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Your clients are satisfied with your agency’s digital creative results - but they still want to know more. Expect clients to ask about the ROI of their social media programs. This preso shows you what the gains and costs of social media are.
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PR Agency Social Media ROI Calculator
www.kathyherrmann.com
(And how PR firms can benefit)
Your clients are satisfied with your agency’s digital creative
results.
Yet they still want more.
We need to know…how much have we gained versus the cost?
Are you ready to show your clients the ROI for social media
engagement and monitoring?
The purpose of business is to generate
revenues or increase
profitability.
Get client exec attention by
showing them the money associated with your social initiative.
Convert social benefits (like influence, loyalty, engagement, etc.) into
monetary terms….
…yes, really.
Social media can and should be valued.
Couple defendable assumptions with appropriate risk.
You gain a more satisfied client from their:
• Informed buying decision(s).
• Client confidence in you.
Advise clients to expect Gains from:
• Revenues from marketing initiatives,• Savings from:
• Consumer insights, • Brand protection, and• Lead generation.
Note, clients using social media can also accrue cost savings for their call centers, but that isn’t a focus in this preso.
Expect high social margins
Gains
Costs
1 2$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
Gains versus Costs (Undiscounted)
RevenuesCost SavingsPeople CostsSocial Monitoring Solution Costs
Year
Dollars
Marketing Revenues
Earn higher revenues from better messaging.
Expand revenues by extending Impact and Reach.
Marketing Revenues
Benefit to PR agency – Demonstrable value of services.
Consumer Insight Savings
Social Monitoring – Clients gain cost savings by substituting ongoing and real-time social monitoring for traditional market research.
Consumer Insight Savings
PR agency service opportunity --
Social monitoring services, including preparation of Insight reports.
(Your added agency services to your client is still likely to be lower than cost of traditional market research).
Brand Protection Savings
Clients gain savings from
early warnings to brewing crises, conversations and events.
Fast action means revenue preservation to them.
Brand Protection Savings
Impact on PR agency:
Lowered need for crisis communication services. Partial or full revenue substitution via social monitoring services. Continued need for crisis planning.
Lead Generation Savings
Clients gain savings via
• Lowered cost of lead acquisition, and
• Shortened sales cycle.
Lead Generation Savings
Benefit to PR agency – Demonstrable value of services.
Costs from social initiatives fall into two primary buckets –
People and Technology.
People costs…
• Client employees who make up the social team.
• Third parties can include:– PR agency.– Marketing agency.– Consultants.
Tech costs for Social platform
Pretty doggone low compared to gains potential.
Summary
Social metrics tells what you did.
Step ahead of competitors by showing more.
Show social media results in ways client
CXOs will best understand….
…and that’s dollars and sense, with a
defendable ROI.
About your social ROIThought Leaders
• Leading expert on social business and change management.
• Practice centers on business process design and definition, valuation, and the user experience.
• Valuation expert and designer of the ValueRight methodology and tool for social business valuation (and ROI) determination.
• Active participate in the SCRM Accidental Community on Twitter, a premier group of social business thought leaders.
www.kathyherrmann.com
Contact me to help to get our help with your ROI calculation
needs…
Kathy Herrmann
