How to measure the effect of

Social Media Marketingon your business?

@mertanen#socialfest2012

Gain from investment – cost of investment

Cost of investmentROI =

Simple formula

Cost of work? + Cost of media? + Cost of agency? + Cost of tools?

Sales? Growth of sales? Margin? Customer life time value? Other?

What is the ROI of your relationships?

Source: http://www.flickr.com/photos/xavivix/5917616223/

Social Marketing

Customer Relationship Management

Source: http://www.flickr.com/photos/english106/4357529719/

Broadcasting

Source: http://www.flickr.com/photos/rodrigobasaure/593942499/

She likes it!

It’s all about sales

Source: http://www.flickr.com/photos/68751915@N05/6551534889/

Internet has always been social

Everything is social

Everything is social

Everything is social

http://www.flickr.com/photos/nslashdot/5074635716/

Advertising doesn’t equal marketing

Marketing as a whole

Measuring framework

http://www.flickr.com/photos/kazk/198640938/

1. Purpose. What are we trying to achieve? Different point of views.

Product / service development Processes (delivery, marketing etc.) People (customers, partners, personel, recruiting) Promotion = sales Pricing

Measuring framework

2. Goals

We are creating more development ideas and new innovations We are improving our delivery and marketing processes We are activating people, including our customers, partners and staff We are growing our sales in different sales channels We are trying to improve our profit by testing different kind of pricing

Measuring framework

3. Key performance indicators about product, processes & people

Number of new development ideas and innovations (by channel, e.g. Facebook) Number of feedback regarding to our current products / services Quality and the tone of voice from customers Task completion rate (by channel) Number of recommendations (yes, likes too) Number of product / service evaluations Number of complaints regarding to our delivery process Number of posts (by channel, by content type) Number of fans, followers, subscribers (by channel) Number of people involved

Measuring framework

3. Key performance indicators about pricing & promotion

Number of promotions (by channel, by content type) Number of reach: visits, fans, followers, subscribers etc. (by channel) Engagement (bounce rate, number of shares, retweets etc.) Number of pricing tests (by channel) Sales, growth of sales, sales margin (by channel) Return on investment Return on ad spent

Measuring framework

So what test?

Source: http://www.kaushik.net/avinash/kill-useless-web-metrics-apply-so-what-test/

1. Analysis2. Decisions3. Action!

Continuous action model

Asking the right questions

"Not everything that can be counted counts, and not everything that counts can be counted." 

Source: http://www.flickr.com/photos/mansionwb/3585890288/

Measuring, analyzing and optimizing and changing marketing to make results.

Petri MertanenSenior Designer

Marketing Analytics

Mobile: +358 400 792 616Email: petri.mertanen@zeeland.fi

www: http://zeeland.fi