What is your social media ROI abridged

What is Your Social Media ROI? Date: March 26, 2012Time: 3:15 – 4:30 pmHub Tag: #ideas12 LM8

Tom McClintock

Tom McClintock

A Presentation By:

Colorado Springs, CO · Richmond, VA

ROI Opposite Corners

New Math, Cases and Available Tools

Agenda

Social Media (SM)’s Latest Triumphs

Source: Three Ships Media

Viewpoint #1

You can’t—and shouldn’t try to—calculate the ROI of social media.

VIEW 1: No ROI from SM Having thousands of followers doesn’t necessarily translate

into SM marketing success

You can easily measure only some things

• Coupons

• Contests

• Clicked links

• Signups Much of SM’s benefit is indirect or intangible—not an asset purchased and placed on balance sheet

VIEW 1: No ROI from SM

SM is an investment in a relationship with your audience that converts them into advocates.

Value is derived from qualitative benefits.


Qualitative Benefits In Each Stage of Your Marketing Campaigns:

Research

Strategic Planning

Implementation

Evaluation

Source: Synovate Research, Alexa Global Traffic Ranking, Morgan Stanley Research


Implementation Driving traffic to your website Branding Risk management Conversions based on goals

http://annualreport.pg.com/annualreport2011/innovating/oldspice.shtml


If you need to calculate ROI, think of it as activity-based, not medium-based—i.e., Focus on the relationship between the

activity and the outcome.

Social Media is a tool, just like a telephone, email or computer.

Viewpoint #2

You can—and must—calculate the ROI of SM.

VIEW 2: Calculating ROI from SM

ComcastTwitter customer service center attracted 2,700 followers. Many critics of the company converted to raving fans.

StarbucksGoes to customers through SM for new product ideas. Now when it launches a new product, it already has millions of fans.

LivestrongRaised $10.8 million with Livestrong Challenge through SM channels with blog as hub.

Source: Petersen, Rob. 34 cases that prove social media ROI, http://barnraisersllc.com/2010/10/33-13-social-media-case-studies-prove-roi


Low investment in SM leads to high ROI when organizations:

Have a clear business strategy Aren’t afraid to jump in Make imaginative use of social

channels, customer engagement and brand relationship

Source: Petersen, Rob. 34 cases that prove social media ROI, http://barnraisersllc.com/2010/10/33-13-social-media-case-studies-prove-roi/


So how did BarnRaisers find an ROI when so many others couldn’t?

Let’s take another look at the formula that the naysayers cite:

(Return – Investment)

Investment

Must all SM ROI Be Sales-Based?

But what if you’re, say, an Association…with returns less tangible, e.g., raising consumer awareness about your industry?

If your goal is sales, you can measure ROI using the standard financial formula:

(Return – Investment)

Investment

New MathBarnRaisers and others realize that social has not only decentralized and disaggregated, but it’s also

dematerialized—things are less tangibleLess Tangible Today

• Publishing• Content • Workplace• Corporate Structure• Pricing (Freemium

Model)

• Hollywood Studios• Trade Shows• Friendships• Business Contacts• Assets, too!

Great Idea #1: social redefines how we generate and value returns in a less tangible world

New Math

Great Idea #2: Untethered, ROI metrics can now go beyond sales dollars to include Retention, Research and Sentiment values as major currencies to track your messaging

Don’t Base ROI on Sales If Sales isn’t Your Goal

Great Idea #3: when sales aren’t the goal, calculate the ROI Return using the Persuasion Index

Defined by 5 levels of agreement:

• Strongly agrees (5)

• Partially agrees (4)

• Neither agrees nor disagrees (3)

• Partially disagrees (2)

• Strongly disagrees (1)

Five Steps to Calculate SM ROI

Step 1: Identify Objective sales, retention, market research—or for most associations—sentiment

Step 2: Define Metrics• sales: thank-you page visits from tweeted landing page

• retention: repeat customers/Facebook posts

• market research: likes to announcement of potential new product/number of Facebook fans

• sentiment: shift in percentage of conversation participants who agree vs disagree to message point over time

Step 3: Estimate SM campaign costs labor + ad spend + premium value

Step 4: Estimate SM Return against Objective via Metrics

Step 5: Measure and report regularly

Measure ROI to Improve ROI

Great Idea #4: Measure SM ROI with an eye to improving it by:

• Increasing campaign impact

• Reducing campaign costs


Increase campaign impact

Define goals Empower users through

transparency Research offers Employ relevant premiums Utilize split-tested landing

pages Develop relationships Promote synergistic third party

offerings Establish social partnerships


Reduce campaign implementation costs

Leverage SM team Establish SM culture Employ Twitter client Utilize SM browser Repurpose content Establish social partnerships

NSI CASE 1: Sentiment Measurement for American Chemistry Council

ROI: Message Point Delivery

Problem: Regulators can’t keep up with the latest in materials science, like Life Cycle Assessment (LCA)—a methodology to measure a building’s lifetime environmental impact

Objective: Raise Sentiment for LCA Across Target

http://www.greenbuildingsolutions.org/Main-Menu/LCA-Comprehensive-Environmental-Impact-Measure.pdf

Messaging

• LCA reviews building materials through all phases, from manufacture through recycling

• LCA contrasts with single-attribute assessment, such as whether the product is made from recycled material or whether it emits VOCs


Goals:

Increase web traffic by 10% by December 2011 (+60%)Create regular weekly blog content on highest visibility sitesUse Social Media to reach public and key Building &

Construction audiences


Methodology: 4-Phase Strategy

PHASE 2:

Increase Social Voice

PHASE 1:

Listening Strategy via ReputationConnect™ Listening Platform

PHASE 3:

Change Sentiment

PHASE 4:

Blog and Twitter Outreach


Data Assumptions and Tools

ROI Measurement Tools

Facebook Insights


Facebook Insights


Google Analytics

Track Goals via Conversion Funnels• SM Traffic Only• Review

Correlations Between SM Referral Traffic and Goal Conversions

Utilize a Variety of Tools

Define, Track, Measure, Change, Repeat

Source: Lane, Brett, Engine-ius Marketing, CEO Workshop 2011, Colorado Springs Marketing Group


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Contact Information

Tom McClintockNSI Partners

719.328.0042 [email protected]