This Ain't No Picnic: The ROI Of The Social Customer

Post on 17-Sep-2014

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If you're looking to explain return-on-participation to your team, and figure out how to monetize the social customer, this is the presentation to check out. Includes case studies from Carnival Cruise Lines, Aquafina, & Jack In The Box. Originally given at the Minnesota AMA Conference, 2008.

transcript

THIS AIN’T NO PICNIC

THE ROI AND ROP OF SOCIAL MEDIA

THE EXPERIENCE

BEING FIRST SUCKS

THE GOOD NEWS

90% OF THE COMPETITION ISN’T DOING THIS either

OMG, THEY’RE TOTALLYDOING IT!

NOT DOING IT

ONE MORE 90/10 RULE

WANT THIS? GET THIS.

YES, I’M A SENIOR ANALYST.

YOUR OLD ROI PROBABLY SUCKED ANYWAY

1.4-1.6XROI

2-10X

TOOLS AND SOFTWARE

TALENT AND TRAINING

}your social media budget

IS IT WORTH SPENDING $70K/YEAR TO BUY

SOFTWARE TO MONITOR THE SOCIAL WEB?

FREE IS GOOD.GOOGLE

QUANTCASTCOMPETE

ROI = A MULTIPLIER OF DOLLAR AMOUNT WE

SPENT

ROP = THE MULTIPLIER OF THE CONVERSATION

+ + =45

RESPONSES

ROP =

HOW MUCH TALKING HE DID

HOW MUCH TALKING THEY DID

ROP =

16 THINGS

45 THINGS

ROP = ABOUT 2.8X

ROI =

$78 SALARY+ TOOL COSTWHATEVER THE TALKERS

BOUGHT

$384

$78ROI =

ROI = ABOUT 4.9X

WHATARE YOU

FEEDING THEM?

1-2 INTERNSA PHP PROGRAMMER AND MAYBE A

SMALL ERP SYSTEMKNOWLEDGE OF ALL

SOCIAL WEB ACTIVITY PURSUED BY YOUR

BRAND

141K+ FRIENDS

2K COMMENTS

ENGAGEMENT METRIC: 14%

ROP: HIGH-LEVEL

ENGAGEMENT: 200xLOW-LEVEL: 510X

ROI =

SALARY+ TOOL COSTWHATEVER THE TALKERS

BOUGHT

EMAIL 100 OF THEM AND ASK THEM HOW OFTEN

THEY GO TO JACK IN THE BOX

AND WHAT THEY EAT

ENGAGEMENT METRIC: .8%

SEPTEMBER 2008 ROP: 36.7X

ROI =

SALARY+ TOOL COSTWHATEVER THE TALKERS

BOUGHT

EMAIL 100 OF THE COMMENTERS AND ASK THEM IF THEY BOOKED A

CRUISE, OR LOOK AT THIRD-PARTY COOKIE

10K+ FRIENDS

459 COMMENTS

ENGAGEMENT METRIC: 4%

ROP: ???

ANALYZE A STATISTICALLY SUBSET OF THE ENGAGED GROUP, AND MULTIPLY IT

OUT

ROP: 2-200X

ROI: 1.5-10XCORRELATION:

ONLY ON A PER-TOOL BASIS, AT A GIVEN POINT IN

TIME

Social Networks Twitter Blog Forums Wikis Totals

ROP 20x 8x 1.5x 5x 4x

ROI 1.1x 5x 4x 1.1x 2x

% of Resources 70% 5% 10% 10% 5%

Weighted ROP 14x .4x .15x .5x .2x 15.25x

Weighted ROI .77x 0.25 .4x .11x .1x 1.63x

BE A PROFIT CENTER

BE BIG PICTURE

BE FREAKIN’ INVALUABLE TO YOUR BRAND

BRILLIANT METRIC-BASED

SOCIAL WEB STRATEGIESHUGE, COMPLEX

IMPLEMENTATIONS

DRINK ALL OF YOUR SCOTCH