unraveling the mystery of social media roi
Post on 18-Sep-2014
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Social media marketing is sometimes criticized for having questionable return on investment, but much of the skepticism arises from the fact that these platforms are so new. The Internet is the most measurable medium ever invented, which means that the online actions that lead people toward a desired goal can be tracked and refined. The key is to start with the object and work backwards to define metrics and tools to measure it. A growing number of corporations are institutions are now doing exactly that. They are measuring not only transactions and leads, but also less tangible results like: Better decision-making Cost avoidance Increases in brand equity Improvements in customer loyalty Crisis containment This presentation describes a disciplined approach to social media measurement and offers case studies of b-to-b and b-to-c organizations that are applying metrics to deliver reliable ROI.TRANSCRIPT
Unraveling the Mysteryof Social Media ROI
Paul GillinAuthor, The New InfluencersSecrets of Social Media Marketing
ROI
Simple Equation
ROI =COST OF INVESTMENT
(GAIN FROM INVESTMENT - COST OF INVESTMENT)
Orders
Upgrades
Coupon redemptions
SubscriptionsLeads
Types Of Financial Impact
Website Visitors
Click-throughs
Visitors to a brick & mortar store
Positive press
Positive WOMNegative press
Negative WOM
Customer complaints
Employment applications
Retweets
FaceBook friendsBlog comments
Social mention
YouTube views
Twitter followers
Impressions
Delivered emails
Coupons distributed
Types Of Non-Financial Impact
Bounty of Choice
Choosing Tools Blog Podcast
Video
Social Network
Private communit
yReview engine
Virtual world
Build community ☻ ☻ ☻ ☻ ☻ ☻Counter negativity ☻ ☻ ☻ ☻Crisis management ☻ ☻ ☻ ☻ ☻ ☻Customer conversation ☻ ☻ ☻ ☻Expose employee talent ☻ ☻ ☻ ☻ ☻Generate web traffic ☻ ☻ ☻Humanize the company ☻ ☻ ☻ ☻ ☻Market research ☻ ☻ ☻ ☻ ☻Media relations ☻ ☻ ☻ ☻ ☻Generate new product ideas ☻ ☻ ☻ ☻ ☻Product promotion ☻ ☻ ☻ ☻ ☻ ☻Customer service ☻ ☻ ☻ ☻Customer feedback ☻ ☻ ☻Frand advocates ☻ ☻ ☻ ☻ ☻Sales leads ☻ ☻ ☻ ☻ ☻ ☻
7 Steps to Social Media ROI
1. Define the “R” – What are expected results?2. Define the “I” -- What’s the investment?3. Understand audiences and what motivates them 4. Choose metrics5. Choose benchmarks 6. Pick a tool and undertake research7. Analyze results, glean insight, take action,
measure again
Source: KD Paine & Partners
Key Performance Indicators (KPIs)Cost savingsEfficiency
Cost per message communicatedCost per new lead/customer acquired
Productivity: Increase in employee engagement/moraleLower turnover/recruitment costs
Engagement: Ratio of posts to comments% of repeat visitors% of 5+ min visitors% of registrations
Trust:Improvement in relationship /reputation scores with customers and communities (Loyalty/Retention)
Thought leadership: Share of quotesShare of opportunities
Message penetrationPositioning on key issuesImprovement in favorable/unfavorable ratio
Source: KD Paine & Partners
Measurement OptionsTraffic: unique visitors vs. page viewsTechnorati rankingsRSS subscriptionsGoogle linkto: and allinanchor:Delicious and Technorati tagsTrackbacksWebsiteGrader.com, Xinu, Compete, Alexa scoresAnd more…
Search engine rank
Social bookmark activity
Comments
Inbound links
Copycat or parody videos
Mashups
Mainstream media references
Referral links
Search engine results
Sentiment analysis
Contest entries
Blog mentions
Discussion group posts
Social network membership
Bloglines or Blogpulse rankings
Video viewership
Set Up to Measure
Define metrics; for social media marketing, the two key ones are influence and engagementSet up campaigns and event tracking for social media Choose analytics software that can track specific eventsTrack fans, followers, etc. over time to measure growth in interestIdentify where visitors come from and how they interact. Feed back into marketingDetermine which social media channels are most effectiveResearch plug-ins and tools like Bit.ly, xinureturns, PostRank, and SocialToo for profile dataAggregate analytics in one place
Source: KD Paine & Partners
Sample Engagement Metrics % increase or decrease in unique visits In the past month, what % of sessions were >5 page views % of sessions >5 minutes in duration % of visitors that return for more than 5 sessions % of sessions that arrive at your site from a Google search/referral/link from your web site% of visitors that subscribe% of visitors that download content% of visitors that provide an email addressRatio of posts to comments
Source: KD Paine & Partners, Eric Peterson
Classifications of Discussion• Responding to criticism• Giving a shout-out• Making a joke• Making a suggestion• Making an observation• Offering a greeting• Offering an opinion• Putting out a wanted ad• Rallying support• Recruiting people• Showing dismay• Soliciting comments• Soliciting help• Starting a poll• Validating a position
Source: KD Paine & Partners
• Acknowledging receipt of information
• Advertising something• Answering a question• Asking a question• Augmenting a previous post• Calling for action• Disclosing personal information• Distributing media• Expressing agreement• Expressing criticism• Expressing support• Expressing surprise• Giving a heads up
Matching Goals & MetricsGoal Action Output Metric Outtake Metric Outcome Metric
Increase on-line reservations
Revamp website
Amount of content on web site
% perceiving state as a destination
% increase in web traffic and reservations
#1site for visitors to NH
Increase communications staffing and resources
Increased exposure of “visit NH” message
Increased perception of NH as extreme destination
% increase in agreement with the statement
Website is preferred site for information
Add content, features to web site
% increase in traffic
% agreeing with the statement
# 1 rankings and time spent on site
Source: KD Paine & Partners
Select ToolsObjective KPI Tool Increase inquiries, web traffic, recruitment
% increase in traffic#s, clickthrus or downloads
Google Analytics, Omniture, WebTrends
Increased awareness/preference
% of audience preferring brand to competition
SurveyMonkey, Zoomerang
Engage marketplace •Conversation index greater than .8•Rankings •% increase in engagement
TypePad, Technorati Omniture, Google Analytics
Communicate messages •% of articles containing key messages•Total opportunities to see key messages•Cost per opportunity to see key messages
Media content analysis Dashboards
% aware of or believing in key message
Survey
Source: KD Paine & Partners
Blogs: The Low-Risk Option
Cheap and easy to create and updateHave distinct personal voiceCan quickly build traffic through reciprocal linksExcellent search engine performanceAbility to control discussionFast, inexpensive alternative to press releases
Blogging for BusinessCEO
Advise and Inform
Event Promotion
Publish Everywhere
32 million members
300 million members44 million members
1 billion daily views
6 million daily visitors
50 million members10 million members
1 million daily visitors
1.5 million daily visitors
Many Uses for Twitter
Engage Popular People
1.7 million followers
1.2 million followers
1.1 million followers
980,000 followers
473,000 followers
360° Of Value
Needs Definition
Product Architecture
Iterative Development
Field Testing
Viral Marketing
Peer Support
Facebook Fans
Announcements
Mailing List
Repurpose media
Feedback/testing
Create Activity Timelines
Source: BrandBuilder
Look at Sales Revenue
Source: BrandBuilder
Net New Customers
Source: BrandBuilder
activities
transactions
social data
web data
loyalty metrics
etc.
Overlay All Timelines
Source: BrandBuilder
Before After
Impact
ImpactImpact
No Impact
Uncertain Impact
Look for Patterns
Source: BrandBuilder
Case Study: Clickable Gurus
Goal Generate LeadsTactic Build awareness by sharing
domain knowledgeMetrics Unique visits; Online mentions;
Referrals; ConversionsResults 2,000% increase in site visitors
300% improvement in buzz index50% increase in customers400% increase in ad billings
Case Study: Intel Insiders
Goal Turn customers into fansTactic Recruit 10 prominent bloggers for access, trialsMetrics Blog posts, videos, tweets, trafficResults One video received 320,000 views
6,200 downloads of Facebook appMany blog entriesProgram renewed for second year
Case Study: Indium
Goal Generate LeadsTactic Targeted topical blogs; keyword repetitionMetrics Referrals; ConversionsResults Not revealed, but company has recently expanded from 15 to
85 blogs and added Facebook and Twitter presence
Case Study: Dell
Goal Improve imageTactic Direct response to all Dell mentions on blogs and TwitterMetrics Sentiment analysisResults Negative comments reduced from 60% to 20% of online
mentions over six-month period
Case Study: Catapult
Goal Generate LeadsTactic Multi-city event series driven by Facebook, LinkedIn, Twitter
promotion and event pages; Microsoft video contestMetrics Prospect registrationsResults More than 700 registrants for road show
Video selected by Microsoft for reseller keynote
Case Study: Stanford University
Goal Increase alumni & student affinityBuild reputation as major research center
Tactic Facebook fan page with multimedia and broad participation from across university departments
Metrics Likes, comments, removed fans, media consumption, surveysResults Fan count grew from 11,500 to 41,100 in six months
% of prospective students, students and alumni citing favorable impact ranged from 70% to 90%
Case Study: Sutter Medical Center
Goal Build support for new medical center to replace aging but popular building and reduce misinformation
Tactic Broad outreach through blogs and nearly every available social networking channel
Metrics # of mentions, Sentiment analysis, surveysResults Six months after program began, support levels for project
exceeded 90%
Thank you!
Paul Gillin
508-656-0734
www.gillin.com
Twitter: pgillin
Available on Amazon or from
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