Social media roi_draft

Social MediaSocial Media ROI ROIManaging and Managing and

Measuring Social Media Measuring Social Media Efforts in Your Efforts in Your OrganizationOrganization

Presented By:Presented By:Jake HartvigsenJake HartvigsenDominica SliwaDominica Sliwa

Presentation OverviewPresentation Overview

• About the Author 

• Introductory exercise

• Social Media Program Development

• Integrating Social Media into your Organization

• Social Media and Brand Management

• Measuring Social Media ROI

Olivier BlanchardOlivier Blanchard• BA degree from Furman UniversityBA degree from Furman University• Principal@BrandBuilderPrincipal@BrandBuilder        MarketingMarketing• President@Red Chair GroupPresident@Red Chair Group•   Author of The BrandBuilderAuthor of The BrandBuilder          Blog Blog • Twitter: TheBrandBuilder Twitter: TheBrandBuilder 

>37,400 followers>37,400 followers

OlivierOlivier BlanchardBlanchard• Specialities:Specialities:

oReputation ManagementReputation ManagementoConsumer/Brand Insights ManagementConsumer/Brand Insights ManagementoSocial Media Program ManagementSocial Media Program ManagementoMarketing StrategyMarketing StrategyoCorporate & Marketing Communications Corporate & Marketing Communications

ManagementManagement

Social Media Program Social Media Program DevelopmentDevelopment

Getting StartedGetting Started

Evolution of Brand Evolution of Brand CommunicationsCommunications

• Vertical Engagement: One-DirectionalVertical Engagement: One-DirectionaloOrganizations crafted a message, Organizations crafted a message,

packaged it, and pushed it out to its packaged it, and pushed it out to its audienceaudience

• Vertical Engagement: Two-DirectionalVertical Engagement: Two-Directionalo Internet allowed for blogs and Internet allowed for blogs and

comments on digital contentcomments on digital content• Lateral EngagementLateral Engagement

oPeer-to-Peer networks in which users Peer-to-Peer networks in which users create/share content at willcreate/share content at will

Advantages of Lateral Advantages of Lateral EngagementEngagement

• Word-of-Mouth gets more recognition in Word-of-Mouth gets more recognition in comparison to adscomparison to ads

• Social media multiplies the velocity and Social media multiplies the velocity and reachreach

• No geographic barriersNo geographic barriers• Less costlyLess costly

Top Five Business Functions Top Five Business Functions Enhanced by Social Media Enhanced by Social Media Profit-seeking businessesProfit-seeking businesses

• Sales DepSales DepartmentartmentoPromote special sales/offersPromote special sales/offers

• Customer supportCustomer supportoConstant real-time feedbackConstant real-time feedbackoAbility to respond in real timeAbility to respond in real time

• Human resourcesHuman resourcesoHiring practicesHiring practices

• Public relationsPublic relationso Impove reputationImpove reputation

• Business intelligenceBusiness intelligence

Top Five Business Functions Top Five Business Functions Enhanced by Social Media: Enhanced by Social Media: 

Non-ProfitsNon-Profits• OutcomesOutcomes

o Low-costLow-costoGlobal reachGlobal reach

• Member supportMember supporto Immediate feedbackImmediate feedback

• Human resourcesHuman resourcesoVolunteersVolunteers

• Public relationsPublic relations• Member loyaltyMember loyalty

Biggest Mistake inBiggest Mistake inSocial Media DevelopmentSocial Media Development

    Choosing the platform ahead Choosing the platform ahead 

before the purposebefore the purpose

Solution??Solution??  

Set Objectives FirstSet Objectives FirstThen Then 

Choose Platform to Meet Objectives Choose Platform to Meet Objectives

Keys for Setting ObjectivesKeys for Setting Objectives

• SpecificSpecifico Ask the 6 W'sAsk the 6 W's

• MeasurableMeasurableo What criteria do you have to reach your goals?What criteria do you have to reach your goals?

• AttainableAttainableo How to you plan on completing your objectives?How to you plan on completing your objectives?

• RealisticRealistico Is it possible to meet your objectives?Is it possible to meet your objectives?

• TimelinessTimelinesso What date are your objectives to be met? What date are your objectives to be met?

Integrating Social Integrating Social Media into Your Media into Your

OrganizationOrganizationPutting the Puzzle Pieces Putting the Puzzle Pieces

TogetherTogether

4 Phases of Social Media Adoption4 Phases of Social Media Adoption

1.1. Test AdoptionTest Adoption2.2. Focused AdoptionFocused Adoption3.3. Operational AdoptionOperational Adoption4.4. Operational IntegrationOperational Integration

Phase 1: Test AdoptionPhase 1: Test Adoption

• Official company accounts Official company accounts establishedestablished

• Junior member of staff Junior member of staff appointed to manage appointed to manage projectproject

• Efforts generally Efforts generally disconnected from business disconnected from business objectivesobjectives

Phase 2: Focused AdoptionPhase 2: Focused Adoption

• Key functions within Key functions within the organization begin the organization begin to use social mediato use social media

• Marketing and PR are Marketing and PR are typically early typically early adoptersadopters

• Cross departmental Cross departmental collaboration emergescollaboration emerges

Phase 3: Operational AdoptionPhase 3: Operational Adoption

• More departments come on boardMore departments come on board• Social media usage guidelines developedSocial media usage guidelines developed• Social media manager’s position upgraded to director Social media manager’s position upgraded to director

levellevel

Phase 4: Operational IntegrationPhase 4: Operational Integration

• Complete integration across the organizationComplete integration across the organization• Social media director’s position is upgraded to VP...Social media director’s position is upgraded to VP...• ...or eliminated...or eliminated

Choosing a Social Media Choosing a Social Media Management ModelManagement Model

• CentralizedCentralized• DecentralizedDecentralized• Both have advantages and disadvantagesBoth have advantages and disadvantages

Centralized ManagementCentralized ManagementAdvantagesAdvantages

• Full control over messagesFull control over messages• Full control over informationFull control over information• Full control over execution of the social media programFull control over execution of the social media program• Full control over contentFull control over content• Full control over data managementFull control over data management

Centralized ManagementCentralized ManagementDisadvantagesDisadvantages

• Program has to be built from scratchProgram has to be built from scratch• Program doesn’t scale wellProgram doesn’t scale well• Tendency to become bureaucraticTendency to become bureaucratic• Tone can become corporate rather than socialTone can become corporate rather than social

Decentralized ManagementDecentralized ManagementAdvantagesAdvantages

• Foundation already in placeFoundation already in place• Localized messages are faster and with deeper insightsLocalized messages are faster and with deeper insights• Competencies develop in areas with the most impactCompetencies develop in areas with the most impact

Decentralized ManagementDecentralized ManagementDisadvantagesDisadvantages

• Less control = greater riskLess control = greater risk• Collaboration is more difficultCollaboration is more difficult• Inconsistent messagesInconsistent messages• Personality issuesPersonality issues

Establishing Rules and GuidelinesEstablishing Rules and Guidelines

• GoalsGoalso Create framework of use, Create framework of use,

internal and externalinternal and externalo Clarify expectations of Clarify expectations of

employee behavior, in employee behavior, in office and at homeoffice and at home

o Create a resource for best Create a resource for best practicespractices

Ten important items to includeTen important items to include

1.1. Employee Bill of RightsEmployee Bill of Rights2.2. Internal GuidelinesInternal Guidelines3.3. External GuidelinesExternal Guidelines4.4. Employment DisclosureEmployment Disclosure5.5. Anti-Defamation GuidelinesAnti-Defamation Guidelines6.6. Confidentiality and Non-DisclosureConfidentiality and Non-Disclosure7.7. Official versus Personal CommunicationsOfficial versus Personal Communications8.8. Employee Digital Citizenship ContractEmployee Digital Citizenship Contract9.9. Training ResourcesTraining Resources10.10. Social Media Guidelines for Agency Partners Social Media Guidelines for Agency Partners

and Contractorsand Contractors

Social Media and Social Media and Brand ManagementBrand Management

Using Social Media to Your Using Social Media to Your AdvantageAdvantage

How Social Media has Changed How Social Media has Changed Brand CommunicationsBrand Communications

• Velocity has acceleratedVelocity has acceleratedo 10 years ago companies had 1-2 days to react10 years ago companies had 1-2 days to reacto Today, they have 10 minutesToday, they have 10 minutes

• Awareness is now active rather than passiveAwareness is now active rather than passive• Every employee is now your “brand”Every employee is now your “brand”• Tone and style are less corporate and more personalTone and style are less corporate and more personal• Trust is the keyTrust is the key

Key Elements to Social Media Key Elements to Social Media Brand StrategyBrand Strategy

• Listen before talkingListen before talking• Perform a social media audit (e.g, Perform a social media audit (e.g,

Google, Twitter, Facebook)Google, Twitter, Facebook)• Systematize monitoring (e.g., Systematize monitoring (e.g.,

HootSuite, Radian6)HootSuite, Radian6)• Answer questions, don’t sellAnswer questions, don’t sell• Ask customers for feedbackAsk customers for feedback• Shift from marketing to Shift from marketing to

communicationscommunications

Social Media Tools for Crisis Social Media Tools for Crisis ManagementManagement

• Acknowledge problem Acknowledge problem immediatelyimmediately

• Buy time with updatesBuy time with updates• Create channels for dialogueCreate channels for dialogue• Explain what you’re doing to Explain what you’re doing to

fix the problemfix the problem• Go interactive - make Go interactive - make

customers part of the solutioncustomers part of the solution• Follow up after the eventFollow up after the event

Social Media and Social Media and Conflict ResolutionConflict Resolution

• 9 Rules9 Rules1.1.The customer is always right -- even if he/she isn’tThe customer is always right -- even if he/she isn’t2.2.Treat every customer like royalty, regardless of how he/she Treat every customer like royalty, regardless of how he/she

behavesbehaves3.3.Unreasonable customers are not the enemyUnreasonable customers are not the enemy4.4.The most effective weapon against an angry customer is The most effective weapon against an angry customer is

calm demeanorcalm demeanor5.5.The most effective weapon against a rude customer is The most effective weapon against a rude customer is

politenesspoliteness6.6.Recruit customers into crafting the solutionRecruit customers into crafting the solution7.7.Never, ever, ever get sucked into an argument with a Never, ever, ever get sucked into an argument with a

customercustomer8.8.Don’t be afraid to apologize, even if you are in the rightDon’t be afraid to apologize, even if you are in the right9.9.If the customer makes an unreasonable request, explain If the customer makes an unreasonable request, explain

why you can’t do it and offer an alternativewhy you can’t do it and offer an alternative

Insourcing versus Outsourcing Insourcing versus Outsourcing Social MediaSocial Media

• Social media is generally best done in houseSocial media is generally best done in house• When is it okay to outsource?When is it okay to outsource?

o MonitoringMonitoringo MeasuringMeasuringo Campaign managementCampaign management

Measuring Social Measuring Social Media ROIMedia ROI

What's important to C-levelsWhat's important to C-levels

What is ROI?What is ROI?• Return on InvestmentReturn on Investment• ROI = (gain from investment – cost of ROI = (gain from investment – cost of

investment) / cost of investmentinvestment) / cost of investment• Expressed as a ratio, percentage, or a Expressed as a ratio, percentage, or a

relationship between investment and return.relationship between investment and return.o i.e. The ROI on the campaign was i.e. The ROI on the campaign was

167%167%oEvery resource you assign to a project Every resource you assign to a project

has a monetary valuehas a monetary value

Tying Social Media to the P&L Tying Social Media to the P&L

• Show that it supports business objectivesShow that it supports business objectives• Show how it helps drive business growthShow how it helps drive business growth• Track sales derived from promo codes Track sales derived from promo codes

and linksand links

How to Measure ROI?How to Measure ROI?• Step 1: Establish a BaselineStep 1: Establish a Baseline

oBaselines illustrate deltasBaselines illustrate deltas

• Step 2: Create Activity TimelinesStep 2: Create Activity Timelineso Information compiled by all departmentsInformation compiled by all departmentsoOne custodian to gather informationOne custodian to gather information

How to Measure ROI?How to Measure ROI?• Step 2: Create Activity TimelinesStep 2: Create Activity Timelines

o Information compiled by all departmentsInformation compiled by all departmentsoOne custodian to gather informationOne custodian to gather information

How to Measure ROI?How to Measure ROI?• Step 3: Monitor the Volume of MentionsStep 3: Monitor the Volume of Mentions

oMeasure the volume of mentions around Measure the volume of mentions around your company or brandyour company or brand

oMeasure the mix of sentiment from Measure the mix of sentiment from these mentionsthese mentions

oUse of automated sentiment analysisUse of automated sentiment analysis

How to Measure ROI?How to Measure ROI?• Step 4: Measure Transactional Step 4: Measure Transactional

PrecursorsPrecursorso F.R.Y.F.R.Y.o # of Twitter followers# of Twitter followerso # of comments per day# of comments per dayo # of Facebook fans# of Facebook fansoNet negative mentions across channelsNet negative mentions across channelsoNet online transactionsNet online transactionsoBrick & Mortor store trafficBrick & Mortor store traffic

How to Measure ROI?How to Measure ROI?• Step 5: Look at Transactional Data Step 5: Look at Transactional Data

(Sales Volume)(Sales Volume)o Total sales volume has increased by XTotal sales volume has increased by X

%, the net number of transactions has %, the net number of transactions has increased by Y%.increased by Y%.

Are loyal customers spending more money Are loyal customers spending more money per transactions than before?per transactions than before?

How to Measure ROI?How to Measure ROI?• Step 6: Overlay All Step 6: Overlay All

Your Data onto a Your Data onto a Single TimelineSingle Timelineo Activities, social Activities, social

data, web data, data, web data, loyalty metrics, loyalty metrics, nontransactional nontransactional data, data, transactional/financitransactional/financial outcome dataal outcome data

How to Measure ROI?How to Measure ROI?• Step 7: Look for PatternsStep 7: Look for Patterns

How to Measure ROI?How to Measure ROI?• Step 8: Prove/Disprove RelationshipsStep 8: Prove/Disprove Relationships

How to Increase SHow to Increase Sales?ales?• FrequencyFrequency

• The Buy RateThe Buy Rate• Transactional - how often someone Transactional - how often someone

transacts with your companytransacts with your company• Interactional - does the # of interactions Interactional - does the # of interactions

increase the frequency of transactions?increase the frequency of transactions?oCan use social media to increase # of Can use social media to increase # of

interactionsinteractions  

How to Increase Sales?How to Increase Sales?• Reach:Reach:

• Net new customersNet new customers• Effective reach = 100% conversionEffective reach = 100% conversion• Separate customers into groupsSeparate customers into groups

oCalculate avg. frequency of Calculate avg. frequency of transacting customer.  Expand x3transacting customer.  Expand x3

oNet new transacting customer = Net new transacting customer = revenue increasesrevenue increases

How to Increase Sales?How to Increase Sales?• Yield:Yield:

• Average sales per transactionsAverage sales per transactions• Objective - increase in revenue that outpaces Objective - increase in revenue that outpaces

increase in # of transactionsincrease in # of transactions• Ways in increase yield:Ways in increase yield:

oRaise pricesRaise pricesDo not do this is inelastic industryDo not do this is inelastic industry

oBuild value, reduce upgrade barrier, & give Build value, reduce upgrade barrier, & give the customers a little pushthe customers a little push

• How to track increase in yield:How to track increase in yield:opromotional codespromotional codes

ConclusionConclusion• Know what your company's objectives Know what your company's objectives

areare• Prove how social media can improve Prove how social media can improve

your organization meet these your organization meet these objectivesobjectives

• Use what you know to make your Use what you know to make your company bettercompany better