roi measurement framework for facebook & twitter

An ROI approach

to Facebook & Twitter

Agenda

Neolane confidential Copyright Neolane - 2012 2

The Neolane Social Marketing ROI approach for Facebook

The Neolane Social Marketing ROI approach for Twitter


ROI calculator's key measures

► ROI measures on Facebook

Cost reductions of agency fees

Conversion of fans into opt-in & monetizable contacts

Qualification of already known contacts with rich social information

Direct selling

The reality check: post-acquisition buying behaviors

► ROI measures on Twitter

Conversion of followers into opt-in & monetizable contacts through Direct Messages

Direct selling


The Neolane Social Marketing ROI

approach for Facebook


First ROI: Cost reductions of agency fees

How many internal and external resources do you spend for each app you create and for Community Management (CM)?

1

Potential reduction:

$10,000 * 30% = $3,000 / month

ROI Value Justifications

External budget you spend on agencies for social media today

per month

$10,000

A social campaign (competition, etc.) starts at

$5,000 but often costs a minimum of $10,000 to

$40,000

Expected budget decrease by enabling CM to create simple & personalized

applications

30% Expect 40% decrease according to market

trends

Indirect ROI Longer term benefits

• Connect to your communities needs and

wishes

• Create a social savvy and future proof

marketing team

• Provide personalized experience to fans

• Differentiate from competitors


Second ROI: Conversion of fans into opt-in & monetizable contacts

Do you launch targeted actions to transform fans into addressable contacts in your datamart?

2


Value of a qualified email address $2

Depending on verticals, this can go from $1 to $100+

Monthly profile acquisition

volume via Facebook apps Apps can be page tab apps, canvas

apps, socialized landing page or

social login

30,000 Monthly profile acquisition rate of a Facebook apps can go from 0.5 -

10%.

Percentage of acquired profiles

not yet in your DB

50% Among acquired profiles, some are already in your datamart and are

not net new profiles.

Depending on pages, the percentage varies from 20 - 90%

Indirect ROI • Less budget spent on data acquisition and renting

• Create a social savvy and future proof marketing team

• Increase customer data quality and depth

• Avoid Facebook dependency

• Reach and convert friends of fans through social sharing

Potential value:

$2 * 30,000 * 50% = $30,000 / month


Use cases: Conversion of fans into opt-in & monetizable contacts

Music Artist

(EMI)

Music Artist

(Sony)

Hockey team

(LA Kings)

Ecommece

website

ROI Value Value Value

Value

Value of a qualified email

address

$4 $5

$5.25 $2

Monthly profile

acquisition volume via

Facebook apps

600

(0.35% fans)

30,000

(0.33% fans)

16,000

(10% fans)

40,000

(6% fans)

Percentage of acquired

profiles not yet in your DB

90% 50%

50% 50%

Value for that 1 month

campaign

$2,160 $75,000 $43,500 $43,000

2


Third ROI: Qualification of already known contacts with rich social information

Do you launch targeted actions to enrich contacts in your CRM with monetizable social profile information?

3

Potential value:

$0.50 * 30,000 * 50% = $7,500 / month


Value of the qualification of an

already acquired email address

$0.50

Depending on verticals, this can go from $0.25 -

2$

Monthly profile acquisition

volume via Facebook apps Apps can be page tab apps, canvas

apps, socialized landing page or

social login

30,000 Monthly profile acquisition rate of a Facebook

apps can go from 0.5 - 10%.

Percentage of acquired profiles

not yet in your DB

50% Depending on pages, the percentage varies

from 20 - 90%

Indirect ROI • Provide a better experience to customers

• Avoid Facebook dependency

• Increase customer data quality and depth


Use cases: Qualification of already known contacts with rich social information

Music Artist

(EMI)

Music Artist

(Sony)

Hockey team

(LA Kings)

Ecommece

website

ROI Value Value Value

Value

Valuation of a qualified

email adress

$4 $5

$5.25 $2

Monthly profile

acquisition volume via

Facebook apps

600

(0.35% fans)

30,000

(0.33% fans)

16,000

(10% fans)

40,000

(6% fans)

Percentage of acquired

profiles not yet in your DB

10% 50%

50% 50%

Value for that 1 month

campaign

$240 $75,000 $43,500 $43,000

3


Fourth ROI: Direct Selling on Facebook

Do you automate posting of exclusive offers on Facebook?

4

Potential value:

100,000 * $0.20 = $20,000 / month


Number of fans 100,000

Depends on pages

Average monthly sales

objective for each fan

$0.20 Depends on each company

Indirect ROI • Fulfill fan's expectations by posting

useful content

• Surf on social word of mouth to

touch friends of fans

• Lower resources needed for posting

through automation


Fifth ROI: The reality check Post-acquisition campaigns buying behaviour

How can I check sales against social activities?

► Neolane tracks post-acquisition or post-"social qualification" buying behaviors of contacts

► Variables that can be taken into account:

"X contacts acquired through Facebook represent $Y billion revenue"

"X contacts qualified through Facebook represent $Y billion revenue"

"My customers that are fans spend X% more"

"My 1,000 most active fans spend X% more"

Etc.

5

Potential value:

Variable


Revenue:

1. Cost reductions:

2. Conversion:

3. Qualification:

4. Direct selling:

5. Post acquisition buying behaviors:

Investment:

Overall investment in software and human resources:

Total Facebook Direct ROI

Total ROI:


The Neolane Social Marketing ROI

approach for Twitter


First ROI: Conversion of followers into opt-in & monetizable contacts through Direct Messages

Do you use messages and Direct Messages to convert followers into addressable contacts?

1


Value of an opt-in contact $2

Depends on brands

Number of followers 100,000 Depends on brands

Targeted conversion rate

per month

4% Conversion rate obtained by LA Kings

Indirect ROI • Limit Twitter dependency

• Provide 1:1 experience to followers

Potential value:

$2 * 4% * 100,000 = $8,000 / month


Second ROI: Direct Selling on Twitter

Do you automate posting of exclusive offers on Twitter?

2


Number of followers 100,000

Average monthly sales

objective for each follower

$0.20

Targeted conversion rate

per month

4% Dell Outlet Twitter account case:

1.5 million followers on their @DellOutlet account

promoting discounts on Dell hardware.

Result: $6.5 million in revenue from their

Twitter presence

Indirect ROI • Fulfill fan's expectations with useful content

• Lower resources needed for posting through

automation

• Reach friends of followers

Potential value:

100,000 * $0.20 = $20,000 / month


Total Twitter Direct ROI

Revenue:

1. Conversion:

2. Direct Selling:

Investment:

Overall investment in software and human resources:

Total ROI:


More information

For more information about Neolane Social Marketing:

http://bit.ly/NeoSocial

@Neolane



roi measurement framework for facebook & twitter

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