ROI on Social Media
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Transcript of ROI on Social Media
what seems intangible can be measured
Celeste Jhala,Kim Nguyen-Don
Liam PontonTink Newman
ROI ON SOCIAL MEDIA
mapping through uncharted space
What is the definition of ROI? Distinctions of ROI in Social Media
Types of Returns for SM Calculating ROI
Social Media Spend (SMS)Defining Value
ROI for Adaptive Sliding CanadaConclusionReferences
AGENDA
making the new frontier less nebulous
TraditionalThe ratio of money gained or lost on an investment relative to the amount of money invested
Context of social mediaValue gained relative to the resources invested
DEFINITION
Setting the right course
Creating vs. Measuring Return"In order to get a return, you must first make the right investment"
Creating Successful Returnaudience/content balance, establishing clear goals, listening online, finding a unique voice, producing compelling content, and evaluating performance regularly
DISTINCTION
searching for meaningful information
1. Tangible returns2. Community Building3. Lead Generation4. Brand Equity5. Process Efficiency
5 TYPES OF RETURNS
Measuring what you find
Celeste Jhala,Kim Nguyen-Don
Liam PontonTink Newman
Productsclothes, food, electronics
Donationsmoney, non-perishable food, baby products
1. TANGIBLE RETURNS
the world watches in expectation
Focusing on:who you want to nuturethe problems they facetheir top prioritiestheir worrieshow to deliver message to them
How should we:reccommend actionsdemonstrate the product or serviceidentifying incentives
intangible returnhumanisticcustomer loyaltytrustrelationship buildingimpressions
2. COMMUNITY BUILDING
the world watches in expectation
exploring new corners of our universe
1. Conversation not campaign2. Sales & Marketing as a team3. An ideal customer profile4. A universal lead definition5. An effective lead management process6. A Foundational database7. Integrated multi-modal tactics8. Consistent lead nurturing
2. COMMUNITY BUILDING
3. LEAD GENERATION
exploring new corners of our universe
representing your cause with reliability
1. Tangible and intangible characteristics2. Supports and maintains the constructed brand identity3. Create a sense of trust between the company and its patrons4. ompanies must uphold what is known as ‘culture of transparency’
3. LEAD GENERATION
4. BRAND MANAGEMENT
representing your cause with reliability
Some maintenance required
Collaborative Process: (Dell IdeaStorm)-collecting feedback and using it to tweak process designs
Process Discovery and Analysis: (IBM)- key stakeholders & customers are drawn into the communication loop
Real-time Monitoring: (Translink)-Companies embed social systems to monitor their business in real time-replacing the ‘snail mail’ system
Satisfaction Updates: (Telus)-Users can have a multi faceted connection with product/service providers ensuring enhanced satisfaction
1. Tangible returns2. Community Building3. Lead Generation4. Brand Equity5. Process Efficiency
4. BRAND MANAGEMENT
5. PROCESS EFFICIENCY
using tools for new discoveries
Measuring our ROI for 2 weeks
1. Calculate how much money you spent on social media
2. Calculate your social media returnsROI = Investment Return – Social Media Spend / Social Media Spend
CALULATING ROI
so many opportunities - only so many hours
How much money/time you are spending on social media
Example: Adaptive SlidingInvest $20/hr on social media
SMS = $20/hr x 1 hr/day x 7 days/week x 2 weeksSMS = $280
SOCIAL MEDIA SPEND
the lasting impact
How much a customer is worth (the contributors, evangelists)
Example: Adaptive SlidingCustomer = $50
CLV = $50 x (12 Facebook con-tributors + 27 Twitter contribu-tors)CLV = $1,950
CUSTOMER LIFETIME VALUE
the lasting impact
finding territories that have benefit
How much a new customer is worth (Twitter followers, Facebook likes, non-contributors)
Example: Adaptive SlidingCustomer = $10
NCV = $10 x (144 Twitter followers + 45 FB likes)NCV= $1,890
CUSTOMER LIFETIME VALUE
NEW CUSTOMER VALUE
finding territories that have benefit
without it - all else fails
Collaborative Process: (Dell IdeaStorm)-collecting feedback and using it to tweak process designs
Process Discovery and Analysis: (IBM)- key stakeholders & customers are drawn into the communication loop
Real-time Monitoring: (Translink)-Companies embed social systems to monitor their business in real time-replacing the ‘snail mail’ system
Satisfaction Updates: (Telus)-Users can have a multi faceted connection with product/service providers ensuring enhanced satisfaction
How much you are saving by using social media?
Example: Adaptive SlidingCustomer Service Value
CSV = $10 x (144 Twitter followers + 45 FB likes)
CSV= $1,890NCV = $100NCV= $100
CUSTOMER SERVICE VALUE
if there is nothing to learn - why come back?
Example: Adaptive SlidingImpressions = $1/customer[(Facebook + Twitter followers)x 5]/100 x $1
IV = (189/100) x 1IV = 9.45
IMPRESSION VALUE
ROI = Investment Return ( 2944.5) – Social Media Spend (number of hours spent on SM (280)) / Social Media Spend (Total number of hours spent on SM (280))
*Investment Return (IR) = (50/10 x Number of New Cus-tomers (189)) + Impression Value (9.45) + Customer Value Via Social (1890) + New customer value (100)Investment Return (IR) = 2944.5
Adaptive sliding ROI ($) = 9.5:1
ADAPTIVE SLIDING CANADAobserving and connecting with others
profitting at the end of the day
Importance of defining the desired return from social media activities
Calculating ROI on social media is possible and relevant.
CONCLUSIONS
Brito, M. (2011). Using Social Media to Solicit Product Feedback and Innovation. Retrieved March 10, 2012 from: http://www.informit.com/articles/article.aspx?p=1736042&seqNum=3
Chandler, S. (2011). Social BPM: Gateway to Enhanced Process Efficiency. Retrieved March 10th 2012 from:http://www.virtusa.com/blog/index.php/2011/11/social-bpm-gateway-to-enhanced-process-efficiency/
Carroll, Brian. (2006). Eight Critial Success Factors for Lead Generation. Retrieved March 18, 2012 from http://www.startwithalead.com/article.asp?ARTICLEID=256
Harr, E. (2012). 5 Simple Steps to Measure Social Media ROI. Retrieved March 16, 2012 from http://socialmediatoday.com/node/463590
Hibbard, C. (2010). How IBM Uses Social Media to Spur Employee Innovation. Retrieved March 10, 2012 from: http://www.socialmediaexaminer.com/how-ibm-uses-social-media-to-spur-employee-innovation/
SIFE Hunger Army. (2012). #SIFEHungerArmy. Retrived from March 14, 2012 from https://twitter.com/#!/SIFEHungerArmy
Social Shopper. (2012). Social Shopper Vancouver. Retrieved from March 15, 2012 from http://www.socialshopper.com/vancouver
Strella, R. (2012). Steps to Achieving Social Media ROI. Retrieved March 13, 2012 from http://socialmediatoday.com/rachel-strella/467568/making-right-investment-achieve-social-media-roi
The Jersey Score. (2012). Jersey Score. Retrieved from March 15, 2012 from https://twitter.com/#!/thejerseyscore
The Salvation Army. (2012). The Salvation Army. Retrieved from March 16, 2012 from https://twitter.com/#!/salvationarmy
Wink Beauty Lounge. (2012). Products. Retrieved from March 13, 2012 from http://winkbeautylounge.com/promos-packages/products/
Wink Beauty Lounge. (2012). Wink Beauty GroupInc. Retrieved March 13, 2012 from https://twitter.com/#!/Winkbeauty
REFERENCES