smx 2012 presentation: reach to roi
Post on 21-Oct-2014
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Presentation by Social Snap CEO Nan Dawkins at SMX-2012 in Las Vegas, NV, showing ways that advanced analytic tools such as Social Snap can build a strong quantitative case for proving ROI from your social media campaigns.TRANSCRIPT
Social Media Measurement: From Reach to ROI
Proving Business Value: Let’s Get Practical
Nan DawkinsSMX Social Media Marketing 2012
A Story:
How a turned into a lesson about the business value of earned social media
Brand = FUN
A Facebook Natural
A highly engaged community
Not uncommon for posts to be shared by fans hundreds of times
Then…it all fell apart.No more Facebook page.
To Start Over or Not?This is a lot of work!
Promising, Yes!
A business case? No.
Connecting the data dots:Using archived data stored in Social Snap, we analyzed active
Facebook connections against the customer database
….And found the business case
Customers who were connected to the brand on Facebook spent significantly more overall and on
average, and purchased more frequently.
Chicken or egg? Who cares!
These people buy…repeatedly!
It costs less to up-sell an existing
customer than to acquire a
new one80% of
revenue comes from
20% of customers!
Why
we struggle to show business value
Lack of data is not the problem
15
Problem #1: Senior Execs Need Different Metrics
Presentation Title and Event Title
Marketers watch the metrics at the top of the funnel
Senior Execs don’t know what those metrics mean (and don’t care)
…Last click transactions won’t make the business case
…Even when social media generates last click transactions, the numbers are often low
compared to other sources
Social Snap report showing traffic and revenues generated by a social media campaign over a 6 month period
…Because social shines atfilling up the prospect funnel
New Sales
Repeat Purchases &
New Sales
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Problem #2: Data lives in silos
Presentation Title and Event Title
Different tools generate different kinds of metrics…ROI does not live in a silo
SMMSTools Buzz
Monitoring Tools
GA
CRM
Campaign Apps
Twitter Tools
FB Insights
Shiny new tool
Shiny new tool
BuzzMonitoring
Tools
How to solveboth problems…
Start connecting dots.
24Presentation Title and Event Title
The connection with biggest impact: Web Analytics and the CRM System
Metrics Senior Execs will love
• Time to close– Do social leads/prospects close faster than average?
• Average close rate– Do social leads/prospects close at a higher rate than average?
• Average sale and/or LTV– Do social leads /prospects spend more than average?
Web Analytics + CRM =
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Can’t connect all the way to purchase? Focus on leads and prospects
Example: What is an opt-in email address worth?
– Where does social shine?
– Which types of
conversions does it drive?
– What kinds of conversions are other channels driving?
Which conversions?Begin to craft an understanding of what the path is,
which channels touch the customer where
A cheap & easy way to find out where social fits with other channels:
Use UTM Parameters in links
We use links in email. We use links in PPC. We use links in social media.
…But sloppy use of source/medium/campaign parameters leads to confusing data
Give Senior Execs the Big Picture
• Keep it short and simple: Boil it down! • Put it in context• Don’t show conversion values or attribution data that
can’t be validated and defended (they will ask)
For more on this; get Nichole Kelly’s excellent new book!
Don’t forget…There won’t be any business value if you stop paying attention to metrics at
the top of the funnel
– There won’t be any business value to report if you stop paying attention to the metrics that tell you how the community is growing, how engaged it is, what content resonates, etc.
– Senior Execs need DIFFERENT metrics, but business value metrics aren’t the only metrics that are important
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Free Resources• Social Snap URL Management Tool
– http://www.socialsnap.com/url-tracker/
• White Paper: Meaningful Social Media Measurement– http://www.socialsnap.com/wp-request.php?wpid=wp1
• Facebook Metrics Cheat Sheet– http://www.socialsnap.com/wp-request.php?wpid=wp2