social media roi

Social Media R.O.ISandra, Sarvin and Nizar

We all know what they are and how they work…

How can Social Media help business?

But…

Social Media for Organisations

Public RelationsOnline presence, management of online reputation and WOM

ResultsCapture new members, increase frequency of donations, exposure to events and activities and lower cost in terms of advertising and promotion

Social Media for Organisations

Member LoyaltyInteraction, deepen customer relationship

Members SupportFeedback and response, cost reduction

Human ResourcesEffective recruiting (Ernst and Young)

Example of Recruitment

First… Have a Clear Objective

What is it that you want to achieve out of your Social Media tool?

Increase in donation funds?

Brand Awareness?

Building your NPO’s Brand?

Engage with volunteers, employees and donors?

Will it save me money? How about increase in volunteers?

Will it generate

donations? How about

positive WOM?

Return on Investment Equation

(Gain from Investment – Cost of Investment)

Cost of InvestmentROI =

Investment in terms of time, money, human resources (wages)

Investment - Return Relationship

InvestmentAction Reaction

Non-Financial Impact

Financial Impact

$$$ $$$

ROI lives here

To Generate Positive R.O.I…

Your Social Media campaign must:

Increase FREQUENCY of donations

Increase REACH of donors and volunteers

Increase YIELD of amount spent

Impact of Social Media

Non-Financial Impact VS Financial ImpactWebsite visitors

Impressions

#Fans/Friends/Followers/views

Comments

Increase in donations

Cost Savings

Increased number of volunteers

Measuring ROI1. Establish a baseline (Before and After Social Media)

2. Create an activity timeline

3. Monitor impact on conversation and the quality of it

4. Measure and take note of where your audiences are coming from (Facebook, Flickr, Youtube, Blog…)Measure number of transactions and net new members

5. Observe Revenue (Donation, Grant, Sales)

6. Overlay abovementioned data together and look for a pattern

Some Examples of Social Media ROI

Cost per interaction in customer support averages $12 via the contact center versus $0.25 via self-service options. (Forrester, 2006) Cost Savings

Jupiter Research (now Forrester) reported in 2006 that customers report good experiences in forums more than twice as often as they do via calls or mail. Observing where customers are talking

Ebay found in 2006 that participants in online communities spend 54% more than non-community users. Increase in revenue

Old Spice

Old Spice: ROI

11 million views

183 video reactions

increased sales by 107%

Twitter saw 22,000 comments in 3 days.

Thank You