this ain't no picnic: the roi of the social customer

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THIS AIN’T NO PICNIC THE ROI AND ROP OF SOCIAL MEDIA

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If you're looking to explain return-on-participation to your team, and figure out how to monetize the social customer, this is the presentation to check out. Includes case studies from Carnival Cruise Lines, Aquafina, & Jack In The Box. Originally given at the Minnesota AMA Conference, 2008.

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Page 1: This Ain't No Picnic: The ROI Of The Social Customer

THIS AIN’T NO PICNIC

THE ROI AND ROP OF SOCIAL MEDIA

Page 2: This Ain't No Picnic: The ROI Of The Social Customer
Page 3: This Ain't No Picnic: The ROI Of The Social Customer

THE EXPERIENCE

Page 4: This Ain't No Picnic: The ROI Of The Social Customer

BEING FIRST SUCKS

Page 5: This Ain't No Picnic: The ROI Of The Social Customer
Page 6: This Ain't No Picnic: The ROI Of The Social Customer

THE GOOD NEWS

Page 7: This Ain't No Picnic: The ROI Of The Social Customer

90% OF THE COMPETITION ISN’T DOING THIS either

OMG, THEY’RE TOTALLYDOING IT!

NOT DOING IT

Page 8: This Ain't No Picnic: The ROI Of The Social Customer

ONE MORE 90/10 RULE

Page 9: This Ain't No Picnic: The ROI Of The Social Customer

WANT THIS? GET THIS.

YES, I’M A SENIOR ANALYST.

Page 10: This Ain't No Picnic: The ROI Of The Social Customer
Page 11: This Ain't No Picnic: The ROI Of The Social Customer

YOUR OLD ROI PROBABLY SUCKED ANYWAY

Page 12: This Ain't No Picnic: The ROI Of The Social Customer

1.4-1.6XROI

Page 13: This Ain't No Picnic: The ROI Of The Social Customer
Page 14: This Ain't No Picnic: The ROI Of The Social Customer

2-10X

Page 15: This Ain't No Picnic: The ROI Of The Social Customer

TOOLS AND SOFTWARE

TALENT AND TRAINING

}your social media budget

Page 16: This Ain't No Picnic: The ROI Of The Social Customer

IS IT WORTH SPENDING $70K/YEAR TO BUY

SOFTWARE TO MONITOR THE SOCIAL WEB?

Page 17: This Ain't No Picnic: The ROI Of The Social Customer

FREE IS GOOD.GOOGLE

QUANTCASTCOMPETE

Page 18: This Ain't No Picnic: The ROI Of The Social Customer

ROI = A MULTIPLIER OF DOLLAR AMOUNT WE

SPENT

Page 19: This Ain't No Picnic: The ROI Of The Social Customer

ROP = THE MULTIPLIER OF THE CONVERSATION

Page 20: This Ain't No Picnic: The ROI Of The Social Customer

+ + =45

RESPONSES

Page 21: This Ain't No Picnic: The ROI Of The Social Customer

ROP =

HOW MUCH TALKING HE DID

HOW MUCH TALKING THEY DID

ROP =

16 THINGS

45 THINGS

Page 22: This Ain't No Picnic: The ROI Of The Social Customer

ROP = ABOUT 2.8X

Page 23: This Ain't No Picnic: The ROI Of The Social Customer

ROI =

$78 SALARY+ TOOL COSTWHATEVER THE TALKERS

BOUGHT

$384

$78ROI =

Page 24: This Ain't No Picnic: The ROI Of The Social Customer

ROI = ABOUT 4.9X

Page 25: This Ain't No Picnic: The ROI Of The Social Customer

WHATARE YOU

FEEDING THEM?

Page 26: This Ain't No Picnic: The ROI Of The Social Customer
Page 27: This Ain't No Picnic: The ROI Of The Social Customer

1-2 INTERNSA PHP PROGRAMMER AND MAYBE A

SMALL ERP SYSTEMKNOWLEDGE OF ALL

SOCIAL WEB ACTIVITY PURSUED BY YOUR

BRAND

Page 28: This Ain't No Picnic: The ROI Of The Social Customer

141K+ FRIENDS

2K COMMENTS

ENGAGEMENT METRIC: 14%

ROP: HIGH-LEVEL

ENGAGEMENT: 200xLOW-LEVEL: 510X

Page 29: This Ain't No Picnic: The ROI Of The Social Customer

ROI =

SALARY+ TOOL COSTWHATEVER THE TALKERS

BOUGHT

Page 30: This Ain't No Picnic: The ROI Of The Social Customer

EMAIL 100 OF THEM AND ASK THEM HOW OFTEN

THEY GO TO JACK IN THE BOX

AND WHAT THEY EAT

Page 31: This Ain't No Picnic: The ROI Of The Social Customer

ENGAGEMENT METRIC: .8%

SEPTEMBER 2008 ROP: 36.7X

Page 32: This Ain't No Picnic: The ROI Of The Social Customer

ROI =

SALARY+ TOOL COSTWHATEVER THE TALKERS

BOUGHT

Page 33: This Ain't No Picnic: The ROI Of The Social Customer

EMAIL 100 OF THE COMMENTERS AND ASK THEM IF THEY BOOKED A

CRUISE, OR LOOK AT THIRD-PARTY COOKIE

Page 34: This Ain't No Picnic: The ROI Of The Social Customer

10K+ FRIENDS

459 COMMENTS

ENGAGEMENT METRIC: 4%

ROP: ???

Page 35: This Ain't No Picnic: The ROI Of The Social Customer

ANALYZE A STATISTICALLY SUBSET OF THE ENGAGED GROUP, AND MULTIPLY IT

OUT

Page 36: This Ain't No Picnic: The ROI Of The Social Customer

ROP: 2-200X

ROI: 1.5-10XCORRELATION:

ONLY ON A PER-TOOL BASIS, AT A GIVEN POINT IN

TIME

Page 37: This Ain't No Picnic: The ROI Of The Social Customer

Social Networks Twitter Blog Forums Wikis Totals

ROP 20x 8x 1.5x 5x 4x

ROI 1.1x 5x 4x 1.1x 2x

% of Resources 70% 5% 10% 10% 5%

Weighted ROP 14x .4x .15x .5x .2x 15.25x

Weighted ROI .77x 0.25 .4x .11x .1x 1.63x

Page 38: This Ain't No Picnic: The ROI Of The Social Customer

BE A PROFIT CENTER

BE BIG PICTURE

BE FREAKIN’ INVALUABLE TO YOUR BRAND

Page 39: This Ain't No Picnic: The ROI Of The Social Customer

BRILLIANT METRIC-BASED

SOCIAL WEB STRATEGIESHUGE, COMPLEX

IMPLEMENTATIONS

DRINK ALL OF YOUR SCOTCH

Page 40: This Ain't No Picnic: The ROI Of The Social Customer