what is your social media roi
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What is Your Social Media ROI? Date: March 26, 2012Time: 3:15 – 4:30 pmHub Tag: #ideas12 LM8
Tom McClintock
This is an excerpt. Click here for the full presentation.
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Tom McClintock
A Presentation By:
Colorado Springs, CO · Richmond, VA
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“A brand is no longer what we tell the consumer it is – it is what consumers tell
each other it is.” – Scott Cook, Co-Founder of Intuit
Source: AnsonAlex.com
“Social media changes the relationship between companies and customers from
master and servant, to peer to peer.” – Anonymous
“The ROI of social media is that your business will still exist in 5 years.”
– Erik Qualman, author & founder of Socialnomics
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Source: Three Ships Media
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SM Sites Now Ruling Web
2005
1. Google.com2. Facebook.com3. YouTube.com4. Yahoo.com5. Baidu.com6. Wikipedia.org7. Live.com8. Blogspot.com9. Twitter.com10.Qq.com
1. Yahoo.com2. Msn.com3. Google.com4. Ebay.com5. Amazon.com6. Microsoft.com7. Myspace.com8. Google.co.uk9. Aol.com10.Go.com
2012 (as of March 2012)
Source: Synovate Research, Alexa Global Traffic Ranking, Morgan Stanley Research (2005) – Mostpopularwebsites.net (2012)
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Viewpoint #1
You can’t—and shouldn’t try to—calculate the ROI of social media.
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VIEW 1: No ROI from SM Having thousands of followers doesn’t necessarily translate
into SM marketing success
You can easily measure only some things
• Coupons
• Contests
• Clicked links
• Signups Much of SM’s benefit is indirect or intangible—not an asset purchased and placed on balance sheet
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VIEW 1: No ROI from SM
Qualitative Benefits In Each Stage of Your Marketing Campaigns:
Research
Strategic Planning
Implementation
Evaluation
Source: Synovate Research, Alexa Global Traffic Ranking, Morgan Stanley Research
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Viewpoint #2
You can—and must—calculate the ROI of SM.
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VIEW 2: Calculating ROI from SM
Low investment in SM leads to high ROI when organizations:
Have a clear business strategy Aren’t afraid to jump in Make imaginative use of social
channels, customer engagement and brand relationship
Source: Petersen, Rob. 34 cases that prove social media ROI, http://barnraisersllc.com/2010/10/33-13-social-media-case-studies-prove-roi/
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Must all SM ROI Be Sales-Based?
But what if you’re, say, an Association…with returns less tangible, e.g., raising consumer awareness about your industry?
If your goal is sales, you can measure ROI using the standard financial formula:
(Return – Investment)
Investment
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New MathBarnRaisers and others realize that social has not only decentralized and disaggregated, but it’s also
dematerialized—things are less tangibleLess Tangible Today
• Publishing• Content • Workplace• Corporate Structure• Pricing (Freemium
Model)
• Hollywood Studios• Trade Shows• Friendships• Business Contacts• Assets, too!
Great Idea #1: social redefines how we generate and value returns in a less tangible world
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New Math
Great Idea #2: Untethered, ROI metrics can now go beyond sales dollars to include Retention, Research and Sentiment values as major currencies to track your messaging
• Message-Point Delivery—for associations often industry viewpoints, not product features
NSI CLIENT CASE: AMERICAN CHEMISTRY COUNCIL
• Brand Investment—your promise to constituents NSI CLIENT CASE: UNIVERSAL MEDIA’S PROMOTION OF DISNEY’S JOHN CARTER
• Drip Marketing—maintaining mindshareNSI CLIENT CASE: AMERICAN NURSES ASSOCIATION
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Don’t Base ROI on Sales If Sales isn’t Your Goal
Great Idea #3: when sales aren’t the goal, calculate the ROI Return using the Persuasion Index
Defined by 5 levels of agreement:
• Strongly agrees (5)
• Partially agrees (4)
• Neither agrees nor disagrees (3)
• Partially disagrees (2)
• Strongly disagrees (1)
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Don’t Base ROI on Sales If Sales isn’t Your Goal
People are not easily persuaded: typically, even the most persuasive message point is only going to shift a person one level
Therefore, conversion equals increasing the target’s agreement level by one, a “persuasion”
—equivalent to making a sale in retail
Valuation based on advertising cost
• If you spend $20,000 on an effective display ad presented to audience of 100,000 that will convert 1 in 5, you value each persuasion at $1
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Five Steps to Calculate SM ROI
Step 1: Identify Objective sales, retention, market research—or for most associations—sentiment
Step 2: Define Metrics• sales: thank-you page visits from tweeted landing page
• retention: repeat customers/Facebook posts
• market research: likes to announcement of potential new product/number of Facebook fans
• sentiment: shift in percentage of conversation participants who agree vs disagree to message point over time
Step 3: Estimate SM campaign costs labor + ad spend + premium value
Step 4: Estimate SM Return against Objective via Metrics
Step 5: Measure and report regularly
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NSI CASE 1: Sentiment Measurement for American Chemistry Council
ROI: Message Point Delivery
Problem: Regulators can’t keep up with the latest in materials science, like Life Cycle Assessment (LCA)—a methodology to measure a building’s lifetime environmental impact
Objective: Raise Sentiment for LCA Across Target
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Goals:
Increase web traffic by 10% by December 2011 (+60%)Create regular weekly blog content on highest visibility sitesUse Social Media to reach public and key Building &
Construction audiences
NSI CASE 1: Sentiment Measurement for American Chemistry Council
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NSI CASE 1: Sentiment Measurement for American Chemistry Council
Alterian’s SM2 is the No. 1 platform for collecting & analyzing SM data
SM2 powers NSI’s listening platform, ReputationConnect™
ReputationConnect™ provides data for analyzing changes in customer sentiment
PHASE 1
of 3
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Methodology: 4-Phase Strategy
PHASE 2:
Increase Social Voice
PHASE 1:
Listening Strategy via ReputationConnect™ Listening Platform
PHASE 3:
Change Sentiment
PHASE 4:
Blog and Twitter Outreach
NSI CASE 1: Sentiment Measurement for American Chemistry Council
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NSI CASE 1: Sentiment Measurement for American Chemistry Council
Increase Social Voice
Facebook page• Pay-per-click ads
• Regular posts
• Posting key Facebook messages on association’s website
PHASE 2
of 3
Results: Increased FB “likes” from 165 in January 2011 to 2,523 in March 2012
1,529%!ROI Calculations:
Return Metrics: Fan Growth, Shares, Post Likes, Uploads Per Fan, Fan Valuation, Group Membership, Event Attendance
Investment Metrics: Campaign Labor, Contest Premium Costs
Compare to: FB PPC Cost to generate similar activity
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NSI CASE 1: Sentiment Measurement for American Chemistry Council
Increase Social Voice
LinkedIn• Initiated Profile improvements to attract
connections and began outreach campaign
• Sharing LCA-related messages
PHASE 2
of 3
ROI Calculations:
Return Metrics: Connection Growth, Shares, Post Likes, Comments, Retweets, Recommendations, Company Follows, Event Attendees, Event Follows, Group Membership
Investment Metrics: Campaign Labor, Contest Premium Costs
Compare to: LI PPC cost to generate similar activity
Generated lists of
200+ key officials
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NSI CASE 1: Sentiment Measurement for American Chemistry Council
Change Sentiment: Identify & participate in SM conversations
Identified Relevant Conversations through ReputationConnect™
Recruited “Sentiment Softball” Team Members from Downstream Members to Join Conversations
Tossing “Sentiment Softballs” to Infielders
PHASE 3
of 3
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NSI CASE 1: Sentiment Measurement for American Chemistry Council
Change Sentiment: Gauge sentiment impact
Repurpose Positive Mentions as Testimonials on other Online Properties
PHASE 3
of 3
ROI Calculations:
Return Metrics: Visitors to pages displaying testimonials, persuasions
Investment Metrics: Listening-platform analysis
Compare to: Paid placements and endorsements
ROI Calculations:
Return Metrics: Persuasion value of third-party endorsement x # of positive mentions per average advocate x typical advocate reach
Investment Metrics: Listening-platform analysis
Compare to: (a) display ads and (b) public-relations & legal costs of junk science spread via Internet
Convert Neutrals to Positives through Repurposed Content
Fear of Electromagnetic Field Exposure beneath power lines cost $25 billion (1979-1999) paid by the Utilities Industry,
despite lack of even a single successful lawsuit
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ROI: Brand Investment
Problem: Marketing for Disney’s $350mm John Carter, adapted from Edgar Rice Burroughs’ 1912 classic “A Princess of Mars,” confused audiences: false rumors were fueling social backlash that the story had appropriated works such as Avatar, Dune and Star Wars— which it had helped inspire.
Objective: Improve Image and Debunk False Plagiarism Rumors
NSI CASE 2: Sentiment Measurement for Universal Media & Disney’s John Carter
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Messaging
• As one of the first sci-fi characters in existence, John Carter has been an inspiration for generations
• Share Universal Media’s re-edited trailer http://www.youtube.com/watch?v=-BxeHQY1NuM
• Universal Media’s Teen Reading Project promoted Burroughs’ series as “the Harry Potter of its day”
NSI CASE 2: Sentiment Measurement for Universal Media & Disney’s John Carter
Recognition from John Carter Director Stanton led to coverage by CNN,
accelerating positive coverage of the film in both social and mainstream media.
20 Feb 2012:
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Methodology: Inspire grassroots science-fiction fans to post message points
• January
• February
NSI CASE 2: Sentiment Measurement for Universal Media & Disney’s John Carter
ROI Calculations:
Return Metrics: Persuasion value of third-party endorsement x # of positive mentions per average advocate x typical advocate reach
Investment Metrics: Listening-platform analysis
Compare to: (a) display ads and (b) public-relations & legal costs of junk science spread via Internet
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ROI: Drip Marketing
Problem: 24/7 patient care allows little time to navigate the overwhelming flood of healthcare information, so nurses are turning to social networks on mobile devices when they can. The American Nurses Association (ANA) must therefore understand and participate in this ever changing topic stream.
Objective: Analyze daily healthcare conversation streams to provide opportunities for ANA to make available its resources.
NSI CASE 3: Sentiment Measurement for American Nurses Association
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NSI CASE 3: Sentiment Measurement for American Nurses Association
Feb-11
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Share of Voice - Conversation Categories
Career / Jobsearch Health Care ReformImmunizationLiability / MalpracticeNursing ShortageSafe Patient HandlingUnionsWorking ConditionsRe
sults
Cou
nt
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Data Assumptions and Tools
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If You’re Not Measuring, You’re not Listening
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Listening Platforms Today Ability to analyze, manage, track and
report on your Social Media monitoring and engagement efforts.
Flexible dashboard.
Analysis widgets, streamlined reporting, integrated workflow capabilities and an Insights platform with integrated CRM.
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Listening Platforms Today
Integrated Marketing Platform combines campaign management, web content management, email & social media monitoring tools.
Social Media Console captures and analyzes SM data.
SM2 provides key reports, data warehouse & sentiment analysis.