1. How to measure ROI of
Social Media?
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2. Guiding Principles
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3. Don’t be obsessed with Absolute No's
Look for Trends & Patterns!
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4. Don’t look for a universal formula
Every channel has its own metrics
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5. Two Dimensions of Measurement
Returns What “Returns” did you get?
How much of “Returns” can be
Attribution
“Attributed” to the investment?
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6. Types of Returns
A clear & direct metric
Tangible
Units Sold, Leads Generated, Total
Registrations, Referral Traffic
At most an indicative metric
Intangible Brand Awareness, Reputation, Customer
Satisfaction, Customer Loyalty
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7. Attribution is a Hard Problem
Broken Chains More often than not, it’s hard to
establish a credible sequence of events.
Not all the metrics are available or
Missing Metrics
captured automatically.
Multiple marketing efforts with a single
Mixed Influence
outcome coincide with each other.
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8. Unbroken Chain of Events: e-commerce
Attribution
1. You Post a Link of 2. Total 3500 people 3a. Total 17 of these
your Product Page visit product page buy the product in
on Facebook through that link first visit
3b. Total 250 people 4. In 15 days period,
register for Free Trial 34 people upgrade
version to paid from trial
Investment: Posting a link on Facebook
Result: 51 product units sold
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9. Unbroken Chain of Events - Services
Attribution
1. You see 38 tweets 2. You respond to all 3. Total 7 people
by people looking for of them introducing interact with you for
web design your services further details
4. You close
business worth
$7.5K with 3 of
them.
Investment: Listening on Twitter & Responding to prospects
Result: $7.5K worth of Business
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10. Broken Chains of Events
Attribution – Broken Chains
You Promote your
product on LinkedIn
You use a Blog for You get $20K
thought leadership
worth of
Business with
You interact with “unknown
people on FB/Twitter source”
You resolve people’s
issues on FB/Twitter
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11. Fixing Broken Chains
Attribution – Broken Chains
• Ask your customers
where they came from “if
you can”
• Could be part of
registration process or
included at some other
step
• Not reliable but might
provide indicators
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12. Missing Metrics Examples
Attribution – Missing Metrics
How many issues
were resolved on
Twitter?
How many $ were
saved/earned by
resolution of issues?
Did you note down
that FB was used for
Market Research?
And that lead came
from an introduction
over LinkedIn!
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13. Resolving Issues around Metrics
Attribution – Missing Metrics
Issue: All the metrics are not captured in a tool.
E.g. if you resolved a customer issue on
Twitter, which tool recorded this?
Resolution: Needs deploying a tool or a simple manual
capturing of the data in a document. The
choice depends on the scale.
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14. Resolving Issues around Metrics
Attribution – Missing Metrics
Issue: All the metrics are not fully measurable.
E.g. value of resolving a customer issue on
Twitter. Is it $20 or $2K or $2M?
Resolution: Needs a simple model to find approximate
value. E.g. resolving a customer issue could
be worth the business given by that customer.
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15. The problem of Mixed Influences
Attribution – Mixed Influence
Social Media
TV
Online
Reputation
Print
Impossible to measure influence of a
Offline single campaign when everything is
executed together
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16. Where to begin?
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17. Start with Objectives
 Reach & Visibility
 Engagement
 Reputation
 Leads & Sales
 Feedback
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18. Define the Metrics
 Engagement  Leads and Sales
 Posts by Members  No of leads
 Comments/Likes  No of transactions
 Tags  Speed, time and cost of
sales cycle
 Votes
 Conversion
 Bookmarks improvement
 Referrals  Customer Retention
 Customer Referrals
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19. Define the Metrics
 Reputation  Visibility
 Search Results  No of Search Results
 Tonality  Views
 Referrals  Traffic
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20. Map it to the Channel
Measure 1 Measure 2 Measure 3 Measure 4
LinkedIn
Facebook
Twitter
Blog
YouTube
SlideShare
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21. Benchmark
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22. Continuous Process
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23. Tools to Measure on Social Media
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24. Google Analytics
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25. Facebook Insights
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26. Facebook Insights - Post
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31. Radian6
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32. Thank You!
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