social media roi explained in 140 seconds
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DESCRIPTION
I made this presentation at the London Twitter Developers Nest 7 (http://bit.ly/cyKgWd) in 140 seconds. The idea is that there are way too many people creating noise and unneeded complexity around the Social Media ROI question. It's actually pretty easy.TRANSCRIPT
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2. SocialMediaROI in 140 seconds 3. Social Media ROI What I'll cover
- What is ROI? 4. Why do you care? 5. What you already have 6. What you need
7. What is ROI? Return on Investment from Investopedia (100 80) / 80 =25% 8. What is ROI? Cost reduction or increase in sales: you need to get this info from your client What your client paid you (or your dept's budget or $$$ from your investor) 9. ROI Why do you care? ReturnOnInvestment
- TheInvestment comes from either another department's budget -or- you are competing with other startups for $$$. 10. The other dept wants their budget back.Assume they can already proveReturn .
11. What You Already Have VERY Accurate Activity Measures (Which is more than the people selling billboard space, who can show ROI) VisitorsReturn VisitsLanding PagesAnon Visitors Converted to Members Retweets Videos ViewedWord of MouthComments Total Members vs Active MembersGames PlayedInvites Sent to Friends Click-ThroughsPage ViewsConversation SizeMessages Sent Followers & Following 12. What you need Social Media + ROI Tie what you have (social activity) into either cost reductions or increased sales. Over time:
- Determine financial baselines (make allies in the finance dept)before you start 13. Keep activity timelines of social actions 14. Put it all together: baseline sales vs. new sales with social activity timeline as an overlay 15. If you can't get $$$ figures, try to get numbers that represent $$$ (e.g. new customers, quantity sold).
16. Social Media ROI Example Sales Start Twitter Summer Promo Sales No Correlation Seasonal Sales Dip Sales Dip Eliminated= ROI !!! Retweets This period is your baseline Apr 09 Jan 09 Jul 09 Nov 09 Jan 10 Apr 10 Jul 10 Nov 10 17. todd @ mikamai.com twitter: @chaffeet http: / / mikamai.co.uk blog.mikamai.com Questions? 18. Social Media ROI Resources Oliver Blanchard Basics of Social Media ROI Excellent presentation, a bit longer than 140 seconds http://bit.ly/9ezggP iab- Social Media Ad Metrics Good resource for candidate Social Media Metrics http://bit.ly/8Xm1TT