Social Media - the how, the why and the ROI
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Transcript of Social Media - the how, the why and the ROI
www.BuzzNumbersHQ.com
Social Media|How | Why | ROI|
Basic Social Media ROI Formula
Just Kidding!You already know how to
calculate social ROI…
BENCHMARK!Then apply the same logic
to the new medium…
Step 1: Start with your destination.
• Establish your social goals
• Map these against KPIs
• What do you currently measure?
Social Goals1. 10,000 Facebook likes.2. Improve perception of brand.
KPIs1. Reduce cost of acquisition.2. 5% more leads to sales.
Currently Measure1. Reach of print advertising.2. Call centre response time.
BuzzNumbers
Step 2: Outline your journey.
• What is your measure of success?
• What did it cost / How much did you save?
• What did you achieve / What were the results?
= ROI
Worth remembering…
• Online = Trackable– There is always a number when working online (i.e. likes, clicks to
open, re-tweets) so you will always be able to find a measurement.
• Disclaimer: – The following examples show how your current activities can give you
a benchmark against which you can judge social — not how social can replace your other programs.
Measure Traditional Social
KPI Successfully launch new product Encourage use of existing service
Measure of success 1,000,000 impressions(supplied by oOh! Media: average number of people passing by location x time period of ad display)
100,000 Facebook ‘Likes’
What did it cost?(AND/OR)
How much did you save?
$100,000 for print & display $5,000 for artwork& banner ads
What did you achieve? 1,000,000 impressions(assumption – not verifiable)
100,000 Facebook ‘Likes’Ability to communicate with 100,000
ROI $100,000 / 1 million views = $0.10/view
$5,000 / 100,000 = $0.05/FB ‘Like’
Example 1: Billboard Advertising & Facebook
Measure Traditional Social
KPI Decrease time to resolution Improve customer sentiment
Measure of success Reduce call time by 2 minutes Reduce negative sentiment by 5%
What did it cost?(AND/OR)
How much did you save?
$50,000(PABX with customer routing functionality & training)
Tool to track sentiment & respond to Tweets + added job responsibility
What did you achieve? Improved customer experienceReduced f/t head-count by 2($50,000 x 2 = $100,000)
Improved sentiment by 5%(responded to enquiries via preferred platform)
ROI $50,000($100,000 savings - $50,000 cost = $50,000)
Reduce cost of enquiry response(keep this online $0.50 vs. offline $12.50)
Ability to x-sell products
Example 2: Customer Service & Twitter
Measure Traditional Social
KPI Improve reseller sales channel Improve direct website sales
Measure of success 10% increase in sales through premium reseller
15% increase in direct sales through website
What did it cost?(AND/OR)
How much did you save?
$200,000(Full POS / floor staff incentive program)
$1,000($500 video camera / $200 demo product / $300 editing)
What did you achieve? 10% increase in reseller salesImproved reseller relationship
Increased web traffic by 5,000%Increased direct sales by 15%
ROI Revenue increase with possible longer term improvement
Revenue increaseViews/ Share/ Tweets/ Posts/ Visits
Example 3: Driving Sales & YouTube
How easy is that!
Next Steps• Buy-in
– People fear things they don’t understand – your boss is a person!
• Prove there is a NUMBER– Benchmark, track and report until people start to listen to you
• Always link up with your KPIs– Deliver the results (or review what you are responsible for delivering)
• Imitation = flattery– Observe, listen and learn from your customers and competitors
www.BuzzNumbersHQ.com
Jess WhittakerEmail: [email protected]: @jessdoubleyaLinkedin: linkedin.com/in/jesswhittaker
Want the workbook? Send me a message!
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Why you should care!
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