Tips for measuring ROI by Mary B.
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1 Tips for measuring ROI by Mary B. #SMWParis
2 Learning points: 1. Reshape the social ROI discussion for the executives / decision-makers 2. Tie social media to the traditional sales funnel 3. Identify key metrics tied to specific business goals and start measuring it today
3 Keep on the focus on ROI - no trendy substitutes Return on engagement Return on relationship Return on conversation Return on influence Return on investment
4 Establish goals first (why you are using social media?) Gain more exposure Improve company or brand awareness Find prospects and leads Find new business partners Boost web traffic Improve search engine rankings Reduce marketing costs Secure repeat business
5 Why measure social media ROI? Track progress towards specific goals Address opportunities (weaknesses) Secure resources
6 Understand the executive mindset and language High level Big picture Overall organizational goals
7 Avoid social media jargon interactions likes friend requests connections shares pokes followers pins fans hashtags blog posts...
8 What things are being measured today? What I always look at specifically in ROI is a real world number that I can move with an online technology. - Chris Brogan, CEO & President of Human Business Works, author and social media rock star Cost per impression, click Cost per lead, conversion Cost per new customer acquisition
9 Common executive goals Grow Sales Increase Revenues Reduce Costs Others...
10 The Sales Funnel Awareness Interest Desire Action
11 Does social add value? If so, where? Do social media leads convert more slowly, but at a much higher rate? Are they more profitable? Do they cost less? Does the customer stick around longer? You need to track the entire customer life cycle and show where social is driving results.
12 Remixing the funnel for social media Awareness: Visits, Views, Followers, Fans, Subscribers Interest: Recommendations by people of influence Desire: Direct interaction on social - i.e. clicks, Retweets, DMs, wall posts... Action: content downloads, event attendees, lead generation, forms filled out, sales
13 Other measurables Completed forms on your site Downloads of ebooks, applications, white papers Number of leads generated Customer retention rates Press and media coverage
14 Sample metrics to try out First create a control group - separate those using social from those who don t so you can compare Conversion rates - Do people interacting on social media tend to have better conversion rates? (ROI may be negative at first, but that is OK if you are showing good conversion rates) Rates of change - i.e. growth (of revenues or whatever you are measuring) to look for trends
15 More sample metrics Cost per lead - When you compare the social media activities vs paid search, TV or radio are they are likely to be lower? Retention rates - Are we keeping you as a customer for longer when there is social interacting? Full campaign history - Was social a lead source but not the point of conversion? Establish % of revenues that social can count as the ROI for a specific social activity.
16 More sample metrics Revenue per customer. Is it higher when the customer is coming through social media? Customer saves. Can you stop customers from leaving if you interact with them on social media? Saved revenues that would have been lost otherwise What are one or 2 key metrics that you can start tracking today?
17 What data are you missing? Get after it! Invite your IT, CRM system, web analytics teams to meet Show them the remixed sales funnel and areas where social media is likely having an impact on business objectives Brainstorm on how to get access to further data so you can continue to better understand where social influences sales, revenue, customer retention, other goals...
18 In summary Reshape the social ROI discussion for the decision-makers. Don t use jargon, use real world numbers. 2. Remix the traditional sales funnel to include social media. 3. Establish metrics and track for 90 days then look at results. 4. Brainstorm cross-departmentally to obtain missing data you need to establish additional metrics.
19 Sources: How to Measure Social Media by Nichole Kelly
Applying Social Media Measurement to the Sales Funnel
02 Sales By: Nichole Kelly - Social Media Measurement Coach In Partnership with HootSuite - Social Media Dashboard Review of Core Measurement Philosophies As we learned in the first section of this document,
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