Social Marketing ROI - Yes, You Can!
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Anything that can be measured can be used to calculate ROI, and that includes social media. Many people say the ROI of social marketing can't be measured, but I beg to differ. Here are some guidelines for measuring the value of a visitor, a community and even a tweet!
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Social Marketing ROI - Yes, You Can!
- 1. Unraveling the Mysteryof Social Marketing ROI Paul Gillin, author The New Influencers Secrets of Social Media Marketing Social Marketing to the Business Customer
- 2. Is it Return on Investment or Risk of Inaction?
- 3. It’s Simple, Knucklehead (GAIN FROM INVESTMENT - COST OF INVESTMENT) ROI = COST OF INVESTMENT
- 4. Types Of Financial Impact B. Costs Avoided A. Revenue Anything that leads to A or B, But only if you can directly equate its value to an action
- 5. These are NOT ROI Press coverage Impressions Website Visitors Video views Click-throughs Retweets Coupons distributed Store visits “Buzz” Friends Blog comments Employment applications FaceBook friends Twitter followers But if you can quantify their financial impact, you have ROI!
- 6. What You Need Historical Metrics Excellent CRM Tools and Practices Clearly Understood and Applied Web Analytics
- 7. Basic Business Metrics Lifetime Value of a Customer = (Longevity *Revenue) * Margin 𝐂𝐨𝐧𝐯𝐞𝐫𝐬𝐢𝐨𝐧 𝐑𝐚𝐭𝐞=𝐍𝐞𝐰 𝐂𝐮𝐬𝐭𝐨𝐦𝐞𝐫𝐬𝐕𝐢𝐬𝐢𝐭𝐬/𝐋𝐞𝐚𝐝𝐬 Value of a Lead/Visitor = Visitor * Conversion Rate * Lifetime Value
- 8. Okay, Let’s Make it Real Typical customer Moe spends $10,000/year with you Moe is with you for five years Your profit margin is 10% Lifetime value of Moe is ($10,000 * 5) * .1 = $5,000
- 9. CRM Essentials Must be used by everyone who touches the customer Must document online, offline and landline communications Must span the engagement lifecycle Must enable segmentation and grouping
- 10. Web Analytics Must track individual visitors Must document paths to desired destinations Must identify referring sources You must use them
- 11. Applying ROI: Value of a Visitor
- 12. Value of a Blog
- 14. Generating 1,000 visitors to your website…
- 15. 2% of whom become leads…
- 16. 5% of whom become customers.Therefore, the value of a tweet is: (1,000 * .02 * .05 * 5000)/50 = $100
- 17. Cumulative ROI: the Eye Chart You want to launch a customer support forum to reduce your costs of telephone support Estimated admin costs: ½ FTE yr 1, ¼ FTE yr 2 1/10 FTE yr 3 Estimated savings: 1 FTE yr 1, 1.5 FTE yr 2, 2 FTE yr 3
- 18. Measuring the Immeasurable Headline Counts Lift Studies Store visits Speaking Invitations Net Promoter Score Coupons redeemed Employment applications If You Can Measure It, You Can Calculate Its ROI
- 19. Thank You! Site: gillin.com Blog: paulgillin.com Twitter: pgillin Paul Gillin 508-656-0734 paul@gillin.com