ho to measure social media roi
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Social Media ROI What is it and how do you measure it?
What you are asking for
I love social media almost as much as I hate it !
Looking forward to meeting interesting people
I always question the ROI of social media for our specific business area
Measuring social marketing is a huge challenge for us, but we want to do more of it
I would love to hear about some of the experiences
I can contribute
one of the most elusive topics in marketing and communications at the moment...
I'm keen to learn everything there is to know about social media to promote my own business as well as my clients!
As a man running a social media budget of £0 right now I'm keen to understand more about ROI when I do get a budget!
Some of what we will cover today
DISPELLING : MYTHS
• #1 SOCIAL MEDIA IS FREE• #2 SOCIAL MEDIA IS EASY• #3 SOCIAL MEDIA IS UNIVERSALLY VALUED BY CEOS• #4 SOCIAL MEDIA DOESN’T MATTER• #5 RUNNING PPC ON FACEBOOK IS SOCIAL MEDIA
NOT : FREE
NOT : EASY
NOT : VALUED
DOES : MATTER
NOT : PPC!
JUSTIFY : YOURSELF
Source: http://www.pastemagazine.com/blogs/playlist/2009/04/-pastes-tax-refund-playlist-cash-money-mix.html
Great results, but not all of these demonstrate ROI...Social Media Services Clients Output
Research, Analysis & Strategy Development
Increased monthly subscriptions by 400%
Lead Generation Cost per lead reduced by over 150%
Community Management Conversions doubled month on month
Brand Ambassador Programme Top channel for conversions
Customer Service, Training and Recruitment
Reduced cost per app by 140%
Social Search Cost per lead reduced by over 1,000%
ROI: BASIC RULES
ROI = GAIN FROM INVESTMENT
COST OF INVESTMENT
COST OF INVESTMENT[
[
-
/1. ROI is a business metric, not a media metric
2. ROI is 100% media agnostic
From Social Media is Dead, Long Live Social Media, xplain.co
3. The values used in the equation are nonvariable
4. Every resource you assign has a value
5. ROI can only be calculated after the investment has a return
6. ROI stands for Return on Investment. Nothing else
WEIRD : SCIENCE
IF THE EQUATION SHOWS AN INVESTMENT IN POUNDS STERLING AND A RETURN IN RETWEETS, LIKES OR COMMENTS YOU’RE IN FOR A TOUGH TIME…
METRICS : THE PATH TO GAIN
COST OF SALE
TIME TO SALE
INCREASE IN SALES
QUALITY OF RELATIONSHIP (GAIN IN LT SALES)
[[
THIS IS WHERE CAMPAIGNS ARE OFTEN REPORTED
THIS IS WHERE THE TRUE VALUE LIES…
/BRAND EXPOSURE TRAFFIC
JUDGING : THE IMPACT OF THE VALUE CHAIN
Sources: http://www.ics-online.co.uk/ics_cleaning-in-london-essex-kent-company-policies.htm ; http://www.tages.biz/index.php?module=news&page=readmore&news_id=388&sid=3d891e809936535d7d10ca39ec77dc40 ; http://edition.cnn.com/2011/WORLD/asiapcf/04/01/japan.auto.sales/index.html ; http://www.ehow.co.uk/list_6681520_michigan-sales-tax-rules.html
ESTABLISH : A BASELINE
Sources: http://bmbolstad.com/misc/normalize/normalize.html
MAP : ACTIVITY TIMELINES
Sources: http://www.air-worldwide.com/PublicationsItem.aspx?id=17904
TRACK : OUTPUTS
• TRAFFIC (VIEWS, HITS, LIKES, MENTIONS)
• RESPONSE (CLICKS, APPLICATIONS, RETWEETS)
• BEHAVIOUR (TIME SPENT ON SITE, ACTION, INFLUENCE)
• SENTIMENT (POSITIVE, NEUTRAL, NEGATIVE)
AGGREGATE : DATA
Sources: http://www.googletutor.com/google-public-data-explorer-lets-you-visualize-public-datasets/
CORRELATE : DATA
USE : TOOLS
DON’T: STOP
Sources: http://images.businessweek.com/ss/08/02/0225_doodles/source/5.htm
PROVE : VALUE
• Typically Staples spends £10,000 on store recruitment, now spending <£1,000
• A recent store opening in Tonbrigde generated c600 applicants for 21 Job Roles (135 were taken to interview)
• Candidate quality is exceptionally high (as is the quality of those that are hired)
Client: • HP EMEA
Challenge: • Take market share from key competitors• Raise HP’s brand presence within targeted social spaces
What we achieved: • HP now ranks as the first computer manufacturer on Google• Driven over 1,000,000 leads to date
PROVE: ROI
MOVING: FORWARD(10 STEPS)1. Define an objective2. Decide where to
monitor3. Decide what to
monitor4. Prioritise – intelligent
and actionable!5. Develop a plan –
comments won’t all be good!
6. Involve others7. Listen first8. Have rules of
engagement for Inbound vs Outbound conversations
9. Build relationships10.Select tools to match
your strategy & refine!
PARTING : THOUGHTS
“If everything seems in control, perhaps you’re not moving fast enough?”
Mario Andretti
“Injecting Twitter into that conversation fundamentally changed the rules of engagement. It brought a wider audience into what would have been a private exchange. And it gave the event an afterlife. The sum total …added up to something truly substantive, like a suspension bridge made of pebbles.” (http://www.time.com/time/business/article/0,8599,1902604-1,00.html)
ANY : QUESTIONS?
• IAB handbook on Social Media Measurement • Attend a Social Media Measurement Camp
• Alternatively, try:– http://www.linkedin.com/in/andyhyatt– @theholodeck– http://hodesdigital.co.uk/hyatt – [email protected]– [email protected]– [email protected]