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Social Media Marketing - ROI calculation from TheSocialPeople
1.
ROI OF SOCIAL
MEDIA MARKETING B2B LEADS Social Media Marketing Search Engines Newsletters Online Surveys Webinars RSS / News Sites COMPANY LANDING HOMEPAGE PAGES CALL TO ACTION ELEMENTS Whitepapers, Thought Leadership, Webinars, Videos, Podcasts Web Analytics: CRM System Conversion % of CTA Leads from Social Media Marketing and Online Marketing which are now registered in CRM as Online Leads Lead Validation SALES CONFIDENTIAL DOCUMENT NOT TO BE CIRCULATED WITHOUT A PRIOR APPROVAL | 2012 © TheSocialPeople
2.
Hard Numbers: Calculating
Your Return The underlying ROI calculation is consistent with core marketing metrics: customer lifetime value, conversion rate, and the value of a lead or visitor, are the foundation. Here’s an illustration of how we would assess the value of a Twitter program that consists of one to two tweets a day. Number of tweets per month: 50 Number of monthly web site visitors generated through Twitter: 1,000 Visitor-to-lead conversion rate: 2% Lead-to-customer conversion rate: 5% Lifetime customer value: INR 5,000 (1,000*.02*.05*5,000)/50 = INR 100 revenue per tweet. From here, determining the ROI of this Twitter program is straightforward: Monthly value of Twitter: INR 5,000 Monthly Twitter expense: INR 4,134 (INR 50,000 employee, with fully burdened salary, at 4.3 weeks/month; assuming 1 hour/day for 2 tweets) ROI: (5,000-4,134)/4,134 = 21% The key metrics – conversion rate, lifetime customer value and visits referred from Twitter – all change the ultimate ROI. And two tweets daily is a bare minimum. What’s Engagement Worth? Early measures of ROI are still valid. Among them: How many visits / registrations / Downloads? How many appointments booked? How many new leads have been acquired? Advanced marketing practitioners are moving on to value engagement – often with degrees that ascribe tangible money value to varying levels of commitment. The top elements that are being monetized are: Retweets / Mentions Registrations / Downloads Facebook Fans Blog comments CONFIDENTIAL DOCUMENT NOT TO BE CIRCULATED WITHOUT A PRIOR APPROVAL | 2012 © TheSocialPeople
3.
Social Media focused
on Driving ROI, by B2B Social Media Marketing Maturity phase Source: “MarketingSherpa Benchmark Report: 2011 Social Media Marketing,” Trial Transition Strategic 5% Improving the cost efficiency of customer support 9% programs 15% 45% Achieving or increasing measurable lead generation 41% from Social Marketing 44% 35% Achieving or increasing measurable ROI from Social 49% Marketing programs 63% 60% Converting Social Media members, followers, fans into 66% customers 65% CONFIDENTIAL DOCUMENT NOT TO BE CIRCULATED WITHOUT A PRIOR APPROVAL | 2012 © TheSocialPeople
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