online reputation management return on investment (roi)
TRANSCRIPT
![Page 1: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/1.jpg)
Calculating the Value of Online Reputation
ManagementROI
Recover ReputationSteven W. Giovinco
![Page 2: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/2.jpg)
Calculating the Value of Online Reputation Management
![Page 3: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/3.jpg)
How Much?
![Page 4: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/4.jpg)
• Most small businesses or professionals understand that online reputation management is important, but:
One Negative Review Costs 30 Customers
![Page 5: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/5.jpg)
Two Sides to ROI Equation
• Building a positive online presence equals sales.
![Page 6: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/6.jpg)
Two Sides to ROI Equation
• Calculation of lost revenue due to negative content.
![Page 7: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/7.jpg)
What is Online Reputation Management?
![Page 8: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/8.jpg)
What is Online Reputation Management?
• Online reputation management (ORM) is anything online about a business or business owner.
![Page 9: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/9.jpg)
![Page 10: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/10.jpg)
What is Online Reputation Management?
• Blog posts.• Comments on blog posts.• Web sites.• Tweets.• Facebook likes.• Instagram.• Pinterest.
![Page 11: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/11.jpg)
“Reputation management is the understanding or influencing of an individual's or business's reputation.”
-Wikipedia
Online Reputations
Reflect Trust
![Page 12: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/12.jpg)
Goals of ORM: Build and Repair
![Page 13: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/13.jpg)
Goals of ORM: Build and Repair
1.Build or boost a positive presence.
![Page 14: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/14.jpg)
Goals of ORM: Build and Repair
2.Remove or suppress negative reviews.
![Page 15: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/15.jpg)
For professionals such as lawyers, accountants, financial advisors or others:
If a negative link shows up on the first page of a Google search page, a client stops calling.
![Page 16: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/16.jpg)
Bottom Line
• What is the bottom line for lawyers, financial advisors, executives, those in the art world?
![Page 17: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/17.jpg)
![Page 18: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/18.jpg)
Value of Positive ORM
![Page 19: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/19.jpg)
Value of Positive ORM• Generates more site traffic.• More phone calls, visits, and inquires.• More repeat transactions over the lifetime
of the business.
![Page 20: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/20.jpg)
Negative Reputation Leads to Lost Sales
![Page 21: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/21.jpg)
Negative Reputation Leads to Lost Sales
• A negative reputation leads to lost sales. • Prospect will move on to a competitor.• They probably will never return as a
customer—ever.
![Page 22: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/22.jpg)
Value of ORM Repair
Process
•
![Page 23: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/23.jpg)
Value of ORM Repair Process• Determine how much
revenue decreases due to negative links.
![Page 24: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/24.jpg)
Value of ORM Repair Process• Calculating how much money is lost will
determine the value of online reputation management.
![Page 25: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/25.jpg)
3 ROI Formulas
![Page 26: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/26.jpg)
3 ROI Formulas
1.ORM Building.2.One Negative Review Equals 30 Lost
Customers.3.Lifetime Customer Loss Calculation.
![Page 27: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/27.jpg)
1. ORM Building
![Page 28: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/28.jpg)
1. ORM Building
• Calculate how much each client spends per transaction.
• Estimate the average number of transactions.• How long a client stays with the business.• Find the number of site visitors per month.• Evaluate how many visitors actually become a
customer: this is the conversion rate.
![Page 29: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/29.jpg)
1. ORM Building
• Reviewing these five factors:– It’s possible to calculate the overall value a
customer represents for a business.
![Page 30: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/30.jpg)
1. ORM Building
Example:• New client spend=$1,000.• Number of yearly transactions=2.• Client stays with the business=4 years.• New visitors per month=100.• Conversion rate= 2%.
![Page 31: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/31.jpg)
•Results in:•$32,000 in new sales
1. ORM Building
![Page 32: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/32.jpg)
2. One Negative Review Equals 30 Lost Customers
![Page 33: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/33.jpg)
2. One Negative Review Equals 30 Lost Customers
• One single negative online review can cost the business an average loss of 30 customers.
![Page 34: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/34.jpg)
2. One Negative Review Equals 30 Lost Customers
• Results in a sizable decrease of income.• Is usually devastating.
![Page 35: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/35.jpg)
2. One Negative Review Equals 30 Lost Customers
![Page 36: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/36.jpg)
2. One Negative Review Equals 30 Lost Customers
• Determine how much the customer spends for the service.
• Multiply by 30.• Equals total revenue lost.
![Page 37: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/37.jpg)
2. One Negative Review Equals 30 Lost Customers
For example:• Customer spends=$1,000.• Multiply by 30.• Total revenue lost=$30,000.
![Page 38: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/38.jpg)
2. One Negative Review Equals 30 Lost Customers
In this scenario:• If one customer is worth $1,000 to the
business.• One negative post equals a loss of
$30,000.
![Page 39: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/39.jpg)
2. One Negative Review Equals 30 Lost Customers
• If the repair process costs less than $30,000:
• The business should clearly go forward with the repair project.
![Page 40: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/40.jpg)
3. Lifetime Customer Loss Calculation
![Page 41: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/41.jpg)
3. Lifetime Customer Loss Calculation
• Alternative way to calculate the ROI for the repair process.
• This determines the lifetime impact.
![Page 42: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/42.jpg)
3. Lifetime Customer Loss Calculation
• Take average sale amount.• Determine the number of lost customers
per review.• Identify the number of negative reviews.• Calculate number of years a client.• This equals the lifetime lost revenue.
![Page 43: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/43.jpg)
3. Lifetime Customer Loss Calculation
For example:• Average sale amount=$1,000• Number of lost customers=10• Number of negative reviews=2.• Number of years a client=3• Lifetime lost revenue=$60,000.
![Page 44: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/44.jpg)
3. Lifetime Customer Loss Calculation
This seems like a lot…but:
![Page 45: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/45.jpg)
3. Lifetime Customer Loss Calculation
• If the repair process costs less than $60,000,
• The business should clearly move forward with the repair process.
![Page 46: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/46.jpg)
The Bottom Line
![Page 47: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/47.jpg)
The Bottom Line• There are ways to calculate rates of return
(ROI).• They provide a fairly accurate monetary
value.
![Page 48: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/48.jpg)
The Bottom Line• Use for revenue gained due to building a
positive online reputation • Or money lost due to negative reviews.
![Page 49: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/49.jpg)
About Recover Reputation
• Boutique online reputation firm, focused on professionals
• 20+ years IT, writing experience • Personal, hands-on approach
Steven W. GiovincoOwner, Recover Reputation
![Page 50: Online Reputation Management Return on Investment (ROI)](https://reader031.vdocuments.net/reader031/viewer/2022020213/58e4bf621a28abc24e8b487b/html5/thumbnails/50.jpg)
Recover Reputation
• Questions for Steven W. Giovinco?• Connect!• Call 347-421-7598• Email [email protected]