May 2, 2012 - BUS 450

1. ROI ON SOCIAL MEDIA
what seems intangible can be measured
Celeste Jhala,
Kim Nguyen-Don
Liam Ponton
Tink Newman

2. What is the definition of ROI?
Distinctions of ROI in Social Media
Types of Returns for SM
Calculating ROI
Social Media Spend (SMS)
mapping through uncharted space
Defining Value
ROI for Adaptive Sliding Canada
Conclusion
References
AGENDA

3. DEFINITION
making the new frontier less nebulous
Traditional
The ratio of money gained or lost on an
investment relative to the amount of money
invested
Context of social media
Value gained relative to the resources invested

4. Creating Successful Return
audience/content balance,
establishing clear goals,
listening online,
finding a unique voice,
producing compelling content,
and evaluating performance regularly
DISTINCTION
Setting the right course
Creating vs. Measuring Return
"In order to get a return, you
must first make the right
investment"

5. 5 TYPES OF RETURNS
searching for meaningful information
1. Tangible returns
2. Community Building
3. Lead Generation
4. Brand Equity
5. Process Efficiency

6. Products
clothes, food, electronics
Donations
money, non-perishable food, baby
products
1. TANGIBLE RETURNS
Measuring what you find

7. 2. COMMUNITY BUILDING
the world watches in expectation
intangible return
humanistic
customer loyalty
trust
relationship building
impressions
Focusing on:
who you want to nuture
the problems they face
their top priorities
their worries
how to deliver message to them
How should we:
reccommend actions
demonstrate the product or service
identifying incentives

8. 1. Conversation not campaign
2. Sales & Marketing as a team
3. An ideal customer profile
4. A universal lead definition
5. An effective lead management
process
6. A Foundational database
7. Integrated multi-modal tactics
8. Consistent lead nurturing
3. LEAD GENERATION
exploring new corners of our universe

9. 4. BRAND MANAGEMENT
representing your cause with reliability
1. Tangible and intangible characteristics
2. Supports and maintains the constructed
brand identity
3. Create a sense of trust between the
company and its patrons
4. ompanies must uphold what is known as
‘culture of transparency’

10. 5. PROCESS EFFICIENCY
Some maintenance required
Collaborative Process: (Dell IdeaStorm)
-collecting feedback and using it to tweak
process designs
Process Discovery and Analysis: (IBM)
- key stakeholders & customers are
drawn into the communication loop
Real-time Monitoring: (Translink)
-Companies embed social systems to
monitor their business in real time
-replacing the ‘snail mail’ system
Satisfaction Updates: (Telus)
-Users can have a multi faceted
connection with product/service providers
ensuring enhanced satisfaction

11. CALULATING ROI
using tools for new discoveries
Measuring our ROI for 2 weeks
1. Calculate how much money you spent
on social media
2. Calculate your social media returns
ROI = Investment Return – Social Media
Spend / Social Media Spend

12. How much money/time you are
spending on social media
Example: Adaptive Sliding
Invest $20/hr on social media
SMS = $20/hr x 1 hr/day x 7
days/week x 2 weeks
SMS = $280
SOCIAL MEDIA SPEND
so many opportunities - only so many hours

13. CUSTOMER LIFETIME VALUE
the lasting impact
How much a customer is worth
(the contributors, evangelists)
Example: Adaptive Sliding
Customer = $50
CLV = $50 x (12 Facebook contributors + 27 Twitter contributors)
CLV = $1,950

14. NEW CUSTOMER VALUE
finding territories that have benefit
How much a new customer is worth (Twitter
followers, Facebook likes, non-contributors)
Example: Adaptive Sliding
Customer = $10
NCV = $10 x (144 Twitter followers + 45 FB
likes)
NCV= $1,890

15. How much you are
saving by using
social media?
Example: Adaptive
Sliding
Customer Service
Value
CSV = $10 x (144
Twitter followers + 45
FB likes)
CSV= $1,890
NCV = $100
NCV= $100
CUSTOMER SERVICE VALUE
without it - all else fails

16. IMPRESSION VALUE
if there is nothing to learn - why come back?
Example: Adaptive Sliding
Impressions = $1/customer
[(Facebook + Twitter
followers)
x 5]/100 x $1
IV = (189/100) x 1
IV = 9.45

17. ADAPTIVE SLIDING CANADA
observing and connecting with others
ROI = Investment Return ( 2944.5) – Social Media Spend
(number of hours spent on SM (280)) / Social Media Spend
(Total number of hours spent on SM (280))
*Investment Return (IR) = (50/10 x Number of New Customers (189)) + Impression Value (9.45) + Customer Value
Via Social (1890) + New customer value (100)
Investment Return (IR) = 2944.5
Adaptive sliding ROI ($) = 9.5:1

18. Importance of defining the
desired return from social
media activities
Calculating ROI on social
media is possible and
relevant.
CONCLUSIONS
profitting at the end of the day

19. REFERENCES
Brito, M. (2011). Using Social Media to Solicit Product Feedback and Innovation. Retrieved
March 10, 2012 from: http://www.informit.com/articles/article.aspx?p=1736042&seqNum=3
Chandler, S. (2011). Social BPM: Gateway to Enhanced Process Efficiency. Retrieved March
10th 2012 from:
http://www.virtusa.com/blog/index.php/2011/11/social-bpmgateway-to-enhanced-process-efficiency/
Carroll, Brian. (2006). Eight Critial Success Factors for Lead Generation. Retrieved March 18,
2012 from http://www.startwithalead.com/article.asp?ARTICLEID=256
Harr, E. (2012). 5 Simple Steps to Measure Social Media ROI. Retrieved March 16, 2012 from
http://socialmediatoday.com/node/463590
Hibbard, C. (2010). How IBM Uses Social Media to Spur Employee Innovation. Retrieved
March 10, 2012 from: http://www.socialmediaexaminer.com/how-ibm-uses-social-mediato-spur-employee-innovation/
SIFE Hunger Army. (2012). #SIFEHungerArmy. Retrived from March 14, 2012 from
https://twitter.com/#!/SIFEHungerArmy
Social Shopper. (2012). Social Shopper Vancouver. Retrieved from March 15, 2012 from
http://www.socialshopper.com/vancouver
Strella, R. (2012). Steps to Achieving Social Media ROI. Retrieved March 13, 2012 from
http://socialmediatoday.com/rachel-strella/467568/makingright-investment-achieve-social-media-roi
The Jersey Score. (2012). Jersey Score. Retrieved from March 15, 2012 from
https://twitter.com/#!/thejerseyscore
The Salvation Army. (2012). The Salvation Army. Retrieved from March 16, 2012 from
https://twitter.com/#!/salvationarmy
Wink Beauty Lounge. (2012). Products. Retrieved from March 13, 2012 from
http://winkbeautylounge.com/promos-packages/products/
Wink Beauty Lounge. (2012). Wink Beauty GroupInc. Retrieved March 13, 2012 from
https://twitter.com/#!/Winkbeauty