Olivier Blanchard Basics Of Social Media Roi

Enough with,[object Object],the Social Media BS.,[object Object],Give me the realz.,[object Object],Social Fresh Conference // 24 August 2009,[object Object]

SOCIAL MEDIA IS NOT FREE.,[object Object]

1. It takes people.,[object Object]

2. It takes technology.,[object Object]

3. It takes time.,[object Object]

We have… rocks.,[object Object],… all of which are limited resources.,[object Object]

These resources,[object Object],=,[object Object],100%,[object Object],of your budget,[object Object],E-Marketing,[object Object],Each resource,[object Object],has a specific cost,[object Object],Head Count,[object Object],Advertising,[object Object],I.T.,[object Object],Inbound Call Center,[object Object],Each resource,[object Object],yields specific results,[object Object],Marketing,[object Object],Sales Dept.,[object Object],Accounting,[object Object],Public Relations,[object Object]

These resources,[object Object],generate,[object Object],100%,[object Object],of your business,[object Object],E-Marketing,[object Object],Losing even 1% ,[object Object],of your budget’s efficiency ,[object Object],could seriously ruin ,[object Object],your day.,[object Object],Head Count,[object Object],Advertising,[object Object],I.T.,[object Object],Inbound Call Center,[object Object],Marketing,[object Object],Sales Dept.,[object Object],Accounting,[object Object],Public Relations,[object Object]

Okay fine. But if,[object Object], I’m going to take a chance,[object Object],on this social media thing,,[object Object],it had better make good business,[object Object],sense! Why should I allocate,[object Object],resources to it?,[object Object]

Reason #1:,[object Object],It will result in a cost reduction.,[object Object],Maybe in customer service?,[object Object],You mentioned something about,[object Object],business intelligence and,[object Object],market research?,[object Object],Reason #2:,[object Object],It will generate more revenue.,[object Object],I want more transactions, ,[object Object],more net new customers,,[object Object],more customer loyalty,,[object Object],etc.,[object Object]

Now go figure out what,[object Object],Program you have to cut,[object Object],to fund this Social Media thing.,[object Object],Remember that our bonuses,[object Object],are on the line.,[object Object]

Understand that a new,[object Object],Social Media program’s,[object Object],funding doesn’t appear,[object Object],out of thin air.:,[object Object],Which buckets do we empty,[object Object],to fill this new one?,[object Object]

SAY HELLO TO:,[object Object],Business Justification,[object Object],R.O.I.,[object Object]

R.O.I.,[object Object],RETURN,[object Object],ON,[object Object],INVESTMENT,[object Object]

THE R.O.I. EQUATION,[object Object],Investment,[object Object],Expectation of return,[object Object]

THE R.O.I. EQUATION,[object Object],(GAIN FROM INVESTMENT - COST OF INVESTMENT),[object Object],ROI =,[object Object],COST OF INVESTMENT,[object Object]

Truth about R.O.I.,[object Object],ROI is a business metric,,[object Object], not a media metric.,[object Object],ROI is 100% media-agnostic.,[object Object],Only measuring digital or social won’t get you anywhere.,[object Object]

Reason #1:,[object Object],COST REDUCTION,[object Object],Reason #2:,[object Object],REVENUE GENERATION,[object Object],Remember what Mr. Bossman said…,[object Object]

I shrank my PR budget by 20%,[object Object],and my outbound call budget by 40%.,[object Object],Now I can afford a team of social media,[object Object],Rock stars. Can I get a hellz yeah?,[object Object],Okay, hotshot,,[object Object],You have your Social Media doohickey.,[object Object],Now I’d better see some real results!,[object Object],Or else… ,[object Object]

Woohoo!,[object Object],I have a job!!!,[object Object]

Dudes, we are ,[object Object],ON THIS!!!,[object Object],Let’s start engagin’!!!,[object Object],I call dibs on the,[object Object],Corporate blog.,[object Object]

Cool.,[object Object],ACCOUNTING,[object Object],One Month Later…,[object Object]

What about our,[object Object],Twitternets?,[object Object],Oh my! Look at all the new,[object Object],visitors to our website!,[object Object],and all of our FaceBook friends!,[object Object],Hot Damn, we even have ,[object Object],comments on the blog!,[object Object]

This rocks!,[object Object],I never had it so,[object Object],good!!!,[object Object]

Cool.,[object Object],ACCOUNTING,[object Object],Three Months Later…,[object Object]

Yeah but…,[object Object],What about,[object Object],the P&L?,[object Object],Monitoring to base…,[object Object],Monitoring to base…,[object Object],Our Google Analytics are through,[object Object],the roof! Even our social mentions,[object Object],are wicked good!,[object Object],We have liftoff!,[object Object]

Measuring media,[object Object],really rocks my,[object Object],world. ,[object Object]

Nope.,[object Object],Anything?,[object Object],Nada.,[object Object],ACCOUNTING,[object Object],Six Months Later…,[object Object]

What kind of mood is ,[object Object],The old man in today?,[object Object],Not good.,[object Object],He doesn’t care how many visitors,[object Object],the website gets, or how many,[object Object],eyeballs we estimate we’ve reached unless it means we’re selling,[object Object],more stuff.,[object Object]

But why?,[object Object],Our website is getting ,[object Object],mad hits, Jack!,[object Object],And we have 3,000 followers,[object Object],on Twitter now!,[object Object],I’m sorry, son.,[object Object],If your Social Media program,[object Object],is generating revenue, we aren’t,[object Object],seeing it. We need to allocate ,[object Object],resources where we can,[object Object],make money.,[object Object],It’s just business.,[object Object]

Darn it.,[object Object],This media measurement,[object Object],stuff isn’t working.,[object Object],We need to start,[object Object],tying this stuff to actual,[object Object],Business performance.,[object Object],Where to start?,[object Object],Let’s see…,[object Object],At the beginning?,[object Object]

Things happen in sequence.,[object Object]

Non-financial impact is not ROI (yet).,[object Object]

Types of non-financial impact,[object Object],Customer complaints,[object Object],Website Visitors,[object Object],Impressions,[object Object],Positive press,[object Object],Click-throughs,[object Object],YouTube views,[object Object],Retweets,[object Object],Coupons distributed,[object Object],Visitors to a brick & mortar store,[object Object],Positive WOM,[object Object],Delivered emails,[object Object],Negative press,[object Object],Negative WOM,[object Object],Employment applications,[object Object],Blog comments,[object Object],FaceBook friends,[object Object],Social mention,[object Object],Twitter followers,[object Object]

Non-financial impact = potential.,[object Object]

ROI = actualized potential.,[object Object]

I need proof that,[object Object],what we’re doing,[object Object],is actually working.,[object Object],Start with proof of concept.,[object Object]

Step 1: Establish a baseline,[object Object],8% YoY Growth,[object Object]

Baselines illustrate deltas (changes),[object Object],Is something happening here?,[object Object]

Step 2: Create Activity Timelines,[object Object]

Step 3: Look at Sales Revenue,[object Object]

Step 3: Also look at # of transactions,[object Object]

Step 3: Also measure net new customers,[object Object]

Transaction data should be specific,[object Object],F.R.Y.,[object Object],FREQUENCY, REACH, YIELD,[object Object],How often customers transact. (transactions per month),[object Object],How many customers you are reaching. (net new customers),[object Object],How much they spend. ($ per transaction),[object Object]

The latest numbers indicate,[object Object],that our YoY sales $ are up 60%.,[object Object],Our individual transactions have doubled,,[object Object],as have our transacting customers.,[object Object],Something’s working! ,[object Object],Groovy!,[object Object],Let’s figure out what.,[object Object]

Step 4: Measure transactional precursors,[object Object]

We overlaid all of our timelines,[object Object],and noticed that since our social media,[object Object],activities began, our website visits are up,,[object Object],our social mentions are also up, and,[object Object],everyone seems to love us. ,[object Object],So is there a,[object Object], discernable pattern,[object Object],in this?,[object Object]

Step 5: Overlay all timelines,[object Object],activities,[object Object],social data,[object Object],web data,[object Object],transactions,[object Object],loyalty metrics,[object Object],etc.,[object Object]

Step 6: Look for patterns,[object Object],Impact,[object Object],Uncertain Impact,[object Object],Impact,[object Object],Impact,[object Object],No Impact,[object Object],Before,[object Object],After,[object Object]

Step 7: Prove relationships,[object Object],How was this group,[object Object],Touched by SM?,[object Object],Before,[object Object],After,[object Object]

How long,[object Object],will all this,[object Object],analysis take?,[object Object],It’s all a process,[object Object],of elimination, really.,[object Object],Isolating patterns, ,[object Object],quantifying deltas,,[object Object],proving ad-hocs…,[object Object],Then all,[object Object],we have to do is,[object Object],figure out what the cost ,[object Object],savings and revenue gains,[object Object],are, and plug them ,[object Object],into the equation.,[object Object]

Oh wow.,[object Object],This R.O.I. thing,[object Object],wasn’t at all about,[object Object],measuring media,,[object Object],impressions and,[object Object],eyeballs!,[object Object]

All things remaining the same…,[object Object],We may have ,[object Object],proof of,[object Object],concept.,[object Object],Hot damn!,[object Object],ACCOUNTING,[object Object],First things first: Prove that Social Media works,[object Object]

So it turns out that our ,[object Object],Social Media program is impacting,[object Object],every aspect of our business except,[object Object],traffic in our brick and mortar stores.,[object Object],Can you get on that? Yeah. We need,[object Object],to find out why we aren’t having,[object Object],an effect there. Kthxbye. ,[object Object],Then use what you know to make it work better.,[object Object]

More store traffic.,[object Object],Roger that.,[object Object],Dudes, we are ,[object Object],ON THIS!!!,[object Object],Let’s start engagin’!!!,[object Object],I’ll start crafting some,[object Object],wicked blog posts.,[object Object]

Finally, someone with some,[object Object],real metrics for me to sink my teeth into!,[object Object],Good job, Sparky! You done gewd!,[object Object]

So I guess Social Media,[object Object],is going to stick around a little while,[object Object],longer after all, isn’t it?,[object Object],Yessir.,[object Object],Looks like our budget,[object Object],is safe for now.,[object Object]

Drinks for ,[object Object],Everybody!,[object Object]

Olivier Blanchard,[object Object],Principal, BrandBuilder Marketing,[object Object],864.630.7398,[object Object],www.thebrandbuildermarketing.com,[object Object],@thebrandbuilder(on Twitter),[object Object],www.smroi.net,[object Object]

Slideography,[object Object],Slide # Source,[object Object],3, 9, 10, 11, 18-31, ,[object Object],37, 38, 48, 52, 56,,[object Object],59-65,[object Object],4,[object Object],6,[object Object],UFO (TV series) ,[object Object],http://ufoseries.com/,[object Object],http://www.minnpost.com/stories/2008/06/18/2282/this_doesnt_compute_as_more_women_enter_scientific_fields_their_numbers_in_computer_science_are_declining,[object Object],Kim Jong Il puppet, from “Team America”,[object Object],http://blogs.rockymountainnews.com/bridget/kimjongil.jpg,[object Object]

Olivier Blanchard Basics Of Social Media Roi

Olivier Blanchard Basics Of Social Media Roi

Recommended

More Related Content

What's hot

What's hot(20)

Similar to Olivier Blanchard Basics Of Social Media Roi

Similar to Olivier Blanchard Basics Of Social Media Roi(20)

More from Olivier Blanchard

More from Olivier Blanchard(7)

Recently uploaded

Recently uploaded(20)

Olivier Blanchard Basics Of Social Media Roi