This document discusses measuring return on investment (ROI) for social media in the tourism industry. It defines ROI as profit divided by initial investment. It notes there are challenges in measuring ROI for tourism given additional factors like return on involvement, engagement, and activity. It recommends a 9-step process to measure social media investment including defining objectives and tactics, costs, activities, baselines, monitoring, and metrics. Metrics suggested include qualitative measures like brand awareness and reputation as well as quantitative metrics like interactions, transactions, and sales. The document stresses testing and optimizing measurement strategies.
Reflective Essay for global competency certificate
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
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/
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!
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