Post on 31-Oct-2014
description
Internet Marketing ROI
Christopher S. Penn, Director of Strategywww.WhatCounts.com
Fair Warning
XThree Disclaimers
How can a company be innovative and focus on ROI? How do you make a business case for something that's experimental? Let's say I wanted to my training team to spend two hours a week answering questions on Quora to see what happens, is it ok to do this without any ROI objectives?
- Scott Hemmons
I get a lot of analytics from various tools, including web site metrics, Bitly, Klout, Twitter, Facebook, LinkedIn, YouTube etc. It takes me a about an hour+ to pull it together each month. Do you have a one-stop shop solution that would make it easier? Even if I had 1 thing plus our web analytics that would make reporting so much easier.
- Becky Livingston
What?When?How?
Returnon
Investment
Earned - SpentSpent
= ROI
Return on “influence”Return on conversationReturn on engagement
1,000 - 500500
= 100%
250 - 500500
= -50%
Earned - SpentSpent
= ROI
Annual Income2,080
=Hourly
Annual Income2,080
=Hourly
Hours x Rate = Time
Spend in Money
$50,0002,080
= $24.04
5 x $24.04 = $120.20
1000 - 620.20620.20
= 61.2%
Money Earned:Money Spent:
Hourly Rate:Time Spent:
Time Spent in Money:
Total Spent:
Total Earned-Total SpentTotal Spent
$_______$_______
$_______ _______$_______
$_______
_______%
Worksheet 1
What?When?How?
ROI is not everything
Audience
Prospects
Leads
Customers
Evangelists
ROI really important!
ROI not as important!
What?When?How?
Earned - SpentSpent
= ROI
Worksheet 2
Method PPC Email Twitter
Money Earned
Money Spent
Hourly Rate
Time Spent
Time as Money
Total Spent
Earned - Spent / Spent
Worksheet 2 Example
Method PPC Email Twitter
Money Earned $1,000.00 $12,563.00 $750.00
Money Spent $500.00 $5,000.00 $0.00
Hourly Rate $24.04 $24.04 $24.04
Time Spent 5 5 40
Time as Money $120.20 $120.20 $961.60
Total Spent $620.20 $5,120.20 $961.60
Earned - Spent / Spent 61.24% 145.36% -22.00%
Worksheet 2 Example
Method PPC Email Twitter
Money Earned $1,000.00 $12,563.00 $750.00
Money Spent $500.00 $5,000.00 $0.00
Hourly Rate $24.04 $24.04 $24.04
Time Spent 5 5 40
Time as Money $120.20 $120.20 $961.60
Total Spent $620.20 $5,120.20 $961.60
ROI 61.24% 145.36% -22.00%
ROI is not necessarily a
helpful number
Keep or kill decisions
Last Touch Problem
Webinar
Tweet
PPC Ad
Blog Post
Sponsored
Which caused the sale?
Old school single channel ROI is broken
Back to the
drawing board
Net Profit
Margin
Volume
Income
Expense
Audience
Action
Net Profit
Margin
Volume
Income
Expense
Audience
Action
Product
Operations
Marketing
Sales
Marketing’s primary output is qualified leads, yes?
EPL
Earned - SpentNumber of Leads
Money Earned:Money Spent:
Hourly Rate:Time Spent:
Time Spent in Money:
Total Spent:
Total Earned-Total SpentLeads
$_______$_______
$_______ _______$_______
$_______
_______ EPL
Worksheet 3
So what?
Yes, but so what?
Last Touch Problem Solved
MCFOne Phrase:
Multichannel Revenue
Channel Last Touch MCF
Twitter $59,084 $125,315
Facebook $14,036 $22,388
Channel Last Touch MCF
Twitter $59,084 $125,315
Facebook $14,036 $22,388
Earned - SpentSpent
= ROI
59,084 - 50,00050,000 = 18.2%
125,315 - 50,00050,000 = 150.6%
The Big Picture ofInternet Marketing ROI
Walkthrough/Case Study
Worksheet 1
Method Web Facebook TwitterMoney Earned
Money Spent $180.00Hourly Rate $19.23Time Spent 780
Time as Money $15,000Total Spent $15,180
Earned - Spent / Spent
Worksheet 1
Method Web Facebook TwitterMoney Earned
Money Spent $180.00 $0.00Hourly Rate $19.23 $19.23Time Spent 780 260
Time as Money $15,000 $5,000Total Spent $15,180 $5,000
Earned - Spent / Spent
Worksheet 1
Method Web Facebook TwitterMoney Earned
Money Spent $180.00 $0.00 $0.00Hourly Rate $19.23 $19.23 $19.23Time Spent 780 260 260
Time as Money $15,000 $5,000 $5,000Total Spent $15,180 $5,000 $5,000
Earned - Spent / Spent
Worksheet 1
Method Web Facebook TwitterMoney Earned
Money Spent $180.00 $0.00 $0.00Hourly Rate $19.23 $19.23 $19.23Time Spent 780 260 260
Time as Money $15,000 $5,000 $5,000Total Spent $15,180 $5,000 $5,000
Earned - Spent / Spent
Channel Last Touch MCF
Twitter $4,800 $7,200
Facebook $42,000 $51,000
Last Touch VersionMethod Web Facebook Twitter
Money Earned $133,200 $42,000 $4,800Money Spent $180.00 $0.00 $0.00Hourly Rate $19.23 $19.23 $19.23Time Spent 780 260 260
Time as Money $15,000 $5,000 $5,000Total Spent $15,180 $5,000 $5,000
Earned - Spent / Spent 777.47% 740.00% -4.00%
MCF VersionMethod Web Facebook Twitter
Money Earned $133,200 $51,000 $7,200Money Spent $180.00 $0.00 $0.00Hourly Rate $19.23 $19.23 $19.23Time Spent 780 260 260
Time as Money $15,000 $5,000 $5,000Total Spent $15,180 $5,000 $5,000
Earned - Spent / Spent 777.47% 920.00% 44.00%
Channel Last Touch MCF
Twitter -4% 44%
Facebook 740% 920%
If you remove Twitter,this sale goes away.
Now You Have The Big Picture ofInternet Marketing ROI
ReviewWhat?When?How?
Webinar Tomorrow!
www.WhatCounts.com/smplus
cspenn.com/book
Christopher Penncspenn@gmail.comTwitter: @cspennLinkedIn: cspenn.com/lFacebook: cspenn.com/fGoogle+: cspenn.com/gWeb: christopherspenn.com
Questions?