| Date post: | 29-Oct-2014 |
| Category: |
Technology |
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Twitter: @pgillin
Paul Gillin, Author
The New Influencers
Secrets of Social Media Marketing
Social Marketing to the Business Customer
Social Media ROI:Yes You Can!Social Media ROI:Yes You Can!
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It’s Simple, Knucklehead
ROI = COST OF INVESTMENT
(GAIN FROM INVESTMENT - COST OF INVESTMENT)
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Return on InvestmentOrRisk of Inaction?
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Types Of Financial Impact
A. Revenue B. Costs Avoided
Anything that leads to A or B,But only if you can directly
equate its value to an action
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These are NOT ROI
Website Visitors
Click-throughs
Store visits
Press coverage
“Buzz”
Employment applications
Retweets
FaceBook friends
Blog comments
Video views
Twitter followers
Impressions
Friends
Coupons distributed
But if you can quantify their financial impact, you have ROI!
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Reconsider Customer Segments
How Best Buy segments its customers
High
Low
High Low
Lea
ding
-Ed
ge T
echn
olo
gy
Price Sensitivity
Enthusiasts
Online Aficianados
Practicals
Ambivalent Aspirers
Deal Drivers
Who are your high-value customers?
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Start With the Business
Business Goal
Measurement
Tactics Tools
Generate 30% More
Leads
Publish Six New White Papers
Initiate Monthly Webcasts
Sponsor Microsite on TechTarget
Build Targeted Twitter List (500)
Dedicated Monthly E-mail Blast
Promote To Trade Publications
List in Tech Directories
Hire Tech Freelancers
List Rentals Create CoTweet
Account Increase PR
Budget Hire E-mail
Marketing Firm Initiate Blogger
Relations Program
Increase Webcast/White Paper Reg’s by 60%
Increase Traffic to WP Landing Pages 120%
Increase 800-Number Calls by 80%
Review and ReviseReview and ReviseReview and ReviseReview and Revise
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Stagger Activities
White Paper Promotion Timeline
Task Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Home page link
E-mail newsletter
E-mail blast
Blog promotion
Twitter messaging
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Look for Impact
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Basic Business Metrics
Lifetime Value of a Customer = (Longevity * Revenue) * Margin
Conversion Rate = New Customers/ Visits or Leads
Value of a Lead/Visitor = Visitor * Conversion Rate * Lifetime Value
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OK, Let’s Make it Real
Typical customer Curly spends $10,000/year with you
Curly is with you for five years
Your profit margin is 10%
Lifetime value of Curly is($10,000 * 5) * .1 = $5,000
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CRM Essentials
Must be used by everyone who touches the customer
Must document online, offline and landline communications
Must span the engagement lifecycle
Must enable segmentation and grouping
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Web Analytics
Must track individual visitors
Must document paths to desired destinations
Must identify referring sources
You must use them
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Applying ROI: Value of a Visitor
Monthly Visitors 10,000
Conversion Rate .5%
Lifetime Value $5,000Calculation (10,000 * .005 * 5)/10,000
Value of a Visitor $25
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Value of a Blog
Monthly Search Traffic 3,000
Estimated Traffic w/Blog 4,000
Value of a Visitor $25
Monthly Value of a Blog $25,000
Monthly Blog Expense $6,000
ROI ($25,000-$6,000)/$6,000 316%
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Value of Twitter
You send 50 tweets a month… Generating 1,000 visitors to
your website… 2% of whom become leads… 5% of whom become
customers.
Therefore, the value of a tweet is:
(1,000 * .02 * .05 * 5000)/50 = $100
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Value of a Community
You want to launch a customer support forum to reduce your costs of telephone supportEstimated admin costs: ½ FTE yr 1, ¼ FTE yr 2 1/10 FTE yr 3Estimated savings: 1 FTE yr 1, 1.5 FTE yr 2, 2 FTE yr 3
Year Item Annual Cumulative
1
Forum Administrative costs $ 35,000 $ 35,000
Savings $ 70,000 $ 70,000
ROI 100% 100%
2
Forum Administrative costs $ 17,500 $ 52,500
Savings $ 105,000 $ 175,000
ROI 500% 233%
3
Forum Administrative costs $ 7,000 $ 59,500
Savings $ 140,000 $ 315,000
ROI 1900% 429%
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Measuring the Immeasurable
Lift Studies
Store visits
Headline Counts
Employment applications
Speaking Invitations
Net Promoter Score Coupons redeemed
If You Can Measure It, You Can Calculate Its ROI
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Thank you!
Paul Gillin
508-656-0734
Site: gillin.com
Blog: paulgillin.com
Twitter: pgillin
Free bi-weekly newsletter; sign up at gillin.com
