SOCIALMEDIA

ANDMARKETING

ROI

RULES FOR CREATING CEO FRIENDLY SOCIAL MEDIA CAMPAIGNS

BY REX FREIBERGER

RETURN ON INVESTMENTROI = [GAIN FROM INVESTMENT – COST OF INVESTMENT] /COST OF INVESTMENT

RETURN ON OBJECTIVES

Question: What internal social strategy objectives will you focus most on in 2011?

In the survey, Altimeter Group asked 140 corporate social strategists about their 2011 planning.

Question: What measurements are most important to evaluating the success of your program?

In the survey, Altimeter Group asked 140 corporate social strategists about their 2011 planning.

An increase in search rankings is NOT a financial metric

An increase in Facebook Likes is NOT a financial metric

An increase in positive opinion is NOT a financial metric

• 10 leads per month via Contact Us after landing on the blog

• 10% of leads become clients• 1 new client/month• Average client value is $15,000 =

$15,000/month revenue

Website Blog

ROI ALWAYS IS:Revenue minus

Investment/investment

15,000-2,300/2,300

ROI = 552%

• 60 hours per month to create• Avg staff salary + benefits = $60,000• $60,000/2000 hours = $30 per hour• + $500 per month in design Costs = $2,300 per month investment

Investment

• $20,000 for Q2

Action

• Company creates Influencer Outreach Campaign and Facebook page

Reaction

• Bloggers and the public respond positively

Nonfinancial Impact

• Q2: 20,000 people liked page, 3x increase in brand mentions, 43% increase in positive sentiment

Financial Impact

• Q2: 10,000 New Transactions = $100,000

WELCOME TOROI WORLD

$$$ $$$

DARETOCONNECTTHEM?

WHAT IS THE UNIT OF MEASURE [THE CURRENCY IN OTHER WORDS] OF INSPIRATION? HOW ABOUT INNOVATION? RELATIONSHIPS, EVEN?

CORRELATION

Step #1 Establish a Baseline

Trend: 10% Growth

Start of ActivityStart of Social Media ProgramStart of CampaignStart of Measurement

Create Facebook Page and Influencer Research Collateral and Lists• Month 1

Reach Out to Influencers and do Facebook Advertsiting• Month 2

Hold Facebook Contest and Continue Outreach• Month 3

Major Influencers Post Review of Product, discuss contest• Month 4

Videos posted to Youtube, Facebook Contest ends• Month 5

Step #2 Create Activity Timeline

Step #3 Monitor Brand Mentions

Use Google Insights/Trends for search data

Step #4 Look at Transactional Data and Sales

Sales Revenue

Step #5 Overlay Data onto Single Timeline

Step #6 Look for Patterns

Source: David Witt, Senior Manager, Brand Public Relations, General Mills

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