How to Measure Social Media MarketingNovember 12, 2015

Webinar:

Presented by:

Jim Tobin, President Ignite Social Media @jtobin

Presenting Today

Brands We’ve HelpedRetailersConsumer Packaged Goods Technology Automotive OtherHospitality/

Entertainment

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Don’t Skip Your“Measurement Plan”

Measurement BEFORE IdeasMeasurement should be a discussion BEFORE brainstorms and execution begins.

• Objectives answer the question:“Why are we doing this?

• Key Performance Indicators answer the question: “How will we know we are successful?”

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KPIs and ObjectivesTo identify objectives, focus on what you want to the campaign to accomplish, considering the KPIs that are possible to track.

Awareness Impressions Increase in Mentions

Interest Engagement Lead Capture/CRM Search

Conversion Purchases Coupon Redemptions Page Goals

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Consider Target Audiences

Women 25-54 Pregnant women, who like to cook, and are concerned about gestational diabetes

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Consider The “Ask”

1,847 confirmed participants in store

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The Influencer “Ask”

Source: #Pyrex100

Source: #CWColor Source: #RevlonMustHaves Source: #FacesBehindHunger

Less Is More• Focused measurement• Focused target audience• Focused ask

will lead to focused execution.

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Primary vs. SecondaryDifferentiate between primary KPIs and secondary KPIs

Primary KPIs

Mandatory – these show if the campaign was a success

• Less is MORE• Set 1-2 Primary Indicators of

Success• Clear, numerical goals

established

Secondary KPIs

Optional –Help understand performance & show

additional value

• Nice to have• Helps ensure data is collected• Do not have numerical goals

established

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FIAT ExamplePrimary KPIs

• Handraisers (CRM opt-in)• Visits to product page

Secondary KPIs

• Increase in FB fans• Overall impressions

Over 16,000

Over 250,000

Over 40,000

Over 1.7M

One Way to Show ValueConsider the holistic value your efforts are able to generate as they relate to the customer journey.

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The New Ecosystem

New Ecosystem

Consumers

Influencers

Brands

Target audience and (hopefully) participant

Making money through social media

Infusing money into platforms, tactics

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6 ROI Models Explained

6 Models of Social Media ROI1. The Amplification Model2. Value of Social Traffic versus Display3. Quality of Visitors from Social Media4. Social Promotions Sales ROI5. Dynamic Value (loyalty) Model6. Email Acquisition Value

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Amplification Model

Calculate social impressions, actions Facebook impressions and clicks, Twitter impressions and clicks, YouTube views, Online mentions, etc.

Sum value of impressions, actions Assign value to impressions and actions, weighting actions more heavily that impressions.

Compare to total social media spend Map social impressions and actions to paid marketing value equivalency.

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ExampleSocial Impressions, Actions

Paid Advertising Equivalent Value

2,000 Facebook impressions $10 CPM $20

100 Facebook clicks $0.50 per click $50

100 YouTube Views $0.20 per view $20

Total Value: $90

Social Budget: $30

Social ROI: 300%@jtobin

Questions & Considerations• Most of the social data inputs are available for free.• The model is complex. It requires proxy values for social

actions based on non-social comps.• The model aggregates cross-channel social data and maps it to

familiar marketing metrics.• The output is a relative comparison, not an actual sales return

on investment.

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Social Traffic ValueDescription Display Social Delta

Net New VisitorsAbove baseline

30,000 170,000 Social drove 5.67X more visitors

Cost $150,000 $130,000 Social cost only 86.7% of display

Cost per visitor $5.00 $0.76 Social generated a 6.5X better return

This data reflects actual performance from an Ignite Social Media client.@jtobin

Questions & Considerations• This approach is less complicated than others, it requires fairly simple

inputs.• The model works well if you have an active display advertising campaign

as a basis for comparison.• The model doesn’t incorporate impression value, only traffic value.• The channels are the variable, so try to keep other variables constant.

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Quality of Social TrafficDescription Display Social Delta

Pages per Visit 1.57 2.84 Social drove 1.8X more pages per visit.

Time on Site 0:40 2:18 Social visitors spend 3.45X time on site.

Bounce Rate 81.40% 45.46% Social visitors had a 44% lower bounce rate.

Goal Conversions 3,098 12,603 Social drove 4X conversions.

This data reflects actual performance from an Ignite Social Media client. @jtobin

Questions & Considerations• You can compare social traffic against other channels or “average” site

traffic.• Choose the most meaningful metrics, don’t worry about comparing all

of them.• Factor in all costs related to social and other channels for a final

calculation.

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Social PromotionsTotal Cost of Promotion $195,404 Including ads

# Goal Page Completions

34,812 Use actual if possible

Goal Pages per Sale 13.989 From model

Social “Sales” 2,489 Goal page completions / goal pages per sale

Social “Sales” Revenue $336,015 Social sales X average transaction value

ROI $0.72 (Revenue – Cost) / (Cost)

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Questions & Considerations

• This is admittedly rough, but directionally interesting for non-ecommerce brands.

• This model works well when you want to map a specific promotion to purchase intent.

• Remember that you’re comparing the effectiveness of marginal marketing spend – a “low” ROI might not be a bad thing.

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Dynamic Customer Value (Loyalty)Dynamic Customer Value Model

Non Fan/Non Loyalty Fan/Non Loyalty Loyalty/Non Fan Fan/LoyaltyVisits Per Year 4 5 6 8Average Spend Per Visit 43.00$ 44.25$ 46.18$ 47.63$ % of Purchases Made at Company 35% 43% 70% 74%% of Customer Population 35% 9% 41% 15%

Value per 60.20$ 95.14$ 193.96$ 281.97$ Normalized 1.00$ 1.58$ 3.22$ 4.68$

Pop % x Normalized Value 0.35$ 0.14$ 1.32$ 0.70$ Value as % 13.91% 5.65% 52.51% 27.93%Economic Value 173,902,536$ 70,670,087$ 656,339,371$ 349,088,006$

1.58$ Total Co. Revenue 1,250,000,000.00$ 3.22$ 4.68$

A Fan who is not a Loyalty Club Member brings inA Loyalty Club Member who is not a Fan brings inA Fan who is also a Loyalty Club Member brings in

Therefore, for every dollar of revenue a "normal" customer brings in,

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Questions & Considerations

• Fill in the “blue numbers” with surveys or by connecting CRM systems with social data

• Surveys can be done through sophisticated measures (e.g., exit interviews) or basic (e.g., Facebook ads targeting different groups)

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Value of Email ModelValue of Email Marketing to Company $25,000,000Number of Emails in Database 14,000,000 Value of Average Individual Email 1.79$

Emails Collected by SocialProgram 1 8,600 Program 2 12,541 Program 3 3,900

Total 25,041

Value of Emails Collected 44,716.07$ @jtobin

Questions & Considerations

• This is valuable for companies that do a lot of ecommerce and value email acquisition.

• Sweepstakes and other social promotions can be great for email acquisition.

• Beware the “sweepers”

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Model Similarities

• Look at how your company is valuing other marketing efforts• Gather some performance data from those efforts (if possible)• Look at how social contributes to those efforts• Find a way to quantify that value

• This puts social on a level playing field.

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Determining Tools

Scale ProgramsLook to outside resources/services to do Pre/Post surveys or research, when you have a campaign with budget and scale.

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Scale Programs• Example: Nielsen’s Brand Effects Survey on Facebook

Pre/Post surveys on Facebook that measure how ads on Facebook influence different brand metrics such as:

Purchase Intent, Brand Awareness, Message Association, Brand Favorability and Brand Recommendation

Cost: $200k minimum Reach: Target Audience of >20MM unique users, at least 40MM impressions

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Influencers to Scale Programs

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Need First; Tool SecondDetermine what tools you’ll need.

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How to Set KPIsSet goals for primary KPIs, based on:

- Previous campaign performance- Media spend - Cross-Promotional efforts

- Owned promotion- Influencer promotion

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Example with Retail ClientSet goals for primary KPIs, based on:

- Previous campaign performance- Media spend - Cross-Promotional efforts

- Owned promotion- Influencer promotion

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Accelerating ContentWe have three kinds of content that we boost.

High Performing Top X%

Critical Content Sales Corporate Announcements

Right Time Marketing Right Brand Right Voice Right

Platform

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Accelerating Campaigns

Low Conversion Rates User Experience Tweaks

Design or CTA Changes

Low Awareness Additional media

Additional promotion

Additional influencer promotion

High CPE/CPM’s Content Optimization

Media Targeting Changes

New Media Placements

Monitoring Benchmarks Leads to Optimization

In campaign planning, goals will help ensure the campaign is successful overall. Benchmarks will ensure you have the time to course correct.

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Qualitative MattersQualitative measures shouldn’t be forgotten or saved until the end, these help identify the following:

• Positive/Negative Sentiment• Crisis identification• Customer opinions• Early issue identification (with campaign

or with products)

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In Short

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Calculating ROI

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Before you spend, know your goals and how you’ll measure them

The social ecosystem now includes influencers and consumers

Clean target, clean ask, created success

Build ROI models based on what your org values

Build out both qualitative and quantitative goals and benchmarks