What is your social media roi

What is Your Social Media ROI? Date: March 26, 2012Time: 3:15 – 4:30 pmHub Tag: #ideas12 LM8

Tom McClintock

This is an excerpt. Click here for the full presentation.

http://www.nsipartners.com/downloads/ASAE-Great-Ideas-2012-SM-ROI.pptx

Tom McClintock

A Presentation By:

Colorado Springs, CO · Richmond, VA

“A brand is no longer what we tell the consumer it is – it is what consumers tell

each other it is.” – Scott Cook, Co-Founder of Intuit

Source: AnsonAlex.com

“Social media changes the relationship between companies and customers from

master and servant, to peer to peer.” – Anonymous

“The ROI of social media is that your business will still exist in 5 years.”

– Erik Qualman, author & founder of Socialnomics

Source: Three Ships Media

SM Sites Now Ruling Web

2005

1. Google.com2. Facebook.com3. YouTube.com4. Yahoo.com5. Baidu.com6. Wikipedia.org7. Live.com8. Blogspot.com9. Twitter.com10.Qq.com

1. Yahoo.com2. Msn.com3. Google.com4. Ebay.com5. Amazon.com6. Microsoft.com7. Myspace.com8. Google.co.uk9. Aol.com10.Go.com

2012 (as of March 2012)

Source: Synovate Research, Alexa Global Traffic Ranking, Morgan Stanley Research (2005) – Mostpopularwebsites.net (2012)

http://mostpopularwebsites.net/

Viewpoint #1

You can’t—and shouldn’t try to—calculate the ROI of social media.

VIEW 1: No ROI from SM Having thousands of followers doesn’t necessarily translate

into SM marketing success

You can easily measure only some things

• Coupons

• Contests

• Clicked links

• Signups Much of SM’s benefit is indirect or intangible—not an asset purchased and placed on balance sheet

VIEW 1: No ROI from SM

Qualitative Benefits In Each Stage of Your Marketing Campaigns:

Research

Strategic Planning

Implementation

Evaluation

Source: Synovate Research, Alexa Global Traffic Ranking, Morgan Stanley Research

Viewpoint #2

You can—and must—calculate the ROI of SM.

VIEW 2: Calculating ROI from SM

Low investment in SM leads to high ROI when organizations:

Have a clear business strategy Aren’t afraid to jump in Make imaginative use of social

channels, customer engagement and brand relationship

Source: Petersen, Rob. 34 cases that prove social media ROI, http://barnraisersllc.com/2010/10/33-13-social-media-case-studies-prove-roi/

Must all SM ROI Be Sales-Based?

But what if you’re, say, an Association…with returns less tangible, e.g., raising consumer awareness about your industry?

If your goal is sales, you can measure ROI using the standard financial formula:

(Return – Investment)

Investment

New MathBarnRaisers and others realize that social has not only decentralized and disaggregated, but it’s also

dematerialized—things are less tangibleLess Tangible Today

• Publishing• Content • Workplace• Corporate Structure• Pricing (Freemium

Model)

• Hollywood Studios• Trade Shows• Friendships• Business Contacts• Assets, too!

Great Idea #1: social redefines how we generate and value returns in a less tangible world

New Math

Great Idea #2: Untethered, ROI metrics can now go beyond sales dollars to include Retention, Research and Sentiment values as major currencies to track your messaging

• Message-Point Delivery—for associations often industry viewpoints, not product features

NSI CLIENT CASE: AMERICAN CHEMISTRY COUNCIL

• Brand Investment—your promise to constituents NSI CLIENT CASE: UNIVERSAL MEDIA’S PROMOTION OF DISNEY’S JOHN CARTER

• Drip Marketing—maintaining mindshareNSI CLIENT CASE: AMERICAN NURSES ASSOCIATION

Don’t Base ROI on Sales If Sales isn’t Your Goal

Great Idea #3: when sales aren’t the goal, calculate the ROI Return using the Persuasion Index

Defined by 5 levels of agreement:

• Strongly agrees (5)

• Partially agrees (4)

• Neither agrees nor disagrees (3)

• Partially disagrees (2)

• Strongly disagrees (1)

Don’t Base ROI on Sales If Sales isn’t Your Goal

People are not easily persuaded: typically, even the most persuasive message point is only going to shift a person one level

Therefore, conversion equals increasing the target’s agreement level by one, a “persuasion”

—equivalent to making a sale in retail

Valuation based on advertising cost

• If you spend $20,000 on an effective display ad presented to audience of 100,000 that will convert 1 in 5, you value each persuasion at $1

Five Steps to Calculate SM ROI

Step 1: Identify Objective sales, retention, market research—or for most associations—sentiment

Step 2: Define Metrics• sales: thank-you page visits from tweeted landing page

• retention: repeat customers/Facebook posts

• market research: likes to announcement of potential new product/number of Facebook fans

• sentiment: shift in percentage of conversation participants who agree vs disagree to message point over time

Step 3: Estimate SM campaign costs labor + ad spend + premium value

Step 4: Estimate SM Return against Objective via Metrics

Step 5: Measure and report regularly

NSI CASE 1: Sentiment Measurement for American Chemistry Council

ROI: Message Point Delivery

Problem: Regulators can’t keep up with the latest in materials science, like Life Cycle Assessment (LCA)—a methodology to measure a building’s lifetime environmental impact

Objective: Raise Sentiment for LCA Across Target

http://www.greenbuildingsolutions.org/Main-Menu/LCA-Comprehensive-Environmental-Impact-Measure.pdf

Goals:

Increase web traffic by 10% by December 2011 (+60%)Create regular weekly blog content on highest visibility sitesUse Social Media to reach public and key Building &

Construction audiences



Alterian’s SM2 is the No. 1 platform for collecting & analyzing SM data

SM2 powers NSI’s listening platform, ReputationConnect™

ReputationConnect™ provides data for analyzing changes in customer sentiment

PHASE 1

of 3

Methodology: 4-Phase Strategy

PHASE 2:

Increase Social Voice

PHASE 1:

Listening Strategy via ReputationConnect™ Listening Platform

PHASE 3:

Change Sentiment

PHASE 4:

Blog and Twitter Outreach




Facebook page• Pay-per-click ads

• Regular posts

• Posting key Facebook messages on association’s website

PHASE 2

of 3

Results: Increased FB “likes” from 165 in January 2011 to 2,523 in March 2012

1,529%!ROI Calculations:

Return Metrics: Fan Growth, Shares, Post Likes, Uploads Per Fan, Fan Valuation, Group Membership, Event Attendance

Investment Metrics: Campaign Labor, Contest Premium Costs

Compare to: FB PPC Cost to generate similar activity



LinkedIn• Initiated Profile improvements to attract

connections and began outreach campaign

• Sharing LCA-related messages

PHASE 2

of 3

ROI Calculations:

Return Metrics: Connection Growth, Shares, Post Likes, Comments, Retweets, Recommendations, Company Follows, Event Attendees, Event Follows, Group Membership

Investment Metrics: Campaign Labor, Contest Premium Costs

Compare to: LI PPC cost to generate similar activity

Generated lists of

200+ key officials


Change Sentiment: Identify & participate in SM conversations

Identified Relevant Conversations through ReputationConnect™

Recruited “Sentiment Softball” Team Members from Downstream Members to Join Conversations

Tossing “Sentiment Softballs” to Infielders

PHASE 3

of 3


Change Sentiment: Gauge sentiment impact

Repurpose Positive Mentions as Testimonials on other Online Properties

PHASE 3

of 3

ROI Calculations:

Return Metrics: Visitors to pages displaying testimonials, persuasions

Investment Metrics: Listening-platform analysis

Compare to: Paid placements and endorsements

ROI Calculations:

Return Metrics: Persuasion value of third-party endorsement x # of positive mentions per average advocate x typical advocate reach


Compare to: (a) display ads and (b) public-relations & legal costs of junk science spread via Internet

Convert Neutrals to Positives through Repurposed Content

Fear of Electromagnetic Field Exposure beneath power lines cost $25 billion (1979-1999) paid by the Utilities Industry,

despite lack of even a single successful lawsuit

ROI: Brand Investment

Problem: Marketing for Disney’s $350mm John Carter, adapted from Edgar Rice Burroughs’ 1912 classic “A Princess of Mars,” confused audiences: false rumors were fueling social backlash that the story had appropriated works such as Avatar, Dune and Star Wars— which it had helped inspire.

Objective: Improve Image and Debunk False Plagiarism Rumors

NSI CASE 2: Sentiment Measurement for Universal Media & Disney’s John Carter

Messaging

• As one of the first sci-fi characters in existence, John Carter has been an inspiration for generations

• Share Universal Media’s re-edited trailer http://www.youtube.com/watch?v=-BxeHQY1NuM

• Universal Media’s Teen Reading Project promoted Burroughs’ series as “the Harry Potter of its day”


Recognition from John Carter Director Stanton led to coverage by CNN,

accelerating positive coverage of the film in both social and mainstream media.

20 Feb 2012:

http://www.youtube.com/watch?v=-BxeHQY1NuM

Methodology: Inspire grassroots science-fiction fans to post message points

• January

• February


ROI Calculations:

Return Metrics: Persuasion value of third-party endorsement x # of positive mentions per average advocate x typical advocate reach


Compare to: (a) display ads and (b) public-relations & legal costs of junk science spread via Internet

ROI: Drip Marketing

Problem: 24/7 patient care allows little time to navigate the overwhelming flood of healthcare information, so nurses are turning to social networks on mobile devices when they can. The American Nurses Association (ANA) must therefore understand and participate in this ever changing topic stream.

Objective: Analyze daily healthcare conversation streams to provide opportunities for ANA to make available its resources.

NSI CASE 3: Sentiment Measurement for American Nurses Association

NSI CASE 3: Sentiment Measurement for American Nurses Association

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Share of Voice - Conversation Categories

Career / Jobsearch Health Care ReformImmunizationLiability / MalpracticeNursing ShortageSafe Patient HandlingUnionsWorking ConditionsRe

sults

Cou

nt

Data Assumptions and Tools

If You’re Not Measuring, You’re not Listening

Listening Platforms Today Ability to analyze, manage, track and

report on your Social Media monitoring and engagement efforts.

Flexible dashboard.

Analysis widgets, streamlined reporting, integrated workflow capabilities and an Insights platform with integrated CRM.

Listening Platforms Today

Integrated Marketing Platform combines campaign management, web content management, email & social media monitoring tools.

Social Media Console captures and analyzes SM data.

SM2 provides key reports, data warehouse & sentiment analysis.

Contact Information

Tom McClintockNSI Partners

719.328.0042 [email protected]