by 37% without spending money on Facebook Ads Posting Post 1x/day to Page, 10% videos, 25 % photos min 1.5 posts/day on weekends Reach Average 5.2 comments/post, 11.7 likes/post or greater Overtake 2 competitors in Fan count Page 28 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    29. 29. A Perspective on ROI  Page 29 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    30. 30. ROI DefinitionReturn – What you get Investment – What you spend Fans/”Page Likes” $ on people – employees, Impressions consultants Affinity & Influence Content production costs Feedback (comments, Ad spend likes, tweets, etc.) Technology investments Virality (sharing) Time Clicks Opportunity Costs Direct Conversions Page 30 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    31. 31. Equating Social to $$$ Valuation approaches Per Fan Media Value (branding) Transactional Lead Generation Industry or Scenario Specific Page 31 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    32. 32. Estimates of Fan Value Vitrue Replacement Media Value - $3.60/fan Social Code Reduced CPA Value - $9.56 Reduced Customer Acquisition Value - $28.98 40x difference Syncapse Incremental Value - $71.84 Absolute Value - $136.38 Page 32 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    33. 33. Estimate of Social Feedback Value Eventbrite - Value of Facebook Share for events - $2.52 Imbue Marketing – Value of Facebook Share - $14.00 Edgerank Checker estimates that comments are worth approximately 4.7x “content likes” No known studies tied to Reach< Talking About Is your head spinning yet? Page 33 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    34. 34. Do Your Own Valuation AnalysisCost Savingsvs. other Customer Acquisition The Answer Replacement Conversion or Media Value “Per Action” metrics Page 34 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    35. 35. Whole Foods Example Collect Data Fans, Comments, Likes, Shares, Comment Likes, Posts Other inputs Set Assumptions on Visibility from Fans, Friends of Fans Crunch Numbers Page 35 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    36. 36. The Other Half of ROI -Investment $ on people – employees, consultants Time, Salary Allocation Content production costs Ad spend Technology investments Opportunity Costs Page 36 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    37. 37. Finishing Off the ROI Calculation Make sure you have a relevant time frame and that it maps to the “Return” part of the equation. Subtract value from costs to get the absolute return Divide return by investment and subtract 1 to get the % ROI Page 37 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    38. 38. Hypothetical Example Whole Foods “return” was assumed to be $9 million They spent $4.5 million on developing the Facebook Page Return = $4.5 million ROI % = (9/4.5) -1 = 100% Same analysis can be done for Ads, smaller campaigns – not just Pages. Page 38 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    39. 39. Where is this all going? Page 39 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    40. 40. Where This All is Headed No longer enough to simply “do the job” Know the value of your Facebook Marketing work What is the value of a Post? What do you lose by not Posting? For your business & “category”, what is the value of a Comment? A Like? A Share? What are you spending on Facebook Marketing, and does it suggest that you should invest more/less time/money/effort/expertise? Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute bestpwerpointt Page 40
    41. 41. Where You Want to Be Know what you should be doing more & less Should I post more often? Less often? How specifically can I improve my editorial calendar? What do my customers want and how can I satisfy them? Should I invest in video? Podcasting? Live events? How does my approach compare to competitors? How does all this compare to other marketing channels? Page 41 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute
    42. 42. Thank You!! E-mail me with your measurement, KPI, Data Analysis thoughts, feedback, questions ctreada@polygraphmedia.com Let’s connect on FB, LinkedIn & Twitter www.facebook.com/polygraphmedia www.linkedin.com/in/christreadaway www.twitter.com/ctreada Check out our product launch in November http://www.polygraphscore.com Page 42 Design ©2012 Social Media Examiner, Content Copyrighted by Presenter • Do Not Distribute

    ×