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What is Your Social Media ROI?

What is Your Social Media ROI?

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What is Your Social Media ROI?

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  1. What is Your Social Media ROI? Date: March 26, 2012Time: 3:15 – 4:30 pmHub Tag: #ideas12 LM8 Tom McClintock

  2. A Presentation By: Tom McClintock Colorado Springs, CO · Richmond, VA

  3. Agenda Social Media (SM)’s Latest Triumphs ROI Opposite Corners New Math, Cases and Available Tools

  4. Source: Three Ships Media

  5. Viewpoint #1 You can’t—and shouldn’t try to—calculate the ROI of social media.

  6. VIEW 1: No ROI from SM • Having thousands of followers doesn’t necessarily translate into SM marketing success • You can easily measure only some things • Coupons • Contests • Clicked links • Signups • Much of SM’s benefit is indirect or intangible—not an asset purchased and placed on balance sheet

  7. VIEW 1: No ROI from SM • SM is an investment in a relationship with your audience that converts them into advocates. • Value is derived from qualitative benefits.

  8. VIEW 1: No ROI from SM Qualitative Benefits In Each Stage of Your Marketing Campaigns: • Research • Strategic Planning • Implementation • Evaluation Source: Synovate Research, Alexa Global Traffic Ranking, Morgan Stanley Research

  9. VIEW 1: No ROI from SM Implementation • Driving traffic to your website • Branding • Risk management • Conversions based on goals http://annualreport.pg.com/annualreport2011/innovating/oldspice.shtml

  10. VIEW 1: No ROI from SM If you need to calculate ROI, think of it as activity-based, not medium-based—i.e., Focus on the relationship between the activity and the outcome. Social Media is a tool, just like a telephone, email or computer.

  11. Viewpoint #2 You can—and must—calculate the ROI of SM.

  12. VIEW 2: Calculating ROI from SM Comcast Twitter customer service center attracted 2,700 followers. Many critics of the company converted to raving fans. Starbucks Goes to customers through SM for new product ideas. Now when it launches a new product, it already has millions of fans. Livestrong Raised $10.8 million with Livestrong Challenge through SM channels with blog as hub. Source: Petersen, Rob. 34 cases that prove social media ROI, http://barnraisersllc.com/2010/10/33-13-social-media-case-studies-prove-roi

  13. VIEW 2: Calculating ROI from SM Low investment in SM leads to high ROI when organizations: • Have a clear business strategy • Aren’t afraid to jump in • Make imaginative use of social channels, customer engagement and brand relationship Source: Petersen, Rob. 34 cases that prove social media ROI, http://barnraisersllc.com/2010/10/33-13-social-media-case-studies-prove-roi/

  14. VIEW 2: Calculating ROI from SM So how did BarnRaisers find an ROI when so many others couldn’t? Let’s take another look at the formula that the naysayers cite: (Return – Investment) Investment

  15. Must all SM ROI Be Sales-Based? If your goal is sales, you can measure ROI using the standard financial formula: (Return – Investment) Investment But what if you’re, say, an Association…with returns less tangible, e.g., raising consumer awareness about your industry?

  16. New Math BarnRaisers and others realize that social has not only decentralized and disaggregated, but it’s also dematerialized —things are less tangible Less Tangible Today • Publishing • Content • Workplace • Corporate Structure • Pricing (Freemium Model) • Hollywood Studios • Trade Shows • Friendships • Business Contacts • Assets, too! • Great Idea #1: social redefines how we generate and value returns in a less tangible world

  17. New Math • Great Idea #2: Untethered, ROI metrics can now go beyond sales dollars to include Retention, Research and Sentiment values as major currencies to track your messaging

  18. Don’t Base ROI on Sales If Sales isn’t Your Goal Great Idea #3: when sales aren’t the goal, calculate the ROI Return using the Persuasion Index Defined by 5 levels of agreement: • Strongly agrees (5) • Partially agrees (4) • Neither agrees nor disagrees (3) • Partially disagrees (2) • Strongly disagrees (1)

  19. Five Steps to Calculate SM ROI • Step 1: Identify Objective sales, retention, market research—or for most associations—sentiment • Step 2: Define Metrics • sales: thank-you page visits from tweeted landing page • retention: repeat customers/Facebook posts • market research: likes to announcement of potential new product/number of Facebook fans • sentiment: shift in percentage of conversation participants who agree vs disagree to message point over time • Step 3: Estimate SM campaign costs labor + ad spend + premium value • Step 4: Estimate SM Return against Objective via Metrics • Step 5: Measure and report regularly

  20. Measure ROI to Improve ROI • Great Idea #4: Measure SM ROI with an eye to improving it by: • Increasing campaign impact • Reducing campaign costs

  21. Measure ROI to Improve ROI Increase campaign impact • Define goals • Empower users through transparency • Research offers • Employ relevant premiums • Utilize split-tested landing pages • Develop relationships • Promote synergistic third party offerings • Establish social partnerships

  22. Measure ROI to Improve ROI Reduce campaign implementation costs • Leverage SM team • Establish SM culture • Employ Twitter client • Utilize SM browser • Repurpose content • Establish social partnerships

  23. NSI CASE 1: Sentiment Measurement for American Chemistry Council • ROI: Message Point Delivery • Problem: Regulators can’t keep up with the latest in materials science, like Life Cycle Assessment (LCA)—a methodology to measure a building’s lifetime environmental impact • Objective: Raise Sentiment for LCA Across Target

  24. NSI CASE 1: Sentiment Measurement for American Chemistry Council • Messaging • LCA reviews building materials through all phases, from manufacture through recycling • LCA contrasts with single-attribute assessment, such as whether the product is made from recycled material or whether it emits VOCs

  25. NSI CASE 1: Sentiment Measurement for American Chemistry Council • Goals: • Increase web traffic by 10% by December 2011 (+60%) • Create regular weekly blog content on highest visibility sites • Use Social Media to reach public and key Building & Construction audiences

  26. NSI CASE 1: Sentiment Measurement for American Chemistry Council • Methodology: 4-Phase Strategy PHASE 1: Listening Strategy via ReputationConnect™ Listening Platform PHASE 2: Increase Social Voice PHASE 3: Change Sentiment PHASE 4: Blog and Twitter Outreach

  27. Data Assumptions and Tools

  28. ROI Measurement Tools Facebook Insights

  29. ROI Measurement Tools Facebook Insights

  30. ROI Measurement Tools Google Analytics • Track Goals via Conversion Funnels • SM Traffic Only • Review Correlations Between SM Referral Traffic and Goal Conversions • Utilize a Variety of Tools • Define, Track, Measure, Change, Repeat Source: Lane, Brett, Engine-iusMarketing, CEO Workshop 2011, Colorado Springs Marketing Group

  31. ROI Measurement Tools • Google Webmaster Tools Source: Lane, Brett, Engine-ius Marketing, CEO Workshop 2011, Colorado Springs Marketing Group

  32. ROI Measurement Tools • Facebook Google Analytics Tracker Source: Lane, Brett, Engine-ius Marketing, CEO Workshop 2011, Colorado Springs Marketing Group

  33. ROI Measurement Tools • Involver’s Static HTML for Pages Source: Lane, Brett, Engine-ius Marketing, CEO Workshop 2011, Colorado Springs Marketing Group

  34. ROI Measurement Tools • AddThis Source: Lane, Brett, Engine-ius Marketing, CEO Workshop 2011, Colorado Springs Marketing Group

  35. ROI Measurement Tools • PowerReviews Source: Lane, Brett, Engine-ius Marketing, CEO Workshop 2011, Colorado Springs Marketing Group

  36. Contact Information Tom McClintock NSI Partners 719.328.0042 x801 tom@NSIpartners.com www.NSIpartners.com