measuring social media roi in the real world for business

UnderstandingSocial Media Measurement:

A Road Map

Tara CoomansAkamai Marketing

www.akamai-marketing@TaraCoomans#akamaimkting

Wednesday, February 20, 2013

27% of Businesses Measuring Social ROI

63% Measure Followers/Likes61% Measure Click Through Rates 51% Measure Brand Mentions

35% of Companies Measuring Social ROI are

SatisfiedSOURCE: http://www.nectarom.com/assets/Social-Media-Study-Quick-Summary_0213.pdf

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•HOW to measure Social Media

•WHAT to measure in Social Media

•A sample ROI model

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Social Media is the Support Beam to Your Business Goals

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NO INVESTMENT, NO RETURN

Wednesday, February 20, 2013

Revenue Word of Mouth

Not Everything That Can Be Counted, Counts

Not Everything That Counts, Can Be Counted

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What You Measure,Depends on Your Destination.

Increased sales

Reduce Customer Service Costs

Create community

Increase web traffic

Increase reach

Brand awareness

Qualitative Quantitative

Customer Feedback

Increase trust

Increase loyalty Increased leads

Website conversions

Shorter Sales Cycle

Wednesday, February 20, 2013

What Value Does Word of Mouth Marketing Have?

65% of New Business Comes From Referrals 40% of Small

Businesses Say Referrals Bring in Bigger Returns

than Traditional Marketing

4X More Likely to Buy When Referred by a Friend.

Source: https://s3.amazonaws.com/ambassador/downloads/infographic/netpromo-v5.jpg

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Social Media Supercharges Word

of Mouth

FasterMore NimbleMore Reach

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How Do We Quantify Word of Mouth

X =

McKinsey Quarterly Research

Wednesday, February 20, 2013

How Do We Quantify Word of Mouth

Volume

Few Messages

Many Messages

X =

McKinsey Quarterly Research

Wednesday, February 20, 2013

How Do We Quantify Word of Mouth

Volume

Few Messages

Many Messages

X Impact

Network

Sender

Closed/Trusted

Large/Dispersed

+-

Influential

Not Influential

+-

=

McKinsey Quarterly Research

Wednesday, February 20, 2013

How Do We Quantify Word of Mouth

Volume

Few Messages

Many Messages

X Impact

Network

Sender

Closed/Trusted

Large/Dispersed

+-

Influential

Not Influential

+-

Content

Message Source

+Relevant Key Buying Factor Irrelevant Key Buying Factor

-

+ Personal Experience

- Secondhand, Hearsay

=

McKinsey Quarterly Research

Wednesday, February 20, 2013

How Do We Quantify Word of Mouth

Volume

Few Messages

Many Messages

X Impact

Network

Sender

Closed/Trusted

Large/Dispersed

+-

Influential

Not Influential

+-

Content

Message Source

+Relevant Key Buying Factor Irrelevant Key Buying Factor

-

+ Personal Experience

- Secondhand, Hearsay

= WOM Equity

McKinsey Quarterly Research

Wednesday, February 20, 2013

ROI Data

Measure Success Outside of Social Platforms

Wednesday, February 20, 2013

INCREASED LEADS

conversion of sm followers vs.other marketing programs

#downloads + #webinars + lead generation from SM

#downloads + #webinars +lead generation from other sources

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INCREASEDSALES

revenue per follower

#followers + #fans + #subscribers

revenue

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DECREASED CUSTOMER

SERVICE COSTS

customer resolution time social mediacomparison

# customer service cases on social media/time

# customer service cases on traditional methods/time

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CAMPAIGN EFFECTIVENESS

cost per conversion digital methods

cost per conversion other methods

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ROI Data

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SAMPLE CASE STUDY: Menu Launch30-Day Campaign

ROI

• Invite 10 Food Bloggers, local and regional to review.

• Choose variety of writers and photographers, write a minimum of 2 posts.

• Bloggers also post on Facebook & Twitter

• Average Twitter Audience: 5,000

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ROI: Influencer Program CostsSet Up Social Media Assets Market Value

Training of Personnel $3,000

Social Media Monitoring Platform $2,000

Social Media Consulting / Campaign Strategy / Blogger Management/Costs/Analysis

$7,200

Cost of Content Creation $7,000

Cost of Brand Owned Content Creation $1,000

$20,200

Wednesday, February 20, 2013

ROI: Cost SavingsIncoming Clicks

EXAMPLE: •2500 New Non-paid Visitors •“Honolulu Restaurant” Keyword term• Average CPC . 71•5% Made Reservations Online

CPC Value: $1,775

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EXAMPLE: •30 Blog Posts, local & regional•Total Page Views: 380,727•Total Unique Page Views: 267,299•Average Twitter Reach: 5,000•Average Facebook Reach: 3,200

Media Equivalency Value: (Debatable) $6,480

ROI: Cost Deflection Media Equivalency

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EXAMPLE: •Average check increase of $5.00/check •Increase of 10 checks/day•Increased total is 75 checks/day

Revenue Increase: $17,400(during 30-day campaign)

ROI: Increased Revenues

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Based on: •Trust Factor - Low•Relevance Factor - High•Quantity/Volume - Medium•Network Value - Medium

Independent Reviews (25)Independent Social Media Mentions (250)

WOM Value: $5,600

ROI: Word-of-Mouth Value

Source: http://www.mckinseyquarterly.com/A_new_way_to_measure_word-of-mouth_marketing_2567

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Incoming Traffic Value +Media Equivalency Value +

Word of Mouth Value +Product Development (savings) +

Customer Service (savings) +Increase in Revenue (or other strategic goals) during campaign

Gain of Social Media Program- Social Media Program Cost

Total ROI

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MeasuringSet Up Social Media Assets Market Value

Cost Deflection (Media Equivalency) $6,480

Cost Savings (Online) $1,775

Word of Mouth Value $5,600

Total Revenue Increase $17,400

$31,255

Total ROI $ 31,255 - $ 20,200

$ 20,200= 5%

Wednesday, February 20, 2013

•Restaurant traffic increases by 10 checks/day

•Reservation rate up 20%

•Geolocation “Check-ins” up 5%

•Reservations spend up to 10% more

•20% Increase in independent reviews (25)

•10% Increase in positive independent reviews

•5% Increase Unsolicited Positive or Neutral Social

Media Mentions: (250)

KPI’s Worth Tracking

Wednesday, February 20, 2013

Before We Press “Go”

Baselines in Place?

Business Goals Established?

Website Easy to Update?

Landing Pages Up?

Web Analytics in Place, Optimized?

Don’t Measure Social Media in the Social

Channel

Wednesday, February 20, 2013

Thank You!

Join me online for more resources and conversation: www.akamai-marketing.com

@taracoomansfacebook.com/AkamaiMarketing

This Presentation is Available on My Slideshare Channel: Slideshare.com/TCoomans

Wednesday, February 20, 2013