Social MediaSocial Media ROI ROIManaging and Managing and
Measuring Social Media Measuring Social Media Efforts in Your Efforts in Your OrganizationOrganization
Presented By:Presented By:Jake HartvigsenJake HartvigsenDominica SliwaDominica Sliwa
Presentation OverviewPresentation Overview
• About the Author
• Introductory exercise
• Social Media Program Development
• Integrating Social Media into your Organization
• Social Media and Brand Management
• Measuring Social Media ROI
Olivier BlanchardOlivier Blanchard• BA degree from Furman UniversityBA degree from Furman University• Principal@BrandBuilderPrincipal@BrandBuilder MarketingMarketing• President@Red Chair GroupPresident@Red Chair Group• Author of The BrandBuilderAuthor of The BrandBuilder Blog Blog • Twitter: TheBrandBuilder Twitter: TheBrandBuilder
>37,400 followers>37,400 followers
OlivierOlivier BlanchardBlanchard• Specialities:Specialities:
oReputation ManagementReputation ManagementoConsumer/Brand Insights ManagementConsumer/Brand Insights ManagementoSocial Media Program ManagementSocial Media Program ManagementoMarketing StrategyMarketing StrategyoCorporate & Marketing Communications Corporate & Marketing Communications
ManagementManagement
Social Media Program Social Media Program DevelopmentDevelopment
Getting StartedGetting Started
Evolution of Brand Evolution of Brand CommunicationsCommunications
• Vertical Engagement: One-DirectionalVertical Engagement: One-DirectionaloOrganizations crafted a message, Organizations crafted a message,
packaged it, and pushed it out to its packaged it, and pushed it out to its audienceaudience
• Vertical Engagement: Two-DirectionalVertical Engagement: Two-Directionalo Internet allowed for blogs and Internet allowed for blogs and
comments on digital contentcomments on digital content• Lateral EngagementLateral Engagement
oPeer-to-Peer networks in which users Peer-to-Peer networks in which users create/share content at willcreate/share content at will
Advantages of Lateral Advantages of Lateral EngagementEngagement
• Word-of-Mouth gets more recognition in Word-of-Mouth gets more recognition in comparison to adscomparison to ads
• Social media multiplies the velocity and Social media multiplies the velocity and reachreach
• No geographic barriersNo geographic barriers• Less costlyLess costly
Top Five Business Functions Top Five Business Functions Enhanced by Social Media Enhanced by Social Media Profit-seeking businessesProfit-seeking businesses
• Sales DepSales DepartmentartmentoPromote special sales/offersPromote special sales/offers
• Customer supportCustomer supportoConstant real-time feedbackConstant real-time feedbackoAbility to respond in real timeAbility to respond in real time
• Human resourcesHuman resourcesoHiring practicesHiring practices
• Public relationsPublic relationso Impove reputationImpove reputation
• Business intelligenceBusiness intelligence
Top Five Business Functions Top Five Business Functions Enhanced by Social Media: Enhanced by Social Media:
Non-ProfitsNon-Profits• OutcomesOutcomes
o Low-costLow-costoGlobal reachGlobal reach
• Member supportMember supporto Immediate feedbackImmediate feedback
• Human resourcesHuman resourcesoVolunteersVolunteers
• Public relationsPublic relations• Member loyaltyMember loyalty
Biggest Mistake inBiggest Mistake inSocial Media DevelopmentSocial Media Development
Choosing the platform ahead Choosing the platform ahead
before the purposebefore the purpose
Solution??Solution??
Set Objectives FirstSet Objectives FirstThen Then
Choose Platform to Meet Objectives Choose Platform to Meet Objectives
Keys for Setting ObjectivesKeys for Setting Objectives
• SpecificSpecifico Ask the 6 W'sAsk the 6 W's
• MeasurableMeasurableo What criteria do you have to reach your goals?What criteria do you have to reach your goals?
• AttainableAttainableo How to you plan on completing your objectives?How to you plan on completing your objectives?
• RealisticRealistico Is it possible to meet your objectives?Is it possible to meet your objectives?
• TimelinessTimelinesso What date are your objectives to be met? What date are your objectives to be met?
Integrating Social Integrating Social Media into Your Media into Your
OrganizationOrganizationPutting the Puzzle Pieces Putting the Puzzle Pieces
TogetherTogether
4 Phases of Social Media Adoption4 Phases of Social Media Adoption
1.1. Test AdoptionTest Adoption2.2. Focused AdoptionFocused Adoption3.3. Operational AdoptionOperational Adoption4.4. Operational IntegrationOperational Integration
Phase 1: Test AdoptionPhase 1: Test Adoption
• Official company accounts Official company accounts establishedestablished
• Junior member of staff Junior member of staff appointed to manage appointed to manage projectproject
• Efforts generally Efforts generally disconnected from business disconnected from business objectivesobjectives
Phase 2: Focused AdoptionPhase 2: Focused Adoption
• Key functions within Key functions within the organization begin the organization begin to use social mediato use social media
• Marketing and PR are Marketing and PR are typically early typically early adoptersadopters
• Cross departmental Cross departmental collaboration emergescollaboration emerges
Phase 3: Operational AdoptionPhase 3: Operational Adoption
• More departments come on boardMore departments come on board• Social media usage guidelines developedSocial media usage guidelines developed• Social media manager’s position upgraded to director Social media manager’s position upgraded to director
levellevel
Phase 4: Operational IntegrationPhase 4: Operational Integration
• Complete integration across the organizationComplete integration across the organization• Social media director’s position is upgraded to VP...Social media director’s position is upgraded to VP...• ...or eliminated...or eliminated
Choosing a Social Media Choosing a Social Media Management ModelManagement Model
• CentralizedCentralized• DecentralizedDecentralized• Both have advantages and disadvantagesBoth have advantages and disadvantages
Centralized ManagementCentralized ManagementAdvantagesAdvantages
• Full control over messagesFull control over messages• Full control over informationFull control over information• Full control over execution of the social media programFull control over execution of the social media program• Full control over contentFull control over content• Full control over data managementFull control over data management
Centralized ManagementCentralized ManagementDisadvantagesDisadvantages
• Program has to be built from scratchProgram has to be built from scratch• Program doesn’t scale wellProgram doesn’t scale well• Tendency to become bureaucraticTendency to become bureaucratic• Tone can become corporate rather than socialTone can become corporate rather than social
Decentralized ManagementDecentralized ManagementAdvantagesAdvantages
• Foundation already in placeFoundation already in place• Localized messages are faster and with deeper insightsLocalized messages are faster and with deeper insights• Competencies develop in areas with the most impactCompetencies develop in areas with the most impact
Decentralized ManagementDecentralized ManagementDisadvantagesDisadvantages
• Less control = greater riskLess control = greater risk• Collaboration is more difficultCollaboration is more difficult• Inconsistent messagesInconsistent messages• Personality issuesPersonality issues
Establishing Rules and GuidelinesEstablishing Rules and Guidelines
• GoalsGoalso Create framework of use, Create framework of use,
internal and externalinternal and externalo Clarify expectations of Clarify expectations of
employee behavior, in employee behavior, in office and at homeoffice and at home
o Create a resource for best Create a resource for best practicespractices
Ten important items to includeTen important items to include
1.1. Employee Bill of RightsEmployee Bill of Rights2.2. Internal GuidelinesInternal Guidelines3.3. External GuidelinesExternal Guidelines4.4. Employment DisclosureEmployment Disclosure5.5. Anti-Defamation GuidelinesAnti-Defamation Guidelines6.6. Confidentiality and Non-DisclosureConfidentiality and Non-Disclosure7.7. Official versus Personal CommunicationsOfficial versus Personal Communications8.8. Employee Digital Citizenship ContractEmployee Digital Citizenship Contract9.9. Training ResourcesTraining Resources10.10. Social Media Guidelines for Agency Partners Social Media Guidelines for Agency Partners
and Contractorsand Contractors
Social Media and Social Media and Brand ManagementBrand Management
Using Social Media to Your Using Social Media to Your AdvantageAdvantage
How Social Media has Changed How Social Media has Changed Brand CommunicationsBrand Communications
• Velocity has acceleratedVelocity has acceleratedo 10 years ago companies had 1-2 days to react10 years ago companies had 1-2 days to reacto Today, they have 10 minutesToday, they have 10 minutes
• Awareness is now active rather than passiveAwareness is now active rather than passive• Every employee is now your “brand”Every employee is now your “brand”• Tone and style are less corporate and more personalTone and style are less corporate and more personal• Trust is the keyTrust is the key
Key Elements to Social Media Key Elements to Social Media Brand StrategyBrand Strategy
• Listen before talkingListen before talking• Perform a social media audit (e.g, Perform a social media audit (e.g,
Google, Twitter, Facebook)Google, Twitter, Facebook)• Systematize monitoring (e.g., Systematize monitoring (e.g.,
HootSuite, Radian6)HootSuite, Radian6)• Answer questions, don’t sellAnswer questions, don’t sell• Ask customers for feedbackAsk customers for feedback• Shift from marketing to Shift from marketing to
communicationscommunications
Social Media Tools for Crisis Social Media Tools for Crisis ManagementManagement
• Acknowledge problem Acknowledge problem immediatelyimmediately
• Buy time with updatesBuy time with updates• Create channels for dialogueCreate channels for dialogue• Explain what you’re doing to Explain what you’re doing to
fix the problemfix the problem• Go interactive - make Go interactive - make
customers part of the solutioncustomers part of the solution• Follow up after the eventFollow up after the event
Social Media and Social Media and Conflict ResolutionConflict Resolution
• 9 Rules9 Rules1.1.The customer is always right -- even if he/she isn’tThe customer is always right -- even if he/she isn’t2.2.Treat every customer like royalty, regardless of how he/she Treat every customer like royalty, regardless of how he/she
behavesbehaves3.3.Unreasonable customers are not the enemyUnreasonable customers are not the enemy4.4.The most effective weapon against an angry customer is The most effective weapon against an angry customer is
calm demeanorcalm demeanor5.5.The most effective weapon against a rude customer is The most effective weapon against a rude customer is
politenesspoliteness6.6.Recruit customers into crafting the solutionRecruit customers into crafting the solution7.7.Never, ever, ever get sucked into an argument with a Never, ever, ever get sucked into an argument with a
customercustomer8.8.Don’t be afraid to apologize, even if you are in the rightDon’t be afraid to apologize, even if you are in the right9.9.If the customer makes an unreasonable request, explain If the customer makes an unreasonable request, explain
why you can’t do it and offer an alternativewhy you can’t do it and offer an alternative
Insourcing versus Outsourcing Insourcing versus Outsourcing Social MediaSocial Media
• Social media is generally best done in houseSocial media is generally best done in house• When is it okay to outsource?When is it okay to outsource?
o MonitoringMonitoringo MeasuringMeasuringo Campaign managementCampaign management
Measuring Social Measuring Social Media ROIMedia ROI
What's important to C-levelsWhat's important to C-levels
What is ROI?What is ROI?• Return on InvestmentReturn on Investment• ROI = (gain from investment – cost of ROI = (gain from investment – cost of
investment) / cost of investmentinvestment) / cost of investment• Expressed as a ratio, percentage, or a Expressed as a ratio, percentage, or a
relationship between investment and return.relationship between investment and return.o i.e. The ROI on the campaign was i.e. The ROI on the campaign was
167%167%oEvery resource you assign to a project Every resource you assign to a project
has a monetary valuehas a monetary value
Tying Social Media to the P&L Tying Social Media to the P&L
• Show that it supports business objectivesShow that it supports business objectives• Show how it helps drive business growthShow how it helps drive business growth• Track sales derived from promo codes Track sales derived from promo codes
and linksand links
How to Measure ROI?How to Measure ROI?• Step 1: Establish a BaselineStep 1: Establish a Baseline
oBaselines illustrate deltasBaselines illustrate deltas
• Step 2: Create Activity TimelinesStep 2: Create Activity Timelineso Information compiled by all departmentsInformation compiled by all departmentsoOne custodian to gather informationOne custodian to gather information
How to Measure ROI?How to Measure ROI?• Step 2: Create Activity TimelinesStep 2: Create Activity Timelines
o Information compiled by all departmentsInformation compiled by all departmentsoOne custodian to gather informationOne custodian to gather information
How to Measure ROI?How to Measure ROI?• Step 3: Monitor the Volume of MentionsStep 3: Monitor the Volume of Mentions
oMeasure the volume of mentions around Measure the volume of mentions around your company or brandyour company or brand
oMeasure the mix of sentiment from Measure the mix of sentiment from these mentionsthese mentions
oUse of automated sentiment analysisUse of automated sentiment analysis
How to Measure ROI?How to Measure ROI?• Step 4: Measure Transactional Step 4: Measure Transactional
PrecursorsPrecursorso F.R.Y.F.R.Y.o # of Twitter followers# of Twitter followerso # of comments per day# of comments per dayo # of Facebook fans# of Facebook fansoNet negative mentions across channelsNet negative mentions across channelsoNet online transactionsNet online transactionsoBrick & Mortor store trafficBrick & Mortor store traffic
How to Measure ROI?How to Measure ROI?• Step 5: Look at Transactional Data Step 5: Look at Transactional Data
(Sales Volume)(Sales Volume)o Total sales volume has increased by XTotal sales volume has increased by X
%, the net number of transactions has %, the net number of transactions has increased by Y%.increased by Y%.
Are loyal customers spending more money Are loyal customers spending more money per transactions than before?per transactions than before?
How to Measure ROI?How to Measure ROI?• Step 6: Overlay All Step 6: Overlay All
Your Data onto a Your Data onto a Single TimelineSingle Timelineo Activities, social Activities, social
data, web data, data, web data, loyalty metrics, loyalty metrics, nontransactional nontransactional data, data, transactional/financitransactional/financial outcome dataal outcome data
How to Measure ROI?How to Measure ROI?• Step 7: Look for PatternsStep 7: Look for Patterns
How to Measure ROI?How to Measure ROI?• Step 8: Prove/Disprove RelationshipsStep 8: Prove/Disprove Relationships
How to Increase SHow to Increase Sales?ales?• FrequencyFrequency
• The Buy RateThe Buy Rate• Transactional - how often someone Transactional - how often someone
transacts with your companytransacts with your company• Interactional - does the # of interactions Interactional - does the # of interactions
increase the frequency of transactions?increase the frequency of transactions?oCan use social media to increase # of Can use social media to increase # of
interactionsinteractions
How to Increase Sales?How to Increase Sales?• Reach:Reach:
• Net new customersNet new customers• Effective reach = 100% conversionEffective reach = 100% conversion• Separate customers into groupsSeparate customers into groups
oCalculate avg. frequency of Calculate avg. frequency of transacting customer. Expand x3transacting customer. Expand x3
oNet new transacting customer = Net new transacting customer = revenue increasesrevenue increases
How to Increase Sales?How to Increase Sales?• Yield:Yield:
• Average sales per transactionsAverage sales per transactions• Objective - increase in revenue that outpaces Objective - increase in revenue that outpaces
increase in # of transactionsincrease in # of transactions• Ways in increase yield:Ways in increase yield:
oRaise pricesRaise pricesDo not do this is inelastic industryDo not do this is inelastic industry
oBuild value, reduce upgrade barrier, & give Build value, reduce upgrade barrier, & give the customers a little pushthe customers a little push
• How to track increase in yield:How to track increase in yield:opromotional codespromotional codes
ConclusionConclusion• Know what your company's objectives Know what your company's objectives
areare• Prove how social media can improve Prove how social media can improve
your organization meet these your organization meet these objectivesobjectives
• Use what you know to make your Use what you know to make your company bettercompany better
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