what seems intangible can be measured

Celeste Jhala,Kim Nguyen-Don

Liam PontonTink Newman

ROI ON SOCIAL MEDIA

mapping through uncharted space

What is the definition of ROI? Distinctions of ROI in Social Media

Types of Returns for SM Calculating ROI

Social Media Spend (SMS)Defining Value

ROI for Adaptive Sliding CanadaConclusionReferences

AGENDA

making the new frontier less nebulous

TraditionalThe ratio of money gained or lost on an investment relative to the amount of money invested

Context of social mediaValue gained relative to the resources invested

DEFINITION

Setting the right course

Creating vs. Measuring Return"In order to get a return, you must first make the right investment"

Creating Successful Returnaudience/content balance, establishing clear goals, listening online, finding a unique voice, producing compelling content, and evaluating performance regularly

DISTINCTION

searching for meaningful information

1. Tangible returns2. Community Building3. Lead Generation4. Brand Equity5. Process Efficiency

5 TYPES OF RETURNS

Measuring what you find

Celeste Jhala,Kim Nguyen-Don

Liam PontonTink Newman

Productsclothes, food, electronics

Donationsmoney, non-perishable food, baby products

1. TANGIBLE RETURNS

the world watches in expectation

Focusing on:who you want to nuturethe problems they facetheir top prioritiestheir worrieshow to deliver message to them

How should we:reccommend actionsdemonstrate the product or serviceidentifying incentives

intangible returnhumanisticcustomer loyaltytrustrelationship buildingimpressions

2. COMMUNITY BUILDING

the world watches in expectation

exploring new corners of our universe

1. Conversation not campaign2. Sales & Marketing as a team3. An ideal customer profile4. A universal lead definition5. An effective lead management process6. A Foundational database7. Integrated multi-modal tactics8. Consistent lead nurturing

2. COMMUNITY BUILDING

3. LEAD GENERATION

exploring new corners of our universe

representing your cause with reliability

1. Tangible and intangible characteristics2. Supports and maintains the constructed brand identity3. Create a sense of trust between the company and its patrons4. ompanies must uphold what is known as ‘culture of transparency’

3. LEAD GENERATION

4. BRAND MANAGEMENT

representing your cause with reliability

Some maintenance required

Collaborative Process: (Dell IdeaStorm)-collecting feedback and using it to tweak process designs

Process Discovery and Analysis: (IBM)- key stakeholders & customers are drawn into the communication loop

Real-time Monitoring: (Translink)-Companies embed social systems to monitor their business in real time-replacing the ‘snail mail’ system

Satisfaction Updates: (Telus)-Users can have a multi faceted connection with product/service providers ensuring enhanced satisfaction

1. Tangible returns2. Community Building3. Lead Generation4. Brand Equity5. Process Efficiency

4. BRAND MANAGEMENT

5. PROCESS EFFICIENCY

using tools for new discoveries

Measuring our ROI for 2 weeks

1. Calculate how much money you spent on social media

2. Calculate your social media returnsROI = Investment Return – Social Media Spend / Social Media Spend

CALULATING ROI

so many opportunities - only so many hours

How much money/time you are spending on social media

Example: Adaptive SlidingInvest $20/hr on social media

SMS = $20/hr x 1 hr/day x 7 days/week x 2 weeksSMS = $280

SOCIAL MEDIA SPEND

the lasting impact

How much a customer is worth (the contributors, evangelists)

Example: Adaptive SlidingCustomer = $50

CLV = $50 x (12 Facebook con-tributors + 27 Twitter contribu-tors)CLV = $1,950

CUSTOMER LIFETIME VALUE

the lasting impact

finding territories that have benefit

How much a new customer is worth (Twitter followers, Facebook likes, non-contributors)

Example: Adaptive SlidingCustomer = $10

NCV = $10 x (144 Twitter followers + 45 FB likes)NCV= $1,890

CUSTOMER LIFETIME VALUE

NEW CUSTOMER VALUE

finding territories that have benefit

without it - all else fails

Collaborative Process: (Dell IdeaStorm)-collecting feedback and using it to tweak process designs

Process Discovery and Analysis: (IBM)- key stakeholders & customers are drawn into the communication loop

Real-time Monitoring: (Translink)-Companies embed social systems to monitor their business in real time-replacing the ‘snail mail’ system

Satisfaction Updates: (Telus)-Users can have a multi faceted connection with product/service providers ensuring enhanced satisfaction

How much you are saving by using social media?

Example: Adaptive SlidingCustomer Service Value

CSV = $10 x (144 Twitter followers + 45 FB likes)

CSV= $1,890NCV = $100NCV= $100

CUSTOMER SERVICE VALUE

if there is nothing to learn - why come back?

Example: Adaptive SlidingImpressions = $1/customer[(Facebook + Twitter followers)x 5]/100 x $1

IV = (189/100) x 1IV = 9.45

IMPRESSION VALUE

ROI = Investment Return ( 2944.5) – Social Media Spend (number of hours spent on SM (280)) / Social Media Spend (Total number of hours spent on SM (280))

*Investment Return (IR) = (50/10 x Number of New Cus-tomers (189)) + Impression Value (9.45) + Customer Value Via Social (1890) + New customer value (100)Investment Return (IR) = 2944.5

Adaptive sliding ROI ($) = 9.5:1

ADAPTIVE SLIDING CANADAobserving and connecting with others

profitting at the end of the day

Importance of defining the desired return from social media activities

Calculating ROI on social media is possible and relevant.

CONCLUSIONS

Brito, M. (2011). Using Social Media to Solicit Product Feedback and Innovation. Retrieved March 10, 2012 from: http://www.informit.com/articles/article.aspx?p=1736042&seqNum=3

Chandler, S. (2011). Social BPM: Gateway to Enhanced Process Efficiency. Retrieved March 10th 2012 from:http://www.virtusa.com/blog/index.php/2011/11/social-bpm-gateway-to-enhanced-process-efficiency/

Carroll, Brian. (2006). Eight Critial Success Factors for Lead Generation. Retrieved March 18, 2012 from http://www.startwithalead.com/article.asp?ARTICLEID=256

Harr, E. (2012). 5 Simple Steps to Measure Social Media ROI. Retrieved March 16, 2012 from http://socialmediatoday.com/node/463590

Hibbard, C. (2010). How IBM Uses Social Media to Spur Employee Innovation. Retrieved March 10, 2012 from: http://www.socialmediaexaminer.com/how-ibm-uses-social-media-to-spur-employee-innovation/

SIFE Hunger Army. (2012). #SIFEHungerArmy. Retrived from March 14, 2012 from https://twitter.com/#!/SIFEHungerArmy

Social Shopper. (2012). Social Shopper Vancouver. Retrieved from March 15, 2012 from http://www.socialshopper.com/vancouver

Strella, R. (2012). Steps to Achieving Social Media ROI. Retrieved March 13, 2012 from http://socialmediatoday.com/rachel-strella/467568/making-right-investment-achieve-social-media-roi

The Jersey Score. (2012). Jersey Score. Retrieved from March 15, 2012 from https://twitter.com/#!/thejerseyscore

The Salvation Army. (2012). The Salvation Army. Retrieved from March 16, 2012 from https://twitter.com/#!/salvationarmy

Wink Beauty Lounge. (2012). Products. Retrieved from March 13, 2012 from http://winkbeautylounge.com/promos-packages/products/

Wink Beauty Lounge. (2012). Wink Beauty GroupInc. Retrieved March 13, 2012 from https://twitter.com/#!/Winkbeauty

REFERENCES