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!)
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
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
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
19.
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!
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?
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>
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]
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
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]
52.
53. MISSION: Apply these tips and share this
presentation, so your social media
initiatives don't self-destruct!