paul gillin: #btg11 conference
DESCRIPTION
TRANSCRIPT
![Page 1: Paul Gillin: #BTG11 Conference](https://reader035.vdocuments.us/reader035/viewer/2022070301/545662bbaf79592b448b4e28/html5/thumbnails/1.jpg)
Unraveling the Mysteryof Social Marketing ROI
Paul Gillin, authorThe New InfluencersSecrets of Social Media MarketingSocial Marketing to the Business Customer
![Page 3: Paul Gillin: #BTG11 Conference](https://reader035.vdocuments.us/reader035/viewer/2022070301/545662bbaf79592b448b4e28/html5/thumbnails/3.jpg)
It’s Simple, Knucklehead
ROI = COST OF INVESTMENT
(GAIN FROM INVESTMENT - COST OF INVESTMENT)
![Page 4: Paul Gillin: #BTG11 Conference](https://reader035.vdocuments.us/reader035/viewer/2022070301/545662bbaf79592b448b4e28/html5/thumbnails/4.jpg)
A. Revenue
Types Of Financial Impact
B. Costs Avoided
Anything that leads to A or B,But only if you can directly
equate its value to an action
![Page 5: Paul Gillin: #BTG11 Conference](https://reader035.vdocuments.us/reader035/viewer/2022070301/545662bbaf79592b448b4e28/html5/thumbnails/5.jpg)
Website Visitors
Click-throughs
Store visits
Press coverage
“Buzz”
Employment applications
Retweets
FaceBook friends
Blog comments
Video views
Twitter followers
Impressions
Friends
Coupons distributed
These are NOT ROI
But if you can quantify their financial impact, you have ROI!
![Page 6: Paul Gillin: #BTG11 Conference](https://reader035.vdocuments.us/reader035/viewer/2022070301/545662bbaf79592b448b4e28/html5/thumbnails/6.jpg)
Historical Metrics
Excellent CRM Tools and Practices
Clearly Understood and Applied Web Analytics
What You Need
![Page 7: Paul Gillin: #BTG11 Conference](https://reader035.vdocuments.us/reader035/viewer/2022070301/545662bbaf79592b448b4e28/html5/thumbnails/7.jpg)
Basic Business Metrics
Lifetime Value of a Customer = (Longevity * Revenue) * Margin
Value of a Lead/Visitor = Visitor * Conversion Rate * Lifetime Value
![Page 8: Paul Gillin: #BTG11 Conference](https://reader035.vdocuments.us/reader035/viewer/2022070301/545662bbaf79592b448b4e28/html5/thumbnails/8.jpg)
Okay, Let’s Make it Real
Typical customer Moe spends $10,000/year with you
Moe is with you for five years
Your profit margin is 10%
Lifetime value of Moe is($10,000 * 5) * .1 = $5,000
![Page 9: Paul Gillin: #BTG11 Conference](https://reader035.vdocuments.us/reader035/viewer/2022070301/545662bbaf79592b448b4e28/html5/thumbnails/9.jpg)
CRM EssentialsMust be used by everyone who touches the customer
Must document online, offline and landline communications
Must span the engagement lifecycle
Must enable segmentation and grouping
![Page 10: Paul Gillin: #BTG11 Conference](https://reader035.vdocuments.us/reader035/viewer/2022070301/545662bbaf79592b448b4e28/html5/thumbnails/10.jpg)
Web Analytics
Must track individual visitors
Must document paths to desired destinations
Must identify referring sources
You must use them
![Page 11: Paul Gillin: #BTG11 Conference](https://reader035.vdocuments.us/reader035/viewer/2022070301/545662bbaf79592b448b4e28/html5/thumbnails/11.jpg)
Applying ROI: Value of a Visitor
Monthly Visitors
10,000
Conversion Rate
.5%
Lifetime Value $5,000
Calculation (($10,000*.005)*$5,000)10,000
Value of a Visitor
$25
![Page 12: Paul Gillin: #BTG11 Conference](https://reader035.vdocuments.us/reader035/viewer/2022070301/545662bbaf79592b448b4e28/html5/thumbnails/12.jpg)
Value of a Blog
Monthly Search Traffic 3,000
Estimated Traffic w/Blog 4,000
Value of a Visitor $25
Monthly Value of a Blog
Monthly Blog Expense $6,000
316%
![Page 13: Paul Gillin: #BTG11 Conference](https://reader035.vdocuments.us/reader035/viewer/2022070301/545662bbaf79592b448b4e28/html5/thumbnails/13.jpg)
Value of a Tweet You send 50 tweets a month… Generating 1,000 visitors to
your website… 2% of whom become leads… 5% of whom become
customers.
Therefore, the value of a tweet is:
(1,000 * .02 * .05 * 5000)/50 = $100
![Page 14: Paul Gillin: #BTG11 Conference](https://reader035.vdocuments.us/reader035/viewer/2022070301/545662bbaf79592b448b4e28/html5/thumbnails/14.jpg)
Cumulative ROI: the Eye Chart
Year Item Annual Cumulative
1Forum Administrative costs $ 35,000 $ 35,000 Savings $ 70,000 $ 70,000 ROI 100% 100%
2Forum Administrative costs $ 17,500 $ 52,500 Savings $ 105,000 $ 175,000 ROI 500% 233%
3Forum Administrative costs $ 7,000 $ 59,500 Savings $ 140,000 $ 315,000 ROI 1900% 429%
You want to launch a customer support forum to reduce your costs of telephone supportEstimated admin costs: ½ FTE yr 1, ¼ FTE yr 2 1/10 FTE yr 3Estimated savings: 1 FTE yr 1, 1.5 FTE yr 2, 2 FTE yr 3
![Page 15: Paul Gillin: #BTG11 Conference](https://reader035.vdocuments.us/reader035/viewer/2022070301/545662bbaf79592b448b4e28/html5/thumbnails/15.jpg)
Lift Studies
Store visits
Headline Counts
Employment applications
Speaking Invitations
Net Promoter Score Coupons redeemed
Measuring the Immeasurable
If You Can Measure It, You Can Calculate Its ROI
![Page 16: Paul Gillin: #BTG11 Conference](https://reader035.vdocuments.us/reader035/viewer/2022070301/545662bbaf79592b448b4e28/html5/thumbnails/16.jpg)
Thank You!
Paul Gillin
508-656-0734
Site: gillin.com
Blog: paulgillin.com
Twitter: pgillin