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Social Business Justification & R.O.I. olivieralainblanchard @thebrandbuilder Buzz 2010 Series Washington, DC 18 August2010 #buzz2010
What do I do? Training Social Media Program Integration for C-Suite executives, Managers and organizations. Consulting - Brand Mgmt. - Online Reputation Mgmt. - Social Web & New Media … and the blog. Advisory Board Shenanigans
First Rule: The tools are the tools. The tools are not the thing.
Second Rule: Associations + NFPs are not like most businesses
First things first: …
Having “a presence” in Social Media Is worthless unless you do something with it.
Your organizationdoesn’t plug into Social Media. Social Media plugs into your organization.
Second…
 Ways in which Social Media can help a business: Sales Net New Customers, Increased Frequency of Transactions, promo exposure Increased yield (average $ value per transaction), and product penetration Customer Support Immediate feedback and response, positive impact in public forum, cost reduction Human Resources More effective recruiting, online monitoring of employee behavior (risk management) Public Relations Online Reputation Management, improved brand image via Social Web Customer Loyalty Increased interactions, better quality of interactions, deeper relationship with brand, Increased trust in brand, increased mindshare of brand, greater values alignment Business Intelligence Know Everything. (No, really.)
 Ways in which Social Media can help an association: Outcomes Net New Members, Increased Frequency of Donationsand Volunteerism, Increased yield (average $ value per donation), added exposure MemberSupport Immediate feedback and response, positive impact in public forum, cost reduction, Increased interactions, more varied interactions, portable resources (mobile) Human Resources More effective recruiting, online monitoring of employee behavior (risk management) Public Relations Online Reputation Management, improved brand image via Social Web, Clarification of purpose & value, Direct communication with public MemberLoyalty Increased interactions, better quality of interactions, deeper relationship with cause, Increased trust in organization, increased mindshare of cause, greater values alignment
Brand Management: Momentum Drivers Awareness Do enough people know about us? Do enough people think about us? Context Do people think of us in the right way? Value Do people understand our value?  What we offer? Relevance Do people appreciate our value to them? Catalysts Do people have a reason to think about us? To engage with us? To buy into us?
Leveraging Social Communications Social media is there to drive,  amplify and reinforce all of these things: Awareness Context Value Relevance Interactions Transactions
Third: A note about vertical and lateral forces…
Vertical Engagement= Org + Individual Program/campaign-based, on-message, limited.
Lateral Engagement = individual+ individual This is how WOM and content really scale.
Fourth: Okay, now…
How do you rescue a fading brand?
What if this had nothing to do with Old Spice?
Facebook has over 500 MILLION users Twitter now has over 100 MILLIONregistered users. 55,000,000 tweets per day. 37% of users tweet from their phones. All talking to each other all day long.
But it doesn’t stop here.
What if this were your message?
What if this were your message? The principles are the same.
Brand Management: Momentum Drivers Awareness Do enough people know about us? Do enough people think about us? Context Do people think of us in the right way? Value Do people understand our value?  What we offer? Relevance Do people appreciate our value to them? Catalysts Do people have a reason to think about us? To engage with us? To buy into us?
Catalyst: What you do.
Reaction: What they do. “We have to share this with friends.”
How can I leverage Social Media to impact x: Outcomes Net New Members, Increased Frequency of Donationsand Volunteerism, Increased yield (average $ value per donation), added exposure MemberSupport Immediate feedback and response, positive impact in public forum, cost reduction, Increased interactions, more varied interactions, portable resources (mobile) Human Resources More effective recruiting, online monitoring of employee behavior (risk management) Public Relations Online Reputation Management, improved brand image via Social Web, Clarification of purpose & value, Direct communication with public MemberLoyalty Increased interactions, better quality of interactions, deeper relationship with cause, Increased trust in organization, increased mindshare of cause, greater values alignment
But all of that is mostly talk. And talk doesn’t pay the bills or change much of anything.
Organizations need to raise money and/or get results. Talk needs to impact behavior.
NOTHING AN ORGANIZATION DOES IS FREE.
1. Programs and campaigns take manpower.
2. … and technology.
3. And most importantly, time.
We have… rocks. … all of which are limited resources.
These resources = 100% of your budget These resources generate 100% of your outcomes E-Marketing Head Count Advertising I.T. Inbound Call Center Marketing Sales Dept. Accounting Public Relations
Understand that a new  marketing program’s funding doesn’t appear out of thin air.: Which buckets do we empty to fill this new one?
Give me a good reason why I should assign resources to this thing. The dragonwants to know how this will help the org.
It all starts with one question: What are you trying to accomplish? Define the objective FIRST. THEN come up with the tactics.
Tactics don’t dictate the objective. You know… What this team really needs Is more WOM!  NO
Objectives dictate tactics. I need 3 more touchdowns before half-time.  What are my options? (How does WOM fit in?) YES
Question #1: Will it save me money? Maybe in member support? You mentioned something about media costs and CPI? Question #2: Will it generate more revenue? I want more volunteers,  more net new members, more exposure, etc. Fact: Ultimately, the P&L drives business decisions.
Objectives should be specific. F.R.Y. FREQUENCY, REACH, YIELD Increase how often customers buy from us each month Increase the net number of transacting customers Increase average spend per transaction Etc.
The Association version: F.R.Y. FREQUENCY, REACH, YIELD Increase how often members give us each month/year Increase the net number of active members Increase average “give” per “transaction” Etc.
SAY HELLO TO: Business Justification R.O.I.
R.O.I. RETURN ON INVESTMENT
THE R.O.I. EQUATION Investment Expectation of return
THE R.O.I. EQUATION (GAIN FROM INVESTMENT - COST OF INVESTMENT) ROI = COST OF INVESTMENT
The Truth About R.O.I. ROI is a business metric,   not a media metric. ROI is 100% media-agnostic. Only measuring digital or social won’t get you anywhere.
What if you aren’t “for profit?” You still depend on some kind of revenue to function: Grants, funding, donations, membership fees, etc. Same thing. Revenue is revenue. Budgets are budgets. Money is money.
I’m a Social Media guru. Love isn’t about ROI, baby. Forget your greedy ways. The Problem.
ROI is NOT: Return on Inspiration Return on Involvement Return on Innovation Return on Immersion Return on Imagination Return on Importance Return on Inbound Return on Imbecility Return on Ignorance Return on Incompetence ROI is: Return on Investment.
R.O.I. Confusion - A tale of operational silos Engagement R.O.I. Different Focus + Different perspective
Reason #1: COST REDUCTION (How can I do more with less?) Reason #2: REVENUE GENERATION (How can I make more of an impact?) So once again, to be clear. This is R.O.I.
Let’s get people Talking about us. Dudes, we are  ON THIS!!! Let’s start engagin’!!! I’ll start crafting some wicked blog posts and online contests.
This rocks! I never had it so good!!!
Things happen in sequence.
Non-financial impact is not ROI (yet). Too many agencies only measure here.
Types of non-financial impact Customer complaints Website Visitors Impressions Positive press Click-throughs YouTube views Retweets Coupons distributed Visitors to a brick & mortar store Positive WOM Delivered emails Negative press Negative WOM Employment applications Blog comments FaceBook friends Social mention Twitter followers
Yeah but… What about the P&L? Monitoring to base… Monitoring to base… Our social mentions are wicked good! The YouTube videos are scaling well. Our blog even has comments! We have liftoff!
Nope. Anything? Nada. ACCOUNTING Six Months Later…
What kind of mood is  The old man in today? Not good. He doesn’t care how many visitors the website gets, or how many eyeballs we estimate we’ve reached. How is it all helping grow the Biz yo?
Financial vs. Non-financial Impact Non-Financial  Financial       Are you converting this        to this?
Or in your world… Way cool! Yeah. Sign us up. Oh cool! Weeeerd! Are you converting this        to this?
What a Social Media win looks like:
What a Social Media win looks like: 94,000 followers Velocity: 8K to 66K in only 2 days 706,000 fans/likes … sharing videos with friends on their wall 16,000,000 views Most response videos >200,000 views Facebook.com/oldspice
But will it “sell soap?”
(It already has.) Sales of body wash up 107% in the last month. (It’s a good start, but will it be enough to justify the campaign’s expense?)
Non-financial impact = potential.
ROI = actualized potential. Social Media Activity - Vertical/Lateral Ultimately, Social Media activity has to positively impact customer behaviors and drive revenue in order to deliver R.O.I.
This is not the end of the line for you: In your case (and unlike For Profit businesses,)R.O.I. is not where the narrative ends. R.O.I. is a means to an end. Main non-financial objective(s) Plant 3,000,000 new trees in the US Reduce teen pregnancy in Chicago by 3% this year Preserve historic neighborhoods in Baltimore Increase local recycling by 300 tons per year Send 300 cleanup volunteers to the Gulf for one week Attract Google Fiber to your city
This is not the end of the line for you: In your case (and unlike For Profit businesses,)R.O.I. is not where the narrative ends. R.O.I. is a means to an end. Main non-financial objective(s) Plant 3,000,000 new trees in the US Reduce teen pregnancy in Chicago by 3% this year Preserve historic neighborhoods in Baltimore Increase local recycling by 300 tons per year Send 300 cleanup volunteers to the Gulf for one week Attract Google Fiber to your city Enablement
Step 1: Establish a baseline 8% YoY Growth
Step 2: Create Activity Timelines
Step 3: Monitor impact on conversations What are people talking about and where? Map topics, keywords, trends, links, etc.
Step 4: Measure transactional precursors
Measuring transactional precursors
Measuring transactional precursors Office? Museum? Kiosk?
If you can, also look at # of transactions
If you can, also look at # of transactions Sales? Donations? Other?
Also measure net new customers NNC is a measure of effective reach, not just media reach.
Also measure net new customers Net new members NNC is a measure of effective reach, not just media reach.
Transaction data should be specific F.R.Y. FREQUENCY, REACH, YIELD How often customers transact. (transactions per month) How many customers you are reaching. (net new customers) How much they spend. ($ per transaction)
The Association version: F.R.Y. FREQUENCY, REACH, YIELD Increase how often members give us each month/year Increase the net number of active members Increase average “give” per “transaction” Etc.
Step 5: Finally, look at Sales Revenue
Step 5: Finally, look at Revenue Memberships? Donations & Grants? Sales?
Step 6: Overlay your data onto a timeline activities social data web data transactions loyalty metrics etc.
Step 7: Look for patterns Impact Uncertain Impact Impact Impact No Impact Before After
Step 8: Prove & disprove relationships How was this group Touched by SM or WOM? (And how was it not?) Before After
Finally, someone with some real metrics for me to sink my teeth into! Good job, Sparky! You done gewd! Make the case for Social Media’s value.
R.O.I. Case Study Brief: Association Launch Problem:A new triathlon club with virtually no funding or resources wanted to grow large enough to start sponsoring and organizing events to promote the sport in its area. Advertising was too expensive and local media weren’t targeted enough.                                               Solution:	- Club officers leveraged personal networks to 					increase reach, and digital channels to share  			content. 			- Schedules, newsletters, photos, videos and other 			content was packaged to be sharable online. 			- Identified and exploited mid-level influencers, 			evangelists, volunteers and socially-motivated 					members.                                                                 Result: 	Day 1 - 5 founding members 				Day 30 - 48 members 				Day 75 - 179 members 				Day 120 - 291 members
R.O.I. Case Study Brief: Association Launch Result: 	Starting budget – $120.	 			Membership $ - $25 apiece  291 x $25 =  $7,275 				Corporate Sponsorships for first year:  3 sponsors = $12,000 Within  4 months, the organization had generated  			almost $20,000 in revenue/funding.  				The club invested this funding into events/races, 					custom club/team uniforms, T-shirts, car decals 	 			and other swag. We upgraded the website. Phase 2: The club launched a series of youth 					triathlons to benefit various charities and research. 			Participation soared. (We raised A LOT of money.)  			A state Triathlon series was launched within the year.
R.O.I. Case Study Brief: Association Launch We did this without Facebook, Twitter, MySpace, SMS or blogs.
R.O.I. Case Study Brief: Association Launch Social Media tools didn’t exist yet but the principles behind “Social” did.
R.O.I. Case Study Brief: Association Launch We leveraged our social networks, developed them with purpose, engaged, recruited, promoted and leveraged the ultimate app: …?
R.O.I. Case Study Brief: Association Launch We leveraged our social networks, developed them with purpose, engaged, recruited, promoted and leveraged the ultimate app: People.
R.O.I. Case Study Brief: Association Launch We leveraged our social networks, developed them with purpose, engaged, recruited, promoted and leveraged the ultimate app: People. (They come fully loaded.)
R.O.I. Case Study Brief: Association Launch We were successful in great part due to this:
R.O.I. Case Study Brief: Association Launch We were successful in great part due to this: 1. We had clear objectives.
R.O.I. Case Study Brief: Association Launch We were successful in great part due to this: We had clear objectives. We understood this:
R.O.I. Case Study Brief: Association Launch We were successful in great part due to this: We had clear objectives. (We understood...) Our activities supported our objectives.
R.O.I. Case Study Brief: Association Launch We were successful in great part due to this: We had clear objectives. Some were not financial. Others were. Our activities supported our objectives. We measured success in terms of outcomes: - Financial - Non-financial
R.O.I. Case Study Brief: Association Launch We were successful in great part due to this: We had clear objectives. Some were not financial. Others were. Our activities drove to our objectives. We measured success in terms of outcomes: - Financial - Non-financial 5. Without revenue, we were cooked.
Drinks for  Everybody!
http://smROI.net     Ask away. Olivier Blanchard 864.630.7398 www.thebrandbuildermarketing.com @thebrandbuilder(on Twitter)
And now, an exercise…
And now, an exercise… Write down your organization’s reason for being: …
2. Write down your principal objective. What is the most important thing you want to accomplish. (Not financial)
2. … Now quantify this.  Give it a value. (Not $.) Make it a specific target.
3. Now give me two more.
3. … Again, express them in terms of a specific value: Members, birds rescued, etc.
4. Now write down your 3 top financial objectives.
5. Write down how each financial objective plugs into your three main overall objectives.
R.O.I. = maximizing enablement In your case (and unlike For Profit businesses,)R.O.I. is not where the narrative ends. R.O.I. is a means to an end. Main non-financial objective(s) Plant 3,000,000 new trees in the US Reduce teen pregnancy in Chicago by 3% this year Preserve historic neighborhoods in Baltimore Increase local recycling by 300 tons per year Send 300 cleanup volunteers to the Gulf for one week Attract Google Fiber to your city Enablement
How will you measure success every step of the way?
Measuring success: Defining metrics early A leads to B leads to C leads to D... ? ? ? ? ? Non-financial objective ?
Measuring success: Defining metrics early ? ? ? ? ? Non-financial objective Start here. ? Define Metric/value. What is my target? How much $ do I need to do this?
Measuring success: Defining metrics early Now move here. My $ target is $x. Where do I measure changes in $x? What behaviors leads to this? ? ? ? ? ? Non-financial objective ?
Measuring success: Defining metrics early Now move here. My targetsare X, Y and Z. My metrics are M, N and O. My channels are P, Q, R and S What behaviors drive these targets? ? ? ? ? ? Non-financial objective ?
Not here. Measure here… Plan first. Map out the route. Identify relevant metrics every step of the way.
Your metrics Now start from the beginning. 1. Baseline. 2. Timeline… You planned from outcome to catalyst. Now measure from catalyst to outcome. R.O.I. = financial metrics within this process.
Q: What is the 2012 objective?
(Not 5,000,000 fans on Twitter)
A: Re-election.
Main non-financial objective(s) Get elected in 2012
Q: What is my most important resource?
A: Campaign funding. (It enables everything.*) * Understand your business and its mechanics. If you don’t, you are flying blind.
Main non-financial objective(s)
Q: How does Social Media fit in?
A: Above all else, it yields campaign contributions.
A: How it yields campaign contributions. Directly through vertical engagement Indirectly, through lateral engagement (WOM + peer influence)
Main non-financial objective(s)
Let’s plug-in F.R.Y., just for fun.
Can we increase the frequency of contributions?
Note: Most Obama For America online supporters gave little, but they gave often. Frequency was a key factor in the O4A strategy.
Can we increase the frequency of contributions? YES. Increase frequency of interactions Ask more often Update swag more often Repeat message more often Engage more often SM is more cost effective than paid media
To specifically drive Main non-financial objective(s)
Can we increase our reach?
Second largest search engine in the world, only to Google  Millions of people are content publishers now. Facebook has over 500 MILLION users Twitter now has over 100 MILLIONregistered users. 55,000,000 tweets per day. 37% of users tweet from their phones. Don’t forget… All talking to each other all day long.
Can we increase our reach? YES. Seed and grow our channels Help our supporters share content Ask our fans to share content Arm our fans with tools Make our reach strategy clear Vertical + Lateral engagement
To specifically drive Main non-financial objective(s)
Can we increase our Yield?
Can we increase our Yield? YEP! Foster depth of engagement Develop and build loyalty Increase involvement of fans Understand the value of timing Build clarity of purpose Ask when we need to ask
To specifically drive Main non-financial objective(s)
Because the objectives dictate the tactics...
… the objectives also dictate the metrics.
The metrics are the vital signs of your program.
Every measurement you take has its place and tells its part of the story.
2 Ignore here. 1 Start here… 4 3 5 Connect the dots.
R.O.I. is a crucial link in the measurement chain.
I’m a Social Media guru. Behold my army of followers. My personal brand is golden. Only measure followers, fans, visitors, downloads, click-throughs, mentions and web stats.  That’s Social Media measurement, baby! Dig it. And please, no more of this.
http://smROI.net     Ask away. Olivier Blanchard 864.630.7398 www.thebrandbuildermarketing.com @thebrandbuilder(on Twitter)

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Buzz 2010 presentation

  • 1. Social Business Justification & R.O.I. olivieralainblanchard @thebrandbuilder Buzz 2010 Series Washington, DC 18 August2010 #buzz2010
  • 2. What do I do? Training Social Media Program Integration for C-Suite executives, Managers and organizations. Consulting - Brand Mgmt. - Online Reputation Mgmt. - Social Web & New Media … and the blog. Advisory Board Shenanigans
  • 3.
  • 4. First Rule: The tools are the tools. The tools are not the thing.
  • 5. Second Rule: Associations + NFPs are not like most businesses
  • 7. Having “a presence” in Social Media Is worthless unless you do something with it.
  • 8. Your organizationdoesn’t plug into Social Media. Social Media plugs into your organization.
  • 10. Ways in which Social Media can help a business: Sales Net New Customers, Increased Frequency of Transactions, promo exposure Increased yield (average $ value per transaction), and product penetration Customer Support Immediate feedback and response, positive impact in public forum, cost reduction Human Resources More effective recruiting, online monitoring of employee behavior (risk management) Public Relations Online Reputation Management, improved brand image via Social Web Customer Loyalty Increased interactions, better quality of interactions, deeper relationship with brand, Increased trust in brand, increased mindshare of brand, greater values alignment Business Intelligence Know Everything. (No, really.)
  • 11. Ways in which Social Media can help an association: Outcomes Net New Members, Increased Frequency of Donationsand Volunteerism, Increased yield (average $ value per donation), added exposure MemberSupport Immediate feedback and response, positive impact in public forum, cost reduction, Increased interactions, more varied interactions, portable resources (mobile) Human Resources More effective recruiting, online monitoring of employee behavior (risk management) Public Relations Online Reputation Management, improved brand image via Social Web, Clarification of purpose & value, Direct communication with public MemberLoyalty Increased interactions, better quality of interactions, deeper relationship with cause, Increased trust in organization, increased mindshare of cause, greater values alignment
  • 12. Brand Management: Momentum Drivers Awareness Do enough people know about us? Do enough people think about us? Context Do people think of us in the right way? Value Do people understand our value? What we offer? Relevance Do people appreciate our value to them? Catalysts Do people have a reason to think about us? To engage with us? To buy into us?
  • 13. Leveraging Social Communications Social media is there to drive, amplify and reinforce all of these things: Awareness Context Value Relevance Interactions Transactions
  • 14. Third: A note about vertical and lateral forces…
  • 15. Vertical Engagement= Org + Individual Program/campaign-based, on-message, limited.
  • 16. Lateral Engagement = individual+ individual This is how WOM and content really scale.
  • 18.
  • 19. How do you rescue a fading brand?
  • 20. What if this had nothing to do with Old Spice?
  • 21. Facebook has over 500 MILLION users Twitter now has over 100 MILLIONregistered users. 55,000,000 tweets per day. 37% of users tweet from their phones. All talking to each other all day long.
  • 22. But it doesn’t stop here.
  • 23. What if this were your message?
  • 24. What if this were your message? The principles are the same.
  • 25. Brand Management: Momentum Drivers Awareness Do enough people know about us? Do enough people think about us? Context Do people think of us in the right way? Value Do people understand our value? What we offer? Relevance Do people appreciate our value to them? Catalysts Do people have a reason to think about us? To engage with us? To buy into us?
  • 27. Reaction: What they do. “We have to share this with friends.”
  • 28. How can I leverage Social Media to impact x: Outcomes Net New Members, Increased Frequency of Donationsand Volunteerism, Increased yield (average $ value per donation), added exposure MemberSupport Immediate feedback and response, positive impact in public forum, cost reduction, Increased interactions, more varied interactions, portable resources (mobile) Human Resources More effective recruiting, online monitoring of employee behavior (risk management) Public Relations Online Reputation Management, improved brand image via Social Web, Clarification of purpose & value, Direct communication with public MemberLoyalty Increased interactions, better quality of interactions, deeper relationship with cause, Increased trust in organization, increased mindshare of cause, greater values alignment
  • 29. But all of that is mostly talk. And talk doesn’t pay the bills or change much of anything.
  • 30. Organizations need to raise money and/or get results. Talk needs to impact behavior.
  • 31. NOTHING AN ORGANIZATION DOES IS FREE.
  • 32. 1. Programs and campaigns take manpower.
  • 33. 2. … and technology.
  • 34. 3. And most importantly, time.
  • 35. We have… rocks. … all of which are limited resources.
  • 36. These resources = 100% of your budget These resources generate 100% of your outcomes E-Marketing Head Count Advertising I.T. Inbound Call Center Marketing Sales Dept. Accounting Public Relations
  • 37. Understand that a new marketing program’s funding doesn’t appear out of thin air.: Which buckets do we empty to fill this new one?
  • 38. Give me a good reason why I should assign resources to this thing. The dragonwants to know how this will help the org.
  • 39. It all starts with one question: What are you trying to accomplish? Define the objective FIRST. THEN come up with the tactics.
  • 40. Tactics don’t dictate the objective. You know… What this team really needs Is more WOM! NO
  • 41.
  • 42. Objectives dictate tactics. I need 3 more touchdowns before half-time. What are my options? (How does WOM fit in?) YES
  • 43. Question #1: Will it save me money? Maybe in member support? You mentioned something about media costs and CPI? Question #2: Will it generate more revenue? I want more volunteers, more net new members, more exposure, etc. Fact: Ultimately, the P&L drives business decisions.
  • 44. Objectives should be specific. F.R.Y. FREQUENCY, REACH, YIELD Increase how often customers buy from us each month Increase the net number of transacting customers Increase average spend per transaction Etc.
  • 45. The Association version: F.R.Y. FREQUENCY, REACH, YIELD Increase how often members give us each month/year Increase the net number of active members Increase average “give” per “transaction” Etc.
  • 46. SAY HELLO TO: Business Justification R.O.I.
  • 47. R.O.I. RETURN ON INVESTMENT
  • 48. THE R.O.I. EQUATION Investment Expectation of return
  • 49. THE R.O.I. EQUATION (GAIN FROM INVESTMENT - COST OF INVESTMENT) ROI = COST OF INVESTMENT
  • 50. The Truth About R.O.I. ROI is a business metric, not a media metric. ROI is 100% media-agnostic. Only measuring digital or social won’t get you anywhere.
  • 51. What if you aren’t “for profit?” You still depend on some kind of revenue to function: Grants, funding, donations, membership fees, etc. Same thing. Revenue is revenue. Budgets are budgets. Money is money.
  • 52. I’m a Social Media guru. Love isn’t about ROI, baby. Forget your greedy ways. The Problem.
  • 53. ROI is NOT: Return on Inspiration Return on Involvement Return on Innovation Return on Immersion Return on Imagination Return on Importance Return on Inbound Return on Imbecility Return on Ignorance Return on Incompetence ROI is: Return on Investment.
  • 54. R.O.I. Confusion - A tale of operational silos Engagement R.O.I. Different Focus + Different perspective
  • 55. Reason #1: COST REDUCTION (How can I do more with less?) Reason #2: REVENUE GENERATION (How can I make more of an impact?) So once again, to be clear. This is R.O.I.
  • 56. Let’s get people Talking about us. Dudes, we are ON THIS!!! Let’s start engagin’!!! I’ll start crafting some wicked blog posts and online contests.
  • 57. This rocks! I never had it so good!!!
  • 58.
  • 59. Things happen in sequence.
  • 60. Non-financial impact is not ROI (yet). Too many agencies only measure here.
  • 61. Types of non-financial impact Customer complaints Website Visitors Impressions Positive press Click-throughs YouTube views Retweets Coupons distributed Visitors to a brick & mortar store Positive WOM Delivered emails Negative press Negative WOM Employment applications Blog comments FaceBook friends Social mention Twitter followers
  • 62. Yeah but… What about the P&L? Monitoring to base… Monitoring to base… Our social mentions are wicked good! The YouTube videos are scaling well. Our blog even has comments! We have liftoff!
  • 63. Nope. Anything? Nada. ACCOUNTING Six Months Later…
  • 64. What kind of mood is The old man in today? Not good. He doesn’t care how many visitors the website gets, or how many eyeballs we estimate we’ve reached. How is it all helping grow the Biz yo?
  • 65. Financial vs. Non-financial Impact Non-Financial Financial Are you converting this to this?
  • 66. Or in your world… Way cool! Yeah. Sign us up. Oh cool! Weeeerd! Are you converting this to this?
  • 67. What a Social Media win looks like:
  • 68. What a Social Media win looks like: 94,000 followers Velocity: 8K to 66K in only 2 days 706,000 fans/likes … sharing videos with friends on their wall 16,000,000 views Most response videos >200,000 views Facebook.com/oldspice
  • 69. But will it “sell soap?”
  • 70. (It already has.) Sales of body wash up 107% in the last month. (It’s a good start, but will it be enough to justify the campaign’s expense?)
  • 72. ROI = actualized potential. Social Media Activity - Vertical/Lateral Ultimately, Social Media activity has to positively impact customer behaviors and drive revenue in order to deliver R.O.I.
  • 73. This is not the end of the line for you: In your case (and unlike For Profit businesses,)R.O.I. is not where the narrative ends. R.O.I. is a means to an end. Main non-financial objective(s) Plant 3,000,000 new trees in the US Reduce teen pregnancy in Chicago by 3% this year Preserve historic neighborhoods in Baltimore Increase local recycling by 300 tons per year Send 300 cleanup volunteers to the Gulf for one week Attract Google Fiber to your city
  • 74. This is not the end of the line for you: In your case (and unlike For Profit businesses,)R.O.I. is not where the narrative ends. R.O.I. is a means to an end. Main non-financial objective(s) Plant 3,000,000 new trees in the US Reduce teen pregnancy in Chicago by 3% this year Preserve historic neighborhoods in Baltimore Increase local recycling by 300 tons per year Send 300 cleanup volunteers to the Gulf for one week Attract Google Fiber to your city Enablement
  • 75. Step 1: Establish a baseline 8% YoY Growth
  • 76. Step 2: Create Activity Timelines
  • 77. Step 3: Monitor impact on conversations What are people talking about and where? Map topics, keywords, trends, links, etc.
  • 78. Step 4: Measure transactional precursors
  • 80. Measuring transactional precursors Office? Museum? Kiosk?
  • 81. If you can, also look at # of transactions
  • 82. If you can, also look at # of transactions Sales? Donations? Other?
  • 83. Also measure net new customers NNC is a measure of effective reach, not just media reach.
  • 84. Also measure net new customers Net new members NNC is a measure of effective reach, not just media reach.
  • 85. Transaction data should be specific F.R.Y. FREQUENCY, REACH, YIELD How often customers transact. (transactions per month) How many customers you are reaching. (net new customers) How much they spend. ($ per transaction)
  • 86. The Association version: F.R.Y. FREQUENCY, REACH, YIELD Increase how often members give us each month/year Increase the net number of active members Increase average “give” per “transaction” Etc.
  • 87. Step 5: Finally, look at Sales Revenue
  • 88. Step 5: Finally, look at Revenue Memberships? Donations & Grants? Sales?
  • 89. Step 6: Overlay your data onto a timeline activities social data web data transactions loyalty metrics etc.
  • 90. Step 7: Look for patterns Impact Uncertain Impact Impact Impact No Impact Before After
  • 91. Step 8: Prove & disprove relationships How was this group Touched by SM or WOM? (And how was it not?) Before After
  • 92. Finally, someone with some real metrics for me to sink my teeth into! Good job, Sparky! You done gewd! Make the case for Social Media’s value.
  • 93. R.O.I. Case Study Brief: Association Launch Problem:A new triathlon club with virtually no funding or resources wanted to grow large enough to start sponsoring and organizing events to promote the sport in its area. Advertising was too expensive and local media weren’t targeted enough. Solution: - Club officers leveraged personal networks to increase reach, and digital channels to share content. - Schedules, newsletters, photos, videos and other content was packaged to be sharable online. - Identified and exploited mid-level influencers, evangelists, volunteers and socially-motivated members. Result: Day 1 - 5 founding members Day 30 - 48 members Day 75 - 179 members Day 120 - 291 members
  • 94. R.O.I. Case Study Brief: Association Launch Result: Starting budget – $120. Membership $ - $25 apiece  291 x $25 = $7,275 Corporate Sponsorships for first year:  3 sponsors = $12,000 Within 4 months, the organization had generated almost $20,000 in revenue/funding. The club invested this funding into events/races, custom club/team uniforms, T-shirts, car decals and other swag. We upgraded the website. Phase 2: The club launched a series of youth triathlons to benefit various charities and research. Participation soared. (We raised A LOT of money.) A state Triathlon series was launched within the year.
  • 95. R.O.I. Case Study Brief: Association Launch We did this without Facebook, Twitter, MySpace, SMS or blogs.
  • 96. R.O.I. Case Study Brief: Association Launch Social Media tools didn’t exist yet but the principles behind “Social” did.
  • 97. R.O.I. Case Study Brief: Association Launch We leveraged our social networks, developed them with purpose, engaged, recruited, promoted and leveraged the ultimate app: …?
  • 98. R.O.I. Case Study Brief: Association Launch We leveraged our social networks, developed them with purpose, engaged, recruited, promoted and leveraged the ultimate app: People.
  • 99. R.O.I. Case Study Brief: Association Launch We leveraged our social networks, developed them with purpose, engaged, recruited, promoted and leveraged the ultimate app: People. (They come fully loaded.)
  • 100. R.O.I. Case Study Brief: Association Launch We were successful in great part due to this:
  • 101. R.O.I. Case Study Brief: Association Launch We were successful in great part due to this: 1. We had clear objectives.
  • 102. R.O.I. Case Study Brief: Association Launch We were successful in great part due to this: We had clear objectives. We understood this:
  • 103. R.O.I. Case Study Brief: Association Launch We were successful in great part due to this: We had clear objectives. (We understood...) Our activities supported our objectives.
  • 104. R.O.I. Case Study Brief: Association Launch We were successful in great part due to this: We had clear objectives. Some were not financial. Others were. Our activities supported our objectives. We measured success in terms of outcomes: - Financial - Non-financial
  • 105. R.O.I. Case Study Brief: Association Launch We were successful in great part due to this: We had clear objectives. Some were not financial. Others were. Our activities drove to our objectives. We measured success in terms of outcomes: - Financial - Non-financial 5. Without revenue, we were cooked.
  • 106. Drinks for Everybody!
  • 107. http://smROI.net Ask away. Olivier Blanchard 864.630.7398 www.thebrandbuildermarketing.com @thebrandbuilder(on Twitter)
  • 108. And now, an exercise…
  • 109. And now, an exercise… Write down your organization’s reason for being: …
  • 110. 2. Write down your principal objective. What is the most important thing you want to accomplish. (Not financial)
  • 111. 2. … Now quantify this. Give it a value. (Not $.) Make it a specific target.
  • 112. 3. Now give me two more.
  • 113. 3. … Again, express them in terms of a specific value: Members, birds rescued, etc.
  • 114. 4. Now write down your 3 top financial objectives.
  • 115. 5. Write down how each financial objective plugs into your three main overall objectives.
  • 116. R.O.I. = maximizing enablement In your case (and unlike For Profit businesses,)R.O.I. is not where the narrative ends. R.O.I. is a means to an end. Main non-financial objective(s) Plant 3,000,000 new trees in the US Reduce teen pregnancy in Chicago by 3% this year Preserve historic neighborhoods in Baltimore Increase local recycling by 300 tons per year Send 300 cleanup volunteers to the Gulf for one week Attract Google Fiber to your city Enablement
  • 117. How will you measure success every step of the way?
  • 118. Measuring success: Defining metrics early A leads to B leads to C leads to D... ? ? ? ? ? Non-financial objective ?
  • 119. Measuring success: Defining metrics early ? ? ? ? ? Non-financial objective Start here. ? Define Metric/value. What is my target? How much $ do I need to do this?
  • 120. Measuring success: Defining metrics early Now move here. My $ target is $x. Where do I measure changes in $x? What behaviors leads to this? ? ? ? ? ? Non-financial objective ?
  • 121. Measuring success: Defining metrics early Now move here. My targetsare X, Y and Z. My metrics are M, N and O. My channels are P, Q, R and S What behaviors drive these targets? ? ? ? ? ? Non-financial objective ?
  • 122. Not here. Measure here… Plan first. Map out the route. Identify relevant metrics every step of the way.
  • 123. Your metrics Now start from the beginning. 1. Baseline. 2. Timeline… You planned from outcome to catalyst. Now measure from catalyst to outcome. R.O.I. = financial metrics within this process.
  • 124. Q: What is the 2012 objective?
  • 125. (Not 5,000,000 fans on Twitter)
  • 127. Main non-financial objective(s) Get elected in 2012
  • 128. Q: What is my most important resource?
  • 129. A: Campaign funding. (It enables everything.*) * Understand your business and its mechanics. If you don’t, you are flying blind.
  • 131. Q: How does Social Media fit in?
  • 132. A: Above all else, it yields campaign contributions.
  • 133. A: How it yields campaign contributions. Directly through vertical engagement Indirectly, through lateral engagement (WOM + peer influence)
  • 135. Let’s plug-in F.R.Y., just for fun.
  • 136. Can we increase the frequency of contributions?
  • 137. Note: Most Obama For America online supporters gave little, but they gave often. Frequency was a key factor in the O4A strategy.
  • 138. Can we increase the frequency of contributions? YES. Increase frequency of interactions Ask more often Update swag more often Repeat message more often Engage more often SM is more cost effective than paid media
  • 139. To specifically drive Main non-financial objective(s)
  • 140. Can we increase our reach?
  • 141. Second largest search engine in the world, only to Google  Millions of people are content publishers now. Facebook has over 500 MILLION users Twitter now has over 100 MILLIONregistered users. 55,000,000 tweets per day. 37% of users tweet from their phones. Don’t forget… All talking to each other all day long.
  • 142. Can we increase our reach? YES. Seed and grow our channels Help our supporters share content Ask our fans to share content Arm our fans with tools Make our reach strategy clear Vertical + Lateral engagement
  • 143. To specifically drive Main non-financial objective(s)
  • 144. Can we increase our Yield?
  • 145. Can we increase our Yield? YEP! Foster depth of engagement Develop and build loyalty Increase involvement of fans Understand the value of timing Build clarity of purpose Ask when we need to ask
  • 146. To specifically drive Main non-financial objective(s)
  • 147. Because the objectives dictate the tactics...
  • 148. … the objectives also dictate the metrics.
  • 149. The metrics are the vital signs of your program.
  • 150. Every measurement you take has its place and tells its part of the story.
  • 151. 2 Ignore here. 1 Start here… 4 3 5 Connect the dots.
  • 152. R.O.I. is a crucial link in the measurement chain.
  • 153. I’m a Social Media guru. Behold my army of followers. My personal brand is golden. Only measure followers, fans, visitors, downloads, click-throughs, mentions and web stats. That’s Social Media measurement, baby! Dig it. And please, no more of this.
  • 154. http://smROI.net Ask away. Olivier Blanchard 864.630.7398 www.thebrandbuildermarketing.com @thebrandbuilder(on Twitter)