Measuring Social Media ROI
22
www.42inception.com Measuring the ROI of Social Media
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19-Oct-2014 -
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Hope you enjoy this deck on 'Measuring Social Media ROI'. Care about Social Media Marketing for incredible Business Growth? You may want to take advantage of our hands-on Advanced Facebook Marketing training. We are just a click away - http://www.42inception.com
Transcript of Measuring Social Media ROI
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And Impossible at the same time
Measuring Social Media ROI is Possible
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Three Dimensions of Measurement
Returns
Attribution
Future Potential
What “Returns” did you get?
How much of “Returns” can be“Attributed” to the investment?
Will you get “More Returns” in “Future”for the current “Investment”?
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Types of Returns
Tangible
Intangible
A clear & direct metric
Units Sold, Leads Generated, TotalRegistrations, Referral Traffic
Returns
At most an indicative metric
Brand Awareness, Reputation, CustomerSatisfaction, Customer Loyalty
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Three Dimensions of Measurement
Returns
Attribution
Future Potential
What “Returns” did you get?
How much of “Returns” can be“Attributed” to the investment?
Will you get “More Returns” in “Future”for the current “Investment”?
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Attributing Returns to InvestmentAttribution
Establishing unbroken chain of events from the “investment” to the “return”
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Unbroken Chain of Events: e-commerce
Attribution
1. You Post a Link of your Product Page on
2. Total 3500 people visit product page through that link
3a. Total 17 of these buy the product in
first visit
3b. Total 250 people register for Free Trial
version
4. In 15 days period, 34 people upgrade to
paid from trial
Investment: Posting a link on FacebookResult: 51 product units sold
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Unbroken Chain of Events - ServicesAttribution
1. You see 38 tweets by people looking for
web design
2. You respond to all of them introducing
your services
3. Total 7 people interact with you for
further details
4. You close business worth $7.5K with 3 of
them.
Investment: Listening on Twitter & Responding to prospectsResult: $7.5K worth of Business
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Unbroken Chain of Events: CRMAttribution
1. You see a –vetweet by a customer about your product
2. You interact with the customer &
resolve the issue
3. Customer now appreciates your service on twitter
4. You get 6 more customers worth $9K through this referral
Investment: Customer service on TwitterResult: $9K worth of Business
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Attribution is a Hard Problem
Broken Chains
Missing Metrics
Mixed Influence
More often than not, it’s hard toestablish a credible sequence of events.
Not all the metrics are available orcaptured automatically.
Multiple marketing efforts with a singleoutcome coincide with each other.
Attribution
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What are Broken Chains of Events?
You Promote your product on LinkedIn
Attribution – Broken Chains
You use a Blog for thought leadership
You interact with people on FB/Twitter
You resolve people’s issues on FB/Twitter
You get $20K worth of Business
with “unknown source”
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Fixing Broken ChainsAttribution – Broken Chains
• Ask your customers where they came from “if you can”
• Could be part of registration process or included at some other step
• Not reliable but might provide indicators
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Attribution is a Hard Problem
Broken Chains
Missing Metrics
Mixed Influence
More often than not, it’s hard toestablish a credible sequence of events.
Not all the metrics are available orcaptured automatically.
Multiple marketing efforts with a singleoutcome coincide with each other.
Attribution
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Missing Metrics ExamplesAttribution – Missing Metrics
How many issues were resolved on
Twitter?How many $ were saved/earned by
resolution of issues?
Did you note down that FB was used for
Market Research?And that lead came
from an introduction over LinkedIn!
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Resolving Issues around MetricsAttribution – Missing Metrics
Issue: All the metrics are not captured in a tool. E.g. if you resolved a customer issue on Twitter, which tool recorded this?
Resolution: Needs deploying a tool or a simple manualcapturing of the data in a document. Thechoice depends on the scale.
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Resolving Issues around MetricsAttribution – Missing Metrics
Issue: All the metrics are not fully measurable.E.g. value of resolving a customer issue onTwitter. Is it $20 or $2K or $2M?
Needs a simple model to find approximatevalue. E.g. resolving a customer issue couldbe worth the business given by that customer.
Resolution:
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Attribution is a Hard Problem
Broken Chains
Missing Metrics
Mixed Influence
More often than not, it’s hard toestablish a credible sequence of events.
Not all the metrics are available orcaptured automatically.
Multiple marketing efforts with a singleoutcome coincide with each other.
Attribution
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The problem of Mixed InfluencesAttribution – Mixed Influence
Social Media
TV
Offline
Online Reputation
Impossible to measure influence of asingle campaign when everything isexecuted together
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Three Dimensions of Measurement
Returns
Attribution
Future Potential
What “Returns” did you get?
How much of “Returns” can be“Attributed” to the investment?
Will you get “More Returns” in “Future”for the current “Investment”?
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Measuring Potential ROIFuture Potential
Question: What’s the value of a Fan or a Follower?
Answer: Default is $0. A fan or a follower is arelationship. The value depends on who theperson is and how you extract value fromthe relationship.
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Summary
• Measuring Social Media ROI is about
– Measuring the returns
– And attributing them appropriately to Social Media efforts
• It can be simple or difficult depending on:
– Type of return
– Type of Social Media effort
• The value of a fan or follower is only a potential value.
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