sxsw jamie turner on social media roi

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How to Make Money with Social Media Jamie Turner Co-author, “How to Make Money with Social Media” Chief Content Officer, BKV’s 60 Second Marketer

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Jamie Turner, co-author of "How to Make Money with Social Media" presented these slides at SXSW in March of 2011. If you're looking for more information on social media case studies, social media ROI or social media best practices, you'll find it here.

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Page 1: SXSW Jamie Turner on Social Media ROI

How to Make Money with Social Media

Jamie TurnerCo-author, “How to Make Money with Social Media”

Chief Content Officer, BKV’s 60 Second Marketer

Page 2: SXSW Jamie Turner on Social Media ROI

Hash Tag: #SocialROI

Page 4: SXSW Jamie Turner on Social Media ROI

Introductions: Jamie Turner

• Co-author of How to Make Money with Social Media available at fine bookstores (and a few crappy ones, too)

• Worked with AT&T, CNN, The Coca-Cola Company, Cartoon Network and other major brands

• Chief Content Officer of BKV’s 60 Second Marketer

• Regular contributor on Mashable

Page 5: SXSW Jamie Turner on Social Media ROI

Hash Tag: #SocialROI

Page 6: SXSW Jamie Turner on Social Media ROI

Why People Buy Stuff

Page 7: SXSW Jamie Turner on Social Media ROI

Why People Buy Stuff

Page 8: SXSW Jamie Turner on Social Media ROI

How People Buy Stuff

Female Brain Male Brain

Page 9: SXSW Jamie Turner on Social Media ROI

How the Fortune 500 Make Money with Social Media

Page 11: SXSW Jamie Turner on Social Media ROI

Social Media Business Models

E-Commerce: Drive prospects to an e-commerce landing page and convert those prospects to customers

Page 12: SXSW Jamie Turner on Social Media ROI

Social Media Business Models

Research: Use social media as a research tool to generate customer input and feedback

Page 13: SXSW Jamie Turner on Social Media ROI

Social Media Business Models

Customer Retention: Use social media as a customer retention tool to reduce churn

Page 14: SXSW Jamie Turner on Social Media ROI

Social Media Business ModelsLead Generation: Drive leads to a website and re-market to those leads, ultimately converting them to customers

E-Newsletter Email MarketingYouTube Channel

Speeches

Live Events

Virtual Events

Webinars

eBooks

Twitter

Forums

Mobile Apps Blog Postings

Your Company

Page 15: SXSW Jamie Turner on Social Media ROI

The Social Media ROI Cycle

Page 16: SXSW Jamie Turner on Social Media ROI

The Social Media ROI Cycle

Source: Jamie Turner, co-author of How to Make Money with Social Media and Chief Content Office of BKVʼs 60 Second Marketer

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The 3 Stages of the Social Media ROI Cycle Setting up, running and optimizing an effective social media campaign happens in three stages:•Stage 1: Launch•Stage 2: Management•Stage 3: Optimization

Page 17: SXSW Jamie Turner on Social Media ROI

The Social Media ROI Cycle

Source: Jamie Turner, co-author of How to Make Money with Social Media and Chief Content Office of BKVʼs 60 Second Marketer

Launching the Big 4

Stage 1: Launch•Approach: Executional•Focus: Short-Term•Objective: To Have a Social Media Presence•Results: Negligible

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Page 18: SXSW Jamie Turner on Social Media ROI

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The Social Media ROI Cycle

Source: Jamie Turner, co-author of How to Make Money with Social Media and Chief Content Office of BKVʼs 60 Second Marketer

Stage 2: Management•Approach: Tactical•Focus: Mid-Term•Objective: Customer Engagement•Results: Increased Traffic

Big 4 plus More

Creative

Quant.

Qual.

New initiatives

Page 19: SXSW Jamie Turner on Social Media ROI

The Social Media ROI Cycle

Source: Jamie Turner, co-author of How to Make Money with Social Media and Chief Content Office of BKVʼs 60 Second Marketer

Stage 3: Optimization•Approach: Strategic•Focus: Long-Term•Objective: Social Media ROI•Results: Revenue Growth

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New initiatives

Big 4 plus More

Creative

Quant.Qual.

Conversion/ Optimization

ROI

Page 20: SXSW Jamie Turner on Social Media ROI

Where is Your Company?

Stage 1: LaunchStage 2: Management Stage 3: Optimization

Page 21: SXSW Jamie Turner on Social Media ROI

How to Measure the ROI of a Social Media Campaign

Page 22: SXSW Jamie Turner on Social Media ROI

Calculating Customer Lifetime Value

The revenue generated by a customer during his or her lifetime with your brand.

CLV for Scott’s Lawn Care:

$80 per month x 12 months x 3.0 years

CLV = $2,880

Allowable Cost Per Sale:

$2,880 x 10% = $288

Page 23: SXSW Jamie Turner on Social Media ROI

Calculating Customer Lifetime Value

Scott’s Direct Mail:

200 pieces x 0.5% = 1 new customer

$1.44 per piece x 200 = $288

Allowable Cost Per Sale = $288

1 customer for every $288 spent

Scott’s Annual Direct Mail Spend:

$2.8 million = 2 million pieces x 0.5% = 10,000 new customers per year

Page 24: SXSW Jamie Turner on Social Media ROI

Calculating Customer Lifetime Value

Testing Direct Mail vs. Social Media

$2.8 million x 10% = $280,000 to test a social media campaign

Social media campaign costs:Labor: $140,000

Production: $100,000 Miscellaneous: $ 40,000

Total: $ 280,000

Social media success:

$280,000 spent in direct mail = 1,000 new customers$280,000 spent in social media = ?

Page 25: SXSW Jamie Turner on Social Media ROI

What’s Next?

Page 26: SXSW Jamie Turner on Social Media ROI

To Learn More, Google “Jamie Turner”

How to Make Money with Social Media now available at fine bookstores (and a few crappy ones, too).

Follow me here:

60SecondMarketer.com/blog

@60SecondTweets

Contact me:

[email protected]