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The ROI of Social Media Monitoring


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Marshall Sponder ( explains how to extract ROI from social media data. From his presentation at Monitoring Social Media Boston, 5th Oct 2010.

Published in: Business

The ROI of Social Media Monitoring

  1. 1. Measuring Social Media’s Return on Investment (ROI)<br />Marshall Sponder<br />
  2. 2. Many tried to figure out how to measure Social Media ROI including Altimeter Group and Web Analytics Demystified <br /><br />
  3. 3. Define your business goals and tactics - then define your measurement goals and tactics<br />Your Vision (idea)<br />Business Goal (s) <br />Aligned Business <br />And Measurement <br />Goals <br />Measurement Goal (s) <br />Business Tactics<br />Campaign Tactics<br />Measurement Tactics<br />The data you get back from your measurement tactics will confirm or deny your business goals and force you to re-adjust, as needed.<br />
  4. 4. Try it out for real measure Social Media ROI of a popular NYC Restaurant Chain, Havana Central<br />
  5. 5. Is a Tweet worth over a $100 dollars if it happens in a NYC restaurant?<br />Average Opentable Reservation = 3.6 people<br />Average Reservation yields $186.00<br />Average meal costs $51.66 cents<br />EST Value of a tweet = $51.66 x 2 <br />
  6. 6. Is a Tweet worth over a $100 dollars if it happens in a NYC restaurant?<br />Give the customer a drink in real time right after they tweet about being at the restaurant. <br />
  7. 7. Is a Tweet worth over a $100 dollars if it happens in a NYC restaurant?Maybe … if she comes back again – but she didn’t (and tweet about it) - need Social CRM to engage customers ongoing<br />
  8. 8. Start from the beginning – first decide on your business goals then decide your measurement goals<br />How much traffic from Facebook and Twitter should my restaurant be getting?<br /> Traffic Dashboard, July 2010 for Industry Category: Entertainment Guide: Restaurants and Dining<br />
  9. 9. It’s easier to capture “diagnostic” information but much harder to gather insight from it and most of the time it does not align well, or at all. <br />..and much of your data is “ultraviolet”<br />
  10. 10. You could start by figuring out what data you can overlay<br />But there’s not much you can merge because there’s often no common key all the records share. <br />
  11. 11. We’re only capturing a fraction of the data we need to measure Social Media ROI<br />
  12. 12. Here’s all the data we have and all we are missing<br />
  13. 13. Start by finding Solutions to Bridge the Gaps such as Point of Sale systems that connect with Foursquare coupons<br /><br />
  14. 14. Examine every campaign you run and examine how you could capture the data<br />But you might need consulting help because it is impossible to come up with solutions when you do not know they exist; need experienced firms to partner with that can implement solutions. <br />
  15. 15. Once you have the data you need you can plug them into a formula<br />Is this query too general or is it too specific?<br />?<br />?<br />But you may not understand the best way to construct the formula for your business and measurement goals. <br />
  16. 16. Summary<br />Most businesses, esp. SMB’s are not yet ready to fully implement the data audit methodology. <br />Once you perform a Data Audit you will learn how to capture data not immediately seen or considered and relate it back to a Social Media effort by linking your measurement strategy and goals with your business strategy and goals.<br />You may need to work on a periodic basis with web developers, programmers, product and sales teams to enable tracking of certain actions as well as assigning meaning to those actions.<br />
  17. 17. Questions & Answers<br />Marshall Sponder<br /><br /><br />@webmetricsguru<br />READ MY WHITEPAPER ON SOCIAL MEDIA ROI <br /><br />