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Why people struggle to measure social media ROI and how this can be solved.
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The Social ROI ProjectPowered by 90:10 Group
What is the ROI on your telephones?Some would say trying to measure the impact of social media is the same question
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However we believe understanding it’s value is importantIts important because increasing budget and time is being spent there
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90% of firms say social media takes up more time internally than a year ago.
However 60% say they have gained any benefit at all.
Only 25% say that they have gained “real, tangible value” from Social Media.
eConsultancy Social Network Ad spending Report 2010
Most have no idea on true impactWhat goals are set and what are accidental benefits
Or how to measure it You have a 1 in 4 chance of measuring the impact of a new technology correctly
Measuring the RIGHT things in the WRONG way
Measuring the WRONG things in the RIGHT way
Measuring the RIGHT things in the RIGHT way
Measuring the WRONG things in the WRONG way
3 Reasons measuring goes wrongThe common mistakes made measuring social media
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1. Comparative business benchmarks don’t exist or aren’t usedHow much business activity do you currently measure?
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2. Measurement is in-silo not holistic (infrastructural) Social media has holistic benefits even from in-silo tactics
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Mar
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Bus
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HR
Holistic Measurement
Inno
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3. Only measuring direct not in-direct valueSome is more obviously fiscal others value based
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Sales
Brand Equity
DirectTangible and obvious
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Fiscal value creation• Sales from new customers• Increased basket value of existing customers• Decrease in drop-off rate / lengthening of customer life-time cycle• Increased customer referrals
Cost reduction (operations)• Greater reach and engagement from Comms budget (more earnt / less bought)• Cheaper or deferred customer service (crowd-care)
Risk reduction (on other investments)• Improved ROI on business areas where planning informed by SM research
e.g. Improved conversion rates through insights (marketing)
In-DirectIn-tangible and requires ‘corresponding’ measures
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Impact on KSF’s (Key Success Factors) • Process; logistics, HR, • Organisational; management, leadership, • Market Relationships; brand equity and affinity• Non-Market Relationships; partner network, CSR
IR (Innovation Return) on use of social media
The ROI ProjectWe will work together to figure it out
• You should focus on measuring the RIGHT things in the RIGHT way
• You need to track direct and indirect value holistically over the period of at least year across all operations
• The project needs to be a collaborative initiative between departments and audited by a neutral party not affiliated with your agency landscape
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• Access to your organisational data, from key departments, and the people responsible for their measurement
• Access to your strategic vision, SWOT and KSFs.• An appointed internal rep to help coordinate data,
meetings and reviews with stakeholders • Monthly time allocated for periodical meetings
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The investment from youOne year journey
Outcome for youOne year journey
• An understanding of the true value and impact of your investment in social media
• Recommendations as to how it could be optimised and extended
• A measurement methodology you can employ in the future
• An innovativeness benchmark for your category
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