For the 2012 Mountain Travel Symposium, I joined a measurement panel to discuss Social ROI. The slide deck delves into a social ROI case study for a Rocky Mountain hotel.

1. Yes, Social Marketing ROI
can be determined.

2. Kathy Herrmann
Measurement & Insight
(757) 497-4811
kherrmann@boomyourbrand.com
www.boomyourbrand.com

3. ROI Considerations
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4. Start with Objectives
and Strategy…
…know where you want to go.

5. Measure results.
The end goal of measurement is not to collect a
bunch of metrics but to gain

6. CXOs will look for
actionable intelligence in
monetary terms…
…revenues or cost savings.
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7. ROI Primer
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8. Agency costs in this
bucket
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9. Rocky Mountain Hotel
Case Study for Twitter
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10. Annual Results:
Revenues = $31m
Average Occupancy Rate = 60%
Average RevPAR = $420
Dec11 – Feb12 results:
Revenues = $15m
Average Occupancy Rate = 79%
Average RevPAR = $831

11. Formula for Sales Revenue Gain from Social
Revenues =
Reach x Impact x Yield
Influenced
conversations
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12. Reach metrics
Tweets sent = 365
Average followers = 1,777
Impressions* = 1,630,394
Mentions/RTs = 876
* Impressions measure the reach of all tweets, i.e., total
potential number of displays to followers. It equals the sum
of the total followers PLUS their followers.
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13. Impact metrics
Clicks = 3,606
(Click-through rate = 0.22%
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14. Yield metrics
Lead Conversion Rate = 0.3%
Conversions = 11
Avg. Rev per room = $1,059.29
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15. Gains results
Total Revenues Revenues
for period Attributed to
Social Media
initiatives
Room Revenues (rounded) $6,956,376 $ 11,700
Food & Beverage (rounded) $3,473,075 $ 5,800
Sundeck (rounded) $2,626,498 $ 4,400
Total Revenues $ 13,055,949 $ 21,900
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16. Costs
Personnel = $5,667
Social analytics solution = $7,500
Total costs = $13,167
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17. ROI Formula
ROI
= (Gains - Costs)/Costs x 100
= ($21,900 - $13,167)/($13,167)
x 100
= 66%
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18. Closing Thoughts
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19. It is possible to determine ROI
for social initiatives….
…but it starts
with good
measurement
practices….
…and good measurement starts
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with clear objectives & strategy.

20. www.boomyourbrand.com