Beyond Vanity: Concrete Business Metrics You Can Use

Jason Lauritzen, Social Media Program Manager, Houston Methodist

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@jasonlauritzen

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Mad Men tactics are far from gone. Don Drapers exist and that’s a big problem.

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@jasonlauritzen

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@jasonlauritzen

That bacon meme I posted got 500 likes!

Aww …. Yeah!

Traditional definitions of social media success:• Facebook likes• Retweets• +1s• Repins• Comments• Shares• Impressions

These vanity metrics have deficiencies:• They estimate reach and engagement

and little else*• They create a false sense of business

success since they have a number and are generated in real-time

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@jasonlauritzenAll our success metrics share a common theme:

Increase revenue Reduce costs

Metrics we look at to assess those two areas:• ROI (net dollar)• Ad spend efficiency (ROI as percentage)• Customer service cost savings• Lead value• Donations

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@jasonlauritzen

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Leads are considered patient info. If there aren’t entered correctly, they can’t be changed.

The lead-to-conversion time can be lengthy, e.g., 6 months or more, and insurance and similar factors can erode contribution margin.

Let’s talk about our funnel:

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@jasonlauritzenBy using that process, we can take a campaign like this:

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@jasonlauritzenAnd generate actionable reporting like this:

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Trackable leads allow quarterly ROI reports:

@jasonlauritzen

That number helps calculate aggregate ad spend efficiency:

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By getting the following quarterly data from our databases:• Average contribution margin (CM)• Referrals via word of mouth (WOM)• Profit margin (PM)• Conversion rate (CR)

We can then calculate lead value using this formula:

CM x PM x CR x WOM

@jasonlauritzen

To generate lead value reports to fill in the gaps due to misattribution:

Lead value x social conversion rate = Value per click

Want to know if you’re spending too much on paid engagements?

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How do we calculate cost savings? @jasonlauritzen

1 2 3We crunch customer lifetime value (LTV) to get revenue projections.

We put the content label “Customer-Save” on 180s or wins.

We take LTV and multiply it by the number of saves to get our social cost savings.