Social media -
   But does it
 make money?

        we can’t stop moving





Can social media provide roi?
            Short answer:

            If executed correctly, Social
            Media...





      ROI    Return On Investment
Keeping it simple: you put money into marketing and expect
sales to increase as a ...





    Types of ROI for SM
    Social Media, if done right, is most often used to provide the following types of ROI:

...





                                                      B
Where am I?
To establish ROI, you need to know (and measure)...





Here is the big problem
Most companies don’t have the tools in place to measure where they are
in respect to their g...




        Measure, measure, measure
        To Know whether you have had any returns, you need first of all to set up w...




   you need something like this
   In our quest to map out the effects of Social Media and ROI, we should have
   som...




   Correlations
   Once you have you measurements in place, you need to look for correlations
   between data. This i...




   Correlations
   Once you have you measurements in place, you need to look for correlations
   between data. This i...





disclaimer 1!                                            disclaimer 2!
Correlations between measurements should not ...




Moving on - Define Success
Before going out and trying to find out ROI in Social Media, you need to define
what your ...




A sample social media campaign

campaign               landing page                   sales                       roi...



             Measured! Now analyse your data

Do you see any trends? Is traffic up to your store
after posting on Face...




                   Quantity vs Quality
        Be careful when analysing data - sometimes numeric growth does not alw...




It comes down to
justifying the spend
Word of mouth has always been effective in increasing
sales. Social Media is th...




But wait, ROI’s not all
You can expect other types of return from Social Media, for example,
increases in:
• Brand lo...




Brand Equity
If online direct sales is your company’s goal, your sales results will
be your ultimate measure of succe...
Conclusion




ROI yes, but not just that...
              Once you’ve measured the impact of a successful
              Social Medi...
next steps...




ok, what next?
Ultimately, we believe Social Media is an important part of any brands marketing
arsenal. Consumers wi...

pioneering
                                                london

latest trends & new technologies

delivering
from res...
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Social Media - how to measure and determine ROI

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A report created by w3haus - creative digital agency (www.w3haus.com) on strategies on how to determine the Returns on Investment (ROI) you can achieve through social media marketing efforts.

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Social Media - how to measure and determine ROI

  1. 1. Social media - But does it make money? we can’t stop moving
  2. 2.  Can social media provide roi? Short answer: If executed correctly, Social Media can provide reliable returns as well as be an invaluable marketing tool. For the longer answer, we must first go through some basic concepts...
  3. 3.  ROI Return On Investment Keeping it simple: you put money into marketing and expect sales to increase as a result. If you make more profit on sales than you spent on marketing, that is a (positive) return on investment.
  4. 4.  Types of ROI for SM Social Media, if done right, is most often used to provide the following types of ROI: • increase in brand equity, fidelity and loyalty ROI • improved brand perception • efficiencies in customer satisfaction / service • increased sales • cost-effective customer insights Social Media and research • efficiencies in PR • efficiencies in advertising product and service launches
  5. 5.  B Where am I? To establish ROI, you need to know (and measure) where you are and where you want to be constantly: A where you want to be know numerically what your goals are where you are example: sales, footfall, clients database, site traffic, customer sentiment, brand equity, etc.
  6. 6.  Here is the big problem Most companies don’t have the tools in place to measure where they are in respect to their goals. This can be the single biggest hurdle to measuring ROI in social media. 84% of companies don’t measure ROI in social media source: Emarketer
  7. 7.  Measure, measure, measure To Know whether you have had any returns, you need first of all to set up ways of detecting the real impact of social media on your returns. Each company will have different ways of measuring this and different goals - perhaps you will need to start from scratch, but these measurements are essential to analysing your returns. time spent interacting Blog posts Sales loyalty digital leads Site visits biggest spenders Number of followers referral links returning visitors Fans Positive mentions Footfall Negative mentions Clickthroughs customer feedback efficiencies *Each brand will have a different set of measurements relevant to them, the above are just a few examples.
  8. 8.  you need something like this In our quest to map out the effects of Social Media and ROI, we should have something like this: sales social media activity sales normal sales for period time
  9. 9.  Correlations Once you have you measurements in place, you need to look for correlations between data. This is the secret to measuring ROI in social media. sales social media activity sales normal sales for period time
  10. 10.  Correlations Once you have you measurements in place, you need to look for correlations between data. This is the secret to measuring ROI in social media. sales social media activity sales normal sales for period time positive correlation no correlation successful social media campaign unsuccessful social media campaign
  11. 11.  disclaimer 1! disclaimer 2! Correlations between measurements should not be Just as correlations don’t give you 100% certainty, we mistaken for causes. Just because something should also make a note about ROI vs Marketing: ROI happens when an event takes place, does not mean is a financial measurement and Social Media is (in this it was directly caused by that event. Correlations are context) a marketing effort. Marketing does not sell here to help identify ROI, they do not offer 100% directly anything, but rather increases the probability certainty, but are our best tool for measuring ROI in of sales. So by trying to match ROI and Social Media Social Media. we are measuring much more the probability of sales than sales themselves. We are looking at influence.
  12. 12.  Moving on - Define Success Before going out and trying to find out ROI in Social Media, you need to define what your goals are in a measurable way. What does success for your brand look like? Brand Awareness More site visits, more mentions in social media, fan pages, high ranking SEO, etc In store sales, online sales, user journey in Sales online purchase process, higher conversions Video demonstration views, time spent on website, Brand Engagement number of shares of embedded content, etc. Number of customer interactions, Visitors to Customer Service education resources, reduction of calls etc *Each brand will have different measures of success relevant to them, the above are just a few examples to illustrate possible real world scenarios.
  13. 13.  A sample social media campaign campaign landing page sales roi • Page views • Increased? • Extra Sales / • Visitors • Correlation with Social Campaign cost $$ • Avg Time spent on page media data? • Potential customers • Bounce Rate • Increase in purchase in database • User Journey attempts? • Customer Insight • Increase in landing • increased awareness page visits? • Increase 25% Sales through Social Media Channels Example Goals • Increase positive mentions by 50% (reduce negative by 25%) • Achieve average of X views of landing page per day
  14. 14.  Measured! Now analyse your data Do you see any trends? Is traffic up to your store after posting on Facebook or Twitter? Does store traffic correlate with more sales when evaluating that same data? Does a higher sentiment analysis on Twitter lead to more sales or more visits? Finding trends and tracking them back to their point of origin is the key to measuring ROI.
  15. 15.  Quantity vs Quality Be careful when analysing data - sometimes numeric growth does not always translate to results. It is very important to qualify your interactions and not just be happy with increases. But be happy if you can answer yes to some or all of the following questions: Are your visitors returning and is your Did sales increase with bounce rate decreasing? increase in hits and followers/ fans? Are visitors spending Is brand sentiment more time interacting online improving as and viewing more a consequence of your content? social media presence? Are visitors Are fans of your brand spending more time spreading your interacting and message voluntarily? viewing more content? *Each brand will have different measures of success relevant to them, the above are just a few examples to illustrate possible real world scenarios.
  16. 16.  It comes down to justifying the spend Word of mouth has always been effective in increasing sales. Social Media is the digital equivalent, with massive amplifying potential (global audience). Everyone knows Social media can deliver value and ROI, the difficulty is putting in place the measurements to prove it.
  17. 17.  But wait, ROI’s not all You can expect other types of return from Social Media, for example, increases in: • Brand loyalty • Positive association to brand name • Increased public awareness and brand recognition • brand engagement • improved customer service and satisfaction These returns will also translate to sales, only indirectly and will have a different life-cycle, possibly taking longer to monetise, and potentially having a much better cost-effect ratio than other types of marketing campaigns in the long run.
  18. 18.  Brand Equity If online direct sales is your company’s goal, your sales results will be your ultimate measure of success. But for most brands, the biggest value Social Media will provide will be Brand Equity. In the cluttered world of online communications, Brand Equity is quite an achievement. Social Media can now make or break a brand’s image online, with massive repercussions offline. why should someone buy your brand over your competitor?
  19. 19. Conclusion
  20. 20.  ROI yes, but not just that... Once you’ve measured the impact of a successful Social Media campaign, you know Social Media can provide good ROI and you can then justify your Social Media spend. We have gone over a few different ways of adapting the return to fit the needs of your business (sales, footfall, fidelity, brand identification, meaning, etc). Don’t forget that ROI is not the main reason to get into Social Media - you will achieve much better results if you think longer term brand engagement, consumer insight and brand equity rather than short term ROI. ROI will come, but most likely within months and years and not days and weeks.
  21. 21. next steps...
  22. 22.  ok, what next? Ultimately, we believe Social Media is an important part of any brands marketing arsenal. Consumers will talk about your brand whether you wan’t them to or not and there is great value in being part of the conversation. Get in touch with us at W3Haus and we can answer some of your questions about how to measure your brand’s ROI in social media campaigns and also other questions like: 1) What does a social media campaign look like? 2) What should my brand be doing? 3) Which services (Facebook, Twitter, etc) are right for my brand? 4) How would i implement measurements for ROI for my company? And any other questions we might be able to help you with. You can reach us on: rodrigo@w3haus.com Twitter @w3hausuk
  23. 23.  pioneering london latest trends & new technologies delivering from research & planning to production & launch creative digital agency london são paulo & porto alegre specialists in social media, web, mobile, seeding, media & much more For further details, please contact: rodrigo@w3haus.com w3haus.com Blog CANTSTOPMOVING.CO.UK reel youtube.com/w3hausuk

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