measuring social media roi in the real world for business
DESCRIPTION
Measuring social media means a return to real business metrics. Stop measuring social media within the platforms and use meaningful Key Performance Indicators (KPI) to evaluate ROI. Included is a case study and sample Key Performance Indicators.TRANSCRIPT
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
Wednesday, February 20, 2013
•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
Wednesday, February 20, 2013
NO INVESTMENT, NO RETURN
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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
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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
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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