Presentation to the 2012 Marketing & Sales Summit of the ISA (International Society of Automation) in Austin, Texas.

2.  Social media & the C-Suite value
debate
 Understanding: what SM is and isn’t
 Integration & the end of business
fiefdoms (aka silos)
 Measurement approaches
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3. 3

4.  Can you measure what you
don’t value?
 >70% of Fortune 500 CEOs
don’t do social media
 Traditional advertising &
PR: estimated reach and
impressions
◦ Tells us nothing about the
customers
◦ Relies purely on correlations
 What’s the ROI? (Right
question: why invest?)
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5.  Time
 Legal
 Safety (except for LinkedIn)
 Skepticism/trust
 Proof of financial return on money
spent
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6.  26% fans, followers and supporters (#s)
 25% web traffic (#s)
 16% lead generation ($)
 10% reduced cost of customer support ($)
 7% value of sales generated through social
media programs ($)
Source: Center for Marketing Research, University of
Massachusetts
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7.  Return on Engagement (ROE)
 Return on Participation (ROP)
 Return on Listening (ROL)
 Return on Fluid Listening (ROFL)
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8.  Amplifier of existing
 Companies business functions
communicate/interact  Delivers velocity to
 People get relationships, marketing processes
trust, conversation  Empowered WOM
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9. Public
Relations/
Sales
Corp
Comms
Customer
Marketing
Service
Customer
Human
Advertising
Resources
Web/
Content
Mktg/SEO
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10.  40 SM employees $6.5M
 25K to 1.5M followers
Total Rev:
$61B
2007 2008 2009
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11.  Social media is not a strategy, it is a communications tool
 Social media supports existing business goals & objectives
 Every customer touch point can be enhanced by social media
◦ Public relations/corporate communications/crisis management
◦ Marketing (including email marketing, newsletters, etc.)
◦ Customer service
◦ Human resources
◦ Lead generation/sales
◦ Event planning/management
◦ Market research
◦ Mobile apps
 Goals & Objectives Tactics
◦ Blogging
◦ Blog comments
◦ LinkedIn Groups & LinkedIn Answers (B2B)
◦ Shares, mentions, retweets
◦ Status updates (Facebook, LinkedIn, Google+)
◦ Alternative channels(Pinterest, Tumblr, StumbleUpon)
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12.  To measure, you must
establish targets (timeframes)
 Social media goal: increase
brand awareness, encourage
engagement via myriad social
platforms, boost sentiment
(non-financials) leading to
conversion (financial)
◦ Frequency (more transactions)
◦ Reach (more customers)
◦ Yield (more transactions per
customer)
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13. $225.99 for 50K “100% Top Notch
Quality Twitter Followers” in 20
days. $9.99 gets you 900
$590.99 for 100K+ video views
$350 for 25K Fan Page likes
$550 for 10K +1s
$55 for 300 followers
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14. plan development, Initiation
KPIs set
Outputs
blogs, tweets, shares,
updates, videos, comments
listening, tracking,
monitoring, data Inputs
collection, analysis
Non- likes, shares, RTs, subscribers,
financial mentions, bounce rates, page
outcomes views, time per page
$ales, repeat $ales Conver$ion
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15.  KPI reveals if goals & objectives, which lead to
specific tactics, achieve specific targets
 Visitors/followers are easy (gamed); the “right”
visitor is hard
Website analytics Event registrations
Newsletter subscriptions Likes
Email signups Recommendations
Registration for contests Blog
Poll/surveys completed Blog comments
Shares RSS subscriptions
Retweets Content requests/downloads
Bounce rates Click-throughs
Sales revenue Time on page
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16.  ROI is not projection or estimate
 ROI calc: only after investment yields return
 Establish baseline; monitor deltas/changes & factor
sentiment analysis
 Incorporate all costs
◦ travel, personnel, training, memberships, consultant fees,
conferences, Facebook ads, sponsored tweets, YouTube ads,
mobile app dev. Social media is not free.
 Correlations are OK. Track non-financial metrics
(transactional precursors), i.e. followers, likes,
subscriptions. Dotted, not a direct line. Overlay sales
data
 Direct line consideration: isolate tactics & track
customers
◦ promotional codes, special landing pages, CRM intelligence,
custom links, email bugs, i.e. track your customer from SM
to conversion
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17. 𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚 𝑀
𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝐶
𝑅𝑅𝑅 = � 𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑(𝐶𝐹) + $𝑛𝑛𝑛 𝑟𝑟𝑟 𝑦2
sin(𝑡𝑡𝑡𝑡)
𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓 𝐹
∞
𝑛𝑛𝑛 𝑛𝑛𝑛
+ � 𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 𝑛 cos + 𝑏 𝑛 sin
$𝑏𝑏𝑏𝑏𝑏𝑏 $𝑒𝑒𝑒𝑒𝑒𝑒𝑒
𝑛=𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖
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18. 18

19. Monitoring Dashboards ($)
Facebook Google Sprout
Insights Analytics
HootSuite
Social
TweetDeck Cision Radian6 Spiral16 Sysomos Vocus
Customer
Audits
Market
Research
Focus
Groups
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20. Objective: Increase sale of HMI licenses
Target: 250 more licenses sold in Q2 in N.A. market
Q2 KPIs
 Positive company/product mentions in Q2
 Net new FB likes, RTs, subscriptions, downloads isolated to HMI
campaign
 Net new click-throughs of links to website (inbound links)
 Net new downloads of promoted content (white papers,
backgrounders, marketing) showcasing why additional seats are
needed
 YouTube HMI promotional video (views)
 Coupon/discount codes isolated to Q2 campaign issued via
email marketing, tweets, FB updates, inbound website events
 Actual HMI license sales in Q2
ROI
 Correlate response with sales via social monitoring tools
 Comparison metric: HMI licenses sales outside of N.A.
market; comparative sale of other products (baselines.
 Social media campaign increased perception and
awareness, stimulating a preference and driving
customers to purchase decision. Conversion.
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21. Objective: Reverse disinformation on bailouts & Ford
Target: U.S. market, 2009
2009 KPIs
 Frequent and appropriate engagement with public
 Counter all blog, Facebook, Twitter, etc. posts including Ford in
federal bailout
 Public relations alone insufficient
 Integrated corporate approach to crisis management
ROI: pre and post-sales results
 Positive financials
 Analysis showed positive sentiment
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22. 1. Social media ROI is a financial calculation. Likes,
followers, shares, etc. are non-financial metrics.
2. You must have a business justification for social
tactics. Followers, fans, subscribers have no value
unless they can be turned into customers.
3. You cannot deliver ROI if you do not have access to
digital intelligence and real-time financial data.
Calculators + Excel are your new friends.
4. Anything and everything can be measured. Measure
what matters; what matters to your company may not
matter to mine.
5. If C-Suite demands ROI proof, SM campaign plan
starts with business objective(s), targets (timeframe)
and KPIs (metrics). No measurement, no ROI.
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23. “The single most potent negative business
trend of the last several years has been
the systematic dehumanization of
business processes and the steady push
towards transactional sales over
relationship-based partnerships.”
Chris Brogan
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24.  One-off or long-term relationship; one date
or a marriage? Pay it forward
 Not lacking ability to show social media ROI;
missing tactics to link KPIs to transaction
events – the digital footprints that lead to
the cash register
 Plan to capture those footprints before your
first tweet, status update or blog post: track
& trace
 If you build it, you must nurture it
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25. 25

26. Joel Don
@joeldon
jdon@commstrategies.com
public relations + social media + reputation enhancement
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