ROI + Social MediaDigital Conference10th February, 2011

v0.01 NM

What I’m going to cover

1. How confident are we at measuring social media?

2. Why is it difficult?

3. What should you measure?

4. Some examples

5. Recommendations

Almost a third of companies in the US expect to increase their SM spend in 2011 compared to 8% decreasing

Forrester

4.5

How confident are we?

Belgian study100 marketers

How capable do we feel at measuring the results of • Online Direct Response• Online Branding• Social Media

Results

0 1 2 3<beginner> <advanced> <expert>

Online branding

Direct response

Social media

1.05

1.29

0.85

Capacity of your company to measure online activities

What’s the problem?

Common questions

How many

....friends should we have on Twitter?

....Tweets should we make per week?

....updates to the Facebook page do we need?....should ‘Like’ our Facebook page?....video views on YouTube mean success?

RNLI – UK based charity set about targeting youth. Identified 12 UK vloggers to be the spokespeople of that generation and challenged them to be curious about the values it stands for.

Results

Their videos sparked 1 million views, 8000 texts and 150 videos, featured twice by YouTube editors and ranked ‘most-viewed this month’ in 7 countries. Reached 11% of 15–20 year olds withjust 12 DM packs

Social Media Online Display

TV

Views 733,000 733,000 733,000

Cost £104,000 £416,093 £736,772

Cost per view £0.14 £0.57 £1.10

Language is important

Don’t set false expectations

ROI is a well understood financial calculation

ROI = Profit – Investment/ Investment

COO/CFO will not be content when results are conveyed as retweets, sentiment or number of followers

Consider grouping all SM metrics into 4 areas

Social Platform

User Reach Volume ofParticipation

User Impact Quality of Participation

How far and wide doyour messages spread?

How many users areinteracting with your efforts?

How do your social efforts change opinions

or intentions?

What’s the strength and depth of user interactions

with your socialinitiatives?

QUANTITY

QUALITY

USERS USAGE

The most powerful form of marketing

Word of mouth “equity index” formula

Volume x impact

volume = number of messages

impact = Where+What+Who+Source

The 4 ‘i’s for measuring engagement

Purchase in-store and online

Open rateClick throughRegistrationCoupon downloads Sample requestsCoupon redemption Survey completion

Interaction

What to track

Brand awareness Site visits Time spent Pages viewed Search keywordsNavigation paths Site logins Physical store visits Ad impressionsUse of application –

social / iphone

Involvement

What to track

Sentiment tracking on third-party sites (blogs,reviews, forums, etc.)

Sentiment tracking of internal customer contributions

Opinions expressed in customer service calls

What to track What to track

Net Promoter (NP) score

Product/servicesatisfaction ratings

Brand affinity and loyalty

Content forwarded to friends

Posts on high-profile blogs

Volume of conversation

Intimacy Influence

Benchmarking

Four perspectives of a social media marketing scorecard (Forrester, 2010)

Improved promotion response rates with social-enabled commerce.

eCommerce-enabled news feed posts on Facebook drive 18.4 times more sales per impressionthan Web site links posted in news feeds.

Cost reduction

Channel Voice community reduced F2F events by half decreasing the number of customer conferences it holds, saving upwards of $500,000 for each

Use consumer surveys to measure the brand perspective

Secret deodorantworks better than other deodorants increased 8 points and purchase intent jumped 11%.

Protecting brand reputation

Customer insight

Client assignments

Chewing gum and oral careBrief: Explore the differences between consumers in Germany, Russia and the UK in their attitudes towards chewing gum and lookingafter their teeth

Cold soresBrief: What are consumers saying about cold sores? Symptoms vstreatments; Seekers vs Providers; Creams vs Patches; Where areconversations happening and how might the brand join in?

Recommendations

• Don’t invest without some clear objectives

• Link objectives to outcomes

• Consider a balanced scorecard

• Use “ROI” when you mean it

• Long term not short term

• SM is a state of mind not another channel

Tack sa mycket!