Heligonix roi

We teach companies to build loyal and profitable customer communities.

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EDC Marketing Campaigns

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What is YOUR investment worth? Exploring ROI

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Is it Return on Investment

Or

Risk of Inaction?

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COST OF INVESTMENT

(GAIN FROM INVESTMENT - COST OF INVESTMENT)ROI =

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A. Revenue B. Costs Avoided

Anything that leads to A or B,But only if you can directly equate its

value to an action

Types of Financial Impact

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These are NOT ROI

Website Visitors

Click-throughs

Store visits

Press coverage

“Buzz”Employment applications

Retweets

FaceBook friends

Blog comments

Video views

Twitter followers

Impressions

Friends

But if you can quantify their financial impact,

you have ROI!

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Historical Metrics

Excellent CRM Tools and Practices

Clearly Understood and Applied Web Analytics

What You Need

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Lifetime Value of a Customer = (Longevity * Revenue) * Margin

Basic Business Metrics

Value of a Lead/Visitor = Visitor * Conversion Rate * Lifetime Value

Conversion Rate = New Customers

Visits/Leads

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If a typical customer spends $10,000/year with you

And the customer is with you for five years

Your profit margin is 10%

Lifetime value of a customer is($10,000 * 5) * .1 = $5,000

Let’s Make It Real

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Must be used by everyone who touches the customer

Must document online, offline and landline communications

Must span the engagement lifecycle

Must enable segmentation and grouping

CRM Essentials

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Must track individual visitors

You must use them

Must document paths to desired destinations

Must identify referring sources

Web Analytics

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Monthly Visitors

Conversation Rate

Lifetime Value

Calculation

Value of a Visitor

10,000

.5%

$5,000

$25

10,000 x .005 x 5,000

10,000

Applying ROI: Value of a Visitor

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Value of a Blog

Monthly Search Traffic

Estimated Traffic w/Blog

Value of a Visitor

Monthly Value of a Blog

Monthly Blog Expense

3,000

4,000

$25

$25,000

$6,000

316%ROI ( )

$25,000-$6,000$6,000

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Value of a Tweet

You send 50 tweets a month… Generating 1,000 visitors to your

website… 2% of whom become leads… 5% of whom become customers.

Therefore, the value of a tweet is:

(1,000 * .02 * .05 * 5000)/50 = $100

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Year Item Annual Cumulative

1

Forum Administrative costs $ 35,000 $

35,000

Savings $ 70,000 $

70,000 ROI 100% 100%

2


52,500

Savings $ 105,000 $

175,000 ROI 500% 233%

3


59,500

Savings $ 140,000 $

315,000 ROI 1900% 429%

You want to launch a customer support forum to reduce your costs of telephone supportEstimated admin costs: ½ FTE yr 1, ¼ FTE yr 2 1/10 FTE yr 3Estimated savings: 1 FTE yr 1, 1.5 FTE yr 2, 2 FTE yr 3

Cumulative ROI: the eye chart

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If You Can Measure It, You Can Calculate Its ROI

Lift Studies

Store visits

Headline Counts

Employment applications

Speaking Invitations

Net Promoter Score

Coupons redeemed

Measuring the Immeasurable

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Thank you Paul Gillin

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Thank You