social media roi - quantify and justify your social media campaign

Social Media ROIMyth or Measurable?

Arun Nair, Samriddhi 2010

ROI =Cost Of Investment

Gain From Investment - Cost Of Investment

ROI (Return on Investment)

Myth #1

“Social Media and ROI are like Chalk and Cheese. It doesn’t work. There is no financial impact anyway” – Mr Doohickey, Chief Ignorant Officer

Most purchases are influenced by these very attributes of social media!

Social Media as a Catalyst

Conventional Campaigns

+[ Social Media ]

=Enhanced ROI

More Sales Increased Campaign Recall Reduced Costs

“What gets Measured gets Managed”- Peter Drucker

Myth #2

“Social Media is about conversations, word of mouth, advocacy. How can you measure that?”- Mr Blahman, Clueless Consulting

Social Media is measurable…just not with conventional success metrics…because it benefits your organization, more than than just boosting sales!

Be clear about the Objectives and set Expectations accordingly.

Set the right Metrics and use the Right tools.There are Free tools that make it Easy to Quantify Impact and ROI

The right metrics

Number of new customers / salesReduction in support costs

Number of influential people who tweet something about us

Number of influential blogs that linked to us

Number of new things we discovered about customers that we never knew before

Ratio of positive comments to negative ones

Number of people that join a discussion

The right tools

• Google Analytics• Bit.ly• Alexa• Twitter Grader• Twitter Search• Technorati• Klout• Social Mention• Radian6

Case Studies

Intel Insiders

GoalTurn customers into fans

TacticsRecruit 10 prominent bloggers for access, trials

MetricsBlog posts, videos, tweets, traffic

ResultsOne video received 320,000 views, 6,200 downloads of Facebook app, Many blog entries

Program renewed for second year

Starbucks

GoalEngage with customers/prospects using social media and ask what they would like from you

TacticsLaunched the My Starbucks Idea website

MetricsNumber of good suggestion that Starbucks hadn’t thought of, % of the above that Starbucks actually implements

ResultsResults not known, but Starbucks generated over 70,000 ideas in its first year of implementation alone!50 of the ideas have been implemented already.

Dell

GoalImprove image

TacticsDirect response to all Dell mentions on blogs and Twitter

MetricsSentiment analysis

ResultsNegative comments reduced from 60% to 20% of online mentions over six-month period

Stanford University

GoalIncrease alumni & student affinity, Build reputation as major research center

TacticsFacebook fan page with multimedia and broad participation from across university departments

MetricsLikes, comments, removed fans, media consumption, surveys

ResultsFan 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%

Sutter Medical Centre

GoalBuild support for new medical center to replace aging but popular building and reduce misinformation

TacticsBroad outreach through blogs and nearly every available social networking channel

Metrics# of mentions, Sentiment analysis, surveys

ResultsSix months after program began, support levels for project exceeded 90%

That’s all folks!

indianeye.org | twitter.com/nairarun | arun.n.nair@gmail.com