Understanding Social Media ROI

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Understanding Social Media ROI Courtney Seiter | @RavenCourts Raven Internet Marketing Tools | @raventools raventools.com/smx

description

There's no silver bullet. But with a little work and a new interpretation of "ROI," measuring the benefits of social media is possible. This presentation includes real-world case studies, tons of KPIs and some easy formulas for metrics to get you started.

Transcript of Understanding Social Media ROI

Page 1: Understanding Social Media ROI

Understanding Social Media ROI

Courtney Seiter | @RavenCourtsRaven Internet Marketing Tools |

@raventoolsraventools.com/smx

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There's no silver bullet

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• Only 20% of CMOs think social media marketing produces measurable ROI.

• Only 19% of marketers feel confident in measuring social media ROI.

• Only 13% say they are “very effective” at determining social success.

Sources: Marketing Sherpa, Lenskold Group, Chief Marketer

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1 weird old tip 3 weird old tips for understanding social media ROI:

• Know your goals

• Align social metrics

• Break it down

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Know Your Business' Goals

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• Brand Sentiment• Share of Voice• Reach• Engagement• Brand Advocates• Brand Trust

Types of Social Media Goals

• Sales• Customer Support• Product

Development• Marketing Insights• Brand Loyalty

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Gilt GroupeGoal: Solve shipping costs barrier using insight from online community

Result: 10% increase in shopping cart conversion

Source: Communispace

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AT&TAddress negative sentiment and unresolved customer service issues on the social web

Source: Ant's Eye View

Goal:

Result: 21,000 customer issues resolved37,500 customers served

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L'Oreal Increase awareness and product sales at salons

Participation by 6,000 salons, 21 million impressions, 2.2 million engagements

Source: Forrester

Goal:

Result:

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Get More Specific!

• Reduction in sales cycles• Reduction in customer support costs• Number of product improvement suggestions

from [social network]• Increase in product reviews/ratings• Number of people in [specific location] who

follow us on Twitter

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Measuring Brand Sentiment

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Measuring Customer Support

Reduction in On-Site Support

Leads Generated by Support

Improved Customer Happiness

Increase Resolution

Rate

Reduction in Support

Costs

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Measuring Product Innovation

Number of new product ideas

Number of new product ideas built

Research time saved

Traditional research cost savings

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Break it Down

• By goal• By campaign• By time period• By medium• Even by post

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Source: Web Analytics Demystified & Altimeter Group

To measure Share of Voice compare brand mentions to competitors.

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Engagement = Engagement[Social Network] Interactions

Total Views

Source: Web Analytics Demystified & Altimeter Group

To measure Engagement, measure participation.

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Source: Web Analytics Demystified & Altimeter Group

To measure Reach, compare audience participation to your audience reach.

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Other KPIs to Consider

• Volume of consumer-created buzz

• Seasonality of buzz• Rate of virality• Embeds/installs• Increases in searches

• Ranking improvements

• Number of interactions

• Store locator views• Registrations by

channel

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Use event tracking and campaign variables in Google Analytics to assess content virality.

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http://gaconfig.com

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Thank You!

Courtney SeiterRaven Internet Marketing Tools

@RavenCourts | raventools.com/smx