social roi case study of rocky mountain hotel
Post on 20-Oct-2014
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For the 2012 Mountain Travel Symposium, I joined a measurement panel to discuss Social ROI. The slide deck delves into a social ROI case study for a Rocky Mountain hotel.TRANSCRIPT
Yes, Social Marketing ROI can be determined.
ROI Considerations
3
Start with Objectives and Strategy…
…know where you want to go.
Measure results.
The end goal of measurement is not to collect a bunch of metrics but to gain
actionable intelligence…
CXOs will look for actionable intelligence in
monetary terms…
…revenues or cost savings.
6
ROI Primer
7
Agency costs in this bucket
8
Rocky Mountain Hotel Case Study for Twitter
9
Annual Results:Revenues = $31mAverage Occupancy Rate = 60%Average RevPAR = $420
Dec11 – Feb12 results:Revenues = $15mAverage Occupancy Rate = 79%Average RevPAR = $831
Revenues =
Reach x Impact x Yield
Formula for Sales Revenue Gain from Social
11
Influenced conversations
Tweets sent = 365Average followers = 1,777Impressions* = 1,630,394
Mentions/RTs = 876
* Impressions measure the reach of all tweets, i.e., total potential number of displays to followers. It equals the sum of the total followers PLUS their followers.
Reach metrics
12
Clicks = 3,606
(Click-through rate = 0.22%
Impact metrics
13
Lead Conversion Rate = 0.3%Conversions = 11
Avg. Rev per room = $1,059.29
Yield metrics
14
Gains results
15
Total Revenues for period
Revenues Attributed to Social Media
initiatives
Room Revenues (rounded) $6,956,376 $ 11,700 Food & Beverage (rounded) $3,473,075 $ 5,800 Sundeck (rounded) $2,626,498 $ 4,400
Total Revenues $ 13,055,949 $ 21,900
Costs
16
Personnel = $5,667Social analytics solution = $7,500
Total costs = $13,167
ROI = (Gains - Costs)/Costs x 100
ROI Formula
17
= ($21,900 - $13,167)/($13,167) x 100
= 66%
Closing Thoughts
18
19
It is possible to determine ROI for social initiatives….
…but it starts with good
measurement practices….
…and good measurement starts with clear objectives & strategy.
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