HOW TO PLAN, JUSTIFY AND
GAUGE THE VALUE OF SOCIAL MEDIA MARKETING EFFORTSAngie Schottmuller | @aschottmuller | SES San Francisco | Aug 14, 2012

MISSION: Define ROI or tangible
business value to justify use of social media.

SOCIAL MEDIA: The intersection of
technologyand social interaction to create, share, or connect online.

What is ROI?Formula: (BENEFIT -
COST) X 100 ROI % COSTExample: ($2000 - $500) X 100 300% $500

Seems easy enough...So why is
it so "impossible"?

77% of businesseslack sufficient resources
for social media. Awareness Inc., State of Social Media Marketing, Jan 2012

70% of businesses plan to
expand socialmedia presence in 2012. Awareness Inc., State of Social Media Marketing, Jan 2012

Growing Types of Social Media...•
Social Networks • Social Sign-on• Blogging • Geosocial Sites• Microblogging • Crowdfunding• Bookmarking • Social Ads• Media Sharing • Streaming Content• Discussion Forums • Social Gaming• Social Listening • sCRM• Review Sites • Wiki• Social Curation • Social Commerce• User-Generated Content

Top 3 Reasons Social Media
ROI Measurement is Rare:ü Unclear Objectivesü Too Many Metricsü Difficult ROI Measurement - eMarketer, 7 Guidelines of Achieving Social Media ROI, Feb 2010

Whos feeling the pressure? Yup.
Yeah! BIG TIME.

So heres the plan:q Clarify
and align objectives/tacticsq Prioritize meaningful metricsq Simplify measurement

Strategic Planning Process1. Determine Scope
WHO?2. Gather Business Goals3. Define Mission/Purpose WHY?4. Set Goals5. Define KPIs WHAT?6. Choose Tactics7. Define Metrics HOW?

Social Media <Scope> Strategic Plan
2012MISSION GOALS TACTICSWHY ARE WE WHAT DO WE WANT HOW WILL WE ACHIEVEDOING THIS? TO ACCOMPLISH? OUR GOALS? A ü <Metric> <TACTIC> ü <Metric> <GOAL> ü <Metric> <MISSION> KPI: <TACTIC> ü <Metric> B ü <Metric> <TACTIC> ü <Metric> <GOAL><SCOPE> Goals: ü <Metric> <TACTIC> ü <Metric> KPI:ü <dept goal> Aü <dept goal> B C ü <Metric> <TACTIC> ü <Metric>ü <dept goal> C <GOAL>ü <dept goal> D ü <Metric> <TACTIC> ü <Metric> KPI:

Step 1: Determine ScopeWhat aspect
of the business will use social media? Marketing & PR IT Research & Development Human Resources SOCIAL Customer Service MEDIA Sales Executives & Management Market Research See more: http://j.mp/6socialmedialisteners

FOCUS. You can onlywear one
smartlens at a time.

Step 2: Gather Business GoalsWhat
are this years [SMART] business goals?(Specific to each scope)CUSTOMER SERVICE: (Example)• Reduce average response time on inquiries• Improve average satisfaction rate• Reduce call volume costs via web self- service alternatives

START Here:80% of marketersincorrectly beginwith
tacticsinstead of goals. DO NOT START Here: Image credit: Jay Baer - http://j.mp/socialmediagoalfunnel

Step 3: Define SM Mission/PurposeWhy
are we bothering with social media?(Specific to each scope)MARKETING: (Example)To build an army of advocates thatin turn help build and maintain thebrands position.

Step 4: Set GoalsWhat do
we want to accomplish? A <GOAL> Merge Mission with <MISSION> B <Scope> Goals to <GOAL> create social media- specific Goals. C<SCOPE> Goals: <GOAL>ü <dept goal> Aü <dept goal> B Note: Some <scope> goalsü <dept goal> C may NOT be relevant forü <dept goal> D social media.

ALL time must be accounted
for.If what youreworking on doesnt ABORT!align to a goal..... ABORT!

Strategic Planning:Balanced Scorecard (BSC)1-2 goals
for each perspective. 1. Customer 2. Financial 3. Learning & Growth 4. Business Process

Step 5: Define KPIsHow will
we measure goal success?Examples:OBJECTIVE KPI MEASUREMENTAwareness % share of voice (SOV) for online mentionsConsideration # of total "social" interactionsLeads/Sales # of conversions driven from social mediaRetention # of repeat blog visitorsAdvocacy # of total positive mentions, reviews, or UGC shares Image credit: DragonSearch http://j.mp/awarenessroi

More KPIs...OBJECTIVE KPI MEASUREMENTInnovation $
saved or generated as a result of social feedbackMarket Research # of "focus groups" providing feedbackCustomer # of social support inquiries resolvedServiceSocial PR # of negative brand mentions resolved (Bonus: # converted to positive mentions)HR Recruiting # of candidates driven from social media Note: These KPIs are just examples. Select a metric thats most indicative of progress for your organizations goals.

Social Media <Scope> Strategic Plan
2012MISSION GOALSWHY ARE WE WHAT DO WE WANTDOING THIS? TO ACCOMPLISH? A Our planning <GOAL> progress thus far... <MISSION> KPI: B <GOAL><SCOPE> Goals:ü <dept goal> A KPI: Remember:ü <dept goal> B C Plan separate treesü <dept goal> C <GOAL> for each scope!ü <dept goal> D KPI:

Step 6: Choose Tactics How
will we accomplish our goals?

• bBalance risks: resources, technology,
timing...

Understand & Chart How Social
Channels Serve Your Goals... Insert your goal HERE! @MagicLogix: http://j.mp/smmchannelsbygoal

Step 7: Define Metrics How
will we measure tactic success? A safety net with multiple metrics would be nice...

Social Media <Scope> Strategic Plan
2012MISSION GOALS TACTICSWHY ARE WE WHAT DO WE WANT HOW WILL WE ACHIEVEDOING THIS? TO ACCOMPLISH? OUR GOALS? A ü <Metric> <TACTIC> ü <Metric> <GOAL> ü <Metric> <MISSION> <TACTIC> ü <Metric> KPI: B ü <Metric> <TACTIC> ü <Metric> <GOAL><SCOPE> Goals: <TACTIC> ü <Metric> KPI: ü <Metric>ü <dept goal> Aü <dept goal> B C ü <Metric> <TACTIC> ü <Metric>ü <dept goal> C <GOAL> ü <Metric>ü <dept goal> D <TACTIC> KPI: ü <Metric>

Calculations

"ROI can only be calculated
AFTER the investment hasyielded a return. It cannot and must not be estimated beforehand. Ever. Under any circumstances." ~Olivier Blanchard, @thebrandbuilder, Social Media ROI [Book]

Why Measure SMM?1. Justification/Feasibility2. Value-Basis for Comparing
Tactics

What we really need to
do is: Cost-Benefit Analysis (CBA)BENEFIT - COST = VALUE CBA: http://j.mp/costbenefitanalysis

Cost-Benefit Analysis§ SM Labor §
Awareness§ IT Labor § Web Traffic§ Tools & Software § Lead Generation§ Opportunity Costs § Sales§ Training § Conversion§ Risk § Customer Retention § Loyalty § Advocacy § Satisfaction § Market Research COST BENEFIT

All that matters...GROW REVENUE IMPROVE
REDUCE COSTS SATISFACTION Reference: Jim Sternes book, Social Media Metrics

GROW REVENUE - SOCIAL METRICSWhat
can you impact via social?• # of QUALIFIED LEADS• # of NEW CUSTOMERS• # of REPEAT CUSTOMERS• % of CONVERSIONSSocial Proof Examples:Star-ratings, reviews, user-sharedphotos/videos, # comments, # shares Image credit: http://j.mp/awarenessroi

GROW REVENUE - SOCIAL MEDIA
ROI CASE STUDY Cars.com Online ReviewsPages with reviews had:• 16% higher conversion rate• 100% more traffic driven to dealer sites Case Study: http://j.mp/carscomsmmroi

GROW REVENUE - SOCIAL MEDIA
ROI CASE STUDY CareOne Social Sales SupportCustomers coming through social channels:• 179% higher conversion rate to complete a consultation form• 732% higher rate of completed first payment Case Study: http://j.mp/careonesmmroi

REDUCE COSTS - SOCIAL METRICSQuantify
the equivalent value as if you had topay for these: How much• MEDIA VALUE would a photo/video – # of Website Visits (social referrals) shoot cost? – # of Online Mentions – # of Articles / Social PR – # of User-Shared Content (Photos, Videos, Testimonies)• WEB SELF-SERVICE• REQUIRED STAFF TO CUSTOMER RATI0

GROW REVENUE & REDUCE COSTS
- SOCIAL MEDIA ROI CASE STUDY Old Spice VideosCorrelation impact of social buzz:• 27% sales increase year on year (since original Mustafa campaign)• 55%-107% sales increase during the social media campaign Case Study: http://j.mp/oldspicesmmroi

SATISFACTION - SOCIAL METRICSSurvey users
for feedback and crunch LifetimeCustomer Value (LTV) numbers.• % of POSITIVE SENTIMENT IN MENTIONS• AVERAGE % of STAR-RATINGS (EACH LEVEL)• CUSTOMER SATISFACTION SCORE• % WHO FOUND WHAT THEY WERE SEEKING• LIKELIHOOD TO RECOMMEND %• # REPEAT WEB VISITS / WEB RECENCY Compute LTV with Avinash: http://j.mp/calculateltv

REDUCE COST & IMPROVE SATISFACTION
- SOCIAL MEDIA ROI CASE STUDYInfusionSoft Social Customer Service• 1:72 to 1:172 reduced agent to customer ratio• 10% higher customer satisfaction Case Study: http://j.mp/infusionsoftsmmroi

Multichannel canadd confusion...

Quantify "Social Attribution"• Web analytics
tracking• URL shortener (e.g. Bit.ly)• Social-specific promo codes• Third party tool analytics (e.g. Bazaarvoice)• Online surveys (e.g. Foresee, KISS Insights)• A/B tests• ASK the customer!

ACTION PLAN1. Assessment - Analyze
current state, include SWOT2. Strategy - Map out social media plan by scope3. Pitch - Present top ideas to IMF4. Prep - Secure resources, budget, tools, training, etc.5. Implement - Execute the plan (Abort if necessary)6. Review - Analyze activity & ROI using multiple metrics7. Optimize - Gathers insights and improve for the sequel

Only Its time for YOU
to lead20% of the way.marketers measuresocial media ROI. - eMarketer, 7 Guidelines of Achieving Social Media ROI, Feb 2010

KEY TAKEAWAYS• Define separate strategy
for each scope/dept• Set clear objectives before picking tactics• Select high-level annual goal KPIs (resilient to tactical changes)• Use cost-benefit analysis (CBA) for justification and comparison• Focus on measuring the 3 key objective buckets• Recalculate CBA and ROI after implementation

"The impossible can become possible,
IF... YOURE... AWESOME!" - Rhino [Disneys Movie, Bolt]

MISSION: Apply these tips and
share this presentation, so your social media initiatives dont self-destruct!

Agent Angie Schottmuller @aschottmuller QUESTIONS?