CAN YOU MEASURE THE ROI OF SOCIAL MEDIA MARKETING ?

DONNA HOFFMANMAREK FODOR

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UJJWAL DALMIA

AGENDA

1.UNDERSTANDING PROBLEM STATEMENT

2. TRADITIONAL APPROACH VS PRESENT APPROACH

4.SOCIAL MEDIA OBJECTIVES

5. FRAMEWORK

6. THE IDEAL ROAD AHEAD

7. MOVIE TIME

WHAT IS ROI ?

• A MEASURE TO CALCULATE THE EFFECTIVENESS OF INVESTMENT.

• BENEFIT OF INVESTMENT DIVIDED BY EXPENSE.

• Gain from Mktg. Inv. -Cost of Mktg. Inv.

Cost Of Mktg. Inv.

SOCIAL MEDIA

• SOCIAL MEDIA INTERACTIONS AMONG PEOPLE IN VIRTUAL COMMUNITIES AND NETWORKS.

• PEOPLE CREATE,SHARE AND EXCHANGE INFORMATION

ANCIENT CORPORATE TEACHINGS

2 RULES OF BUSINESS

• IT’S ALL ABOUT THE MONEY.

• CUSTOMERS = (MACHINE TO MAKE MONEY.)

TRADITIONAL APPROACH

• Pressure and Desire to Quantify.

• Link every return to money.

• Inclined towards gains in SHORT TERM.

• Ignores aspects of investment like brand building , relationship mgmt.

ORIGINAL vs REVISED SOCIAL MEDIA F/W

• REACH

• FREQUENCY

• LIKES

• REACH + FREQ. + LIKES

+•TIME SPENT

•BLOG COMMENTS

•(RE) TWEETS

•SHARES

et all

UNDERSTANDING THE CUSTOMERS

MOTIVATION

• SOCIAL MEDIA IS CONSUMER (NOT MKTR.) DRIVEN .

• FOCUSSES ON RELATIONSHIP BUILDING.

MOTIVATION

CONNECTIONS

CREATION

CONSUMPTON

CONTROL

SOCIAL MEDIA METRICS AND OBJECTIVES

• DIFFICULT TO LINK SALES AND SOCIAL MEDIA EFFORTS.

• HELPS IN COST CUTTING (eg :- CROWD SOURCING, SURVEY FEES)

BRAND AWARENESS

BRAND ENGAGEMENT

BOOST TO WORD -OF-MOUTH.

OBJECTIVES

BRAND AWARENESS

• TRADITIONALLY THROUGH TRACKING SURVEYS AND STUDIES.

• APPLICATION USAGE LEADS TO BOOST IN BRAND AWARENESS.

• STARBUCKS, NAKED PIZZA,BLEND TEC

BRAND ENGAGEMENT

•TRADITIONALLY VIA MARKET SURVEYS.

• FACEBOOK APPS,PODCASTS, VIDEOS , BLOGS ETC.

• INCREASED VISITS TO WEBSITES, BLOGS AND MORE TIME SPENT ON WEBSITES

• ENGAGING S.MEDIA CAMPAIGNS LEAD TO MORE COMMITMENT AND LONG TERM SUPPORT

• BOTTOMLINE REWARD :- DEALYED SALES

• MEASUREMENT :- 1 TIME VS MULTIPLE

• Eg :- GRETSCH GUITARS , TARGET (CIRCLE OF MOMS)

WORD OF MOUTH

• SATISFIED CUSTOMER GENERATES GOOD WILL

• DOUBLE EDGED SWORD

• EASY TO MEASURE USING ONLINEGENERATED DATA.

• BURGER KING .

STEPS TO EFFECTIVE MARKETING

• DEAD END

LIMITED ABILITY TO MEASURE AND BELIEVES EFFORTS NOT WORKING

• MEASURE AND ADJUST

ABILITY TO MEASURE AND BELIEVES EFFORTS NOT WORKING.

MEASURE &

ADJUST

ITERATE FOR

SUCCESS

NAÏVE OPTIMIST

DEAD END

ABILITY

EVALUATION

STEPS TO EFFECTIVE MARKETING

• ITERATE FOR SUCCESS

ABILITY AND EVALUATION SUCCESSFUL

• NAIVE OPTIMISM

LIMITED ABILITY BUT

EVALUATING SUCCESS

MEASURE &

ADJUST

ITERATE FOR

SUCCESS

NAÏVE OPTIMIST

DEAD END

EVALUATION

ABILITY

GURUS PREDICTION

IDEAL SOCIAL MEDIA WORLD• SPREAD VIRAL VIDEOS

• CREATE ADDITIONAL BRAND RELATED CONTENT

• TWEETER EFFECTIVE TO SENSE TREND

• POST EXPERIENCE ON FACEBOOK

QUICK REVISION FOR MANAGERS

• ROI IS IMP. BUT S. MEDIA MKTG HAS TO BE EFFECTIVE.

• MGRS. HAVE TO EXERCISE SOME CONTROL OVER CUSTOMER PARTCIPATION

• APPRECIATE THE INTRICACIES OF SOCIAL MEDIA

• SOCIAL MEDIA IS A TREE TO BE NOURISHED FOR LONG TERM FRUITS

• BE READY FOR DAMAGE CONTROL

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