social media roi 2010
DESCRIPTION
An old deck for when I worked with Silverstone. An explanation of measuring the success of social media with their audienceTRANSCRIPT
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Social Media Return On InvestmentFebruary 2010Emily Wilkinson
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“Think of Twitter as the canary in the coal mine.”
Source: Morgan Johnston, Jetblue Airways
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Why allocate budget to Social Media?Social Media (SM) is not free, it takes:
People Technology Time
Marketing, sales, accounts, I.T, PR etc. make up 100%of your budget – each resource has a specific cost andyields specific results. These resources generate 100% of your business.
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Why should I take a chance?
Why should I allocate resource to it? It will result in a cost reduction (customer service,
market research) It will generate more revenue (via transactions,
new customers, customer loyalty
ROI = Gain from investment – cost of investmentcost of investment
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Business Justification
ROI is a business metric, not a media metric. Social mediaisn’t responsible for an increase or change, it is a tool.Similar to suggesting that the telephone helped sales. Thatsaid:
The engagement conducted via social media that can be measured.
The transactions and behaviours can be measured Measurement of all activities and benchmarking Poll customers, promo code seeding across a variety of
channels etc.
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Investment-return relationship
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Impact of social media on non-financial
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It’s not just about measuring eyeballs..
Reporting should show that social media is impacting every aspect of the business (and areas it isn’t
impacting, how can we have an effect there?)
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Steps Goals
Before we set out to measure and monitor, we need a clear idea of what we want to accomplish. E.g. If the goal is to increase social media mentions, where does Silverstone currently stand now?
Tools Although ROI doesn’t not equal metrics, traditional metrics such as
traffic counts, number of comments, twitter followers, FB fans etc are important when calculating ROI.E.g. Does an increase in FB fans correlate with higher sales? Are people that find Silverstone.co.uk from Twitter then clicking on your driving experiences?
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Steps
Sentiment Sentiment is a useful baseline to look at before implementing or
changing social media. Is it negative or positive that is being said?
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Steps
Using the data Once we have the initial baseline data and the
metrics, we can then see how these correlate to higher sales, better customer retention etc.E.g. Have sales levels increased? Check no. of referrers on the website, twitter, facebook, no. of vouchers given away and calculate what stemmed from social media campaigns. Is there an increase in traffic after posting on FB? Twitter? Does a higher sentiment lead to an increase in sales?
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Example 37% of Gen Y were aware
of the Ford Fiesta via social media before its launch in the US
25% of Ford marketing spend is on digital/social media
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Example £9.5k SM investment 300% website traffic increase 20% sales increase Google 1st page for “free
website builder”
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“Why are we trying to measure social media like a traditional channel anyway?
Social media touches every facet of business and is more an extension of
good business ethics”
Source: Erik Qualman, Socialnomics
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Thank You
Emily Wilkinson@ewilko
Ewilko.wrodpress.com