what is your social media roi abridged
DESCRIPTION
A shortened version of Tom McClintock's presentation on Social Media ROI. Please see the full version for more details.TRANSCRIPT
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What is Your Social Media ROI? Date: March 26, 2012Time: 3:15 – 4:30 pmHub Tag: #ideas12 LM8
Tom McClintock
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Tom McClintock
A Presentation By:
Colorado Springs, CO · Richmond, VA
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ROI Opposite Corners
New Math, Cases and Available Tools
Agenda
Social Media (SM)’s Latest Triumphs
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Source: Three Ships Media
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Viewpoint #1
You can’t—and shouldn’t try to—calculate the ROI of social media.
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VIEW 1: No ROI from SM Having thousands of followers doesn’t necessarily translate
into SM marketing success
You can easily measure only some things
• Coupons
• Contests
• Clicked links
• Signups Much of SM’s benefit is indirect or intangible—not an asset purchased and placed on balance sheet
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VIEW 1: No ROI from SM
SM is an investment in a relationship with your audience that converts them into advocates.
Value is derived from qualitative benefits.
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VIEW 1: No ROI from SM
Qualitative Benefits In Each Stage of Your Marketing Campaigns:
Research
Strategic Planning
Implementation
Evaluation
Source: Synovate Research, Alexa Global Traffic Ranking, Morgan Stanley Research
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VIEW 1: No ROI from SM
Implementation Driving traffic to your website Branding Risk management Conversions based on goals
http://annualreport.pg.com/annualreport2011/innovating/oldspice.shtml
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VIEW 1: No ROI from SM
If you need to calculate ROI, think of it as activity-based, not medium-based—i.e., Focus on the relationship between the
activity and the outcome.
Social Media is a tool, just like a telephone, email or computer.
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Viewpoint #2
You can—and must—calculate the ROI of SM.
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VIEW 2: Calculating ROI from SM
ComcastTwitter customer service center attracted 2,700 followers. Many critics of the company converted to raving fans.
StarbucksGoes to customers through SM for new product ideas. Now when it launches a new product, it already has millions of fans.
LivestrongRaised $10.8 million with Livestrong Challenge through SM channels with blog as hub.
Source: Petersen, Rob. 34 cases that prove social media ROI, http://barnraisersllc.com/2010/10/33-13-social-media-case-studies-prove-roi
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VIEW 2: Calculating ROI from SM
Low investment in SM leads to high ROI when organizations:
Have a clear business strategy Aren’t afraid to jump in Make imaginative use of social
channels, customer engagement and brand relationship
Source: Petersen, Rob. 34 cases that prove social media ROI, http://barnraisersllc.com/2010/10/33-13-social-media-case-studies-prove-roi/
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VIEW 2: Calculating ROI from SM
So how did BarnRaisers find an ROI when so many others couldn’t?
Let’s take another look at the formula that the naysayers cite:
(Return – Investment)
Investment
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Must all SM ROI Be Sales-Based?
But what if you’re, say, an Association…with returns less tangible, e.g., raising consumer awareness about your industry?
If your goal is sales, you can measure ROI using the standard financial formula:
(Return – Investment)
Investment
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New MathBarnRaisers and others realize that social has not only decentralized and disaggregated, but it’s also
dematerialized—things are less tangibleLess Tangible Today
• Publishing• Content • Workplace• Corporate Structure• Pricing (Freemium
Model)
• Hollywood Studios• Trade Shows• Friendships• Business Contacts• Assets, too!
Great Idea #1: social redefines how we generate and value returns in a less tangible world
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New Math
Great Idea #2: Untethered, ROI metrics can now go beyond sales dollars to include Retention, Research and Sentiment values as major currencies to track your messaging
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Don’t Base ROI on Sales If Sales isn’t Your Goal
Great Idea #3: when sales aren’t the goal, calculate the ROI Return using the Persuasion Index
Defined by 5 levels of agreement:
• Strongly agrees (5)
• Partially agrees (4)
• Neither agrees nor disagrees (3)
• Partially disagrees (2)
• Strongly disagrees (1)
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Five Steps to Calculate SM ROI
Step 1: Identify Objective sales, retention, market research—or for most associations—sentiment
Step 2: Define Metrics• sales: thank-you page visits from tweeted landing page
• retention: repeat customers/Facebook posts
• market research: likes to announcement of potential new product/number of Facebook fans
• sentiment: shift in percentage of conversation participants who agree vs disagree to message point over time
Step 3: Estimate SM campaign costs labor + ad spend + premium value
Step 4: Estimate SM Return against Objective via Metrics
Step 5: Measure and report regularly
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Measure ROI to Improve ROI
Great Idea #4: Measure SM ROI with an eye to improving it by:
• Increasing campaign impact
• Reducing campaign costs
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Measure ROI to Improve ROI
Increase campaign impact
Define goals Empower users through
transparency Research offers Employ relevant premiums Utilize split-tested landing
pages Develop relationships Promote synergistic third party
offerings Establish social partnerships
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Measure ROI to Improve ROI
Reduce campaign implementation costs
Leverage SM team Establish SM culture Employ Twitter client Utilize SM browser Repurpose content Establish social partnerships
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NSI CASE 1: Sentiment Measurement for American Chemistry Council
ROI: Message Point Delivery
Problem: Regulators can’t keep up with the latest in materials science, like Life Cycle Assessment (LCA)—a methodology to measure a building’s lifetime environmental impact
Objective: Raise Sentiment for LCA Across Target
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Messaging
• LCA reviews building materials through all phases, from manufacture through recycling
• LCA contrasts with single-attribute assessment, such as whether the product is made from recycled material or whether it emits VOCs
NSI CASE 1: Sentiment Measurement for American Chemistry Council
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Goals:
Increase web traffic by 10% by December 2011 (+60%)Create regular weekly blog content on highest visibility sitesUse Social Media to reach public and key Building &
Construction audiences
NSI CASE 1: Sentiment Measurement for American Chemistry Council
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Methodology: 4-Phase Strategy
PHASE 2:
Increase Social Voice
PHASE 1:
Listening Strategy via ReputationConnect™ Listening Platform
PHASE 3:
Change Sentiment
PHASE 4:
Blog and Twitter Outreach
NSI CASE 1: Sentiment Measurement for American Chemistry Council
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Data Assumptions and Tools
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ROI Measurement Tools
Facebook Insights
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ROI Measurement Tools
Facebook Insights
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ROI Measurement Tools
Google Analytics
Track Goals via Conversion Funnels• SM Traffic Only• Review
Correlations Between SM Referral Traffic and Goal Conversions
Utilize a Variety of Tools
Define, Track, Measure, Change, Repeat
Source: Lane, Brett, Engine-ius Marketing, CEO Workshop 2011, Colorado Springs Marketing Group
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ROI Measurement Tools
Google Webmaster Tools
Source: Lane, Brett, Engine-ius Marketing, CEO Workshop 2011, Colorado Springs Marketing Group
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ROI Measurement Tools
Facebook Google Analytics Tracker
Source: Lane, Brett, Engine-ius Marketing, CEO Workshop 2011, Colorado Springs Marketing Group
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ROI Measurement Tools
Involver’s Static HTML for Pages
Source: Lane, Brett, Engine-ius Marketing, CEO Workshop 2011, Colorado Springs Marketing Group
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ROI Measurement Tools
AddThis
Source: Lane, Brett, Engine-ius Marketing, CEO Workshop 2011, Colorado Springs Marketing Group
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ROI Measurement Tools
PowerReviews
Source: Lane, Brett, Engine-ius Marketing, CEO Workshop 2011, Colorado Springs Marketing Group