1. Social Media ROI Process, Challenges and Requirements Sponsored by: Twitter:#bizcmg Presented by: Jacob Morgan Chess Media Group December 22, 2009

2. Risk of Ignoring Risk of Ignoring 3. Return on Influence 4. ROI

• R eturn

• • O n

I nvestment

5. What is ROI? Gain from Investment Cost of Investment Cost of Investment ROI = Financial 6. What is ROI?

If you invested $200k into something and made $500k back 3 months later, is that positive ROI?

7. What If?

What if after 3

months you found

out that your

investment

damaged your

brand reputation?

Still positive ROI?

8. What is ROI?

What does this mean?

ROI needs to make or save money AND strengthen your brand

This is why ROI AND Impact are both important!

9. Sales is Not ROI

Making $3M is not ROI

• Especially if it cost $4M to make the $3M

You can have positive sales and negative ROI

Must take into account costs/investment

10. I gave you money and I wanted money back, not followers! Look how many friends and followers I got with that money you gave me! 11. The ROI Number

Meaningless without context

Must understand variables that affect ROI

• Presence on social networks

• Amount of activity

• Type of campaigns

Tells you:

• What works, what doesnt

• Where should you be putting your money

12. Where do You Invest Your Time and Money? 13. Types of ROIMake money Save money

Save on research costs

Save on time spent, which translates to dollars

Save on technology or business costs

Save on product development costs

Increase number of customers

Increase how much customers spend

Increase how often customers spend

Increase customer retention

14. 15. Make Money 16. Types of ROIMake money Save money

Save on research costs

Save on time spent, which translates to dollars

Save on technology or business costs

Save on product development costs

Increase number of customers

Increase how much people spend

Increase how often people spend

Increase customer

retention

17. Save Money 18. Save Money 19. Save Money 20. 21.

Provided by

@rmpapag 22. What is Impact?

Clicks

Impressions

Page views

Comments

Re-tweets

Size of network

Non-Financial 23. Lord Kelvin

W hen you can measure what you are speaking about, and express it in numbers, you know something about it; but when you cannot measure it, when you cannot express it in numbers, your knowledge is of a meager and unsatisfactory kind: it may be the beginning of knowledge, but you have scarcely, in your thoughts, advanced to the state of science."

24. Take a Deep Breath Relax 25. Build a Foundation Stop trying to build this Without starting with this Or you get this 26. Measurement Foundation

Doesnt start AFTER a campaign.Its baked into the strategy and all social business efforts.

Social business strategy Measurement Foundation 27. Breaking and Building

Have to break things down in order to build them up again properly

New platform, new game, new way of doing things

Dont justify lack of measurement with old marketing methodologies

28. Traditional Mediavs.Social Media

Billboards, print, radio TV

Harder to measure ROI

No tracking

Based on art not science

Customer surveys and polls

Value measured with eyeballs, traffic, exposure

Analytics and monitoring

Sentiment and conversation analysis

Customer tracking

Social CRM

Data capturing

Based on science not art

Value measured in impact and ROI

Customer insight

Purchase behavior

29. New Game Provided by Biz360 Blogs 20% Discussion Forums/Boards 10% Micro-Blogs 33% Online News 32% Print News