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Unraveling the Mysteryof Social Media ROIPaul GillinAuthor, The New InfluencersSecrets of Social Media Marketing
Unraveling the Mystery of Social Media ROI
Unraveling the Mystery of Social Media ROI
Unraveling the Mystery of Social Media ROI
ROI
Simple Equation(GAIN FROM INVESTMENT - COST OF INVESTMENT)ROI =COST OF INVESTMENT
Types Of Financial ImpactOrdersSubscriptionsLeadsUpgradesCoupon redemptions
Types Of Non-Financial ImpactCustomer complaintsWebsite VisitorsImpressionsPositive pressClick-throughsYouTube viewsRetweetsCoupons distributedVisitors to a brick & mortar storePositive WOMDelivered emailsNegative pressNegative WOMEmployment applicationsBlog commentsFaceBook friendsSocial mentionTwitter followers
Bounty of Choice
Unraveling the Mystery of Social Media ROI
7  Steps to  Social Media ROI Define the “R” – What are expected results?Define the “I”  -- What’s the investment?Understand audiences and what motivates them Choose metricsChoose benchmarks Pick a tool and undertake researchAnalyze results, glean insight, take action, measure againSource: KD Paine & Partners
Key Performance Indicators (KPIs)Cost savingsEfficiencyCost per message communicatedCost per new lead/customer acquiredProductivity: Increase in employee engagement/moraleLower turnover/recruitment costsEngagement: Ratio of posts to comments% of repeat visitors% of 5+ min visitors% of registrationsTrust:Improvement in relationship /reputation scores with customers and communities (Loyalty/Retention)Thought leadership: Share of quotesShare of opportunities Message penetrationPositioning on key issuesImprovement in favorable/unfavorable ratioSource: KD Paine & Partners
Measurement OptionsTraffic: unique visitors vs. page viewsTechnorati rankingsRSS subscriptionsGoogle linkto: and allinanchor:Delicious and Technorati tagsTrackbacksWebsiteGrader.com, Xinu, Compete, Alexa scoresAnd more…Search engine rank
Social bookmark activity
Comments
Inbound links
Copycat or parody videos
Mashups
Blog mentions
Discussion group posts
Social network membership
Bloglines or Blogpulserankings
Video viewership
Mainstream media references
Referral links
Search engine results
Sentiment analysis
Contest entriesSet Up to MeasureDefine metrics; for social media marketing, the two key ones are influence and engagementSet up campaigns and event tracking for social media Choose analytics software that can track specific eventsTrack fans, followers, etc. over time to measure growth in interestIdentify where visitors come from and how they interact. Feed back into marketingDetermine which social media channels are most effectiveResearch plug-ins and tools like Bit.ly, xinureturns, PostRank, and SocialToo for profile dataAggregate analytics  in one placeSource: KD Paine & Partners
Sample Engagement Metrics % increase or decrease in unique visits In the past  month, what % of sessions were >5 page views % of sessions >5 minutes in duration % of visitors that return for more than 5 sessions % of sessions that arrive at your site from a Google search/referral/link from your web site% of visitors that subscribe% of visitors that download content% of visitors that provide an email addressRatio of posts to comments Source: KD Paine & Partners, Eric Peterson
Classifications of DiscussionAcknowledging receipt of information
Advertising something
Answering a question
Asking a question
Augmenting a previous post
Calling for action
Disclosing personal information
Distributing media
Expressing agreement
Expressing criticism
Expressing support

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Unraveling the Mystery of Social Media ROI

Editor's Notes

  1. Great slide capture of some of the key players so far