measure roi of social media
TRANSCRIPT
Measuring the
of Social MediaROI
What’s the
of Your Mother?ROI
Gary Vaynerchuck
Brace Yourself.
•Storytelling & personality
•Credibility & expertise
•Values & culture
•Loyalty & retention
It’s Not All About ROI
| Truth |We still have to prove the value of social media.
• 88% of marketing professionals can’t accurately measure the effectiveness of social
• 52% percent said that dealing with social media ROI was their biggest frustration
Start easy stuff
with the
MetricsFans & Followers
Blog Post Views
Likes
Comments
Email Subscribers
Fans & Followers
Blog Post Views
Likes
Comments
Email Subscribers
Vanity Metrics
| Truth |Your likes are worthless (almost).
• Brands organically reach only 6% of fans, down 12% from this past October.
• 11.2% of those users are fake anyway
Move on good stuff
to the
| ROI |
(Return - Investment) / Investment
Whatto do?
do you want your social media
Return MetricsNumber of transactions
Number of customers
Number of new customers
Lifetime value
Revenue
Profit
Conversion Metrics
New Visitors
Return Visitors
Marketing Qualified Leads
Sales Qualified Leads
Conversions / Sales
| If your goal is |brand awareness
• Growth in website visitors
• Growth in social media followers
• Brand mentions
• Increase in pages viewed per visit
| If your goal is |increased engagement or customer loyalty
• Return visitors
• Interactions per visit
• Comments, retweets, and likes on your posts
• Blog or email subscribers
| If your goal is |lead generation
• Form submissions on website
• Phone calls from tracked number
• Total number of new leads generated
Very Basic Valuation
| Example |
1000 visits to landing page
100 email subscriptions
10 purchases
$1000 total sales
Very Basic Valuation
| Example |
1000 visits to landing page
100 email subscriptions
10 purchases
$1000 total sales
Average Transaction Amount
Lead (MOFU) or Conversion
Lead (TOFU) or Conversion
Revenue
Very Basic Valuation
| Example |
Average Transaction Amount
Lead (MOFU) or Conversion
Lead (TOFU) or Conversion
Revenue
$100
$10
$1
$1000
1. Determine your investment
2.Determine (& track) relevant conversions
3.Back it up to your return
Determine your
investment| 1 |
Time + Tools
| IN HOUSE |
$36 Hourly Cost12 Total Hours x =
12 Months$1,440 Tools Annual /
$432 Monthly Cost
= $120 Monthly Cost
$552Monthly Investment
+
Time + Tools
| FOR THE CLIENT |
$125 Hourly Cost8.5 Total Hours x =
12 Months$120 Tools Annual /
$1062.50 Monthly Cost
= $10 Monthly Cost
$1,072.50Monthly Investment
+
| ROI |
(Return - Investment) / Investment
( ????? - $1,072.50) / $1,072.50
Determine relevant
conversions| 2 |
Conversion Metrics
Awareness
Reach
Traffic
Leads
Customers
Conversion Rate
Conversion Funnel
Conversion GoalsFollow on Instagram
View video
Visited landing page
Time spent on page
Subscribe to blog
Download PDF
Sign up for newsletter
Filled out contact form
Online purchase
Business Objectives
• Increase total casual bowlers on weeknights
• Increase party reservations
• Increase total league bowlers
Pin Chasers Bowling Centers
| Case Study |
Conversions to Track
• Visit “weeknight” landing pages
• Completion of “Reserve a Lane” form on a weeknight
• Players on a weeknight
Pin Chasers Bowling Centers
| Case Study |
Conversions to Track
Pin Chasers Bowling Centers
| Case Study |
• Landing page visits
• Form completions
• Customers
Tools we use • HubSpot
• Bit.ly
• Google Analytics
• WordPress Gravity Forms
Pin Chasers Bowling Centers
| Case Study |
Pin Chasers Bowling Centers
| Case Study |
Tracking metrics (HubSpot)Landing page visits & Form completions
Pin Chasers Bowling Centers
| Case Study |
Customers • Has to come directly from the client!
Back up into the
value| 3 |
$20200 Customers
$4000 Total Sales
Average Customer Value
per customer visit
| Case Study |
Pin Chasers Bowling Centers
Return MetricsNumber of transactions
Number of customers
Number of new customers
Lifetime value
Revenue
Profit
Conversions to Track
Pin Chasers Bowling Centers
| Case Study |
• Landing page visits
• Form completions
• Customers
Conversions to Track
Pin Chasers Bowling Centers
| Case Study |
• Landing page visits
• Form completions
• Customers
• 4522 visits
• 670 form completions
• 627 customers
Pin Chasers Bowling Centers
| Case Study |
• 4522 visits
• 670 form completions
• 627 customers $20per customer visit
Pin Chasers Bowling Centers
| Case Study |
• 4522 visits
• 670 form completions
• 627 customers $20per customer visit • 627 x $20 = $12,540
• $12,540 / 670 = $18.72
• $12,540 / 4522 = $2.77
Pin Chasers Bowling Centers
| Case Study |
• 4522 visits
• 670 form completions
• 627 customers $20per customer visit • 93.5% conversion rate
• 14.8% conversion rate
Pin Chasers Bowling Centers
| Case Study |
• Visits: $2.77
• Form Completions: $18.72$20per customer visit
Value for Our Metrics!
| But wait! |
These numbers aren’t just social media!
• All landing page visits
• All form submissions
• All customers
Pin Chasers Bowling Centers
| Case Study |
Track it to Social Media
Pin Chasers Bowling Centers
| Case Study |
Return from Social Media 697 Visits
$2.77 per visitx
$1,930.69
| ROI |
(Return - Investment) / Investment
($1,930.69 - $1,072.50) / $1,072.50
80%Return on Investment
“Good” ROI
Not worth it: 5%
Good: 30%
Goldmine: 50%+
Make it easier!Use bit.ly and UTM links to create links used
specific links for each channel
Run promotions that are specific to each channel only (discounts, contests, etc)
(Self Contained Social Media ROI)
Use trackable activities on all links you post on social media (calls-to-action or forms).
Remember!Keep the framework simple (at first).
Using averages and making assumptions is okay!
Google Analytics is awesome.
Don’t underestimate LTV (and use it as conversion).
Start tracking changes to tracking methods or major marketing activities in Analytics now.
Don’t panic.
| A word of caution |
Don’t stop experimenting.
Let’s hear some
questions!
