Yes, Social Marketing ROI can be determined.

Kathy HerrmannMeasurement & Insight

(757) 497-4811

kherrmann@boomyourbrand.com

www.boomyourbrand.com

ROI Considerations

3

Start with Objectives and Strategy…

…know where you want to go.

Measure results.

The end goal of measurement is not to collect a bunch of metrics but to gain

actionable intelligence…

CXOs will look for actionable intelligence in

monetary terms…

…revenues or cost savings.

6

ROI Primer

7

Agency costs in this bucket

8

Rocky Mountain Hotel Case Study for Twitter

9

Annual Results:Revenues = $31mAverage Occupancy Rate = 60%Average RevPAR = $420

Dec11 – Feb12 results:Revenues = $15mAverage Occupancy Rate = 79%Average RevPAR = $831

Revenues =

Reach x Impact x Yield

Formula for Sales Revenue Gain from Social

11

Influenced conversations

Tweets sent = 365Average followers = 1,777Impressions* = 1,630,394

Mentions/RTs = 876

* Impressions measure the reach of all tweets, i.e., total potential number of displays to followers. It equals the sum of the total followers PLUS their followers.

Reach metrics

12

Clicks = 3,606

(Click-through rate = 0.22%

Impact metrics

13

Lead Conversion Rate = 0.3%Conversions = 11

Avg. Rev per room = $1,059.29

Yield metrics

14

Gains results

15

Total Revenues for period

Revenues Attributed to Social Media

initiatives

Room Revenues (rounded) $6,956,376 $ 11,700 Food & Beverage (rounded) $3,473,075 $ 5,800 Sundeck (rounded) $2,626,498 $ 4,400

Total Revenues $ 13,055,949 $ 21,900

Costs

16

Personnel = $5,667Social analytics solution = $7,500

Total costs = $13,167

ROI = (Gains - Costs)/Costs x 100

ROI Formula

17

= ($21,900 - $13,167)/($13,167) x 100

= 66%

Closing Thoughts

18

19

It is possible to determine ROI for social initiatives….

…but it starts with good

measurement practices….

…and good measurement starts with clear objectives & strategy.

www.boomyourbrand.com