A simple guide to measuring your social media ROI
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In 2013, only 51% of large businesses in Australia measured their return on investment from social media. But when you dig a little deeper into the data, you'll discover the vast majority of these businesses define measuring return on investment as tracking likes, followers or subscribers. In today's data driven landscape, thats simple not good enough. This presentation will help you go beyond likes, followers and subscribers as measures of success. You'll learn simple ways to demonstrate the real value derived from social media and you can even download a practical excel model to help measure your return on investment. So next time your CEO asks whats the return on investment, you can say, here's something I prepared earlier!
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A simple guide to measuring your social media ROI
- 1. HOW TO MEASURE YOUR SOCIAL MEDIA ROI
- 2. 1. THE SOCIAL LANDSCAPE 2. HOW TO CREATE A SOCIAL STRATEGY 3. HOW TO MEASURE SUCCESS 4. HOW TO MEASURE ROI THE AGENDA
- 4. WHAT IS SOCIAL MEDIA? Social media Interactive Shareable Conversational Dynamic Many-to-many Traditional media Detached Difficult to share Promotional Static One-to-many
- 6. MY FAVOURITE DEFINITION: “SOCIAL MEDIA IS WORD OF MOUTH ON STEROIDS”
- 7. THE POWER OF ONE PERSON • MAKES A VIDEO • OVER 13.9 MILLION VIEWS • STOCK DROPPED BY 10% • COST SHAREHOLDERS $180M United Breaks Guitar by Dave Carrol
- 9. AUSSIES LOVE SOCIAL MEDIA 65% OF AUSTRALIANS USE SOCIAL MEDIA SOCIAL MEDIA REPORT - YELLOW, 2013
- 10. AUSSIES LOVE FACEBOOK 95% OF AUSTRALIAN SOCIAL MEDIA USERS USE FACEBOOK SOCIAL MEDIA REPORT - YELLOW, 2013
- 11. TOP 5 SOCIAL NETWORKS SOCIAL MEDIA NEWS - MAR, 2014 13,200,000 12,600,000 3,650,000 2,500,000 1,600,000
- 12. WHICH SITES HAVE WE STOPPED USING? SOCIAL MEDIA NEWS - MAR, 2014 45% 18% 12% 9% 12%
- 14. THE SOCIAL STRATEGY PROCESS LISTEN PLAN GROW ENGAGE MEASURE
- 16. 51% OF BRANDS MEASURE SOCIAL MEDIA ROI SOCIAL MEDIA REPORT - YELLOW, 2013 ONLY
- 17. 69%OF LARGE BUSINESS USE FOLLOWER NUMBERS TO MEASURE SUCCESS SOCIAL MEDIA REPORT - YELLOW, 2013
- 18. “I WOULD RATHER HAVE A SMALL COMMUNITY OF HIGH VALUE MEMBERS THAN A LARGE COMMUNITY OF LOW VALUE MEMBERS”
- 19. “NOT EVERYTHING THAT CAN BE COUNTED COUNTS, AND NOT EVERYTHING THAT COUNTS CAN BE COUNTED”
- 20. SO MUCH DATA… WHAT SHOULD WE MEASURE?
- 22. MAKE SURE THE METRICS YOU CHOOSE ALIGN WITH YOUR OBJECTIVES
- 24. = LIKES / COMMENTS SHARES / RETWEETS ENGAGEMENT
- 26. MAKE SURE THE METRICS DEMONSTRATE VALUE
- 27. BRAND METRICS • NUMBER OF BRAND MENTIONS • SHARE OF VOICE • SENTIMENT • BRAND INSIGHTS ENGAGEMENT METRICS • FANS / FOLLOWERS • LIKES / COMMENTS / RETWEETS / SHARES • ENGAGEMENT SCORE • REACH • ENGAGEMENT INSIGHTS SERVICE METRICS • NUMBER OF ENQUIRIES • OUTCOMES • SENTIMENT • RESPONSE TIMES • SERVICE INSIGHTS
- 28. WHERE DO I GET THE DATA?
- 30. BRAND MENTIONS TRENDED RADIAN6 - MARKETING CLOUD
- 31. BRAND SENTIMENT TRENDED RADIAN6 - MARKETING CLOUD
- 32. SENTIMENT BREAKDOWN RADIAN6 - MARKETING CLOUD
- 33. SHARE OF VOICE BREAKDOWN RADIAN6 - MARKETING CLOUD
- 34. SERVICE SUMMARY TWITTER FACEBOOK TOTAL Enquiries 1,082 2,089 4,071 Resolved enquiries 789 1693 2482 Escalated enquiries 293 396 689 Response Time 0:23:00 0:54:00 0:38:50 Sentiment POSITIVE ! 20% NEUTRAL ! 18% NEGATIVE ! 62% POSITIVE ! 9% NEUTRAL ! 26% NEGATIVE ! 65% POSITIVE ! 13% NEUTRAL ! 19% NEGATIVE ! 67% Deflected contacts (call deflection rate = 5%) 54 104 158 Estimated savings (average cost per contact $5) $270 $520 $790 RADIAN6 - ENGAGEMENT CONSOLE
- 35. ONCE YOU’VE GOT THE DATA WHAT ARE THE INSIGHTS? • What’s driving the trends in mentions, sentiment? • What are the key themes? • What are the key learnings and insights? • What’s happening in each channel? • How are marketing campaigns driving conversation? • What are the key issues and are they being addressed? • What are the wins and what value have they delivered?
- 37. WHAT’S THE ROI?
- 39. THE EQUATION IS SIMPLE (TOTAL GAINS - TOTAL COST) TOTAL COST ROI =
- 40. MAKE SOME ASSUMPTIONS TO ESTIMATE YOUR GAINS • ESTIMATE CPM VALUE • ESTIMATE AVG ENGAGEMENT VALUE • AVG CONVERSION RATE FROM SOCIAL TRAFFIC • AVG VALUE OF A SOCIAL CONVERSION • USE GOOGLE ANALYTICS AND FACEBOOK INSIGHTS • AVG CALL DEFLECTION RATE • AVG COST OF CALL
- 41. SAMPLE GAIN INPUTS 1. TOTAL REACH / VALUE 2. TOTAL ENGAGEMENTS / VALUE 3. TRAFFIC FROM SOCIAL / VALUE 4. ESTIMATED CALLS DEFLECTED / SAVINGS 5. SALES FROM SOCIAL MEDIA / VALUE
- 42. SAMPLE COST INPUTS 1. WAGE COSTS 2. AGENCY FEES 3. MEDIA COSTS 4. SOFTWARE COSTS
- 43. BACK TO THE EQUATION ($80,000 - $32,000) $32,000 ROI =
- 44. AND THE “ROI” IS 150% OR $1.50 RETURN FOR EVERY $1 SPENT
- 45. “IT’S NOT AN EXACT SCIENCE” BUT REMEMBER
- 46. “MEASURE IT CONSISTENTLY AND IMPROVE IT” YOUR GOAL
- 47. FREE SOCIAL MEDIA ROI TEMPLATE http://bit.ly/smx-social-roi