SoCon10 Social Media R O I

Measuring Social Media Return on Investment

An ATDC Case Study

Lance WeatherbyJanuary 30, 2010

a.k.a. WTF is SM ROI (and how can I get some)

Source: http://www.flickr.com/photos/ortizmj12/2337172670/

My professional life in logos

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It all started when I got a new boss

Source: unclaimed

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Let a thousand flowers bloom

Source: http://www.flickr.com/photos/9422878@N08/3422657452/

6Source: http://www.flickr.com/photos/golitlee/270342959/

Is marketing more art or math?

7Source: http://www.flickr.com/photos/renolauren/3594036809/

Focus on the dollars not the sexy stuff

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An ROI primer

Source: http://thebrandbuilder.wordpress.com/ (with modifications)

what marketers like to do

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ROI =

(gain from investment- cost of investment)

cost of investment

ROI equation

10Source: http://www.flickr.com/photos/71502646@N00/1075493242/

ROI = $$$

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Define goals

Source: http://www.flickr.com/photos/atomicshed/267682113/

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ATDC relaunch goals

New members

Increase our followers

Increase web traffic

Create buzz

Get companies to apply

Our launch materials

Relaunched on social media

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Buzz

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Pre Post Change

Web Traffic

Unique Visitors 622 1,736 179%

Page Views 2,263 5,205 130%

Social Network Counts

Facebook 64 117 83%

LinkedIn 259 292 13%

Twitter 5,260 5,475 4%

Total 5,583 5,884 5%

Twitter Reach

23,178 112,908 387%

Which created nice stats

17Source: http://www.flickr.com/photos/71502646@N00/1075493242/

None of which is ROI

18Source: http://www.flickr.com/photos/jcesar17/3209278158/

“You can’t measure social media ROI.”

Back to this

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Created system to measure ROI of campaign

Source: http://www.flickr.com/photos/findfado/3532978209/

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Source Number Sales LTV

Organic 36 $1,800 $5,400

Social Media 28 $3,350 $10,050

Traditional Media

2 $100 $300

Total 66 $5,250 $15,750

Campaign sales results

Sales: $50/base, $2000/resident

LTV: A simple life time value, average member stays 3 years

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Campaign took $1,600 in staff time

Source: http://www.flickr.com/photos/rdphotography/508194353/in/photostream/

($80 x 8 hours) + ($75 x 10 hours) + ($60 x 1 hour) + ($15 x 10 hours)

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ATDC relaunch numbers

28 new members from social media

followers up 5%web traffic up 130%

164 ATDC Mentions

272 application page views

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ROI =

(gain from investment- cost of investment) cost of investment

Back to that nasty ROI equation

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ROI = = 9% ($3,350 - $1,600)

$1600

ATDC’s social media campaign ROI

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I have a confession

Source: http://www.flickr.com/photos/haumont/4111669293/

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More interesting financial numbers

$14,150 net financial gain

$57.14 direct acquisition cost$79.55 average sale

$24.24 campaign customer acquisition cost

$15,750 projected sales

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Thank you

Lance Weatherby

[email protected]

@lance

blog.weatherby.net