A great presentation done by JustinRamers

1. Measuring Social Media ROI
Justin Ramers
Director of Social Media

2. Agenda
• Social ROI Overview
• Getting Smart About ROI
• Identifying Key Metrics
• Determining Value
• Building Business Cases
•Q&A

3. Why are they doing it?
• Creating value by communicating
with customers
• Saving money over traditional
communication channels
• Able to demonstrate results
Skittles: 3,648,850 FB fans =
109,465,500 monthly impressions =
$547,327.50 monthly value created

4. Social ROI
If you don’t measure results, how can you know if
you are successful?

5. Blind Faith
• 84% of organizations do not
measure social media ROI
• Easiest to measure compared to
TV, newspaper, radio, etc.
• More than 40% of respondents
said they didn’t even know
whether they could track ROI
from their social tools
• Peer pressure: adopting
technology without knowing how it
will impact your business and
what value it will add

6. Why it’s Rare
• Marketers believe that measuring true
ROI for social media is difficult
• There are so many metrics available
that it is difficult to choose which ones
are the most important
• Marketers do not start with clear
objectives for using social media
• Emerging technology adds to confusion
and complexity

7. Case Study – Dell Outlet
“Our @DellOutlet (account) is now close to
1.5 million followers on Twitter... and (has) earned
$3 million in revenue. In total, Dell’s global reach on Twitter has
resulted in more than $6.5 million in revenue. In fact our
Brazilian and Canadian accounts are growing rapidly too – and it
was Canadian tweeters who asked to make sure Dell Canada
came online to Twitter. Dell Canada responded because the team
heard our customers. In less than a year, @DellnoBrasil has
already generated nearly $800,000 in product revenues.
Similarly, @DellHomeSalesCA has surpassed $150,000 and is
increasing at notable pace.”
Lionel Menchaca
Chief Blogger, Dell

8. Getting Smart About ROI
Social Media is a communications vehicle

9. Getting Smart About ROI
• You have many tools available to
communicate with users:
• Phone
• Direct Mail
• Direct Email
• Newsletters
• Social Media
It’s important to measure the ROI of
campaigns, not tools

10. Getting Smart About ROI
The S.M.A.R.T. approach to Social ROI
Credit: Garry Przyklenk

11. Get SMART
• Socialize
•M
•A
•R
•T
Engage & interact with your customers through
social media channels. Create conversations
around your programs or services.
Credit: Garry Przyklenk

12. Get SMART
• Socialize
• Monitor
•A
•R
•T
Listen to multiple sources & monitor the
conversations around your brand. Understand
the customer sentiment.
Credit: Garry Przyklenk

13. Get SMART
• Socialize
• Monitor
• Analyze
•R
•T
Analyze your social traffic using free or paid
tools. Quantify the impact of your efforts and
identify key trends.
Credit: Garry Przyklenk

14. Get SMART
• Socialize
• Monitor
• Analyze
• Report
•T
Report on real metrics like revenue,
registrations, referrals and calculate ROI.
Credit: Garry Przyklenk

15. Get SMART
• Socialize
• Monitor
• Analyze
• Report
• Target
Continually refocus your efforts based on the
data and insights from the previous steps.
Credit: Garry Przyklenk

16. Get SMART
• Socialize – Post regularly through FB, blogs & newsletters
• Monitor – Use Twitter search to listen to the conversation
• Analyze – Check number of clicks with Google Analytics
• Report – Crunch numbers to see how results are paying off
• Target – Try a new content strategy, or more of what’s working
Rinse and repeat
Credit: Garry Przyklenk

17. Identifying Key Metrics
Figure out the things that provide real value to
your business.

18. Sample Metrics
• Total network size/subscriber base
• Website visits
• Orders/transactions
• # Registrations for an activity/program
• # Memberships (new, renewals)
• # Facility rentals
• Growth in newsletter list
• Customer support resolutions
• Fundraising goals

19. Social Metric Confusion
engagement - sentiment – reputation – differentiation –
interaction - risk reduction – client retention – branding –
perception shifting – exposure – customer satisfaction – trust
building – social impressions – viral coefficient

20. Active’s Key Metrics
• Grow total network size
• Drive incremental visits
• Drive incremental conversions
Focus on what’s most
Important to your business

21. Active’s Challenges
• Aggressively leverage social media
without any proven results or
case studies
• Get buy-in from upper management
• Quickly illustrate value
• Prove that model is scalable
• Make case for budget that doesn’t exist
• Understand what resonates with our
audience and what doesn’t
• Demonstrate actual value, not theoretical

22. Measuring Results
• Unique tracking code appended
to every social media post
• Facebook provides impression
counts for each post
• We can then track number of
views & number of clicks for each
post
• Clicks/impressions = CTR (click
through rate)
http://www.active.com/fitness/Articles/The_Best_and_Worst_
Exercises_for_Bad_Knees.htm?cmp=16-5195

23. Measuring Results
Visit Subsequent
User Clicks
Registered Actions are
on Link
in Analytics Tracked
• Facebook tells us how many times a message was viewed
• Analytics package tells us how many times a message was
clicked
• You can track any online actions through campaign codes
• Registrations, Email signups, form submits, new accounts
• Some development work is required for conversion tracking

24. Determining Value
• Assign values to each key metric
• Use real money values; estimate if need be
• Start at the end & work backwards
• Determine value independently for each
channel
• Roll up channel data to see the global picture
124 (# Registrations) * $5 (avg Registration Value) =
$620 in registration value created

25. Calculate Value per Unit (Advanced)
• Calculate total value created for each
channel based on values assigned to each
key metric
• Calculate the total subscriber count for each
channel
• Divide value created by subscriber count to
determine value/subscriber
• Calculate each month and compare data
(Value created) / (# Subscribers) = Value/Subscriber
$18,429 / 160,787 = $0.11

26. Social Media Channel Profile
Active.com
267,907 Fans (as of Jul 1, 2010)
Active.com is the leading online community for people who want to discover, learn about,
share, register for and ultimately participate in activities about which they are passionate.
Key Metrics Jan Feb Mar Apr May Jun
Network Size 53,325 62,688 96,054 111,840 123,381 137,907
Visits 71,134 81,249 155,748 130,137 160,028 162,001
Visits/Fan 1.33 1.30 1.62 1.16 1.30 1.17
Revenue/Fan $0.10 $0.14 $0.09 $0.05 $0.10 $0.09

27. Building Business Cases
• Provide market insight & relevant
case studies
• Project short & long term impact with
trending data
• Use real data to validate hypotheses
• Illustrate impact to the bottom line
• Justify increased development efforts

28. Social Sharing Analysis
Social Sharing Transactions per Day
• Facebook product changes (red arrows)
can greatly impact results: Averages Jul Aug 1-15 Aug 16-31 Sep 1-21 Sep 22-30
– Introduction of Places (8/15) added Likes/day 844 1,045 1,153 1,296 1,187
greater prominence of Likes Visits/day 1,822 2,056 2,718 2,774 1,997
– Introduction of Groups (9/21) Transactions/day 44 78 321 450 188
reduced prominence of Likes Value/Like $0.29 $0.44 $1.62 $2.03 $0.92
• Seasonality may also be reducing
number of Likes into October

29. What Active Has Been Able to Accomplish
• Illustrate the positive impact of efforts
• Get approval for more budget to increase scale
• Evaluate the value of each marketing
channel individually and succinctly
• Understand what resonates with our audience
• Know where to allocate resources
• Try virtually anything as long as results are
measured

30. Resources
• Link shortening/tracking: http://www.bit.ly
• Post scheduling: HootSuite (http://www.hootsuite.com)
• Social monitoring:
• Google Alerts (http://www.google.com/alerts)
• Twitter Search (http://search.twitter.com)
• Analytics packages: Google Analytics
(http://www.google.com/analytics)
• Engagement: Facebook Insights

31. Questions
@activenetwork
If you have additional questions, please Email them to:
Marketing.Global@ActiveNetwork.com

32. Thank You for Attending!
Marketing.Global@ActiveNetwork.com