Measuring Social ROI · % of Companies Measuring ROI Source: Columbia University/ American...
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Paul Gillin Measuring Social ROI: The CIO’s Role Author: The New Influencers Secrets of Social Media Marketing Social Marketing to the Business Customer
Transcript of Measuring Social ROI · % of Companies Measuring ROI Source: Columbia University/ American...
Paul Gillin
Measuring Social ROI: The CIO’s Role
Author:
The New Influencers
Secrets of Social Media Marketing
Social Marketing to the Business Customer
Click to edit Master title style Time is Right
37%
81% 58% 65% 68% 65%
67% 84%
37% 30% 28% 30% 29%
53%
17% 13%
2% 10% 4% 6% 4% 5% 4% 2%
0% 20% 40% 60% 80% 100% 120%
Increased market share Decreased costs Improved talent retention Improved speed to market/innovation Improved product/service quality Improved collaboration with partners Improved brand or stock value Improved marketing/sales effectiveness
Advantage No Impact Disadvantage
Source: Economist Intelligence Unit Survey of 329 Business Leaders, 2012
Perceived Value of Social Business
Click to edit Master title style Just Another Channel?
Marketing and branding 41%
Marketing Communications (e.g., Public Relations) 40%
Distributed throughout the organization 17%
Sales 16%
Customer service 11%
Education and Training 7%
Human Resource 10%
6% Centre of Excellence
Research and Development (R&D) 8%
Who Has Primary Responsibility for Social Business
Source: Economist Intelligence Unit
Survey of 329 Business Leaders, 2012
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17%
81% agree that social engagement has tangible benefits
• Project management • Innovation • Collaboration • Efficiency gains • Cost savings
Yet only 17% have responsibility well-
distributed throughout the organization
Executives See Greatest Benefit of social engagement in…
Source: Economist Intelligence Unit
Survey of 329 Business Leaders, 2012
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Twitter: @pgillin
How We Share Influence
Consumer influence channels
Source: Universal McCann Erickson
PRE MEDIA AGE
Talk face to face
Talk to shop worker
SOCIAL MEDIA AGE
Personal blog
Social network page
Widgets
Photo sharing site
Chat rooms
Message boards
Video sharing site
Comments on blogs
Comments on websites
Viral emails
Wish lists
Ratings on retail sites
Reviews on retail sites
Auction websites
Social Bookmarking
Chat room
Price comparison sites
Social shopping sites
Consult a professional
Readers Letters
Phone in; TV / Radio
Talk to shop worker
Talk face to face
Phone call
SMS
Instant Messenger
MASS MEDIA AGE
Consult a professional
Readers letters
Phone in; TV / Radio
Talk to shop worker
Talk face to face
Phone call
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Twitter: @pgillin
Customer Service Matters
Service Topic Consumers who have not used social media for customer service
General population
Consumers who have used social media for customer service
Additional amount consumers will spend for excellent service
11% 13% more 21% more
Have not completed intended purchase because of poor customer experience, previous 12 months
49% 55% 83%
Number of people customers tell about good customer service experience
9 15 42
Number of people customers tell about poor customer service experience
17 24 53
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“Companies that are highly effective communicators
had 47% higher total returns to shareholders over the
last five years compared with firms that are the least
effective communicators.”
Towers Watson 2009/2010 Communication
ROI Study Report
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“Our data show that fully networked
enterprises are not only more likely to be
market leaders or to be gaining market share
but also use management practices that lead
to margins higher than those of companies
using the Web in more limited ways.”
McKinsey 2010 survey of 3,249 executives
Service With a Smile
• 55% of respondents became a customer of a
company because of its reputation for great
customer service
• 40% began purchasing from a competitive brand
simply because of their reputation for great
customer service
• 85% of consumers said they would be willing to pay
more over the standard price in order to ensure a
superior customer experience.
- RightNow Technologies 2010 Survey of
2,217 North American consumers
Responsibility distributed throughout the organization
Responsibility assigned to one department
There are business benefits to encouraging customers to talk publicly – whether
positive or negative 81% agree
67% agree
Source: Economist Intelligence Unit
Survey of 329 Business Leaders, 2012
Adoption of social channels is strong; with 59% of
organizations having adopted Twitter and 60%
adopting Facebook, and almost 85% of those who
have adopted one, have adopted both together.
However, adoption seems to have been the easy
part. Justification, integration, and strategic
measurement continue to be the most challenging
aspects of implementing new social channels.
- ThinkJar/Sword Ciboodle
survey of 400 customer
service practitioners, 2012
Disconnect
0% 20% 40% 60% 80% 100%
Other
Analysts and pundits
Customer co-creation
Consultants/integrators
Customer research
Internal team
When selecting a new channel for customer service, who drives the decision?
Source: ThinkJar/Sword Ciboodle, 2012
0
2
4
6
8
10
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Social Media Crises Reaching Mainstream Media
Facebook 14%
Community
22%
Twitter 18%
Blog 20%
YouTube 22%
Other 4%
Where Crises Originate
Data source: Altimeter Group, 2011
Companies are quick to deploy the
latest social media technology, yet
most have not prepared for the
threat of social media crises…we
found that more than three-fourths
could have been diminished or
averted. --Altimeter Group
New Channels of Complaint
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Twitter: @pgillin
Hot Prospects
Qualified Prospects
Suspects
New Clients
The Sales Funnel
Image Credit: Retail Sales Systems, LLC
Click to edit Master title style Flipping the Funnel
15
Respond & Iterate
Invite Engagement
Listen
Go Where the People Are
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Source: Monitor
And Flattening It
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Twitter: @pgillin @pgillin
Today, Integration Means “Everything”
0
25
50
75
100
Value of Specific Marketing Communications Programs
Public Relations
Internet Word of Mouth/Viral
In-store/ Point of Sale
Direct response advertising
Social Networking
Mobile Marketing
General Advertising
Search Engine Marketing
Sales Promotion
Event Marketing
Sponsorship Branded Entertainment
Videogame Advertising
10 of 14 achieved 50% top 2 box score
Source: Association of National Advertisers, 2010
Room for Improvement
0%
5%
10%
15%
20%
25%
30%
Social NetworkMarketing
MobileAdvertising
EmailMarketing
Direct mailmarketing
% of Companies Measuring ROI
Source: Columbia University/ American Marketing Association 2012
Click to edit Master title style Opportunities in Listening
Quora LinkedIn Answers
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Twitter: @pgillin
38 Minutes on Twitter
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Twitter: @pgillin
What the Heck Are They Thinking?
Epson reported
that revenue per
visitor nearly
doubled after the
reviews were
launched.
Click to edit Master title style What We Usually Measure
Hits
Visits
Bookmarks
Unique Visitors
Page Views
Likes Followers
Traffic
Clicks
These Indicate
Activity but NOT
Engagement
Click to edit Master title style Terms of Engagement
Repeat Visits
Shares
Bookmarks
Subscriptions
Employment applications
Retweets Comments
Downloads
Forwards Pages/visit
Reviews Phone calls
Lead forms
Ratings
Click to edit Master title style Measuring the Immeasurable
Lift Studies
Store visits
Headline Counts
Employment applications
Speaking Invitations
Net Promoter Score Coupons redeemed
If You Can Measure It,
You Can Calculate Its ROI
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March 30
Prospect reaches website through search query "small business accounting," views four pages and subscribes to
newsletter.
April 4
Prospect responds to e-mail invitation for "Choosing Small
Business Accounting Software" webcast 30 minutes after e-mail
is sent.
April 9
Prospect attends webcast, stays 45 minutes and submits a
question related to legal practices.
April 10
Prospect clicks link in webcast summary e-mail to visit product description page. He downloads PDF of product brochure about
software for legal practices.
April 12
Prospect downloads trial version of your small business accounting software for legal
practices.
Oh, the Things That You Know!
Thanks to Web Analytics…
Click to edit Master title style ERP for Marketing
Click to edit Master title style CRM Goes Social
Click to edit Master title style Stagger Activities
White Paper Promotion Timeline
Task Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Home page link
E-mail newsletter
E-mail blast
Blog promotion
Twitter messaging
Click to edit Master title style Look for Impact
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Twitter: @pgillin
Lead Gen Excellence
73 blogs
17 bloggers
600% jump in
leads
Top quality
“Get engineers talking to engineers and get everyone else out of the
middle.”
Rick Short, Marcom Director
@pgillin
Click to edit Master title style A Reader is a Lead
Each blog has the
option to ask a
question of the
engineer
@pgillin
Click to edit Master title style Basic Business Metrics
Lifetime Value of a Customer =
(Longevity * Revenue) * Margin
Conversion Rate = New Customers/
Visits or Leads
Value of a Lead/Visitor =
Visitor * Conversion Rate * Lifetime
Value
Click to edit Master title style OK, Let’s Make it Real
Typical customer Curly spends
$10,000/year with you
Curly is with you for five years
Your profit margin is 10%
Lifetime value of Curly is
($10,000 * 5) * .1 = $5,000
Click to edit Master title style Applying ROI: Value of a Visitor
Monthly Visitors 10,000
Conversion Rate .5%
Lifetime Value $5,000
Calculation (10,000 * .005 * 5)/10,000
Value of a Visitor
$25
Click to edit Master title style Value of a Blog
Monthly Search Traffic 3,000
Estimated Traffic w/Blog 4,000
Value of a Visitor $25
Monthly Value of a Blog $25,000
Monthly Blog Expense $6,000
ROI ($25,000-$6,000)/$6,000 316%
Click to edit Master title style Value of Twitter
You send 50 tweets a month…
Generating 1,000 visitors to
your website…
2% of whom become leads…
5% of whom become
customers.
Therefore, the value of a tweet is:
(1,000 * .02 * .05 * 5000)/50 = $100
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Twitter: @pgillin
Paul Gillin
508-656-0734
Site: gillin.com
Blog: paulgillin.com
Twitter: pgillin
Thank You!
