Social Media and ROI: B2B Roundtable Slides Apr 24 2010

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Social Media and ROIDare We Talk About It?

B2B Social Media Roundtable

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With You Today

Email: andy.keith@webershandwick.com

Twitter: @andykeith

www.socialstudiesblog.com

Aaron Pearson

Email: apearson@webershandwick.com

Twitter: @apearson

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2 out of 3 respondents are measuring mar-com ROI

What you told us …

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More than 3 out of 4 are using social media to some extent

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Fewer than half are measuring ROI for social media

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All agree ROI measurement is important to some degree

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Biggest challenge: What to measure? Where to begin?

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Connecting the dots to results

“My favorite social media metrichas a dollar sign in front of it.”

-- Chris Brogan

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What Senior Marketers say vs what they actually measure

10 Slide 10 – March 23, 2010

2009/2010 = TRANSFORMATIONAL TIME

Economy : Cold Measurement : Hot

Critical to Measure What You Treasure

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Putting the data into context:An integrated measurement model

Source: Weber Shandwick Measurement & Strategy practice, “ARROW” measurement model

activities reach relevance outcomes worth

What activitieswere performed

to achieveresults?

Did you reachyour audience?

How manyimpressions,web visits,

reports,attendees, etc.

weregenerated?

Were yourelevant to youraudience? Were

you credible? Did your ideas and messages resonate? Did

you drive conversation?

What business results did you

achieve? Awareness?

Engagement?Reputation?

Leads? Sales? Loyalty?

Advocacy?

What is the estimated dollar

value of your communication efforts? What was the ROI?

Communications Team Marketing Team Executive Team

Quantity/Output Quality/Outtakes Business Impact Value/Efficiency

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What can we measure? What is most important?

Increase in Share of Voice Increase in positive sentiment

Increase in followers, fans or “Likes” for my Facebook page or Twitter profile

Click-throughs on a specific link

Views of a specific landing page, blog post or message

Qualified job candidates

Revenue generated

Cost per customer interaction (e.g. call center vs Twitter or other online channel)

Increase in time spent on site

Increase in site traffic

Customer retention rate / cost

Customer acquisition rate /cost

Leads generated

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What can we measure? What is most important?ROIPrecursors to ROI

• Revenue generated• Leads generated• Customer acquisition rate /cost• Customer retention rate / cost• Cost per customer interaction

(e.g. call center vs Twitter or other online channel)

• Increase in site traffic• Increase in time spent on site• Qualified job candidates• Views of a specific landing page,

blog post or message• Click-throughs on a specific link• Increase in followers, fans or

“Likes” for my Facebook page or Twitter profile

• Increase in positive sentiment• Increase in Share of Voice

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How can we measure it?

• Google Alerts• Blog searches (Google, Technorati, BlogPulse, IceRocket)• Track mentions in specific blogs via RSS feeds• TweetDeck, HootSuite, Seesmic or other tracking dashboard• Paid tools (Radian6, Nielsen BuzzMetrics, Sysomos)

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How to choose?

Know your target audience decision-making process flow

PROVING COMMUNICATIONS VALUE:FOCUS ON OUTCOMES

• Start by defining clear, precise, measurable goals• Even if you don’t think you can measure PR’s impact on the

outcome, start with the assumption that you can – and then work backwards to figure out how to measure it

– Anecdotal evidence– Data-based evidence– Correlation– Contribution– Causation

• Read and internalizeoutcomes definitionsfrom PRSA and IPR’sMeasurementCommission

Slide 16 -- March 23, 2010

http://comprehension.prsa.org/?p=628

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Two ways to look at ROI

• Online conversion, e.g. e-commerce sale, lead form, download of white paper

• Identifiable campaign or source tags used consistently in all links

• Tracking known customers and leads via Social CRM to determine if their activity is resulting in referrals, leads or sales

• Social media related questions in customer surveys

• Identify one or more ROI metrics– Increased Sales volume– Lower customer acquisition cost– Shortened sales cycle– Reduction on support cost

• Is there any correlation with increased social media activity?

– Increase in fans/followers– Increase in volume of interactions or

level of engagement– Increase in Share of Conversation

• Are there any other corollaries?

Direct Inferential

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What leads to “True ROI?”

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Is increase in online activity a precursor to corresponding change in sales volume or other ROI metric?

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Interacting with social brands strongly correlates to positive view

http://www.emarketer.com/Article.aspx?R=1007419