Presented by Joel Don, Comm Strategies, at the 7th Annual Marketing & Sales Summit The marketing and public relations industry continues to focus on developing solutions to meet the challenge of delivering valid program measurement and proof of ROI. Prior to social media, professionals relied on totaling column inches, estimating media impressions, counting mentions, eyeballs and visits, and proffering the highly controversial (and mostly discounted) advertising equivalency values. These approaches will continue to wane with the ongoing disruption of traditional media channels. The new media revolution coupled with the rapid growth of social platforms, tools and services (many at little or no cost) have ushered a new set of metrics into the ROI equation. The presentation will review current thinking on measurement, and examine options and challenges to delivering valid social media ROI. From a budget perspective, analytical tools that are low cost or free will be compared to full-blown paid services such as Radian6 and Sysomos. The objective of the presentation is to enable marketing and communications professionals to implement measurement systems or approaches that can help an organization better understand how social media tools and strategies deliver results to the business bottom line. Examples will be offered from well-document ROI cases from large, recognized brands. Perhaps more important, the presentation will cover how lesser known small and medium-sized businesses can scale social media ROI to justify the implementation of customer engagement and conversation strategies. More info: http://marketingsalessummit.com/social-media-roi-piecing-together-the-measurement-conundrum/

2.  Social media & the C-Suite value
debate
 Understanding: what SM is and isn’t
 Integration & the end of business
fiefdoms (aka silos)
 Measurement approaches
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3.  Can you measure what you
don’t value?
 >70% of Fortune 500 CEOs
don’t do social media
 Traditional advertising &
PR: estimated reach and
impressions
◦ Tells us nothing about the
customers
◦ Relies purely on correlations
 What’s the ROI? Right
question: why invest?
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4.  Time
 Legal
 Safety (except for LinkedIn)
 Skepticism/trust
 Proof of financial return on money
spent
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5.  26% fans, followers and supporters
 25% web traffic
 16% lead generation
 10% reduced cost of customer support
 7% value of sales generated through social
media programs
Source: Center for Marketing Research, University of
Massachusetts.
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6.  Return on Engagement (ROE)
 Return on Participation (ROP)
 Return on Listening (ROL)
 Return on Fluid Listening (ROFL)
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7.  Amplifier of existing
 Companies business functions
communicate/interact  Delivers velocity to
 People get relationships, marketing processes
trust, conversation  Empowered WOM
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8. Customer
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9.  40 SM employees $6.5M
 25K to 1.5M followers
Total Rev:
$61B
2007 2008 2009
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10.  Social media is not a strategy, it is a communications tool
 Social media supports existing business goals & objectives
 Every customer touch point can be enhanced by social media
◦ Public relations/corporate communications/crisis management
◦ Marketing (including email marketing, newsletters, etc.)
◦ Customer service
◦ Human resources
◦ Lead generation/sales
◦ Event planning/management
◦ Market research
◦ Mobile apps
 Goals & Objectives Tactics
◦ Blogging
◦ Blog comments
◦ LinkedIn Groups & LinkedIn Answers (B2B)
◦ Shares, mentions, retweets
◦ Status updates (Facebook, LinkedIn, Google+)
◦ Alternative platforms (Pinterest, Tumblr, StumbleUpon)
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11.  To measure, you must
establish targets (timeframes)
 Social media goal: increase
brand awareness, encourage
engagement via myriad social
platforms, boost sentiment
(non-financials) leading to
conversion (financial)
◦ Frequency (more transactions)
◦ Reach (more customers)
◦ Yield (more transactions per
customer)
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12. $225.99 for 50K “100% Top Notch
Quality Twitter Followers” in 20
days. $9.99 gets you 900
$590.99 for 100K+ video views
$350 for 25K Fan Page likes
$550 for 10K +1s
$55 for 300 followers
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13. plan development, Initiation
KPIs set
Outputs
blogs, tweets, shares,
updates, videos, comments
listening, tracking,
monitoring, data Inputs
collection, analysis
Non- likes, shares, RTs, subscribers,
financial mentions, bounce rates, page
outcomes views, time per page
$ales, repeat $ales Conver$ion
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14.  KPI reveals if goal/objective, which lead to
specific tactics, achieve specific targets
 Visitors/followers are easy (gamed); the “right”
visitor is hard
Website analytics Event registrations
Newsletter subscriptions Likes
Email signups Recommendations
Registration for contests Blog
Poll/surveys completed Blog comments
Shares RSS subscriptions
Retweets Content requests/downloads
Bounce rates Click-throughs
Sales revenue Time on page
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15.  ROI is not projection or estimate. Reasonable case
studies relevant
 ROI calc: only after investment yields return
 Establish baseline; monitor deltas/changes & factor
sentiment analysis
 Incorporate all costs
◦ travel, personnel, training, memberships, consultant fees,
conferences, Facebook ads, sponsored tweets, YouTube ads,
mobile app dev. Social media is not free.
 Correlations are OK. Track non-financial metrics
(transactional precursors), i.e. followers, likes,
subscriptions. Dotted, not a direct line.
 Direct line consideration: isolate tactics & track
customers
◦ promotional codes, special landing pages, CRM intelligence
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18. Monitoring Dashboards ($)
Facebook Google Sprout
Insights Analytics
HootSuite
Spcial
TweetDeck Cision Radian6 Spiral16 Sysomos Vocus
Customer
Audits
Market
Research
Focus
Groups
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19. Objective: Increase sale of HMI licenses
Target: 250 more licenses sold in Q2 in N.A. market
Q2 KPIs
 Positive company/product mentions in Q2
 Net new FB likes, RTs, subscriptions, downloads isolated to HMI
campaign
 Net new click-throughs of links to website (inbound links)
 Net new downloads of promoted content (white
papers, backgrounders, marketing) showcasing why additional
seats are needed
 YouTube HMI promotional video (views)
 Coupon/discount codes isolated to Q2 campaign issued via
email marketing, tweets, FB updates, inbound website events
 Actual HMI license sales in Q2
ROI
 Correlate response with sales via social monitoring tools
 Comparison metric: HMI licenses sales outside of N.A.
market; comparative sale of other products (baselines.
 Social media campaign increased perception and
awareness, stimulating a preference and driving
customers to a purchasing decision. Conversion.
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20. Objective: Reverse disinformation on bailouts & Ford
Target: U.S. market, 2009
2009 KPIs
 Frequent and appropriate engagement with public
 Counter all blog, Facebook, Twitter, etc. posts including Ford in
federal bailout
 Public relations alone insufficient
 Integrated corporate approach to crisis management
ROI: pre and post-sales results
 Positive financials
 Analysis showed sentiment
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21. 1. Social media ROI is a financial calculation. Likes,
followers, shares, etc. are non-financial metrics.
2. You must have a business justification for social
tactics. Followers, fans, subscribers have no value
unless they can be turned into customers.
3. You cannot deliver ROI if you do not have access to
digital intelligence and real-time financial data.
Calculator + Excel are your new friends.
4. Anything and everything can be measured. Measure
what matters; what matters to your company may not
matter to mine.
5. If C-Suite demands ROI proof, SM compaign plan
starts with business objective(s), targets (timeframe)
and KPIs (metrics). No measurement, no ROI.
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