Social ROI: How to measure and achieve results in social media marketing

Social ROI Simplified

A prac'cal approach to Social Success

by Steve Irvine, Co-‐founder & CEO, 80/20 Solu'ons

About Me

•  Co-‐founder & CEO of 80/20 Solu'ons

• Founding member and chairman of The Thought Leadership Group (digital and social marke'ng think tank)

•  Former CEO of Mo'on Media Interac've

•  Former Digital Media advisor to IMG (the world’s largest sports, media and entertainment company)

•  Former Analyst covering early SoOware-‐as-‐a-‐Service space

•  Speaker on social and digital marke'ng

• Recent keynote at AMA Social ROI event

Steve Irvine @steveirvine Steveirvine.typepad.com #SMROI

© Steve Irvine 2009. steveirvine.typepad.com

•  Founded in 2004 •  So<ware-‐as-‐a-‐Service pla@orm launched in June 2005 •  Headquartered in Canada, with faciliIes in the US and Europe •  Focused on delivering soluIons for CPG, Retail, Food Services and Sports & Entertainment

80/20 SoluIons

•  High Profile client por@olio including Pepsi, General Mills, Mars and Virgin Mobile •  Rapid revenue growth •  Venture Funded •  Quickly taking market share from legacy players

Snapshot

•  Intelligent Campaign Management pla@orm that learns your customers and opImizes campaigns on-‐the-‐fly automaIcally for ROI •  “All in one” pla@orm combines markeIng execuIon with customer segmentaIon, scoring and real-‐Ime reporIng •  Integrated across a variety of digital and social markeIng tacIcs (email, mobile, contests, coupon, loyalty programs, survey, web)

Technology

•  ”The Next GeneraIon of Campaign Management” – Forrester Research •  “A Company to Watch” – IDC Research

Market Buzz

About the Company

Intelligent Campaign Management www.8020solutions.com

Data • Data services to enrich your current database

• Understand prospects behavior and media preferences

• Enhanced with psychographic and Social values insight

MarkeIng Pla@orm • 360° Customer Profile • Brand Engagement Index • Influence Scoring • Digital Marke'ng Execu'on (Contests, Promo'ons, SMS, Email, Loyalty programs, surveys)

ExperIse • Ready-‐go Campaigns • Managed Programs • Dedicated Support • Social Marke'ng • Digital Marke'ng • Customer Insights

Next GeneraIon Campaign Management

About Us

1.  Give you a simple way to think about Social ROI

2.  Give you real tools and ac'on items to actually achieve a high social ROI

How can I help you?


Let’s dispel a few myths…


Social Success

Technology

Time

Process

People

1. Social Media is FREE


2. Social is a NEW concept


3. Social is the SAME as other marke'ng


4. Social is ONLY for brand


ROI = COST OF INVESTMENT

(PROFIT FROM INVESTMENT -‐ COST OF INVESTMENT)

5. Social ROI is calculated differently

What’s different is how you calculate the value of a customer in the social world


•  Brand Awareness

•  ROI for Customer Service (cujng communica'ons costs)

•  ROI for Marke'ng (cujng media costs)

Where is social today?


Social genera'ng Revenue

Where do we need to be?


•  Right Person

•  Right Message

•  Right Time

How do we sell more?


Social Success Framework

Value Crea'on (ROI)

The Social Landscape is confusing…

And ever changing © Steve Irvine 2009. steveirvine.typepad.com

Value Crea'on (ROI)

Focus on the constant…


Explain social to your grandmother…


Early Social: The Tupperware Party

Join the conversa'on

Get them on your turf

Separate the influencers from friend collectors

Mo'vate them to buy


Join the conversa'on…


Get them on your turf…


•  Iden'fy the people with influence over others •  Make sure to focus on those people

•  Get them involved in helping to drive others to purchase

•  Just cause you brought people with you, doesn’t mean you have influence over them

Separate the influencers from the friend collectors…


Mo'vate them to buy!


Success Measurement


Social Today: Most Marketers

Listen Join the conversa'on

Build fan / follower base


Social Success Measurements

Challenge: They do not 'e back to business metrics that maoer to the business


Return on Investment (ROI)

Life'me Value (LTV)

Engagement

Influence

Loyalty

Social Metrics

Business Metrics

GAP

Social Measurement Gap


Social Today: Tupperware applied

Join the conversa'on

Get them on your turf

Separate the influencers from friend collectors

Mo'vate them to buy


Join the conversa'on…


Get them on your turf…


Separate the influencers from the friend collectors…

Name: Jennifer James Friends: 525

Name: Jennifer Jones Friends: 30

Friends Told: 525 Friends Acquired: 0 New Revenue Generated: $0

Friends Told: 30 Friends Acquired: 25 New Revenue Generated: $25,000 © Steve Irvine 2009. steveirvine.typepad.com

Mo'vate them to buy!


Success Measurement


Simple tools to get beoer ROI


•  Add more accountability to your social metrics •  HINT: Influence = ability to drive ac'on, not fans/followers

•  Close the loop between social ac'vi'es and revenue-‐genera'ng / Cost-‐cujng ac'ons

•  HINT: Think about a migra'on / progression strategy

•  Focus on what is constant: The people •  HINT: Networks will come and go, have a people strategy

Bridging the Measurement Gap


Brand Daters

Brand Loyalists

Brand Acquaintances

Brand Advocates

New Value Matrix for Customers


Start simple, but close the loop…

Take aways

•  Social is NOT Free

•  Focus on the customers

•  Bridge the gap between social metrics and business metrics

•  Don’t reinvent the wheel (look to the past)

Steve Irvine @steveirvine Steveirvine.typepad.com #SMROI

THANK YOU FOR YOUR TIME
