logging in or signing up Basics of Social Media ROI spradeepkumar Download Post to : URL : Related Presentations : Let's Connect Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Copy embed code: Embed: Flash iPad Dynamic Copy Does not support media & animations Automatically changes to Flash or non-Flash embed WordPress Embed Customize Embed URL: Copy Thumbnail: Copy The presentation is successfully added In Your Favorites. Views: 1739 Category: Education License: All Rights Reserved Like it (1) Dislike it (0) Added: May 19, 2010 This Presentation is Public Favorites: 2 Presentation Description Basics of Social Media ROI Comments Posting comment... By: satishece (43 month(s) ago) Very good presentation and very valuable http://www.freshdls.com Saving..... Post Reply Close Saving..... Edit Comment Close By: Hilarious (45 month(s) ago) great presentation Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript PowerPoint Presentation: Enough with the Social Media BS. Give me the realz . Social Fresh Conference // 24 August 2009 PowerPoint Presentation: SOCIAL MEDIA IS NOT FREE. PowerPoint Presentation: 1. It takes people. PowerPoint Presentation: 2. It takes technology. PowerPoint Presentation: 3. It takes time. PowerPoint Presentation: … all of which are limited resources. We have… rocks. PowerPoint Presentation: These resources = 100% of your budget Head Count Advertising E-Marketing Inbound Call Center Each resource has a specific cost Sales Dept. Public Relations Marketing I.T. Accounting Each resource yields specific results PowerPoint Presentation: These resources generate 100% of your business Head Count Advertising E-Marketing Inbound Call Center Sales Dept. Public Relations Marketing I.T. Accounting Losing even 1% of your budget’s efficiency could seriously ruin your day. PowerPoint Presentation: Okay fine. But if I’m going to take a chance on this social media thing, it had better make good business sense! Why should I allocate resources to it? PowerPoint Presentation: Reason #1: It will result in a cost reduction. Maybe in customer service? You mentioned something about business intelligence and market research? Reason #2: It will generate more revenue. I want more transactions, more net new customers, more customer loyalty, etc. PowerPoint Presentation: Now go figure out what Program you have to cut to fund this Social Media thing. Remember that our bonuses are on the line. PowerPoint Presentation: Which buckets do we empty to fill this new one? Understand that a new Social Media program’s funding doesn’t appear out of thin air.: PowerPoint Presentation: Business Justification SAY HELLO TO: R.O.I. PowerPoint Presentation: R . O . I . RETURN ON INVESTMENT PowerPoint Presentation: THE R.O.I. EQUATION Investment Expectation of return PowerPoint Presentation: ROI = COST OF INVESTMENT (GAIN FROM INVESTMENT - COST OF INVESTMENT) THE R.O.I. EQUATION PowerPoint Presentation: Truth about R.O.I. ROI is a business metric, not a media metric. ROI is 100% media-agnostic. Only measuring digital or social won’t get you anywhere. PowerPoint Presentation: Reason #1: COST REDUCTION Reason #2: REVENUE GENERATION Remember what Mr. Bossman said… PowerPoint Presentation: Okay, hotshot, You have your Social Media doohickey. Now I’d better see some real results! Or else… I shrank my PR budget by 20% and my outbound call budget by 40%. Now I can afford a team of social media Rock stars. Can I get a hellz yeah? PowerPoint Presentation: Woohoo ! I have a job!!! PowerPoint Presentation: Dudes, we are ON THIS!!! Let’s start engagin ’!!! I call dibs on the Corporate blog. PowerPoint Presentation: One Month Later… ACCOUNTING Cool. PowerPoint Presentation: Oh my! Look at all the new visitors to our website! and all of our FaceBook friends! Hot Damn, we even have comments on the blog! What about our Twitternets ? PowerPoint Presentation: This rocks! I never had it so good!!! PowerPoint Presentation: Three Months Later… ACCOUNTING Cool. PowerPoint Presentation: Monitoring to base… Monitoring to base… Our Google Analytics are through the roof! Even our social mentions are wicked good! We have liftoff! Yeah but… What about the P&L? PowerPoint Presentation: Measuring media really rocks my world. PowerPoint Presentation: Six Months Later… ACCOUNTING Anything? Nope. Nada. PowerPoint Presentation: What kind of mood is The old man in today? Not good. He doesn’t care how many visitors the website gets, or how many eyeballs we estimate we’ve reached unless it means we’re selling more stuff. PowerPoint Presentation: But why? Our website is getting mad hits, Jack! And we have 3,000 followers on Twitter now! I’m sorry, son. If your Social Media program is generating revenue, we aren’t seeing it. We need to allocate resources where we can make money. It’s just business. PowerPoint Presentation: Darn it. This media measurement stuff isn’t working. We need to start tying this stuff to actual Business performance. Where to start? Let’s see… At the beginning? PowerPoint Presentation: Things happen in sequence. PowerPoint Presentation: Non-financial impact is not ROI (yet). PowerPoint Presentation: Types of non-financial impact Website Visitors Click- throughs Visitors to a brick & mortar store Positive press Positive WOM Negative press Negative WOM Customer complaints Employment applications Retweets FaceBook friends Blog comments Social mention YouTube views Twitter followers Impressions Delivered emails Coupons distributed PowerPoint Presentation: Non-financial impact = potential. PowerPoint Presentation: ROI = actualized potential. PowerPoint Presentation: Reason #1: COST REDUCTION Reason #2: REVENUE GENERATION Remember what Mr. Bossman said… PowerPoint Presentation: I need proof that what we’re doing is actually working. Start with proof of concept. PowerPoint Presentation: Step 1: Establish a baseline 8% YoY Growth PowerPoint Presentation: Baselines illustrate deltas (changes) Is something happening here? PowerPoint Presentation: Step 2: Create Activity Timelines PowerPoint Presentation: Step 2: Create Activity Timelines PowerPoint Presentation: Step 2: Create Activity Timelines PowerPoint Presentation: Step 3: Look at Sales Revenue PowerPoint Presentation: Step 3: Also look at # of transactions PowerPoint Presentation: Step 3: Also measure net new customers PowerPoint Presentation: Transaction data should be specific F.R.Y. FREQUENCY, REACH, YIELD How often customers transact. (transactions per month) How many customers you are reaching. (net new customers) How much they spend. ($ per transaction) PowerPoint Presentation: The latest numbers indicate that our YoY sales $ are up 60%. Our individual transactions have doubled, as have our transacting customers. Something’s working! Groovy! Let’s figure out what. PowerPoint Presentation: Step 4: Measure transactional precursors PowerPoint Presentation: Step 4: Measure transactional precursors PowerPoint Presentation: Step 4: Measure transactional precursors PowerPoint Presentation: We overlaid all of our timelines and noticed that since our social media activities began, our website visits are up, our social mentions are also up, and everyone seems to love us. So is there a discernable pattern in this? PowerPoint Presentation: Step 5: Overlay all timelines activities transactions social data web data loyalty metrics etc. PowerPoint Presentation: Step 6: Look for patterns Before After Impact Impact Impact No Impact Uncertain Impact PowerPoint Presentation: Step 7: Prove relationships Before After How was this group Touched by SM? PowerPoint Presentation: How long will all this analysis take? It’s all a process of elimination, really. Isolating patterns, quantifying deltas, proving ad- hocs … Then all we have to do is figure out what the cost savings and revenue gains are, and plug them into the equation. PowerPoint Presentation: ROI = COST OF INVESTMENT (GAIN FROM INVESTMENT - COST OF INVESTMENT) THE R.O.I. EQUATION PowerPoint Presentation: THE R.O.I. EQUATION Investment Expectation of return PowerPoint Presentation: Oh wow. This R.O.I. thing wasn’t at all about measuring media, impressions and eyeballs! PowerPoint Presentation: First things first: Prove that Social Media works ACCOUNTING All things remaining the same… We may have proof of concept. Hot damn! PowerPoint Presentation: So it turns out that our Social Media program is impacting every aspect of our business except traffic in our brick and mortar stores. Can you get on that? Yeah. We need to find out why we aren’t having an effect there. Kthxbye . Then use what you know to make it work better. PowerPoint Presentation: Dudes, we are ON THIS!!! Let’s start engagin ’!!! I’ll start crafting some wicked blog posts. More store traffic. Roger that. PowerPoint Presentation: Finally, someone with some real metrics for me to sink my teeth into! Good job, Sparky! You done gewd ! PowerPoint Presentation: So I guess Social Media is going to stick around a little while longer after all, isn’t it? Yessir . Looks like our budget is safe for now. PowerPoint Presentation: Drinks for Everybody! PowerPoint Presentation: Olivier Blanchard Principal, BrandBuilder Marketing 864.630.7398 www.thebrandbuildermarketing.com @ thebrandbuilder (on Twitter) www.smroi.net PowerPoint Presentation: Slideography Slide # Source 3, 9, 10, 11, 18-31, 37, 38, 48, 52, 56, 59-65 4 6 UFO (TV series) http://ufoseries.com/ http://www.minnpost.com/stories/2008/06/18/2282/this_doesnt_compute_as_more_women_enter_scientific_fields_their_numbers_in_computer_science_are_declining Kim Jong Il puppet, from “Team America” http://blogs.rockymountainnews.com/bridget/kimjongil.jpg You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.