Realize the ROI of Social MediaRealize the ROI of Social MediaRealize the ROI of Social MediaRealize the ROI of Social MediaMark Wallace

Vice President, Social MediaEnvironmental Data Resources

@mwallcommJune 30, 2009

Sponsored by:

Confidential Property of EDR

Agendage da

• Traditional Marketing ROI vs. Social Media ROI

• EDR & commonground

• 5 ROI & Reporting Tips

R /S• Recap/Summary

Traditional Marketing Traditional Marketing ROI vs Social Media ROIROI vs Social Media ROIROI vs. Social Media ROIROI vs. Social Media ROI

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“Return on Marketing Investment (ROMI) and Marketing ROI are defined as the optimization of marketing spend for the short and long term in

support of the brand strategy by building a market model using valid objective marketing metricsmodel using valid, objective marketing metrics. Improving ROMI leads to improved marketing

effectiveness, increased revenue, profit and marketeffectiveness, increased revenue, profit and market share for the same amount of marketing spend.”

Wikipedia’s definition

ROI: What We Are Used ToO at e e Used o

• Conversion cost per conversion– cost per conversion

– conversion rate

• Engagement• Engagement– throughout the buy cycle– compelling content

• Awareness– company recognition

product recognition– product recognition

“ROI, or as we call it at EDR, Return on Initiative, is defined as the ability to quantify and report the y q y presults of our social networking efforts to all key stakeholders. We analyze traditional marketing,

social or influence marketing, and search effectiveness, to name a few.

It is not an exact science ”It is not an exact science.

Mark Wallace

The ROI Rules Have Changede O u es a e C a ged

• Social Networks– reachreach– influence– presence

• Customer Satisfaction• Customer Satisfaction– references– lifetime value of a customer

• Participation:– basics – advanced

Web.media.MIT.edu

EDR and commongroundEDR and commongroundEDR and commongroundEDR and commonground

Confidential Property of EDR

Environmental Data Resources (EDR)o e ta ata esou ces ( )

• EDR provides unique information services to reduce environmental i k i t d ith trisk associated with property

• #1 provider of environmental reports for Commercial Real Estate

• At one point, one of FedEx’s largest customers in New England

• Portfolio company for the Daily Mail & General Trust in London

C t d d j t th i l t k f• Created commonground just over a year ago – the social network for environmental and property due diligence professionals (B2B)

Our Strategic Social Media GoalsOu St ateg c Soc a ed a Goa s

• Evolve the EDR & The Daily Mail & General Trust brands and culturey

• Solidify EDR’s relationships with customers and help them grow

• Improve EDR’s marketing and web effectiveness

• Generate new sources of recurring revenue

5 ROI & Reporting Tips5 ROI & Reporting Tips5 ROI & Reporting Tips5 ROI & Reporting Tips

Confidential Property of EDR

Tip #1: Agree on Your Business Driversp # g ee o ou us ess e s

For commonground, they are:

• Evolve and elevate brand

• Increase customer loyalty• Increase customer loyalty

• Maximize marketing effectiveness

• Generate sales

Tip #2: Report The Basics at Least Bi-Weeklyp # epo t e as cs at east ee y

For commonground, here are a few examples:

• 3,500 Members from 1,600+ unique companies

• 18% are owners CEOs principals and leaders of their companies• 18% are owners, CEOs, principals, and leaders of their companies

• 67 countries

• 11% participation rate

• 18 bloggers and over 560 blogs

Tip #3: Report Key Findings Ad Hoc p #3 epo t ey d gs d oc

• Since 9/08, Alexa rankings have gone up 420,000 points

Si 10/08 EDR b d h f 66 t 91• Since 10/08, EDR webgrade has gone from a 66 to a 91

• Since 10/08, commonground webgrade has gone from a 74 to an 88

I th l t th G l i d d h i d 30 !• In the last month, our Google indexed pages have increased 30x!

Tip #4: Make Time to Communicatep # a e e to Co u cate

• Regular in person communication to CEO, Sr. Staff, and Board

• Share successes frequently with members, coworkers, Advisory Panel

• Use blended approach to highlight milestones

R l l h k ll b hi d i di id l b• Regularly thank all membership and individual members

• Educate continuously

Tip #5: Research How to Improve Data Qualityp #5 esea c o to p o e ata Qua ty

• Market is evolving – new technology out there every day

• Executives and investors want real data

• Make it loud and clear that your social networking efforts are strategic

Return on our commonground SM Initiativeetu o ou co o g ou d S t at e• Featured as a top 10 initiative in the DMGT ‘09 annual report

R f d t “ t” “i iti ti ”• Referred to as now as an “asset” vs. an “initiative”

• Customers are telling us they are receiving real value answers, jobs, and business

• Significant search engine optimization improvements

E i t l B i J l A d i F b• Environmental Business Journal Award in February

• Member referrals are picking up considerably (viral kicking in)

• Our first monetization effort exceeded expectations

Summary/RecapSummary/RecapSummary/RecapSummary/Recap

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5 Steps To Realizing Social Media ROI5 Steps o ea g Soc a ed a O

1. Alignment – 100% agreement on your business drivers

2. Gather and share intelligence, user data, and trends

3. Report advanced findings ad hoc – the more the merrier

4. Make time to communicate with all stakeholders (…and thank them)

5. Do your homework – as your community evolves, so won’t your needs. Be prepared.

Q&A Contact information

Mark WallaceVP Social MediaVP, Social Media

Environmental Data Resources (EDR)

Twitter: @mwallcommTwitter: @mwallcomm Twitter: commonground @edrcommonground

LinkedIn: linkedin.com/in/mwallace6161Questions via twitter #CommROIQuestions via twitter #CommROI

Special thanks to: