secrets of social media roi
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Secrets of Social Media ROIRevealed by 166 Case Studies
October 16, 2012
Did you know?
• 90% of all purchase decisions begin on the internet• 80% of traffic to a website begins with a search
query• 75% of people shop online before they buy offline• 85% are looking for an independent review• 80% trust the recommendation of another person• 14% of people trust advertising
Sources: comScore, eMarketer, Nielsen, HubSpot
Knows how to find the right social network
Knows how to find the right social network
Now marketing isn’t a monologue; it’s a conversation
Social media has changed how we buy*
Before Now
* Harvard Business Review Dec 2010
Consider
Evaluate
Free (no info required) at: http://barnraisersllc.com/
6 Secrets to Social Media ROI
#1. To build it is better than to buy it
Case Study #1: Melrose Jewelers
Results and ROIKPI Qtr. 1 Qtr. 2
Sales About $1MM $2MM
Average Shopper Value
$5,000 >$5,000
Web Site Visitors 50,000/month 400,000/month
Database + ++++
Facebook “Likes” 3,000 180,000
Twitter Followers 700 900
#2. Nothing succeeds like a passionate belief in your Brand
Case Study #2: Blendtec
Situation• Blendtec founded in 1970’s• Sells blenders B2B in
commercial market (e.g. Starbucks)
• Decides to sell direct-to-consumer in 2007 with video commercials featuring CEO Tom Dickson
• Cost $1,000 to make
Results• By 2009, company sales
increase by +700%
Blendtec YouTube commercial reach
Source: Alexa
#3. People like to do business with people they know
Case Study #3: FastLane: a GM blog written by senior executives
GM saves $200,000+ a year
#4. Social media are customer service are the same business
Case Study #4: AJ Bombers
Situation• In 2009, AJ Bombers, a
burger restaurant, opens in Milwaukee, WI
• Operates at break-even for 1st six months
• No traditional marketing• Owner Joe Sorge uses
Results• 75% of customers come
from Twitter• More social media $$$
– Foursquare day results in his highest sales to date
– Featured in Travel Channel, Food Wars, through Twitter
• Within a year, weekly sales are +60%
#5. Your community is your best resource for innovation and ideas
Case Study #5: IBM
Situation• IBM uses social media as
internal collaboration tool• “Crowd-sourcing” for
company innovations• Company allows employees
to set up:– 17,000 blogs– 100,000 use them– 500,000 participate in crowd-
sourcing “jams”
Results• IBM funds $100 million in
product ideas from social media collaborations
• Generates $100 billion in revenue
• 100-to-1 ROI with 44.1% gross profit margin
#6. When failure is not an option, what results?
Case Study 6: Foiled Cupcakes
Case Study #6: Foiled Cupcakes
Situation• Gourmet cupcake bakery
serves Chicago market• No storefront; website is
company’s storefront• Social media is the only
form of marketing
Results• 93% of leads from social
media• Company surpasses
revenue target by +600%
Does your business live by these principles?
1. To build it is better than to buy it2. Nothing succeeds better than a passionate belief in
your brand3. People like to do business with people they know4. Social media and customer service are the same
business5. Your community is your best resource for innovation
and ideas 6. When failure is not an option, what results?
Socio-media-logy
CrawlLook Around and
Listen
WalkConnect and
Activate
RunEngage, Involve
and Expand
ThriveFans Help You Do
the Lifting
• Define business strategy and goals
• Make your web site desirable to visit
• Optimize search• Identify social
targets• Build database
• Establish social networks
• Quantify and qualify audience
• Create and build relationships
• Increase what works; pull back on what doesn’t
• Make content more interesting
- Video- Podcasts- Webinars- Apps- Live events• Find new places
to outreach
• Rely on your community for their content and ideas
• Nurture them- Surveys- Better customer
service- New products
Rob Petersen
• President, BarnRaisers, a digital and social media solutions company http://barnraisersllc.com
• MBA Faculty at Rutgers CMD• Author, 166 Case Studies Prove
Social Media Marketing ROI
@robpetersen [email protected] 203-594-1701