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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HOW TO MEASURE YOUR SOCIAL MEDIA ROI

1. THE SOCIAL LANDSCAPE

2. HOW TO CREATE A SOCIAL STRATEGY

3. HOW TO MEASURE SUCCESS

4. HOW TO MEASURE ROI

THE AGENDA

THE SOCIAL LANDSCAPE

IN OZ

WHAT IS SOCIAL MEDIA?

Social media Interactive Shareable Conversational Dynamic Many-to-many

Traditional media Detached

Difficult to share Promotional

Static One-to-many

MY FAVOURITE DEFINITION:

“SOCIAL MEDIA IS WORD OF MOUTH ON STEROIDS”

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

IT’S COMPLICATED!IT’S COMPLICATED!

AUSSIES LOVE SOCIAL MEDIA

65% OF AUSTRALIANS

USE SOCIAL MEDIA

SOCIAL MEDIA REPORT - YELLOW, 2013

AUSSIES LOVE FACEBOOK

95% OF AUSTRALIAN SOCIAL MEDIA USERS USE FACEBOOK

SOCIAL MEDIA REPORT - YELLOW, 2013

TOP 5 SOCIAL NETWORKS

SOCIAL MEDIA NEWS - MAR, 2014

13,200,00012,600,000

3,650,0002,500,000 1,600,000

WHICH SITES HAVE WE STOPPED USING?

SOCIAL MEDIA NEWS - MAR, 2014

45%

18%12%

9%12%

HOW TO CREATE A SOCIAL STRATEGY

THE SOCIAL STRATEGY PROCESS

LISTEN PLAN GROW ENGAGE MEASURE

HOW TO MEASURE SUCCESS

51% OF BRANDS MEASURE

SOCIAL MEDIA ROI

SOCIAL MEDIA REPORT - YELLOW, 2013

ONLY

69% OF LARGE BUSINESS USE FOLLOWER

NUMBERS TO MEASURE SUCCESS

SOCIAL MEDIA REPORT - YELLOW, 2013

“I WOULD RATHER HAVE A SMALL COMMUNITY OF HIGH

VALUE MEMBERS THAN A LARGE COMMUNITY OF LOW VALUE

MEMBERS”

“NOT EVERYTHING THAT CAN BE COUNTED COUNTS, AND NOT EVERYTHING THAT COUNTS CAN BE COUNTED”

SO MUCH DATA… WHAT SHOULD WE MEASURE?

MAKE SURE THE METRICS YOU CHOOSE

ALIGN WITH YOUR OBJECTIVES

= IMPRESSIONS / REACH

AWARENESS

= LIKES / COMMENTS SHARES / RETWEETS

ENGAGEMENT

NUMBER OF CUSTOMER

RESOLUTIONS

GREAT SERVICE

MAKE SURE THE METRICS

DEMONSTRATE VALUE

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

WHERE DO I GET THE DATA?

MONITORING MANAGEMENT BENCHMARKING

BRAND MENTIONS TRENDED

RADIAN6 - MARKETING CLOUD

BRAND SENTIMENT TRENDED

RADIAN6 - MARKETING CLOUD

SENTIMENT BREAKDOWN

RADIAN6 - MARKETING CLOUD

SHARE OF VOICE BREAKDOWN

RADIAN6 - MARKETING CLOUD

SERVICE SUMMARYTWITTER 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

SentimentPOSITIVE !

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

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?

SOCIAL MEDIA REPORT TEMPLATE

http://bit.ly/smx-report

WHAT’S THE ROI?

THE EQUATION IS SIMPLE

(TOTAL GAINS - TOTAL COST)

TOTAL COST

ROI =

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

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

SAMPLE COST INPUTS

1. WAGE COSTS 2. AGENCY FEES 3. MEDIA COSTS 4. SOFTWARE COSTS

BACK TO THE EQUATION

($80,000 - $32,000)

$32,000

ROI =

AND THE “ROI” IS

150%OR $1.50 RETURN

FOR EVERY $1 SPENT

“IT’S NOT AN EXACT SCIENCE”

BUT REMEMBER

“MEASURE IT CONSISTENTLY AND

IMPROVE IT”

YOUR GOAL

FREE SOCIAL MEDIA ROI TEMPLATE

http://bit.ly/smx-social-roi

THANKS! !

@bhowden linkedin.com/in/benhowden