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What is YourSocial Media ROI?Date: March 26, 2012Time: 3:15 – 4:30 pmHub Tag: #ideas12 LM8           Tom McClintock
A Presentation By:                   Tom McClintockColorado Springs, CO · Richmond, VA
Agenda           Social Media (SM)’s           Latest Triumphs                ROI Opposite CornersNew Math, Cases and Avai...
Source: Three Ships Media
Viewpoint #1You can’t—and shouldn’t try to—calculate the ROI                of social media.
VIEW 1:        No ROI from SM Having thousands of followers doesn’t necessarily translate into SM   marketing success Yo...
VIEW 1:   No ROI from SM SM is an investment in a  relationship with your audience  that converts them into advocates. V...
VIEW 1:        No ROI from SMQualitative Benefits In Each Stage of Your MarketingCampaigns:     Research     Strategic P...
VIEW 1:          No ROI from SMImplementation     Driving traffic to your website     Branding     Risk management    ...
VIEW 1:       No ROI from SM If you need to calculate ROI, think of it as activity-based, not  medium-based—i.e., Focus on...
Viewpoint #2You can—and must—calculate the ROI of SM.
VIEW 2:         Calculating ROI from SMComcast                         Starbucks                                    Livest...
VIEW 2:     Calculating ROI from SMLow investment in SM leads to high ROI whenorganizations:        Have a clear business...
VIEW 2:      Calculating ROI from SM So how did BarnRaisers find an ROI when so many others couldn’t?    Let’s take anothe...
Must all SM ROI Be Sales-Based?           If your goal is sales, you can           measure ROI using the standard         ...
New Math     BarnRaisers and others realize that social has not only  decentralized and disaggregated, but it’s also demat...
New Math Great Idea #2: Untethered, ROI metrics can now go beyond  sales dollars to include Retention, Research and Senti...
Don’t Base ROI on Sales             If Sales isn’t Your GoalGreat Idea #3: when sales aren’t the goal, calculate the ROIRe...
Five Steps to Calculate SM ROI Step 1: Identify Objective sales, retention, market research—or    for most associations—s...
Measure ROI to Improve ROI Great Idea #4: Measure SM ROI with an eye  to improving it by:       •   Increasing campaign i...
Measure ROI to Improve ROIIncrease campaign impact    Define goals    Empower users through transparency    Research of...
Measure ROI to Improve ROIReduce campaign implementation costs    Leverage SM team    Establish SM culture    Employ Tw...
NSI CASE 1:       Sentiment Measurement for                  American Chemistry Council ROI: Message Point Delivery Prob...
NSI CASE 1:       Sentiment Measurement for                   American Chemistry Council Messaging  • LCA reviews buildin...
NSI CASE 1:     Sentiment Measurement for                American Chemistry Council Goals:   Increase web traffic by 10%...
NSI CASE 1:    Sentiment Measurement for               American Chemistry Council Methodology: 4-Phase Strategy          ...
Data Assumptions and Tools
ROI Measurement ToolsFacebook Insights
ROI Measurement ToolsFacebook Insights
ROI Measurement Tools    Google Analytics Track Goals via    Conversion Funnels     • SM Traffic Only     • Review Correl...
ROI Measurement Tools Google Webmaster Tools                    Source: Lane, Brett, Engine-ius Marketing,               ...
ROI Measurement Tools Facebook Google Analytics Tracker                     Source: Lane, Brett, Engine-ius Marketing,   ...
ROI Measurement Tools Involver’s Static HTML for Pages                      Source: Lane, Brett, Engine-ius Marketing,   ...
ROI Measurement Tools AddThis                 Source: Lane, Brett, Engine-ius Marketing,            CEO Workshop 2011, Co...
ROI Measurement Tools PowerReviews                      Source: Lane, Brett, Engine-ius Marketing,                 CEO Wo...
Contact Information     Tom McClintock       NSI Partners    719.328.0042 x801  tom@NSIpartners.com  www.NSIpartners.com
What is your social media ROI abridged
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What is your social media ROI abridged

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A shortened version of Tom McClintock's presentation on Social Media ROI. Please see the full version for more details.

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What is your social media ROI abridged

  1. 1. What is YourSocial Media ROI?Date: March 26, 2012Time: 3:15 – 4:30 pmHub Tag: #ideas12 LM8 Tom McClintock
  2. 2. A Presentation By: Tom McClintockColorado Springs, CO · Richmond, VA
  3. 3. Agenda Social Media (SM)’s Latest Triumphs ROI Opposite CornersNew Math, Cases and Available Tools
  4. 4. Source: Three Ships Media
  5. 5. Viewpoint #1You can’t—and shouldn’t try to—calculate the ROI of social media.
  6. 6. VIEW 1: No ROI from SM Having thousands of followers doesn’t necessarily translate into SM marketing success You can easily measure only some things • Coupons • Contests • Clicked links • Signups Much of SM’s benefit is indirect or intangible—notan asset purchased and placed onbalance sheet
  7. 7. VIEW 1: No ROI from SM SM is an investment in a relationship with your audience that converts them into advocates. Value is derived from qualitative benefits.
  8. 8. VIEW 1: No ROI from SMQualitative Benefits In Each Stage of Your MarketingCampaigns:  Research  Strategic Planning  Implementation  Evaluation Source: Synovate Research, Alexa Global Traffic Ranking, Morgan Stanley Research
  9. 9. VIEW 1: No ROI from SMImplementation  Driving traffic to your website  Branding  Risk management  Conversions based on goals http://annualreport.pg.com/annualreport2011/innovating/oldspice.shtml
  10. 10. VIEW 1: No ROI from SM If you need to calculate ROI, think of it as activity-based, not medium-based—i.e., Focus on the relationship between the activity and the outcome.Social Media is a tool, just like a telephone, email or computer.
  11. 11. Viewpoint #2You can—and must—calculate the ROI of SM.
  12. 12. VIEW 2: Calculating ROI from SMComcast Starbucks LivestrongTwitter customer Goes to customers Raised $10.8 millionservice center attracted through SM for new with Livestrong2,700 followers. Many product ideas. Now Challenge through SMcritics of the company when it launches a new channels with blog asconverted to raving product, it already has hub.fans. millions of fans. Source: Petersen, Rob. 34 cases that prove social media ROI, http://barnraisersllc.com/2010/10/33-13-social-media-case-studies-prove-roi
  13. 13. VIEW 2: Calculating ROI from SMLow investment in SM leads to high ROI whenorganizations:  Have a clear business strategy  Aren’t afraid to jump in  Make imaginative use of social channels, customer engagement and brand relationship Source: Petersen, Rob. 34 cases that prove social media ROI, http://barnraisersllc.com/2010/10/33-13-social-media-case-studies-prove-roi/
  14. 14. VIEW 2: Calculating ROI from SM So how did BarnRaisers find an ROI when so many others couldn’t? Let’s take another look at the formula that the naysayers cite: (Return – Investment) Investment
  15. 15. Must all SM ROI Be Sales-Based? If your goal is sales, you can measure ROI using the standard financial formula: (Return – Investment) Investment But what if you’re, say, an Association…with returns less tangible, e.g., raising consumer awareness about your industry?
  16. 16. New Math BarnRaisers and others realize that social has not only decentralized and disaggregated, but it’s also dematerialized —things are less tangible Less Tangible Today • Publishing • Hollywood Studios • Content • Trade Shows • Workplace • Friendships • Corporate Structure • Business Contacts • Pricing (Freemium Model) • Assets, too! Great Idea #1: social redefines how we generate and value returns in a less tangible world
  17. 17. New Math Great Idea #2: Untethered, ROI metrics can now go beyond sales dollars to include Retention, Research and Sentiment values as major currencies to track your messaging
  18. 18. Don’t Base ROI on Sales If Sales isn’t Your GoalGreat Idea #3: when sales aren’t the goal, calculate the ROIReturn using the Persuasion IndexDefined by 5 levels of agreement: • Strongly agrees (5) • Partially agrees (4) • Neither agrees nor disagrees (3) • Partially disagrees (2) • Strongly disagrees (1)
  19. 19. Five Steps to Calculate SM ROI Step 1: Identify Objective sales, retention, market research—or for most associations—sentiment Step 2: Define Metrics • sales: thank-you page visits from tweeted landing page • retention: repeat customers/Facebook posts • market research: likes to announcement of potential new product/number of Facebook fans • sentiment: shift in percentage of conversation participants who agree vs disagree to message point over time Step 3: Estimate SM campaign costs labor + ad spend + premium value Step 4: Estimate SM Return against Objective via Metrics Step 5: Measure and report regularly
  20. 20. Measure ROI to Improve ROI Great Idea #4: Measure SM ROI with an eye to improving it by: • Increasing campaign impact • Reducing campaign costs
  21. 21. Measure ROI to Improve ROIIncrease campaign impact  Define goals  Empower users through transparency  Research offers  Employ relevant premiums  Utilize split-tested landing pages  Develop relationships  Promote synergistic third party offerings  Establish social partnerships
  22. 22. Measure ROI to Improve ROIReduce campaign implementation costs  Leverage SM team  Establish SM culture  Employ Twitter client  Utilize SM browser  Repurpose content  Establish social partnerships
  23. 23. NSI CASE 1: Sentiment Measurement for American Chemistry Council ROI: Message Point Delivery Problem: Regulators can’t keep up with the latest in materials science, like Life Cycle Assessment (LCA)—a methodology to measure a building’s lifetime environmental impact Objective: Raise Sentiment for LCA Across Target
  24. 24. NSI CASE 1: Sentiment Measurement for American Chemistry Council Messaging • LCA reviews building materials through all phases, from manufacture through recycling • LCA contrasts with single-attribute assessment, such as whether the product is made from recycled material or whether it emits VOCs
  25. 25. NSI CASE 1: Sentiment Measurement for American Chemistry Council Goals:  Increase web traffic by 10% by December 2011 (+60%)  Create regular weekly blog content on highest visibility sites  Use Social Media to reach public and key Building & Construction audiences
  26. 26. NSI CASE 1: Sentiment Measurement for American Chemistry Council Methodology: 4-Phase Strategy PHASE 1: PHASE 2: PHASE 3: PHASE 4: Listening Strategy via Increase Change Blog and ReputationConnect™ Social Voice Sentiment Twitter Listening Platform Outreach
  27. 27. Data Assumptions and Tools
  28. 28. ROI Measurement ToolsFacebook Insights
  29. 29. ROI Measurement ToolsFacebook Insights
  30. 30. ROI Measurement Tools Google Analytics Track Goals via Conversion Funnels • SM Traffic Only • Review Correlations Between SM Referral Traffic and Goal Conversions Utilize a Variety of Tools Define, Track, Measure, Change, Repeat Source: Lane, Brett, Engine-ius Marketing, CEO Workshop 2011, Colorado Springs Marketing Group
  31. 31. ROI Measurement Tools Google Webmaster Tools Source: Lane, Brett, Engine-ius Marketing, CEO Workshop 2011, Colorado Springs Marketing Group
  32. 32. ROI Measurement Tools Facebook Google Analytics Tracker Source: Lane, Brett, Engine-ius Marketing, CEO Workshop 2011, Colorado Springs Marketing Group
  33. 33. ROI Measurement Tools Involver’s Static HTML for Pages Source: Lane, Brett, Engine-ius Marketing, CEO Workshop 2011, Colorado Springs Marketing Group
  34. 34. ROI Measurement Tools AddThis Source: Lane, Brett, Engine-ius Marketing, CEO Workshop 2011, Colorado Springs Marketing Group
  35. 35. ROI Measurement Tools PowerReviews Source: Lane, Brett, Engine-ius Marketing, CEO Workshop 2011, Colorado Springs Marketing Group
  36. 36. Contact Information Tom McClintock NSI Partners 719.328.0042 x801 tom@NSIpartners.com www.NSIpartners.com

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