Unraveling the Mystery of Social Media ROI

transcript

Unraveling the Mysteryof Social Media ROI

Paul GillinAuthor, The New InfluencersSecrets of Social Media Marketing

Simple Equation

ROI =COST OF INVESTMENT

(GAIN FROM INVESTMENT - COST OF INVESTMENT)

Orders

Upgrades

Coupon redemptions

Subscriptions

Types Of Financial Impact

Website Visitors

Click-throughs

Visitors to a brick & mortar store

Positive press

Positive WOM

Negative pressNegative WOM

Customer complaints

Employment applications

Retweets

FaceBook friendsBlog comments

Social mention

YouTube views

Twitter followers

Impressions

Delivered emails

Coupons distributed

Types Of Non-Financial Impact

Bounty of Choice

Choosing Tools Blog Podcast

Social Network

Private communit

Review engine

Virtual world

Build community ☻ ☻ ☻ ☻ ☻ ☻

Counter negativity ☻ ☻ ☻ ☻

Crisis management ☻ ☻ ☻ ☻ ☻ ☻

Customer conversation ☻ ☻ ☻ ☻

Expose employee talent ☻ ☻ ☻ ☻ ☻

Generate web traffic ☻ ☻ ☻

Humanize the company ☻ ☻ ☻ ☻ ☻

Market research ☻ ☻ ☻ ☻ ☻

Media relations ☻ ☻ ☻ ☻ ☻Generate new product ideas

☻ ☻ ☻ ☻ ☻

Product promotion ☻ ☻ ☻ ☻ ☻ ☻

Customer service ☻ ☻ ☻ ☻

Customer feedback ☻ ☻ ☻

Frand advocates ☻ ☻ ☻ ☻ ☻

Sales leads ☻ ☻ ☻ ☻ ☻ ☻

7 Steps to Social Media ROI

1. Define the “R” – What are expected results?2. Define the “I” -- What’s the investment?3. Understand audiences and what motivates them 4. Choose metrics5. Choose benchmarks 6. Pick a tool and undertake research7. Analyze results, glean insight, take action,

measure again

Source: KD Paine & Partners

Key Performance Indicators (KPIs)Cost savingsEfficiency

Cost per message communicatedCost per new lead/customer acquired

Productivity: Increase in employee engagement/moraleLower turnover/recruitment costs

Engagement: Ratio of posts to comments% of repeat visitors% of 5+ min visitors% of registrations

Trust:Improvement in relationship /reputation scores with customers and communities (Loyalty/Retention)

Thought leadership: Share of quotesShare of opportunities

Message penetrationPositioning on key issuesImprovement in favorable/unfavorable ratio

Measurement OptionsTraffic: unique visitors vs. page viewsTechnorati rankingsRSS subscriptionsGoogle linkto: and allinanchor:Delicious and Technorati tagsTrackbacksWebsiteGrader.com, Xinu, Compete, Alexa scoresAnd more…

Search engine rank

Social bookmark activity

Comments

Inbound links

Copycat or parody videos

Mashups

Mainstream media references

Referral links

Search engine results

Sentiment analysis

Contest entries

Blog mentions

Discussion group posts

Social network membership

Bloglines or Blogpulse rankings

Video viewership

Set Up to Measure

Define metrics; for social media marketing, the two key ones are influence and engagementSet up campaigns and event tracking for social media Choose analytics software that can track specific eventsTrack fans, followers, etc. over time to measure growth in interestIdentify where visitors come from and how they interact. Feed back into marketingDetermine which social media channels are most effectiveResearch plug-ins and tools like Bit.ly, xinureturns, PostRank, and SocialToo for profile dataAggregate analytics in one place

Sample Engagement Metrics

% increase or decrease in unique visits In the past month, what % of sessions were >5 page views % of sessions >5 minutes in duration % of visitors that return for more than 5 sessions % of sessions that arrive at your site from a Google search/referral/link from your web site% of visitors that subscribe% of visitors that download content% of visitors that provide an email addressRatio of posts to comments

Source: KD Paine & Partners, Eric Peterson

Classifications of Discussion• Responding to criticism• Giving a shout-out• Making a joke• Making a suggestion• Making an observation• Offering a greeting• Offering an opinion• Putting out a wanted ad• Rallying support• Recruiting people• Showing dismay• Soliciting comments• Soliciting help• Starting a poll• Validating a position

• Acknowledging receipt of information

• Advertising something• Answering a question• Asking a question• Augmenting a previous post• Calling for action• Disclosing personal information• Distributing media• Expressing agreement• Expressing criticism• Expressing support• Expressing surprise• Giving a heads up

Matching Goals & MetricsGoal Action Output Metric Outtake Metric Outcome Metric

Increase on-line reservations

Revamp website

Amount of content on web site

% perceiving state as a destination

% increase in web traffic and reservations

#1site for visitors to NH

Increase communications staffing and resources

Increased exposure of “visit NH” message

Increased perception of NH as extreme destination

% increase in agreement with the statement

Website is preferred site for information

Add content, features to web site

% increase in traffic

% agreeing with the statement

# 1 rankings and time spent on site

Select ToolsObjective KPI Tool

Increase inquiries, web traffic, recruitment

% increase in traffic#s, clickthrus or downloads

Google Analytics, Omniture, WebTrends

Increased awareness/preference

% of audience preferring brand to competition

SurveyMonkey, Zoomerang

Engage marketplace •Conversation index greater than .8•Rankings •% increase in engagement

TypePad, Technorati Omniture, Google Analytics

Communicate messages •% of articles containing key messages•Total opportunities to see key messages•Cost per opportunity to see key messages

Media content analysis Dashboards

% aware of or believing in key message

Survey

Blogs: The Low-Risk Option

Cheap and easy to create and updateHave distinct personal voiceCan quickly build traffic through reciprocal linksExcellent search engine performanceAbility to control discussionFast, inexpensive alternative to press releases

Blogging for BusinessCEO

Advise and Inform

Event Promotion

Publish Everywhere

32 million members

300 million members44 million members

1 billion daily views

6 million daily visitors

50 million members10 million members

1 million daily visitors

1.5 million daily visitors

Many Uses for Twitter

Engage Popular People

1.7 million followers

980,000 followers

473,000 followers

360° Of Value

Needs Definition

Product Architecture

Iterative Development

Field Testing

Viral Marketing

Peer Support

Facebook Fans

Announcements

Mailing List

Repurpose media

Feedback/testing

Create Activity Timelines

Source: BrandBuilder

Look at Sales Revenue

Net New Customers

activities

transactions

social data

web data

loyalty metrics

Overlay All Timelines

Before After

Impact

No Impact

Uncertain Impact

Look for Patterns

Case Study: Clickable Gurus

Goal Generate LeadsTactic Build awareness by sharing

domain knowledgeMetrics Unique visits; Online mentions;

Referrals; ConversionsResults 2,000% increase in site visitors

300% improvement in buzz index50% increase in customers400% increase in ad billings

Case Study: Intel Insiders

Goal Turn customers into fansTactic Recruit 10 prominent bloggers for access, trialsMetrics Blog posts, videos, tweets, trafficResults One video received 320,000 views

6,200 downloads of Facebook appMany blog entriesProgram renewed for second year

Case Study: Indium

Goal Generate LeadsTactic Targeted topical blogs; keyword repetitionMetrics Referrals; ConversionsResults Not revealed, but company has recently expanded from 15 to

85 blogs and added Facebook and Twitter presence

Case Study: Dell

Goal Improve imageTactic Direct response to all Dell mentions on blogs and TwitterMetrics Sentiment analysisResults Negative comments reduced from 60% to 20% of online

mentions over six-month period

Case Study: Catapult

Goal Generate LeadsTactic Multi-city event series driven by Facebook, LinkedIn, Twitter

promotion and event pages; Microsoft video contestMetrics Prospect registrationsResults More than 700 registrants for road show

Video selected by Microsoft for reseller keynote

Case Study: Stanford University

Goal Increase alumni & student affinityBuild reputation as major research center

Tactic Facebook fan page with multimedia and broad participation from across university departments

Metrics Likes, comments, removed fans, media consumption, surveysResults Fan count grew from 11,500 to 41,100 in six months

% of prospective students, students and alumni citing favorable impact ranged from 70% to 90%

Case Study: Sutter Medical Center

Goal Build support for new medical center to replace aging but popular building and reduce misinformation

Tactic Broad outreach through blogs and nearly every available social networking channel

Metrics # of mentions, Sentiment analysis, surveysResults Six months after program began, support levels for project

exceeded 90%

Thank you!

Paul Gillin

508-656-0734

paul@gillin.com

www.gillin.com

Twitter: pgillin

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