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Analyse the ROI for Social Media
Online Marketing and Social Media for Travel Summit
Eye For Travel, Prague, 5th – 6th October 2010
2

ROI Definition is pretty basic ...


          final value           starting value


ROI =

                                                     starting value

In other words, if you invest $5 and get back $20,

your ROI is (20 – 5) / 5 = 3 times your initial investment.
3

... but there are several challenges
for the tourism industry!
4

ROI & Travel Planning Process ...??


                         Also important for DMOs:

                             Return on Involvement

                             Return on Engagement

                             Return on Activity

                             ...




                         Source: Robert Cole‘s fantastic PREZI
                         presentation: The Seven-Step Travel Process:
                         http://prezi.com/qct23lpz19yw/view/
5

There are Many Stakeholders to
Connect via Social Web ...

                   Guests


    Partners                 New Media
  (Marketing- &             (Journalists,
   Distribution)            Bloggers ...)


              Tourism Industry
6

         Different Business Units have
         different (Social Media) Goals ...
        Customer Service –
         Support

        Marketing – Engagement

        Public Relations –
         Reputation & Network

        Sales – Energizing New
         Customers, Yield

        Research & Development:
         Exploring, Insights


Fotocredit: http://www.flickr.com/photos/trico741/
our home page isn’t
     just coke.com, it
     is google.com



Source: US Travelcom-Expo, Feb 2010, Dallas USA
                                             Classified - Internal use
Outside the Industry Innovator of the Year Award: The Coca-Cola Company, Kari Bjorhus,
and today, I’d say…

     our home page isn’t just
     coke.com, it is
     google.com and
     hyves.nl and
     twitter.com and
     youtube.com and
     facebook.com and
     studiVZ.net
Source: US Travelcom-Expo, Feb 2010, Dallas USA - The Coca-Cola Company, Kari Bjorhus
                                             Classified - Internal use
http://www.slideshare.net/travelcom/outside-the-industry-innovator-of-the-year-award-the-cocacola-company-kari-bjorhus
9




Nine Steps to
Measure Social
Media Investment
in Travel & Tourism
10

First. The Strategy.
Define where you want to be!
11

Social Media Strategy =
Fix One Objective.
Fix Different Ways to Achieve ...
           Strategy 1 Listen


 Today     Strategy 2 Talk       2012
           Strategy 3 Support


                                This is what
                                 we people
                                want to talk
                                 about us
12

  Second. Tactics. „Social“ concrete &
  focus on relevant Stakeholders
Travel 2.0 -       Listen   Talk   Support (the new
Matrix                             marketing)

Guest


Media (Blogger,
Journalists ...)

Partner (B2B)


Tourism Industry
13

  Second. Tactics. „Social“ concrete &
  focus on relevant Stakeholders
Travel 2.0 -       Listen   Talk   Support (the new
Matrix                             marketing)

Guest


Media (Blogger,
Journalists ...)

Partner (B2B)


Tourism Industry
14

  Second. Tactics. „Social“ concrete &
  focus on relevant Stakeholders
Travel 2.0 -       Listen   Talk   Support (the
Matrix                             new marketing)

Guest


Media (Blogger,
Journalists ...)

Partner (B2B)


Tourism Industry
15

  Third. Define investment & costs.
  It is more about time & manpower ...
Travel 2.0 –       Listen            Talk               Support (the new
Matrix - WHO                                            marketing)

Guest              R&D              Marketing / Sales   Customer Service
                   Customer Service Outsourcing         Marketing

Media (Blogger,    PR                PR                 Customer Service
Journalists ...)                     Outsourcing        Marketing

Partner (B2B)                        Sales              Marketing
                                                        Agency

Tourism Industry   Corporate PR      Managing           PR
                                     Director           R&D
16

  Fourth. Make „social“ concrete.
  Focus on relevant Stakeholders ...
Travel 2.0 –       Listen              Talk                 Support (the new
Matrix - WHAT                                               marketing)

Guest                Ratings &          Videos    Widgets
                     Reviews

Media (Blogger,                     Communities
Journalists ...)
                                                               Wikis
Partner (B2B)
                            Blogs

Tourism Industry
17

Fifth. Fix a baseline.
And document activities in a timeline.
        Before   Start FB / Online PR / Blog / Twitter / XING / FlickR...
18

Sixth. Establish a relevant monitoring
system of talks about your brand.
                                                           Different Monitoring-Strategies

                                                               Free Tools – Do It Yourself!

                                                               Social Monitoring Specialists

                                                               Web Monitoring Tools

                                                               Web Analytics Tools

                                                               Brand & Reputation Tools

                                                               Export Data to Own Dashboard
Social Media Monitoring Tools I am using:
Reputation Tools in Europe: http://www.scribd.com/doc/37758351/Instrumente-des-Social-Media-Monitoring
Interaction: http://www.radian6.com/ http://www.nielsen-online.com/products_buzz.jsp?section=pro_buzz
cost effizient, reduced complexity and semantic approach:    http://www.systemone.net/en/products/radar
Monitoring Hotel-Reviews: http://www.trustyou.com/ http://www.circos.com/ http://www.reviewpro.com/
19

Seventh. Be clear what to measure.
20

Seventh. Be clear what to measure.
21

Seventh. Be clear what to measure.




                      I do not agree!
                 Destination Management
               Companies & Tourist Offices ...
22

... mostly focus on Branding!
Types of non-financial impact:
       Website Visitors   Positive press
Click-throughs                        YouTube views
                Coupons distributed
 Retweets                  XING / LinkedIn interactions
    Positive WOM
                     Delivered emails
                                         Negative press
Negative WOM    Employment applications
                           Customer complaints
  FaceBook friends  Social mention
     Twitter followers Impressions      Blog comments
23

... mostly focus on Branding!
Types of non-financial impact:
                              Positive press
       Website Visitors Oliver Blanchard‘s great
                    Read
Click-throughs                                YouTube views
                     presentation on slideshare:
                Coupons distributed
                 „Social Business Justification & ROI“
 Retweets                      XING / LinkedIn interactions
                     http://www.slideshare.net/
    Positive WOM
              thebrandbuilder/buzz-2010-presentation
                      Delivered emails
                                            Negative press
Negative WOM AsEmployment applications is
               I mentioned: This recommendation
                 a non-financial ROI on Social Media ...
                                   Customer complaints
                                   
  FaceBook friends       Social mention
     Twitter followers Impressions        Blog comments
24

   Seventh.
   3 types of Measuring Social Media:
                           Value – Do people understand our value?
Communication 2.0                        Experience
Did we move from broadcasting            And do people appreciate the value we offer?
to meaningful dialogue with customers?

     Awareness
Are we part of conversations?
                              QUALITATIVE
                                            Brand
                                            Do people think of us in the right context?

  USP
  How are we currently talked about?      Customer Satisfaction
  And our competitors?                    Were we able to build better relationships
                                          with our key audiance?
25

    Seventh.
    3 types of Measuring Social Media:

                         Interactions – Numbers, Sentiment, ...

Relation of both
Impact of Social Media
to financial hardfacts   QUANTITATIVE
                                         Transactions
                         KPI: Sales Revenue   KPI: Yield – How much spendings?
                              KPI: Frequency – How often?
                                      KPI: Reach – How many (new customers)?
26

    Seventh.
    3 types of Measuring Social Media:
                                       Critiquing
                                       People invest time in rating and rants.
  Creating                             KPI: number/ sentiment of reviews, rants, posts?
  Strongest form of engagement.
  KPI: Number of blogposts, videos, fotos ...


             CUSTOMER ORIENTED
                                      Chatting
                                      Sharing and Discussing real time information
Collecting                            KPI: Facebook Buzz & Comments, FlickR Groups ...
Bookmaring, Likes, RSS-Feeds ...
KPI: Number and content of items collected

             Clicking
             Passive Interactions. But Social Media Spectators are largest target group!
                      KPI: Number of Referrals increased
27

Eighth. Measure.
100 ways to measure social media




        Source: David Berkowitz http://www.marketersstudio.com/2009/11/100-
        ways-to-measure-social-media-.html#axzz0x0o6OzSM
28

Eighth. Measure.
Leave the analyzing do the analysts!




        Source: David Berkowitz http://www.marketersstudio.com/2009/11/100-
        ways-to-measure-social-media-.html#axzz0x0o6OzSM
29

Ninth.
Use the Results.


Compare.
Optimize.
Test.
Test.
Test.
Optimize
again.
30

Some more Linktipps to the topic
Brian Solis - What‘s the ROI on measuring Social Media?
http://www.briansolis.com/2010/08/roi-doesnt-mean-return-on-ignorance/

Postrank – 5 C‘s of Engagement
http://www.postrank.com/postrank/

Blogpost Maddie Grant about 5 C‘s:
http://www.socialfish.org/2009/10/the-5-cs-of-engagement.html

Mashables „50+ and more ways to track website traffic“
http://mashable.com/2009/01/12/track-online-traffic/



Read. Optimize again.
31




You are a great audiance!

www.tourismusdesign.com       T +43 676 77 14 007

Twitter    http://twitter.com/joebertl

Facebook http://facebook.com/tourismusdesign

XING https://www.xing.com/profile/Martin_Schobert

LinkedIn http://www.linkedin.com/in/martinschobert

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Analyse the ROI for Social Media in Travel

  • 1. Analyse the ROI for Social Media Online Marketing and Social Media for Travel Summit Eye For Travel, Prague, 5th – 6th October 2010
  • 2. 2 ROI Definition is pretty basic ... final value starting value ROI = starting value In other words, if you invest $5 and get back $20, your ROI is (20 – 5) / 5 = 3 times your initial investment.
  • 3. 3 ... but there are several challenges for the tourism industry!
  • 4. 4 ROI & Travel Planning Process ...?? Also important for DMOs:   Return on Involvement   Return on Engagement   Return on Activity   ... Source: Robert Cole‘s fantastic PREZI presentation: The Seven-Step Travel Process: http://prezi.com/qct23lpz19yw/view/
  • 5. 5 There are Many Stakeholders to Connect via Social Web ... Guests Partners New Media (Marketing- & (Journalists, Distribution) Bloggers ...) Tourism Industry
  • 6. 6 Different Business Units have different (Social Media) Goals ...   Customer Service – Support   Marketing – Engagement   Public Relations – Reputation & Network   Sales – Energizing New Customers, Yield   Research & Development: Exploring, Insights Fotocredit: http://www.flickr.com/photos/trico741/
  • 7. our home page isn’t just coke.com, it is google.com Source: US Travelcom-Expo, Feb 2010, Dallas USA Classified - Internal use Outside the Industry Innovator of the Year Award: The Coca-Cola Company, Kari Bjorhus,
  • 8. and today, I’d say… our home page isn’t just coke.com, it is google.com and hyves.nl and twitter.com and youtube.com and facebook.com and studiVZ.net Source: US Travelcom-Expo, Feb 2010, Dallas USA - The Coca-Cola Company, Kari Bjorhus Classified - Internal use http://www.slideshare.net/travelcom/outside-the-industry-innovator-of-the-year-award-the-cocacola-company-kari-bjorhus
  • 9. 9 Nine Steps to Measure Social Media Investment in Travel & Tourism
  • 10. 10 First. The Strategy. Define where you want to be!
  • 11. 11 Social Media Strategy = Fix One Objective. Fix Different Ways to Achieve ... Strategy 1 Listen Today Strategy 2 Talk 2012 Strategy 3 Support This is what we people want to talk about us
  • 12. 12 Second. Tactics. „Social“ concrete & focus on relevant Stakeholders Travel 2.0 - Listen Talk Support (the new Matrix marketing) Guest Media (Blogger, Journalists ...) Partner (B2B) Tourism Industry
  • 13. 13 Second. Tactics. „Social“ concrete & focus on relevant Stakeholders Travel 2.0 - Listen Talk Support (the new Matrix marketing) Guest Media (Blogger, Journalists ...) Partner (B2B) Tourism Industry
  • 14. 14 Second. Tactics. „Social“ concrete & focus on relevant Stakeholders Travel 2.0 - Listen Talk Support (the Matrix new marketing) Guest Media (Blogger, Journalists ...) Partner (B2B) Tourism Industry
  • 15. 15 Third. Define investment & costs. It is more about time & manpower ... Travel 2.0 – Listen Talk Support (the new Matrix - WHO marketing) Guest R&D Marketing / Sales Customer Service Customer Service Outsourcing Marketing Media (Blogger, PR PR Customer Service Journalists ...) Outsourcing Marketing Partner (B2B) Sales Marketing Agency Tourism Industry Corporate PR Managing PR Director R&D
  • 16. 16 Fourth. Make „social“ concrete. Focus on relevant Stakeholders ... Travel 2.0 – Listen Talk Support (the new Matrix - WHAT marketing) Guest Ratings & Videos Widgets Reviews Media (Blogger, Communities Journalists ...) Wikis Partner (B2B) Blogs Tourism Industry
  • 17. 17 Fifth. Fix a baseline. And document activities in a timeline. Before Start FB / Online PR / Blog / Twitter / XING / FlickR...
  • 18. 18 Sixth. Establish a relevant monitoring system of talks about your brand. Different Monitoring-Strategies   Free Tools – Do It Yourself!   Social Monitoring Specialists   Web Monitoring Tools   Web Analytics Tools   Brand & Reputation Tools   Export Data to Own Dashboard Social Media Monitoring Tools I am using: Reputation Tools in Europe: http://www.scribd.com/doc/37758351/Instrumente-des-Social-Media-Monitoring Interaction: http://www.radian6.com/ http://www.nielsen-online.com/products_buzz.jsp?section=pro_buzz cost effizient, reduced complexity and semantic approach: http://www.systemone.net/en/products/radar Monitoring Hotel-Reviews: http://www.trustyou.com/ http://www.circos.com/ http://www.reviewpro.com/
  • 19. 19 Seventh. Be clear what to measure.
  • 20. 20 Seventh. Be clear what to measure.
  • 21. 21 Seventh. Be clear what to measure. I do not agree! Destination Management Companies & Tourist Offices ...
  • 22. 22 ... mostly focus on Branding! Types of non-financial impact: Website Visitors Positive press Click-throughs YouTube views Coupons distributed Retweets XING / LinkedIn interactions Positive WOM Delivered emails Negative press Negative WOM Employment applications Customer complaints FaceBook friends Social mention Twitter followers Impressions Blog comments
  • 23. 23 ... mostly focus on Branding! Types of non-financial impact: Positive press Website Visitors Oliver Blanchard‘s great Read Click-throughs YouTube views presentation on slideshare: Coupons distributed „Social Business Justification & ROI“ Retweets XING / LinkedIn interactions http://www.slideshare.net/ Positive WOM thebrandbuilder/buzz-2010-presentation Delivered emails Negative press Negative WOM AsEmployment applications is I mentioned: This recommendation a non-financial ROI on Social Media ... Customer complaints  FaceBook friends Social mention Twitter followers Impressions Blog comments
  • 24. 24 Seventh. 3 types of Measuring Social Media: Value – Do people understand our value? Communication 2.0 Experience Did we move from broadcasting And do people appreciate the value we offer? to meaningful dialogue with customers? Awareness Are we part of conversations? QUALITATIVE Brand Do people think of us in the right context? USP How are we currently talked about? Customer Satisfaction And our competitors? Were we able to build better relationships with our key audiance?
  • 25. 25 Seventh. 3 types of Measuring Social Media: Interactions – Numbers, Sentiment, ... Relation of both Impact of Social Media to financial hardfacts QUANTITATIVE Transactions KPI: Sales Revenue KPI: Yield – How much spendings? KPI: Frequency – How often? KPI: Reach – How many (new customers)?
  • 26. 26 Seventh. 3 types of Measuring Social Media: Critiquing People invest time in rating and rants. Creating KPI: number/ sentiment of reviews, rants, posts? Strongest form of engagement. KPI: Number of blogposts, videos, fotos ... CUSTOMER ORIENTED Chatting Sharing and Discussing real time information Collecting KPI: Facebook Buzz & Comments, FlickR Groups ... Bookmaring, Likes, RSS-Feeds ... KPI: Number and content of items collected Clicking Passive Interactions. But Social Media Spectators are largest target group! KPI: Number of Referrals increased
  • 27. 27 Eighth. Measure. 100 ways to measure social media Source: David Berkowitz http://www.marketersstudio.com/2009/11/100- ways-to-measure-social-media-.html#axzz0x0o6OzSM
  • 28. 28 Eighth. Measure. Leave the analyzing do the analysts! Source: David Berkowitz http://www.marketersstudio.com/2009/11/100- ways-to-measure-social-media-.html#axzz0x0o6OzSM
  • 30. 30 Some more Linktipps to the topic Brian Solis - What‘s the ROI on measuring Social Media? http://www.briansolis.com/2010/08/roi-doesnt-mean-return-on-ignorance/ Postrank – 5 C‘s of Engagement http://www.postrank.com/postrank/ Blogpost Maddie Grant about 5 C‘s: http://www.socialfish.org/2009/10/the-5-cs-of-engagement.html Mashables „50+ and more ways to track website traffic“ http://mashable.com/2009/01/12/track-online-traffic/ Read. Optimize again.
  • 31. 31 You are a great audiance! www.tourismusdesign.com T +43 676 77 14 007 Twitter http://twitter.com/joebertl Facebook http://facebook.com/tourismusdesign XING https://www.xing.com/profile/Martin_Schobert LinkedIn http://www.linkedin.com/in/martinschobert