a simple guide to measuring your social media roi
DESCRIPTION
In 2013, only 51% of large businesses in Australia measured their return on investment from social media. But when you dig a little deeper into the data, you'll discover the vast majority of these businesses define measuring return on investment as tracking likes, followers or subscribers. In today's data driven landscape, thats simple not good enough. This presentation will help you go beyond likes, followers and subscribers as measures of success. You'll learn simple ways to demonstrate the real value derived from social media and you can even download a practical excel model to help measure your return on investment. So next time your CEO asks whats the return on investment, you can say, here's something I prepared earlier!TRANSCRIPT
HOW TO MEASURE YOUR SOCIAL MEDIA ROI
1. THE SOCIAL LANDSCAPE
2. HOW TO CREATE A SOCIAL STRATEGY
3. HOW TO MEASURE SUCCESS
4. HOW TO MEASURE ROI
THE AGENDA
THE SOCIAL LANDSCAPE
IN OZ
WHAT IS SOCIAL MEDIA?
Social media Interactive Shareable Conversational Dynamic Many-to-many
Traditional media Detached
Difficult to share Promotional
Static One-to-many
MY FAVOURITE DEFINITION:
“SOCIAL MEDIA IS WORD OF MOUTH ON STEROIDS”
THE POWER OF ONE PERSON
• MAKES A VIDEO • OVER 13.9 MILLION VIEWS • STOCK DROPPED BY 10% • COST SHAREHOLDERS $180M
United Breaks Guitar by Dave Carrol
IT’S COMPLICATED!IT’S COMPLICATED!
AUSSIES LOVE SOCIAL MEDIA
65% OF AUSTRALIANS
USE SOCIAL MEDIA
SOCIAL MEDIA REPORT - YELLOW, 2013
AUSSIES LOVE FACEBOOK
95% OF AUSTRALIAN SOCIAL MEDIA USERS USE FACEBOOK
SOCIAL MEDIA REPORT - YELLOW, 2013
TOP 5 SOCIAL NETWORKS
SOCIAL MEDIA NEWS - MAR, 2014
13,200,00012,600,000
3,650,0002,500,000 1,600,000
WHICH SITES HAVE WE STOPPED USING?
SOCIAL MEDIA NEWS - MAR, 2014
45%
18%12%
9%12%
HOW TO CREATE A SOCIAL STRATEGY
THE SOCIAL STRATEGY PROCESS
LISTEN PLAN GROW ENGAGE MEASURE
HOW TO MEASURE SUCCESS
51% OF BRANDS MEASURE
SOCIAL MEDIA ROI
SOCIAL MEDIA REPORT - YELLOW, 2013
ONLY
69% OF LARGE BUSINESS USE FOLLOWER
NUMBERS TO MEASURE SUCCESS
SOCIAL MEDIA REPORT - YELLOW, 2013
“I WOULD RATHER HAVE A SMALL COMMUNITY OF HIGH
VALUE MEMBERS THAN A LARGE COMMUNITY OF LOW VALUE
MEMBERS”
“NOT EVERYTHING THAT CAN BE COUNTED COUNTS, AND NOT EVERYTHING THAT COUNTS CAN BE COUNTED”
SO MUCH DATA… WHAT SHOULD WE MEASURE?
MAKE SURE THE METRICS YOU CHOOSE
ALIGN WITH YOUR OBJECTIVES
= IMPRESSIONS / REACH
AWARENESS
= LIKES / COMMENTS SHARES / RETWEETS
ENGAGEMENT
NUMBER OF CUSTOMER
RESOLUTIONS
GREAT SERVICE
MAKE SURE THE METRICS
DEMONSTRATE VALUE
BRAND METRICS
• NUMBER OF BRAND MENTIONS • SHARE OF VOICE • SENTIMENT • BRAND INSIGHTS
ENGAGEMENT METRICS
• FANS / FOLLOWERS • LIKES / COMMENTS / RETWEETS /
SHARES • ENGAGEMENT SCORE • REACH • ENGAGEMENT INSIGHTS
SERVICE METRICS
• NUMBER OF ENQUIRIES • OUTCOMES • SENTIMENT • RESPONSE TIMES • SERVICE INSIGHTS
WHERE DO I GET THE DATA?
MONITORING MANAGEMENT BENCHMARKING
BRAND MENTIONS TRENDED
RADIAN6 - MARKETING CLOUD
BRAND SENTIMENT TRENDED
RADIAN6 - MARKETING CLOUD
SENTIMENT BREAKDOWN
RADIAN6 - MARKETING CLOUD
SHARE OF VOICE BREAKDOWN
RADIAN6 - MARKETING CLOUD
SERVICE SUMMARYTWITTER FACEBOOK TOTAL
Enquiries 1,082 2,089 4,071
Resolved enquiries 789 1693 2482
Escalated enquiries 293 396 689
Response Time 0:23:00 0:54:00 0:38:50
SentimentPOSITIVE !
20%
NEUTRAL !
18%
NEGATIVE !
62%
POSITIVE !
9%
NEUTRAL !
26%
NEGATIVE !
65%
POSITIVE !
13%
NEUTRAL !
19%
NEGATIVE !
67%
Deflected contacts (call deflection rate =
5%)54 104 158
Estimated savings (average cost per
contact $5)$270 $520 $790
RADIAN6 - ENGAGEMENT CONSOLE
ONCE YOU’VE GOT THE DATA WHAT ARE THE INSIGHTS?
• What’s driving the trends in mentions, sentiment? • What are the key themes? • What are the key learnings and insights? • What’s happening in each channel? • How are marketing campaigns driving conversation? • What are the key issues and are they being addressed? • What are the wins and what value have they delivered?
WHAT’S THE ROI?
THE EQUATION IS SIMPLE
(TOTAL GAINS - TOTAL COST)
TOTAL COST
ROI =
MAKE SOME ASSUMPTIONS TO ESTIMATE YOUR GAINS
• ESTIMATE CPM VALUE • ESTIMATE AVG ENGAGEMENT VALUE • AVG CONVERSION RATE FROM SOCIAL TRAFFIC • AVG VALUE OF A SOCIAL CONVERSION • USE GOOGLE ANALYTICS AND FACEBOOK INSIGHTS • AVG CALL DEFLECTION RATE • AVG COST OF CALL
SAMPLE GAIN INPUTS
1. TOTAL REACH / VALUE 2. TOTAL ENGAGEMENTS / VALUE 3. TRAFFIC FROM SOCIAL / VALUE 4. ESTIMATED CALLS DEFLECTED / SAVINGS 5. SALES FROM SOCIAL MEDIA / VALUE
SAMPLE COST INPUTS
1. WAGE COSTS 2. AGENCY FEES 3. MEDIA COSTS 4. SOFTWARE COSTS
BACK TO THE EQUATION
($80,000 - $32,000)
$32,000
ROI =
AND THE “ROI” IS
150%OR $1.50 RETURN
FOR EVERY $1 SPENT
“IT’S NOT AN EXACT SCIENCE”
BUT REMEMBER
“MEASURE IT CONSISTENTLY AND
IMPROVE IT”
YOUR GOAL
