Measuringroisocialmedia ROI - Evo Terra

8/4/2019 Measuringroisocialmedia ROI - Evo Terra

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Evo TerraASimplerWay.com

Measuring ROI

for Social MediaYes, you should. Yes, you can.




Measuring ROI for Social Media

Shaking Hands with Fellow Graduates by boxercab





adding machine (d) by Aaron Kyle





• ROI = Return on Investment – not “interest”

– not “interaction”

– not “engagement”





• ROI = Return on Investment – not “interest”

– not “interaction”

– not “engagement”

ROI =Benefit - Cost

Cost



Evo TerraASimplerWay.combalance sheet ok by Philippe Put



Evo TerraASimplerWay.comSocial Media ROI by Intersection Consulting










Head in the sand by jvh33





That gulping sound is coming from your yard by Daniel Greene





That gulping sound is coming from your yard by Daniel GreeneRob Cottinghams Notes from My Metrics Session by cambodia4kidsorg




Benefit - Cost

CostROI =




Your social media plan isn’t

Social Media Plan by javiberm



Evo TerraASimplerWay.comStolen from The Definitive Social Media ROI Presentation by Olivier Blanchard | http://smroi.net

Your Social Media Investment…

leads to an Action, that

creates a Reaction, which

delivers a Non-Financial Impact, that may ultimately

cause a Financial Impact.



Evo TerraASimplerWay.comNot the best hockey game ever by Evo Terra



Evo TerraASimplerWay.comStand out from the Crowd by Paul likes pics




HOW TO measure ROI

• Showstoppers – Limited access to metrics

– Execution roadblocks




HOW TO measure ROI

1. Know your client’s goals – Selling stuff

– Increase sales of XYZ by 10% in Q2




HOW TO measure ROI

1. Know your client’s goals– Financial Impact

• Replacing expensive customer focus groups

• Reduce inbound sales calls

• Reduce inbound service requests• Reduce advertising expenses

• Increased transactions

• Higher GP sales

• Increased sales efficiency




HOW TO measure ROI

1. Know your client’s goals– Non-Financial Impact

• Increased PageRank™

• Reduced infrastructure cost

• Increased store traffic• Increased site traffic

• Improved sentiment

• Relevant Fans & Followers




Measurement RULE

If you aren’t influencing it,

don’t measure it.




HOW TO measure ROI

2. Record every Action– Date & action

• Blog posts

• Outbound comment

• Guest post• Interviewed on podcast

• eBook published

• Event promoted

• Campaign flight• Press release

• Influential re-Tweet




HOW TO measure ROI

3. Overlay with business metrics

Revenues are up!

Site traf

c is flat.

Total Revenues

Site Trafc

Gross Profit %

Twitterers

FB Fans

Conversions per

customer




HOW TO measure ROI


Revenues are up!

Site trafc is flat.

No more conversions, either.

Total Revenues

Site Trafc

Gross Profit %

Twitterers

FB Fans

Conversions per

customer




HOW TO measure ROI


Revenues are up!

Site trafc is flat.

No more conversions, either.

And sales were alreadygoing up. You’re fired.

Total Revenues

Site Trafc

Gross Profit %

Twitterers

FB Fans

Conversions per

customer




HOW TO measure ROI


Mix of key financial and non-financial goals impacted

Total Revenues

Site Trafc

Gross Profit %

Twitterers

FB Fans

Conversions per

customer




HOW TO measure ROI


SM Campaign launches

Total Revenues

Site Trafc

Gross Profit %

Twitterers

FB Fans

Conversions per

customer

7/20 - New product push

9/1 - Influential tweet

10/30 - Mashable.comguest blogging




Measurement RULE

But you aren’t done!

Calculate the ROI.




Week GP Twitter Revenue Gross Profit $ Net Profit $ Baseine (net profit $) SM Fees Net net net

20 51.06% 2389 99,500.67$ 50,802.97$ 12,700.74$ $13,000.00 $1,000.00 ($1,299.26)

21 51.31% 2401 99,789.89$ 51,206.57$ 12,801.64$ ($1,198.36)

22 51.57% 2413 99,987.98$ 51,564.65$ 12,891.16$ ($1,108.84)

23 51.76% 2498 101,689.45$ 52,637.71$ 13,159.43$ ($840.57)

24 51.83% 2501 100,432.89$ 52,051.67$ 13,012.92$ ($987.08)

25 51.98% 2500 101,678.34$ 52,849.27$ 13,212.32$ ($787.68)

26 51.66% 2502 100,456.89$ 51,892.35$ 12,973.09$ ($1,026.91)

27 51.12% 2499 100,069.87$ 51,157.75$ 12,789.44$ ($1,210.56)

28 51.31% 2501 125,876.56$ 64,592.78$ 16,148.20$ $2,148.20

29 51.57% 2525 125,987.67$ 64,972.91$ 16,243.23$ $2,243.23

30 51.76% 2567 126,123.09$ 65,285.34$ 16,321.34$ $2,321.34

31 51.83% 2701 102,452.98$ 53,098.63$ 13,274.66$ ($725.34)

32 51.98% 2746 99,876.54$ 51,912.75$ 12,978.19$ ($1,021.81)

33 52.49% 2767 99,333.76$ 52,140.14$ 13,035.03$ ($964.97)

34 52.96% 2790 97,911.67$ 51,854.05$ 12,963.51$ ($1,036.49)

35 53.45% 2804 96,898.99$ 51,794.05$ 12,948.51$ ($1,051.49)36 53.49% 2825 111,522.87$ 59,658.42$ 14,914.60$ $914.60

37 53.52% 2832 124,488.77$ 66,621.05$ 16,655.26$ $2,655.26

38 53.45% 2850 136,445.37$ 72,932.22$ 18,233.06$ $4,233.06

39 53.49% 2988 145,998.03$ 78,100.68$ 19,525.17$ $5,525.17

40 53.64% 3104 156,887.33$ 84,160.55$ 21,040.14$ $7,040.14

41 54.50% 3115 160,984.23$ 87,734.51$ 21,933.63$ $7,933.63

42 55.59% 3148 159,845.44$ 88,856.16$ 22,214.04$ $8,214.04

43 56.53% 3156 161,334.87$ 91,201.27$ 22,800.32$ $8,800.32

44 57.49% 3178 155,989.44$ 89,679.76$ 22,419.94$ $8,419.94

45 58.99% 3188 162,889.44$ 96,083.53$ 24,020.88$ $10,020.88

46 60.29% 3203 169,556.76$ 102,226.89$ 25,556.72$ $11,556.7247 61.23% 3267 178,943.00$ 109,568.65$ 27,392.16$ $13,392.16

48 62.47% 3409 176,789.44$ 110,441.45$ 27,610.36$ $13,610.36

49 64.07% 3687 180,333.88$ 115,546.26$ 28,886.57$ $14,886.57

50 66.38% 3898 179,445.98$ 119,119.30$ 29,779.83$ $15,779.83

51 68.35% 4120 181,445.00$ 124,013.92$ 31,003.48$ $17,003.48

52 70.70% 4467 183,876.04$ 129,998.28$ 32,499.57$ $18,499.57

4,404,843.13$ 2,495,756.49$ 623,939.12$ $161,939.12

7/20 - New productpush

9/1 - Influential

tweet

10/30 -Mashable.comguest blogging




Week GP Twitter Revenue Gross Profit $ Net Profit $ Baseine (net profit $) SM Fees Net net net

20 51.06% 2389 99,500.67$ 50,802.97$ 12,700.74$ $13,000.00 $1,000.00 ($1,299.26)

21 51.31% 2401 99,789.89$ 51,206.57$ 12,801.64$ ($1,198.36)

22 51.57% 2413 99,987.98$ 51,564.65$ 12,891.16$ ($1,108.84)

23 51.76% 2498 101,689.45$ 52,637.71$ 13,159.43$ ($840.57)

24 51.83% 2501 100,432.89$ 52,051.67$ 13,012.92$ ($987.08)

25 51.98% 2500 101,678.34$ 52,849.27$ 13,212.32$ ($787.68)

26 51.66% 2502 100,456.89$ 51,892.35$ 12,973.09$ ($1,026.91)

27 51.12% 2499 100,069.87$ 51,157.75$ 12,789.44$ ($1,210.56)

28 51.31% 2501 125,876.56$ 64,592.78$ 16,148.20$ $2,148.20

29 51.57% 2525 125,987.67$ 64,972.91$ 16,243.23$ $2,243.23

30 51.76% 2567 126,123.09$ 65,285.34$ 16,321.34$ $2,321.34

31 51.83% 2701 102,452.98$ 53,098.63$ 13,274.66$ ($725.34)

32 51.98% 2746 99,876.54$ 51,912.75$ 12,978.19$ ($1,021.81)

33 52.49% 2767 99,333.76$ 52,140.14$ 13,035.03$ ($964.97)

34 52.96% 2790 97,911.67$ 51,854.05$ 12,963.51$ ($1,036.49)

35 53.45% 2804 96,898.99$ 51,794.05$ 12,948.51$ ($1,051.49)36 53.49% 2825 111,522.87$ 59,658.42$ 14,914.60$ $914.60

37 53.52% 2832 124,488.77$ 66,621.05$ 16,655.26$ $2,655.26

38 53.45% 2850 136,445.37$ 72,932.22$ 18,233.06$ $4,233.06

39 53.49% 2988 145,998.03$ 78,100.68$ 19,525.17$ $5,525.17

40 53.64% 3104 156,887.33$ 84,160.55$ 21,040.14$ $7,040.14

41 54.50% 3115 160,984.23$ 87,734.51$ 21,933.63$ $7,933.63

42 55.59% 3148 159,845.44$ 88,856.16$ 22,214.04$ $8,214.04

43 56.53% 3156 161,334.87$ 91,201.27$ 22,800.32$ $8,800.32

44 57.49% 3178 155,989.44$ 89,679.76$ 22,419.94$ $8,419.94

45 58.99% 3188 162,889.44$ 96,083.53$ 24,020.88$ $10,020.88

46 60.29% 3203 169,556.76$ 102,226.89$ 25,556.72$ $11,556.7247 61.23% 3267 178,943.00$ 109,568.65$ 27,392.16$ $13,392.16

48 62.47% 3409 176,789.44$ 110,441.45$ 27,610.36$ $13,610.36

49 64.07% 3687 180,333.88$ 115,546.26$ 28,886.57$ $14,886.57

50 66.38% 3898 179,445.98$ 119,119.30$ 29,779.83$ $15,779.83

51 68.35% 4120 181,445.00$ 124,013.92$ 31,003.48$ $17,003.48

52 70.70% 4467 183,876.04$ 129,998.28$ 32,499.57$ $18,499.57

4,404,843.13$ 2,495,756.49$ 623,939.12$ $161,939.12

7/20 - New productpush

9/1 - Influential

tweet

10/30 -Mashable.comguest blogging




Benefit - Cost

CostROI =




Benefit - Cost

CostROI =

Benefit: $623,939.12 in net profit dollars, less $429,000 as baselineCost : $1000 for 33 weeks = $33,000

$194,939.12 - $33,000

$33,0004.91 =

ROI




What if…

You don’t win?

Then you don’t win.








Yes, you should. Yes, you can.

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Measuringroisocialmedia ROI - Evo Terra