Social Media - the how, the why and the ROI

Social Media - the how, the why and the ROI

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  Social Media |How| Why | ROI| www.BuzzNumbersHQ.com
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  Basic Social MediaROI Formula
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  Just Kidding! You alreadyknow how to calculate social ROI…
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  BENCHMARK! Then apply thesame logic to the new medium…
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  Step 1: Startwith your destination. • Establish your social goals BuzzNumbers Social Goals • Map these against KPIs 1. 10,000 Facebook likes. 2. Improve perception of brand. KPIs • What do you currently 1. Reduce cost of acquisition. measure? 2. 5% more leads to sales. Currently Measure 1. Reach of print advertising. 2. Call centre response time.
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  Step 2: Outlineyour journey. • What is your measure of success? • What did it cost / How much did you save? • What did you achieve / What were the results? = ROI
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  Worth remembering… • Online= Trackable – There is always a number when working online (i.e. likes, clicks to open, re-tweets) so you will always be able to find a measurement. • Disclaimer: – The following examples show how your current activities can give you a benchmark against which you can judge social — not how social can replace your other programs.
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  Example 1: BillboardAdvertising & Facebook Measure Traditional Social KPI Successfully launch new product Encourage use of existing service Measure of success 1,000,000 impressions 100,000 Facebook ‘Likes’ (supplied by oOh! Media: average number of people passing by location x time period of ad display) What did it cost? $100,000 for print & display $5,000 for artwork& banner ads (AND/OR) How much did you save? What did you achieve? 1,000,000 impressions 100,000 Facebook ‘Likes’ (assumption – not verifiable) Ability to communicate with 100,000 ROI $100,000 / 1 million views = $5,000 / 100,000 = $0.05/FB ‘Like’ $0.10/view
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  Example 2: CustomerService & Twitter Measure Traditional Social KPI Decrease time to resolution Improve customer sentiment Measure of success Reduce call time by 2 minutes Reduce negative sentiment by 5% What did it cost? $50,000 Tool to track sentiment & respond to (AND/OR) (PABX with customer routing functionality & training) Tweets + added job responsibility How much did you save? What did you achieve? Improved customer experience Improved sentiment by 5% (responded to enquiries via preferred platform) Reduced f/t head-count by 2 ($50,000 x 2 = $100,000) ROI $50,000 Reduce cost of enquiry response ($100,000 savings - $50,000 cost = $50,000) (keep this online $0.50 vs. offline $12.50) Ability to x-sell products
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  Example 3: DrivingSales & YouTube Measure Traditional Social KPI Improve reseller sales channel Improve direct website sales Measure of success 10% increase in sales through 15% increase in direct sales through premium reseller website What did it cost? $200,000 $1,000 (AND/OR) (Full POS / floor staff incentive program) ($500 video camera / $200 demo product / $300 editing) How much did you save? What did you achieve? 10% increase in reseller sales Increased web traffic by 5,000% Improved reseller relationship Increased direct sales by 15% ROI Revenue increase with possible Revenue increase longer term improvement Views/ Share/ Tweets/ Posts/ Visits
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  How easy isthat!
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  Next Steps • Buy-in – People fear things they don’t understand – your boss is a person! • Prove there is a NUMBER – Benchmark, track and report until people start to listen to you • Always link up with your KPIs – Deliver the results (or review what you are responsible for delivering) • Imitation = flattery – Observe, listen and learn from your customers and competitors
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  Jess Whittaker Email: jess@buzznumbershq.com Twitter: @jessdoubleya Linkedin: linkedin.com/in/jesswhittaker Want the workbook? Send me a message! www.BuzzNumbersHQ.com
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  Why you shouldcare! • “The amount of data in our world has been exploding and analyzing large data sets will become a key to competition, underpinning new waves of productivity growth, innovation, and consumer surplus…” according to research by MGI and McKinsey’s Business Technology Office • By 2018 the US alone will face a shortage of 140,000 to 190,000 people with analytical skills as well as 1.5 million manager and analysts with the know how to use the analysis of big data to make effective decisions
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  Australia • The Australiadata industry is poised to grow more than 17% annually in the next 5 years. • The number of organizations spending between 25 – 50% of their marketing budget on digital media will increase by over 40% over the next 5 years • While just 10 percent of the organiations currently allocate comparable fund to digital marekting, the figure will rise to 51% in 2013