Learn how to plan, justify, and measure the value of your social media initiatives. (Presented at SES San Francisco, Aug 14, 2012 to the theme of Mission Impossible!)

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

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

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

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

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

7. 77% of businesses
lack sufficient resources
for social media.
Awareness Inc., State of Social Media Marketing, Jan 2012

8. 70% of businesses
plan to expand social
media presence in 2012.
Awareness Inc., State of Social Media Marketing, Jan 2012

9. 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

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

11. Who's feeling the pressure?
Yup.
Yeah!
BIG TIME.

12. So here's the plan:
q Clarify and align objectives/tactics
q Prioritize meaningful metrics
q Simplify measurement

13. Strategic Planning Process
1. Determine Scope WHO?
2. Gather Business Goals
3. Define Mission/Purpose WHY?
4. Set Goals
5. Define KPIs WHAT?
6. Choose Tactics
7. Define Metrics HOW?

14. Social Media <Scope> Strategic Plan 2012
MISSION GOALS TACTICS
WHY ARE WE WHAT DO WE WANT HOW WILL WE ACHIEVE
DOING 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>
A
ü <dept goal>
B C ü <Metric>
<TACTIC> ü <Metric>
ü <dept goal>
C <GOAL>
ü <dept goal>
D ü <Metric>
<TACTIC> ü <Metric>
KPI:

15. Step 1: Determine Scope
What 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

16. FOCUS.
You can only
wear one smart
lens at a time.

17. Step 2: Gather Business Goals
What are this year's [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

18. START Here:
80% of marketers
incorrectly begin
with tactics
instead of goals.
DO NOT START Here:
Image credit: Jay Baer - http://j.mp/socialmediagoalfunnel

20. Step 3: Define SM Mission/Purpose
Why are we bothering with social media?
(Specific to each scope)
MARKETING: (Example)
To build an army of advocates that
in turn help build and maintain the
brand's position.

21. Step 4: Set Goals
What 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>
A
ü <dept goal>
B
Note: Some <scope> goals
ü <dept goal>
C may NOT be relevant for
ü <dept goal>
D social media.

22. ALL time must be accounted for.
If what you're
working on doesn't
ABORT!
align to a goal.....
ABORT!

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

24. Step 5: Define KPIs
How will we measure goal success?
Examples:
OBJECTIVE KPI MEASUREMENT
Awareness % share of voice (SOV) for online mentions
Consideration # of total "social" interactions
Leads/Sales # of conversions driven from social media
Retention # of repeat blog visitors
Advocacy # of total positive mentions, reviews, or
UGC shares
Image credit: DragonSearch http://j.mp/awarenessroi

25. More KPIs...
OBJECTIVE KPI MEASUREMENT
Innovation $ saved or generated as a result of social
feedback
Market Research # of "focus groups" providing feedback
Customer # of social support inquiries resolved
Service
Social 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 that's most indicative of
progress for your organization's goals.

26. Social Media <Scope> Strategic Plan 2012
MISSION GOALS
WHY ARE WE WHAT DO WE WANT
DOING 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 trees
ü <dept goal>
C <GOAL> for each scope!
ü <dept goal>
D
KPI:

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

28. • b
Balance risks: resources, technology, timing...

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

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

31. Social Media <Scope> Strategic Plan 2012
MISSION GOALS TACTICS
WHY ARE WE WHAT DO WE WANT HOW WILL WE ACHIEVE
DOING 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>
A
ü <dept goal>
B C ü <Metric>
<TACTIC> ü <Metric>
ü <dept goal>
C <GOAL>
ü <Metric>
ü <dept goal>
D <TACTIC>
KPI: ü <Metric>

32. Calculations

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

35. Why Measure SMM?
1. Justification/Feasibility
2. Value-Basis for Comparing Tactics

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

37. 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

38. All that matters...
GROW REVENUE
IMPROVE
REDUCE COSTS SATISFACTION
Reference: Jim Sterne's book, Social Media Metrics

39. GROW REVENUE - SOCIAL METRICS
What can you impact via social?
• # of QUALIFIED LEADS
• # of NEW CUSTOMERS
• # of REPEAT CUSTOMERS
• % of CONVERSIONS
Social Proof Examples:
Star-ratings, reviews, user-shared
photos/videos, # comments, # shares
Image credit: http://j.mp/awarenessroi

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

41. GROW REVENUE - SOCIAL MEDIA ROI CASE STUDY
CareOne Social Sales Support
Customers 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

42. REDUCE COSTS - SOCIAL METRICS
Quantify the equivalent value as if you had to
pay 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

43. GROW REVENUE & REDUCE COSTS - SOCIAL MEDIA ROI CASE STUDY
Old Spice Videos
Correlation 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

44. SATISFACTION - SOCIAL METRICS
Survey users for feedback and crunch Lifetime
Customer 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

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

46. Multichannel can
add confusion...

47. 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!

48. ACTION PLAN
1. Assessment - Analyze current state, include SWOT
2. Strategy - Map out social media plan by scope
3. Pitch - Present top ideas to IMF
4. Prep - Secure resources, budget, tools, training, etc.
5. Implement - Execute the plan (Abort if necessary)
6. Review - Analyze activity & ROI using multiple metrics
7. Optimize - Gathers insights and improve for the sequel

49. Only It's time for
YOU to lead
20% of
the way.
marketers measure
social media ROI.
- eMarketer, 7 Guidelines of Achieving Social Media ROI, Feb 2010

50. 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

51. "The impossible can
become possible,
IF... YOU'RE...
AWESOME!"
- Rhino [Disney's Movie, Bolt]

53. MISSION: Apply these tips and share this
presentation, so your social media
initiatives don't self-destruct!

54. Agent Angie Schottmuller
@aschottmuller
QUESTIONS?