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Social Media ROI 2010


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An old deck for when I worked with Silverstone. An explanation of measuring the success of social media with their audience

Published in: Automotive, Business, Technology
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Social Media ROI 2010

  1. 1. Social MediaReturn OnInvestmentFebruary 2010Emily Wilkinson
  2. 2. “Think of Twitter as the canary in the coal mine.”Source: Morgan Johnston, Jetblue Airways
  3. 3. Why allocate budget to SocialMedia?Social Media (SM) is not free, it takes:  People  Technology  TimeMarketing, sales, accounts, I.T, PR etc. make up 100%of your budget – each resource has a specific cost andyields specific results. These resources generate 100%of your business.
  4. 4. Why should I take a chance?Why should I allocate resource to it?  It will result in a cost reduction (customer service, market research)  It will generate more revenue (via transactions, new customers, customer loyaltyROI = Gain from investment – cost of investment cost of investment
  5. 5. Business JustificationROI is a business metric, not a media metric. Social mediaisn’t responsible for an increase or change, it is a tool.Similar to suggesting that the telephone helped sales. Thatsaid: The engagement conducted via social media that can be measured. The transactions and behaviours can be measured Measurement of all activities and benchmarking Poll customers, promo code seeding across a variety of channels etc.
  6. 6. Investment-return relationship
  7. 7. Impact of social media on non-financial
  8. 8. It’s not just about measuring eyeballs..Reporting should show that social media is impacting every aspect of the business (and areas it isn’t impacting, how can we have an effect there?)
  9. 9. Steps Goals  Before we set out to measure and monitor, we need a clear idea of what we want to accomplish. E.g. If the goal is to increase social media mentions, where does Silverstone currently stand now? Tools  Although ROI doesn’t not equal metrics, traditional metrics such as traffic counts, number of comments, twitter followers, FB fans etc are important when calculating ROI. E.g. Does an increase in FB fans correlate with higher sales? Are people that find from Twitter then clicking on your driving experiences?
  10. 10. Steps Sentiment  Sentiment is a useful baseline to look at before implementing or changing social media. Is it negative or positive that is being said?
  11. 11. Steps Using the data  Once we have the initial baseline data and the metrics, we can then see how these correlate to higher sales, better customer retention etc. E.g. Have sales levels increased? Check no. of referrers on the website, twitter, facebook, no. of vouchers given away and calculate what stemmed from social media campaigns. Is there an increase in traffic after posting on FB? Twitter? Does a higher sentiment lead to an increase in sales?
  12. 12. Example 37% of Gen Y were aware of the Ford Fiesta via social media before its launch in the US 25% of Ford marketing spend is on digital/social media
  13. 13. Example £9.5k SM investment 300% website traffic increase 20% sales increase Google 1st page for “free website builder”
  14. 14. “Why are we trying to measure social media like a traditional channel anyway? Social media touches every facet of business and is more an extension of good business ethics”Source: Erik Qualman, Socialnomics
  15. 15.  Thank You Emily Wilkinson @ewilko