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Social Media|How | Why | ROI|

Basic Social Media ROI Formula

Just Kidding!You already know how tocalculate social ROI…

BENCHMARK!Then apply the same logic to the new medium…

Step 1: Start with your destination.• Establish your social goals

• Map these against KPIs

• What do you currently measure?

Social Goals1. 10,000 Facebook likes.2. Improve perception of brand.

KPIs3. Reduce cost of acquisition.4. 5% more leads to sales.

Currently Measure5. Reach of print advertising.6. Call centre response time.

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Step 2: Outline your journey.

• What is your measure of success?

• What did it cost / How much did you save?

• What did you achieve / What were the results?

= ROI

Worth remembering…• Online = Trackable

– There is always a number when working online (i.e. likes, clicks to open, re-tweets) so you will always be able to find a measurement.

• Disclaimer: – The following examples show how your current activities can give you

a benchmark against which you can judge social — not how social can replace your other programs.

Measure Traditional Social

KPI Successfully launch new product Encourage use of existing service

Measure of success 1,000,000 impressions(supplied by oOh! Media: average number of people passing by location x time period of ad display)

100,000 Facebook ‘Likes’

What did it cost?(AND/OR)

How much did you save?

$100,000 for print & display $5,000 for artwork & banner ads

What did you achieve? 1,000,000 impressions(assumption – not verifiable)

100,000 Facebook ‘Likes’Ability to communicate with 100,000

ROI $100,000 / 1 million views = $0.10/view

$5,000 / 100,000 = $0.05/FB ‘Like’

Example 1: Billboard Advertising & Facebook

Measure Traditional Social

KPI Decrease time to resolution Improve customer sentiment

Measure of success Reduce call time by 2 minutes Reduce negative sentiment by 5%

What did it cost?(AND/OR)

How much did you save?

$50,000(PABX with customer routing functionality & training)

Tool to track sentiment & respond to Tweets + added job responsibility

What did you achieve? Improved customer experienceReduced f/t head-count by 2($50,000 x 2 = $100,000)

Improved sentiment by 5%(responded to enquiries via preferred platform)

ROI $50,000($100,000 savings - $50,000 cost = $50,000)

Reduce cost of enquiry response(keep this online $0.50 vs. offline $12.50)Ability to x-sell products

Example 2: Customer Service & Twitter

Measure Traditional Social

KPI Improve reseller sales channel Improve direct website sales

Measure of success 10% increase in sales through premium reseller

15% increase in direct sales through website

What did it cost?(AND/OR)

How much did you save?

$200,000(Full POS / floor staff incentive program)

$1,000($500 video camera / $200 demo product / $300 editing)

What did you achieve? 10% increase in reseller salesImproved reseller relationship

Increased web traffic by 5,000%Increased direct sales by 15%

ROI Revenue increase with possible longer term improvement

Revenue increaseViews/ Share/ Tweets/ Posts/ Visits

Example 3: Driving Sales & YouTube

How easy is that!

Next Steps• Buy-in

– People fear things they don’t understand – your boss is a person!

• Prove there is a NUMBER– Benchmark, track and report until people start to listen to you

• Always link up with your KPIs– Deliver the results (or review what you are responsible for delivering)

• Imitation = flattery– Observe, listen and learn from your customers and competitors

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Amanda PowellEmail: amanda@buzznumbershq.comTwitter: @manjajpLinkedin: linkedin.com/in/amandapowell

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