It’s Social Business (Not Social Media)

Jason Lauritzen, Social Media Specialist | November 5, 2013

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ROIWhat is it?

Return on investment (ROI) is a business metric. It is media agnostic. All your efforts—in every area of your company—are focused on driving positive returns.

You only need two formulas to calculate ROI.

ROI as net dollar: (gain from investment – cost of investment)

ROI as %: gain from investment – cost of investment cost of investment

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ROIWhy hospitals are special when it comes to measuring ROI

We’re not trying to direct someone to an e-commerce site to buy 10 widgets, so what do we need to keep in mind?

The lead-to-conversion time for a patient can be quite lengthy, e.g., it’s not uncommon for it to take over six

months.

Insurance and similar factors can erode contribution margin.

Always remember: ROI divorced from cost is a meaningless metric.

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ROIThe biggest no-no when it comes to measuring ROI

Every problem that organizations have with measuring ROI stems from violating the #1 ROI no-no. What is it?

Turning ROI from a business metric into a media metric.

If you do this, you deserve to have condescending Wonka say things like

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ROIDon’t be seduced by media metrics (KPIs)

That bacon meme I posted got 500 likes!

Aww …. Yeah! Key performance indicators (KPIs) are media metrics.

Their allure is that they’re generated in real-time and have a number, generating a false sense of business success.

KPIs estimate reach and engagement—nothing more.

Don’t lose your way: The goal of social media is not to be good at social media, but to be good at business via social

media. These are two entirely different things.

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ROIDon’t go down the rabbit hole …

Alice’s Adventures In Poor Business Measurement

Just because you write a formula, doesn’t mean it can measure what it claims.

Value of a like (VOAL) formula:

L / UpM x (LpD x 30) x (C / L) x CR x ACV = Value of a like

Impression value:

All impressions from SM x CPM average / 100

ROI can only be measured based on the cost of the investment and return. Estimating averages is dangerous as it gives the expectation that every time you see some type of activity, it generates a value of X. ROI is specific and unique to

each customer’s actions.

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ROIOr in the opposite direction of, “Why bother?”

“What’s the ROI of your mother?”- Gary Vaynerchuk

“What’s the ROI of putting your pants on in the morning?”- Scott Monty

What’s wrong with these quotes?

They confuse brand equity with lead measurement and operational efficiency.

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ROI Patterns may exist, but be careful

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Time (Q1 through Q4)= Total contribution margin ($)

= Shares of Facebook posts

Beginnings of a pattern emerging. Could more Facebook shares equal a higher contribution margin?

“Yes! Correlation is causation.” Whoa, not so fast. Is a mixed-media ad campaign running? Do you simply have more patients during this time of the year, e.g., flu cases in the winter?

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ROIEveryone has a funnel. What does yours look like?

Common problems:•Directing consumers to too many different points of contact•Not planning ahead and involving key parties, e.g., call center manager, web team, etc.•Using technical hurdles as an excuse to not bother setting up a funnel

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ROIFollow the ball

Build links with Google’s URL builder, then feed them into a shortener like bitly.

You want more than one capture point, so you can cross-compare results for accuracy.

Bare minimum, using a process like this guarantees you can count the number of patient referrals via social media.

If you’re designing a campaign, give yourself plenty of lead time, e.g., at least 1 month

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ROIMeasuring your efforts

OR

Total registrations: 14

San Jacinto: 2Sugar Land: 5

Houston Methodist: 5

Willowbrook: 0West: 2

Reach Act Convert

If we have contribution margin data because 5 out of 14 of these registrants later spent money at our hospitals, how would we calculate the ROI?

Net dollar: $5,500 in contribution margin – ($250 for Facebook promoted post + 2 hours of labor) = $5,198

ROI %: ($5,500 - $302) / 302 = 17.2%

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CONTENT CURATIONThe “content is king” mantra

What’s the source for the often-quoted mantra, “Content is king?”

A 1996 Microsoft column written by Bill Gates

Yes, content is important, but interpretations around its implementation are misleading.

Webinars, consultants, agencies, all tout this saying and turn it into recommendations like:•You must produce x number of infographics a quarter•Social media sucks, blogs rule

Sorry, Bill: Content isn’t king; brand equity

is.

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CONTENT CURATIONThe generic content gold rush

It requires resources to produce authoritative, high-quality content.

With so many organizations focused on trying to “win search,” you’ll get buried quickly.

Now, with everyone targeting search phrases and building out generic blog posts (that usually don’t provide more info than Wikipedia), Google will start giving more weight to brand equity measured via social influence.

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CONTENT CURATIONWhen it comes to search, social matters … a lot

Source: SEO Ranking Factors – Rank Correlation 2013 for Google USA by Searchmetrics

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CONTENT CURATIONAdvantages

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CONTENT CURATIONFacebook example

Tag for original content creator

URL specific to Facebook

Free image from Wikipedia

Engagement from community

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CONTENT CURATIONGoogle +, Twitter examples

Key points:•Author recognized•Reduced labor costs•Establish cross-promotional relationships•Create trust, brand awareness•Bolster SEO

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CUSTOMER SERVICEThe “why” of customer service

If you only take one thing away from the “why” of customer service it should be this:

Every interaction—good, bad, or neutral—is an opportunity.

Customer service is not just for dealing with problems. It’s the totality of all your interactions with the public.

Think of your social spaces as virtual front doors. Would you ignore someone standing in your business? Of course not. So, your customer experience needs to seamlessly translate to the social space. At Houston Methodist, we call this the Methodist Experience.

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CUSTOMER SERVICEBenefits

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CUSTOMER SERVICEMapping out a plan

When you go to legal, don’t be general. Give them specific scenarios so they don’t shut down your ideas right away.

E.g., responding to posts during business hours in 10 minutes or less; 1 hour or less outside of business hours.

E.g., responding to Foursquare check-ins to offer assistance, but not general tweets about health problems

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CUSTOMER SERVICETwitter example: foursquare check-in

User check-ins via foursquare and tweets it. We pick it up via Twitter search. You can also use this foursquare setting to make sure check-ins are tied to your Twitter handle:

We respond in 1 minute. Our goal and standard response time during core business hours: 10 minutes or less.

Us acknowledging the user nets a brand endorsement.

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CUSTOMER SERVICEFacebook example: patient assistance

Patient posts on Houston Methodist Facebook wall.

We respond in 5 minutes—on a Saturday morning, asking for clarification and offering our assistance.

Remember: Your social customer service should be seamless translation of your in-person customer service. We call the hospital to get more info on the patient.

Via phone, we get with patient liaison to determine patient’s room # and ask them to deliver a TV guide and check on them. Customer gets their TV guide and is happy.

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CUSTOMER SERVICEFacebook example: Dealing with HIPAA

Patient’s family member appreciates the care a family member received and posts on a community hospital’s wall, but violates HIPAA by identifying them by name.

We thank them, but inform them of federal privacy laws and invite them to resubmit it without the name. Due to HIPAA, we are obligated to hide their post.

Family member happily obliges. Note: Most individual’s innately understand patient privacy, so HIPAA violations are rare and in the cases they happen, a simple explanation straightens things out.

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CUSTOMER SERVICEFacebook examples | Be a resource

It would be easiest to tell the potential patient to call a phone number, but we always opt to provide a lot of information up front, so they are more likely to call a phone number or visit a webpage.

Don’t be afraid to share information from sources other than yourself. The consumer is going to remember who helped them, not necessarily who authored the information.

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CUSTOMER SERVICETwitter example: Billing frustration

Complaint received. Moved “offline” to private, direct messaging via Twitter.

Additional information is gathered via Twitter direct messaging. Patient agrees to email us additional information.

Director of service quality, ER unit and billing company contacted. Billing address error rectified.

Win-win scenario: Patient is happy the issue is resolved and the ER is aware of potential billing issues.