Social Marketing ROI - bullshit & reality

Social Marketing ROI:Bullshit & Reality

@thefrenchflo

Majority of the companies on the Belgian Market

Big Multinationals Small & Medium Companies

Big Marketing Budget Limited Marketing Budget

Innovation Budget No Innovation Budget

Failure is an option Failure is NOT an option

Majority of the cases in Social Marketing

Conferences

Daring Advertisers Cautious Advertisers

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What the cautious advertiser perceives as

Bullshit and what makes him want to Try

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The Cautious AdvertiserLimited budget

JustificationPlaying his head

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He wants to hear about true ROI

5 years oldStill not applied

ROI

MONEY OUT vs MONEY IN

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What he is usualy told OUR BEST POST EVER WAS ”CLICK ON LIKE IF YOU LIKE US”!

WE MANAGED TO HAVE

25% MORE FANS THAN OUR MAIN COMPETITOR!

3.5 RESHARE PER POST!

WE CREATED BUZZ!

150.000 VIDEO VIEWS!!

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SOCIAL ROI

Rule 1 ofSOCIAL ROI:

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What you shouldn’t say to him

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More Likes = More Clients

16.212.370 fans779.041 fans

7.300 cars sold in 20151.800.000 cars sold in 2015

Revenue 2015: 45 billion € Revenue 2015: 3 billion €

x20

x246

x15

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More Likes = More Clients

1.498.906 fans3.129.481

51% under 1832% under 18

Not responsible for the household shopping

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Brand Visibility Through Video

Video marked as read after 3 seconds

Autoplay

85% of videos are seen without sound

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The value of a fan

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The value of a fanExemple FMCG

Average Basket of Client: 52€

23% Of Opt-ins become clients

28% of Fans subscribe to the newsletter

3,34€

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... And it is the same for Social Media Marketing.

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For the cautious advertiser, you’re supposed to be a Social MediaMarketingElton John

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The Cautious Advertiser

@thefrenchflo

Increasing social cases with small and medium

companies

Social Agencies Marketing Agencies

Young Old

First on Social Late on Social

Sexy NOT sexy

Majority of the cases in Social Marketing

Conferences

Innovation Expert Integration Expert

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3 Unsexy Tools…

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…that make the cautious advertiser confident.

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3 Unsexy Tools adapted for Social

Social Ids

Social Data

Social Interactions

Social Links

SOCIAL CRM

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3 Unsexy Tools adapted for SocialSOCIAL CRM

% %%

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3 Unsexy Tools adapted for Social

000 001

010

011

110

111

101100

Bitmap Activity of the last 3 years% of each transitionBasket value of each categorySplit Social/ non Social activity

40%

60%

52€ 61€

@thefrenchflo

ROI=number ofCUSTOMERS

Average yearlyBASKET

MarketingCOSTS

years ofACTIVITYx x( ) -[ ]

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ROI=number ofCUSTOMERS

Average yearlyBASKET

MarketingCOSTS

Increase Increase Increase DecreaseRecruitment

Retention Upsellcross-sell

MarketingOptimization

years ofACTIVITYx x( ) -[ ]

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What you should say to him

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In a Recruitment context

Display

Play videoLike postLike page

ShareClick

…

ignore

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In a Recruitment context

Display

Click

Opt-InOrder

58,17€

6,81%

9,09%

Example

001

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In a Recruitment contextFixed Costs650€ Campaign management250€ Material Creation

Campaign Results12.222 clicks0,22€/click

Final Costs650 + 250 + 0,22 x 12.222 = 3.588.84€

Extrapolation12.222 Clicks832 opt-ins

76 new clients

Revenue 4.401.01€

ROI = Revenue – Cost = + 812.17€ = + 0.22€ / 1€

58,17€

6,81%

9,09%

Example

001

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In a Retention context

000 001

010

011

110

111

101100

@thefrenchflo

In a Retention context

000 001

010

011

110

111

101100

@thefrenchflo

In a Retention context

000 001

010

011

110

111

101100

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In a Retention contextAfterBefore

000 001

010

011

110

111

101100

000 001

010

011

110

111

101100

@thefrenchflo

In a Retention contextAfterBefore

000 001

010

011

110

111

101100

000 001

010

011

110

111

101100

24%

76%

21,1% - 27,2% - 23,7% - 24,5% -23,9%

9.110

Example: e-commerce

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In a Retention contextAfterBefore

000 001

010

011

110

111

101100

000 001

010

011

110

111

101100

24%

76%

35%

65%

9.110 3.188Expected: 2.186 Expected: 2.18682,23€ 84,01€

Example: e-commerce

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In a Retention contextAfter

000 001

010

011

110

111

101100

35%

65%

3.188Expected: 2.186 84,01€

Fixed Costs60.000€ Community Managers 8.650€ vouchers/gifts/…

Increase in Retention1.002 personWith an average basket of 84,01€

Extra Revenue generated1.002 x 84,01 = 84.178,02 €

ROI = Revenue – Cost = 84.178,02 – 68.650= + 15.528,02€= + 0.23€ / 1€

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In an Upsell context

Social Ids

Social Data

Social Interactions

Social Links

SOCIAL CRM

@thefrenchflo

In an Upsell context

Social Ids

Social Data

Social Interactions

Social Links

SOCIAL CRM

@thefrenchflo

In an Upsell contextWith social interaction

000 001

010

011

110

111

101100

Without social interaction

Global

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In an Upsell contextWith social interaction

000 001

010

011

110

111

101100

Without social interaction

Global

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In an Upsell contextExample: Retail

Bought in last 6 months

Custom audience

1 product per week26 weeks

60% match

101€

91€ 1,4 order / customer

1,6 order / customer3.681

2.189

1.492

Fixed Costs5.500€ Community Managers (timesheet)

6.500€ Creatives2.276€ Facebook Ads (CPC model)

Extra Revenue generated2.189 x (101-91) = 21.890,00 €

ROI = Revenue – Cost = 21.890 – 14.276= + 7.614€= + 0.53€ / 1€

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Current Marketing Mix

Average Basket% Conversion Opt-in ClientCost per SalesCost per Opt inCost per ClickCost per impression

In a Marketing Optimization context

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In a Marketing Optimization context

IntroducingSocial Mediaas a way toreduce cost…

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In a Marketing Optimization context

… and increase performance at the same time

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Cost per Active Lead(subscribed to the newsletter, still active 3 months later)

In a Marketing Optimization contextExample: Client FMCG

16€

6€

4€

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Case: Permesso Permesso Turbo

Email Prospection Email + Facebook Prospection

0,15€

1€6,67€

11,11€

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We choose, together with you,

the best possible target among

an audience of 500.000 people

in Permesso

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We send them an email

containing your message

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After one week, we detect who

reacted the best to your email

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We find similar profiles among

Facebook audience

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We create the Facebook

campaign that will amplify your

message

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We provide you an integrated

and in-depth reporting of your

whole campaign

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150€ = 1000 email sent

0,15€

1€

6,67€

11,11€

1000

150

22

13

150€ = 500 email sent + 75€ on Facebook

1,35€

5,60€

500

150+ads

111

27

CPC / 5CPL / 2

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ConclusionROI, ROI EVERYWHERE

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SOCIAL MEDIA ROI IS REAL, I SAW IT.

@thefrenchflo

@thefrenchfloFlorent.diverchy@bisnode.be

Social MediaMarketing

BringsTrue ROI.

Let’s spread the word!

Need boring tools to prove your social efforts?

@thefrenchflo