Beyond Vanity: Concrete Business Metrics You Can Use
Jason Lauritzen, Social Media Program Manager, Houston Methodist
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@jasonlauritzen
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Mad Men tactics are far from gone. Don Drapers exist and that’s a big problem.
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@jasonlauritzen
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@jasonlauritzen
That bacon meme I posted got 500 likes!
Aww …. Yeah!
Traditional definitions of social media success:• Facebook likes• Retweets• +1s• Repins• Comments• Shares• Impressions
These vanity metrics have deficiencies:• They estimate reach and engagement
and little else*• They create a false sense of business
success since they have a number and are generated in real-time
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@jasonlauritzenAll our success metrics share a common theme:
Increase revenue Reduce costs
Metrics we look at to assess those two areas:• ROI (net dollar)• Ad spend efficiency (ROI as percentage)• Customer service cost savings• Lead value• Donations
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@jasonlauritzen
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Leads are considered patient info. If there aren’t entered correctly, they can’t be changed.
The lead-to-conversion time can be lengthy, e.g., 6 months or more, and insurance and similar factors can erode contribution margin.
Let’s talk about our funnel:
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@jasonlauritzenBy using that process, we can take a campaign like this:
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@jasonlauritzenAnd generate actionable reporting like this:
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Trackable leads allow quarterly ROI reports:
@jasonlauritzen
That number helps calculate aggregate ad spend efficiency:
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By getting the following quarterly data from our databases:• Average contribution margin (CM)• Referrals via word of mouth (WOM)• Profit margin (PM)• Conversion rate (CR)
We can then calculate lead value using this formula:
CM x PM x CR x WOM
@jasonlauritzen
To generate lead value reports to fill in the gaps due to misattribution:
Lead value x social conversion rate = Value per click
Want to know if you’re spending too much on paid engagements?
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How do we calculate cost savings? @jasonlauritzen
1 2 3We crunch customer lifetime value (LTV) to get revenue projections.
We put the content label “Customer-Save” on 180s or wins.
We take LTV and multiply it by the number of saves to get our social cost savings.
