how to measure social media roi
DESCRIPTION
This is part of the monthly events held by Social Media London. http://www.socialmedialondon.co.uk/ Our guest speaker in June was Andrew Hyatt, Head of Digital at Bernard Hodes Group. Andy has spent over a decade in interactive, working with some of the largest and most successful brands in the world to deliver effective, engaging and award-winning campaigns. He talked about how to measure ROI in Social Media.TRANSCRIPT
![Page 1: How to Measure Social Media ROI](https://reader033.vdocuments.us/reader033/viewer/2022050815/54504ea7af79596b358b5bf3/html5/thumbnails/1.jpg)
Social Media ROI What is it and how do you measure it?
![Page 2: How to Measure Social Media ROI](https://reader033.vdocuments.us/reader033/viewer/2022050815/54504ea7af79596b358b5bf3/html5/thumbnails/2.jpg)
What you are asking for
I love social media almost as much as I hate it !
Looking forward to meeting interesting people
I always question the ROI of social media for our specific business area
Measuring social marketing is a huge challenge for us, but we want to do more of it
I would love to hear about some of the experiences
I can contribute
one of the most elusive topics in marketing and communications at the moment...
I'm keen to learn everything there is to know about social media to promote my own business as well as my clients!
As a man running a social media budget of £0 right now I'm keen to understand more about ROI when I do get a budget!
![Page 3: How to Measure Social Media ROI](https://reader033.vdocuments.us/reader033/viewer/2022050815/54504ea7af79596b358b5bf3/html5/thumbnails/3.jpg)
Some of what we will cover today
![Page 4: How to Measure Social Media ROI](https://reader033.vdocuments.us/reader033/viewer/2022050815/54504ea7af79596b358b5bf3/html5/thumbnails/4.jpg)
DISPELLING : MYTHS
• #1 SOCIAL MEDIA IS FREE• #2 SOCIAL MEDIA IS EASY• #3 SOCIAL MEDIA IS UNIVERSALLY VALUED BY CEOS• #4 SOCIAL MEDIA DOESN’T MATTER• #5 RUNNING PPC ON FACEBOOK IS SOCIAL MEDIA
![Page 5: How to Measure Social Media ROI](https://reader033.vdocuments.us/reader033/viewer/2022050815/54504ea7af79596b358b5bf3/html5/thumbnails/5.jpg)
NOT : FREE
![Page 6: How to Measure Social Media ROI](https://reader033.vdocuments.us/reader033/viewer/2022050815/54504ea7af79596b358b5bf3/html5/thumbnails/6.jpg)
NOT : EASY
![Page 7: How to Measure Social Media ROI](https://reader033.vdocuments.us/reader033/viewer/2022050815/54504ea7af79596b358b5bf3/html5/thumbnails/7.jpg)
NOT : VALUED
![Page 8: How to Measure Social Media ROI](https://reader033.vdocuments.us/reader033/viewer/2022050815/54504ea7af79596b358b5bf3/html5/thumbnails/8.jpg)
DOES : MATTER
![Page 9: How to Measure Social Media ROI](https://reader033.vdocuments.us/reader033/viewer/2022050815/54504ea7af79596b358b5bf3/html5/thumbnails/9.jpg)
NOT : PPC!
![Page 10: How to Measure Social Media ROI](https://reader033.vdocuments.us/reader033/viewer/2022050815/54504ea7af79596b358b5bf3/html5/thumbnails/10.jpg)
JUSTIFY : YOURSELF
Source: http://www.pastemagazine.com/blogs/playlist/2009/04/-pastes-tax-refund-playlist-cash-money-mix.html
![Page 11: How to Measure Social Media ROI](https://reader033.vdocuments.us/reader033/viewer/2022050815/54504ea7af79596b358b5bf3/html5/thumbnails/11.jpg)
Great results, but not all of these demonstrate ROI...Social Media Services Clients Output
Research, Analysis & Strategy Development
Increased monthly subscriptions by 400%
Lead Generation Cost per lead reduced by over 150%
Community Management Conversions doubled month on month
Brand Ambassador Programme Top channel for conversions
Customer Service, Training and Recruitment
Reduced cost per app by 140%
Social Search Cost per lead reduced by over 1,000%
![Page 12: How to Measure Social Media ROI](https://reader033.vdocuments.us/reader033/viewer/2022050815/54504ea7af79596b358b5bf3/html5/thumbnails/12.jpg)
ROI: BASIC RULES
ROI = GAIN FROM INVESTMENT
COST OF INVESTMENT
COST OF INVESTMENT[
[
-
/1. ROI is a business metric, not a media metric
2. ROI is 100% media agnostic
From Social Media is Dead, Long Live Social Media, xplain.co
3. The values used in the equation are nonvariable
4. Every resource you assign has a value
5. ROI can only be calculated after the investment has a return
6. ROI stands for Return on Investment. Nothing else
![Page 13: How to Measure Social Media ROI](https://reader033.vdocuments.us/reader033/viewer/2022050815/54504ea7af79596b358b5bf3/html5/thumbnails/13.jpg)
WEIRD : SCIENCE
IF THE EQUATION SHOWS AN INVESTMENT IN POUNDS STERLING AND A RETURN IN RETWEETS, LIKES OR COMMENTS YOU’RE IN FOR A TOUGH TIME…
![Page 14: How to Measure Social Media ROI](https://reader033.vdocuments.us/reader033/viewer/2022050815/54504ea7af79596b358b5bf3/html5/thumbnails/14.jpg)
METRICS : THE PATH TO GAIN
COST OF SALE
TIME TO SALE
INCREASE IN SALES
QUALITY OF RELATIONSHIP (GAIN IN LT SALES)
[[
THIS IS WHERE CAMPAIGNS ARE OFTEN REPORTED
THIS IS WHERE THE TRUE VALUE LIES…
/BRAND EXPOSURE TRAFFIC
![Page 15: How to Measure Social Media ROI](https://reader033.vdocuments.us/reader033/viewer/2022050815/54504ea7af79596b358b5bf3/html5/thumbnails/15.jpg)
JUDGING : THE IMPACT OF THE VALUE CHAIN
Sources: http://www.ics-online.co.uk/ics_cleaning-in-london-essex-kent-company-policies.htm ; http://www.tages.biz/index.php?module=news&page=readmore&news_id=388&sid=3d891e809936535d7d10ca39ec77dc40 ; http://edition.cnn.com/2011/WORLD/asiapcf/04/01/japan.auto.sales/index.html ; http://www.ehow.co.uk/list_6681520_michigan-sales-tax-rules.html
![Page 16: How to Measure Social Media ROI](https://reader033.vdocuments.us/reader033/viewer/2022050815/54504ea7af79596b358b5bf3/html5/thumbnails/16.jpg)
ESTABLISH : A BASELINE
Sources: http://bmbolstad.com/misc/normalize/normalize.html
![Page 17: How to Measure Social Media ROI](https://reader033.vdocuments.us/reader033/viewer/2022050815/54504ea7af79596b358b5bf3/html5/thumbnails/17.jpg)
MAP : ACTIVITY TIMELINES
Sources: http://www.air-worldwide.com/PublicationsItem.aspx?id=17904
![Page 18: How to Measure Social Media ROI](https://reader033.vdocuments.us/reader033/viewer/2022050815/54504ea7af79596b358b5bf3/html5/thumbnails/18.jpg)
TRACK : OUTPUTS
• TRAFFIC (VIEWS, HITS, LIKES, MENTIONS)
• RESPONSE (CLICKS, APPLICATIONS, RETWEETS)
• BEHAVIOUR (TIME SPENT ON SITE, ACTION, INFLUENCE)
• SENTIMENT (POSITIVE, NEUTRAL, NEGATIVE)
![Page 19: How to Measure Social Media ROI](https://reader033.vdocuments.us/reader033/viewer/2022050815/54504ea7af79596b358b5bf3/html5/thumbnails/19.jpg)
AGGREGATE : DATA
Sources: http://www.googletutor.com/google-public-data-explorer-lets-you-visualize-public-datasets/
![Page 20: How to Measure Social Media ROI](https://reader033.vdocuments.us/reader033/viewer/2022050815/54504ea7af79596b358b5bf3/html5/thumbnails/20.jpg)
CORRELATE : DATA
![Page 21: How to Measure Social Media ROI](https://reader033.vdocuments.us/reader033/viewer/2022050815/54504ea7af79596b358b5bf3/html5/thumbnails/21.jpg)
USE : TOOLS
![Page 22: How to Measure Social Media ROI](https://reader033.vdocuments.us/reader033/viewer/2022050815/54504ea7af79596b358b5bf3/html5/thumbnails/22.jpg)
DON’T: STOP
Sources: http://images.businessweek.com/ss/08/02/0225_doodles/source/5.htm
![Page 23: How to Measure Social Media ROI](https://reader033.vdocuments.us/reader033/viewer/2022050815/54504ea7af79596b358b5bf3/html5/thumbnails/23.jpg)
PROVE : VALUE
• Typically Staples spends £10,000 on store recruitment, now spending <£1,000
• A recent store opening in Tonbrigde generated c600 applicants for 21 Job Roles (135 were taken to interview)
• Candidate quality is exceptionally high (as is the quality of those that are hired)
![Page 24: How to Measure Social Media ROI](https://reader033.vdocuments.us/reader033/viewer/2022050815/54504ea7af79596b358b5bf3/html5/thumbnails/24.jpg)
Client: • HP EMEA
Challenge: • Take market share from key competitors• Raise HP’s brand presence within targeted social spaces
What we achieved: • HP now ranks as the first computer manufacturer on Google• Driven over 1,000,000 leads to date
PROVE: ROI
![Page 25: How to Measure Social Media ROI](https://reader033.vdocuments.us/reader033/viewer/2022050815/54504ea7af79596b358b5bf3/html5/thumbnails/25.jpg)
MOVING: FORWARD(10 STEPS)1. Define an objective2. Decide where to
monitor3. Decide what to
monitor4. Prioritise – intelligent
and actionable!5. Develop a plan –
comments won’t all be good!
6. Involve others7. Listen first8. Have rules of
engagement for Inbound vs Outbound conversations
9. Build relationships10.Select tools to match
your strategy & refine!
![Page 26: How to Measure Social Media ROI](https://reader033.vdocuments.us/reader033/viewer/2022050815/54504ea7af79596b358b5bf3/html5/thumbnails/26.jpg)
PARTING : THOUGHTS
“If everything seems in control, perhaps you’re not moving fast enough?”
Mario Andretti
“Injecting Twitter into that conversation fundamentally changed the rules of engagement. It brought a wider audience into what would have been a private exchange. And it gave the event an afterlife. The sum total …added up to something truly substantive, like a suspension bridge made of pebbles.” (http://www.time.com/time/business/article/0,8599,1902604-1,00.html)
![Page 27: How to Measure Social Media ROI](https://reader033.vdocuments.us/reader033/viewer/2022050815/54504ea7af79596b358b5bf3/html5/thumbnails/27.jpg)
ANY : QUESTIONS?
• IAB handbook on Social Media Measurement • Attend a Social Media Measurement Camp
• Alternatively, try:– http://www.linkedin.com/in/andyhyatt– @theholodeck– http://hodesdigital.co.uk/hyatt – [email protected]– [email protected]– [email protected]