1 / 34

What is your Social Media ROI?

Find out why you should be measuring your Social Media ROI and how to do so. Tips on metrics and case studies from a leading online marketing company.

nsipartners
Download Presentation

What is your Social Media ROI?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. What is Your Social Media ROI? Date: March 26, 2012Time: 3:15 – 4:30 pmHub Tag: #ideas12 LM8 Tom McClintock This is an excerpt. Click here for the full presentation.

  2. A Presentation By: Tom McClintock Colorado Springs, CO · Richmond, VA

  3. “A brand is no longer what we tell the consumer it is – it is what consumers tell each other it is.”– Scott Cook, Co-Founder of Intuit “Social media changes the relationship between companies and customers from master and servant, to peer to peer.” – Anonymous “The ROI of social media is that your business will still exist in 5 years.” – Erik Qualman, author & founder of Socialnomics Source: AnsonAlex.com

  4. Source: Three Ships Media

  5. 2005 Google.com Facebook.com YouTube.com Yahoo.com Baidu.com Wikipedia.org Live.com Blogspot.com Twitter.com Qq.com Yahoo.com Msn.com Google.com Ebay.com Amazon.com Microsoft.com Myspace.com Google.co.uk Aol.com Go.com SM Sites Now Ruling Web 2012 (as of March 2012) Source: Synovate Research, Alexa Global Traffic Ranking, Morgan Stanley Research (2005) – Mostpopularwebsites.net (2012)

  6. Viewpoint #1 You can’t—and shouldn’t try to—calculate the ROI of social media.

  7. VIEW 1: No ROI from SM • Having thousands of followers doesn’t necessarily translate into SM marketing success • You can easily measure only some things • Coupons • Contests • Clicked links • Signups • Much of SM’s benefit is indirect or intangible—not an asset purchased and placed on balance sheet

  8. VIEW 1: No ROI from SM Qualitative Benefits In Each Stage of Your Marketing Campaigns: • Research • Strategic Planning • Implementation • Evaluation Source: Synovate Research, Alexa Global Traffic Ranking, Morgan Stanley Research

  9. Viewpoint #2 You can—and must—calculate the ROI of SM.

  10. VIEW 2: Calculating ROI from SM Low investment in SM leads to high ROI when organizations: • Have a clear business strategy • Aren’t afraid to jump in • Make imaginative use of social channels, customer engagement and brand relationship Source: Petersen, Rob. 34 cases that prove social media ROI, http://barnraisersllc.com/2010/10/33-13-social-media-case-studies-prove-roi/

  11. Must all SM ROI Be Sales-Based? If your goal is sales, you can measure ROI using the standard financial formula: (Return – Investment) Investment But what if you’re, say, an Association…with returns less tangible, e.g., raising consumer awareness about your industry?

  12. New Math BarnRaisers and others realize that social has not only decentralized and disaggregated, but it’s also dematerialized —things are less tangible Less Tangible Today • Publishing • Content • Workplace • Corporate Structure • Pricing (Freemium Model) • Hollywood Studios • Trade Shows • Friendships • Business Contacts • Assets, too! • Great Idea #1: social redefines how we generate and value returns in a less tangible world

  13. New Math • Great Idea #2: Untethered, ROI metrics can now go beyond sales dollars to include Retention, Research and Sentiment values as major currencies to track your messaging • Message-Point Delivery—for associations often industry viewpoints, not product features NSI Client Case: American Chemistry Council • Brand Investment—your promise to constituents NSI Client Case: Universal Media’s Promotion of Disney’s John Carter • Drip Marketing—maintaining mindshare NSI Client Case: American Nurses Association

  14. Don’t Base ROI on Sales If Sales isn’t Your Goal Great Idea #3: when sales aren’t the goal, calculate the ROI Return using the Persuasion Index Defined by 5 levels of agreement: • Strongly agrees (5) • Partially agrees (4) • Neither agrees nor disagrees (3) • Partially disagrees (2) • Strongly disagrees (1)

  15. Don’t Base ROI on Sales If Sales isn’t Your Goal • People are not easily persuaded: typically, even the most persuasive message point is only going to shift a person one level • Therefore, conversion equals increasing the target’s agreement level by one, a “persuasion” —equivalent to making a sale in retail • Valuation based on advertising cost • If you spend $20,000 on an effective display ad presented to audience of 100,000 that will convert 1 in 5, you value each persuasion at $1

  16. Five Steps to Calculate SM ROI • Step 1: Identify Objective sales, retention, market research—or for most associations—sentiment • Step 2: Define Metrics • sales: thank-you page visits from tweeted landing page • retention: repeat customers/Facebook posts • market research: likes to announcement of potential new product/number of Facebook fans • sentiment: shift in percentage of conversation participants who agree vs disagree to message point over time • Step 3: Estimate SM campaign costs labor + ad spend + premium value • Step 4: Estimate SM Return against Objective via Metrics • Step 5: Measure and report regularly

  17. NSI CASE 1: Sentiment Measurement for American Chemistry Council • ROI: Message Point Delivery • Problem: Regulators can’t keep up with the latest in materials science, like Life Cycle Assessment (LCA)—a methodology to measure a building’s lifetime environmental impact • Objective: Raise Sentiment for LCA Across Target

  18. NSI CASE 1: Sentiment Measurement for American Chemistry Council • Goals: • Increase web traffic by 10% by December 2011 (+60%) • Create regular weekly blog content on highest visibility sites • Use Social Media to reach public and key Building & Construction audiences

  19. NSI CASE 1: Sentiment Measurement for American Chemistry Council PHASE 1of 3 • Alterian’s SM2 is the No. 1 platform for collecting & analyzing SM data • SM2 powers NSI’s listening platform, ReputationConnect™ • ReputationConnect™ provides data for analyzing changes in customer sentiment

  20. NSI CASE 1: Sentiment Measurement for American Chemistry Council • Methodology: 4-Phase Strategy PHASE 1: Listening Strategy via ReputationConnect™ Listening Platform PHASE 2: Increase Social Voice PHASE 3: Change Sentiment PHASE 4: Blog and Twitter Outreach

  21. NSI CASE 1: Sentiment Measurement for American Chemistry Council PHASE 2of 3 Increase Social Voice • Facebook page • Pay-per-click ads • Regular posts • Posting key Facebook messages on association’s website 1,529%! • Results: Increased FB “likes” from 165 in January 2011 to 2,523 in March 2012 ROI Calculations: Return Metrics: Fan Growth, Shares, Post Likes, Uploads Per Fan, Fan Valuation, Group Membership, Event Attendance Investment Metrics: Campaign Labor, Contest Premium Costs Compare to: FB PPC Cost to generate similar activity

  22. NSI CASE 1: Sentiment Measurement for American Chemistry Council PHASE 2of 3 Increase Social Voice • LinkedIn • Initiated Profile improvements to attract connections and began outreach campaign • Sharing LCA-related messages Generated lists of 200+ key officials ROI Calculations: Return Metrics: Connection Growth, Shares, Post Likes, Comments, Retweets, Recommendations, Company Follows, Event Attendees, Event Follows, Group Membership Investment Metrics: Campaign Labor, Contest Premium Costs Compare to: LI PPC cost to generate similar activity

  23. NSI CASE 1: Sentiment Measurement for American Chemistry Council PHASE 3of 3 Change Sentiment: Identify & participate in SM conversations • Identified Relevant Conversations through ReputationConnect™ • Recruited “Sentiment Softball” Team Members from Downstream Members to Join Conversations • Tossing “Sentiment Softballs” to Infielders

  24. NSI CASE 1: Sentiment Measurement for American Chemistry Council PHASE 3of 3 Change Sentiment: Gauge sentiment impact • Repurpose Positive Mentions as Testimonials on other Online Properties ROI Calculations: Return Metrics: Visitors to pages displaying testimonials, persuasions Investment Metrics: Listening-platform analysis Compare to: Paid placements and endorsements ROI Calculations: Return Metrics: Persuasion value of third-party endorsement x # of positive mentions per average advocate x typical advocate reach Investment Metrics: Listening-platform analysis Compare to: (a) display ads and (b) public-relations & legal costs of junk science spread via Internet • Convert Neutrals to Positives through Repurposed Content Fear of Electromagnetic Field Exposure beneath power lines cost $25 billion (1979-1999) paid by the Utilities Industry, despite lack of even a single successful lawsuit

  25. NSI CASE 2: Sentiment Measurement for Universal Media & Disney’s John Carter • ROI:Brand Investment • Problem:Marketing for Disney’s $350mm John Carter, adapted from Edgar Rice Burroughs’ 1912 classic “A Princess of Mars,” confused audiences: false rumors were fueling social backlash that the story had appropriated works such as Avatar, Dune and Star Wars— which it had helped inspire. • Objective: Improve Image and Debunk False Plagiarism Rumors

  26. NSI CASE 2: Sentiment Measurement for Universal Media & Disney’s John Carter • Messaging • As one of the first sci-fi characters in existence, John Carter has been an inspiration for generations • Share Universal Media’s re-edited trailer http://www.youtube.com/watch?v=-BxeHQY1NuM • Universal Media’s Teen Reading Project promoted Burroughs’ series as “the Harry Potter of its day” 20 Feb 2012: Recognition from John Carter Director Stanton led to coverage by CNN, accelerating positive coverage of the film in both social and mainstream media.

  27. NSI CASE 2: Sentiment Measurement for Universal Media & Disney’s John Carter • Methodology: Inspire grassroots science-fiction fans to post message points • January • February ROI Calculations: Return Metrics: Persuasion value of third-party endorsement x # of positive mentions per average advocate x typical advocate reach Investment Metrics: Listening-platform analysis Compare to: (a) display ads and (b) public-relations & legal costs of junk science spread via Internet

  28. NSI CASE 3: Sentiment Measurement for American Nurses Association • ROI: Drip Marketing • Problem: 24/7 patient care allows little time to navigate the overwhelming flood of healthcare information, so nurses are turning to social networks on mobile devices when they can. The American Nurses Association (ANA) must therefore understand and participate in this ever changing topic stream. • Objective: Analyze daily healthcare conversation streams to provide opportunities for ANA to make available its resources.

  29. NSI CASE 3: Sentiment Measurement for American Nurses Association

  30. Data Assumptions and Tools

  31. If You’re Not Measuring, You’re not Listening

  32. Listening Platforms Today • Ability to analyze, manage, track and report on your Social Media monitoring and engagement efforts. • Flexible dashboard. • Analysis widgets, streamlined reporting, integrated workflow capabilities and an Insights platform with integrated CRM.

  33. Listening Platforms Today • Integrated Marketing Platform combines campaign management, web content management, email & social media monitoring tools. • Social Media Console captures and analyzes SM data. • SM2 provides key reports, data warehouse & sentiment analysis.

  34. Contact Information Tom McClintock NSI Partners 719.328.0042 x801 tom@NSIpartners.com www.NSIpartners.com

More Related