The document provides guidance on calculating social media return on investment (ROI) using benchmarks from traditional marketing campaigns. It outlines a basic 3-step process: 1) establish social media goals and key performance indicators; 2) define measures of success, costs, and results; 3) calculate ROI by comparing costs to results. Three examples are provided comparing traditional marketing like billboards, customer service phone lines, and reseller programs with their social media equivalents on Facebook, Twitter, and YouTube. The examples show how to quantify social media performance based on metrics like likes, sentiment, views, and sales.

1. Social Media
|How | Why | ROI|
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2. Basic Social Media ROI Formula

3. Just Kidding!
You’re already know how to
calculate social ROI…

4. BENCHMARK!
Then apply the same logic
to the new medium!

6. Step 1: Start with your destination.
• Establish your social goals
BuzzNumbers
Social Goals
• Map these against KPI’s 1. 10,000 Facebook likes.
2. Improve perception of brand.
KPI’s
• What do you currently 1. Reduce cost of acquisition.
measure? 2. 5% more leads to sales.
Currently Measure.
1. Reach of print advertising
2. Call centre response time

7. Step 2: Outline your journey.
• What is your measure of success?
• What did it cost / How much did you save?
• What did you achieve / What were the results?
= ROI

8. Worth remembering…
• Online = Trackable
– There is always a number when working online (i.e. likes, clicks to
open, re-tweets) so you will always be able to find a measurement.
• Disclaimer:
– The following examples show how your current activities can give you
a benchmark against which you can judge social / not how social can
replace your other programs.

9. Example 1: Billboard Advertising & Facebook
Measure Traditional Social
KPI Successfully launch new product. Encourage use of existing service.
Measure of success 1,000,000 impressions. 100,000 Facebook ‘Likes’
(supplied by oOh! Media: average number of people
passing by location x time period of ad display)
What did it cost? $100,000 for print & display. $5,000 for artwork & banner ads.
(AND/OR)
How much did you save?
What did you achieve? 1,000,000 impressions. 100,000 Facebook ‘Likes.’
(assumption – not verifiable)
Ability to communicate with 100,000.
ROI $100,000 / 1 million views = $0.10 $5,000 / 100,000 = $0.05/FB ‘Like.’

10. Example 2: Customer Service & Twitter
Measure Traditional Social
KPI Decrease time to resolution. Improve customer sentiment.
Measure of success Reduce call time by 2 minutes. Reduce negative sentiment by 5%.
What did it cost? $50,000 Tool track sentiment & respond to
(AND/OR) (PABX with customer routing functionality & training)
Tweets + added job responsibility.
How much did you save?
What did you achieve? Improved customer experience. Improved sentiment by 5%.
(responded to enquiries via preferred platform)
Reduced f/t head-count by 2.
($50,000 x 2 = $100,000)
ROI $50,000 Reduce cost of enquiry response.
($100,000 savings - $50,000 cost = $50,000) (keep this online $0.50 vs. offline $12.50)
Ability to x-sell products.

11. Example 2: Driving Sales & YouTube
Measure Traditional Social
KPI Improve reseller sales channel. Improve direct website sales.
Measure of success 10% increase in sales through 15% increase in direct sales through
premium reseller. website.
What did it cost? $200,000 $1,000
(AND/OR) (Full POS / floor staff incentive program) ($500 video camera / $200 demo product / $300 editing)
How much did you save?
What did you achieve? 10% increase in reseller sales. Increased web traffic by 5000%
Improved reseller relationship. Increased direct sales by 15%
ROI Revenue increase with possible Revenue increase.
longer term improvement. Views/ Share/ Tweets/ Posts/ Visits.

12. Will It Blend?
|Click to view |
|190 Videos | 200,000,000 views | 700% increase in retail sales | 20 TV Appearances |

13. How easy is that!

14. Next Steps
• Buy-in
– People fear things they don’t understand – your boss is a person!
• Prove there is a NUMBER
– Benchmark, track and report until people start to ignore you!
• Always link up with your KPIs
– Deliver the results (or review what you are responsible to deliver!)
• Imitation = flattery
– Observe, listen and learn from your customers and competitors.

15. Jess Whittaker
Email: Jess@buzznumbershq.com
Linkin: Linkedin.com/in/jesswhittaker
Twitter: @jessdoubleya
Want the workbook? Send me a message!
www.BuzzNumbersHQ.com

16. Just an after-thought…
What will you be doing in 5yrs?
• The Australia data industry is set to grow by +17% annually.
• The number of organizations spending 25-50% of their marketing
budget on digital media will increase by over 40%.
– Currently 10% of the organizations currently allocate comparable fund to
digital marketing, the figure will rise to 51% in 2013.
SO…

17. Those ‘in the know’
will be IN demand!
The future is clear.
Now is the time get involved in your company’s digital programs.