This presentation outlines a five-step approach to measuring Facebook marketing ROI, and a two-step approach to measuring Twitter marketing ROI.

1. An ROI approach
to Facebook & Twitter

2. Agenda
Neolane confidentialCopyright Neolane - 2012 2
The Neolane Social Marketing ROI
approach for Facebook
The Neolane Social Marketing ROI
approach for Twitter

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ROI calculator's key measures
► ROI measures on Facebook
 Cost reductions of agency fees
 Conversion of fans into opt-in & monetizable contacts
 Qualification of already known contacts with rich social information
 Direct selling
 The reality check: post-acquisition buying behaviors
► ROI measures on Twitter
 Conversion of followers into opt-in & monetizable contacts through Direct
Messages
 Direct selling

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The Neolane Social Marketing ROI
approach for Facebook

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First ROI: Cost reductions of agency fees
How many internal and external resources do you spend for each
app you create and for Community Management (CM)?
1
Potential reduction:
$10,000 * 30% = $3,000 / month
ROI Value Justifications
External budget
you spend on agencies for social media today
per month
$10,000 A social campaign (competition, etc.) starts at
$5,000 but often costs a minimum of $10,000 to
$40,000
Expected budget decrease
by enabling CM to create simple & personalized
applications
30% Expect 40% decrease according to market
trends
Indirect ROI
Longer term benefits
• Connect to your communities needs and
wishes
• Create a social savvy and future proof
marketing team
• Provide personalized experience to fans
• Differentiate from competitors

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Second ROI: Conversion of fans into opt-in &
monetizable contacts
Do you launch targeted actions to transform fans into
addressable contacts in your datamart?
2
ROI Value Justifications
Value of a qualified email address $2 Depending on verticals, this can go from $1 to $100+
Monthly profile acquisition
volume via Facebook apps
Apps can be page tab apps, canvas
apps, socialized landing page or
social login
30,000 Monthly profile acquisition rate of a Facebook apps can go from 0.5 -
10%.
Percentage of acquired profiles
not yet in your DB
50% Among acquired profiles, some are already in your datamart and are
not net new profiles.
Depending on pages, the percentage varies from 20 - 90%
Indirect ROI • Less budget spent on data acquisition and renting
• Create a social savvy and future proof marketing team
• Increase customer data quality and depth
• Avoid Facebook dependency
• Reach and convert friends of fans through social sharing
Potential value:
$2 * 30,000 * 50% = $30,000 / month

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Use cases: Conversion of fans into opt-in &
monetizable contacts
Music Artist
(EMI)
Music Artist
(Sony)
Hockey team
(LA Kings)
Ecommece
website
ROI Value Value Value Value
Value of a qualified email
address
$4 $5 $5.25 $2
Monthly profile
acquisition volume via
Facebook apps
600
(0.35% fans)
30,000
(0.33% fans)
16,000
(10% fans)
40,000
(6% fans)
Percentage of acquired
profiles not yet in your DB
90% 50% 50% 50%
Value for that 1 month
campaign
$2,160 $75,000 $43,500 $43,000
2

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Third ROI: Qualification of already known
contacts with rich social information
Do you launch targeted actions to enrich contacts in your CRM
with monetizable social profile information?
3
Potential value:
$0.50 * 30,000 * 50% = $7,500 / month
ROI Value Justifications
Value of the qualification of an
already acquired email address
$0.50 Depending on verticals, this can go from $0.25 -
2$
Monthly profile acquisition
volume via Facebook apps
Apps can be page tab apps, canvas
apps, socialized landing page or
social login
30,000 Monthly profile acquisition rate of a Facebook
apps can go from 0.5 - 10%.
Percentage of acquired profiles
not yet in your DB
50% Depending on pages, the percentage varies
from 20 - 90%
Indirect ROI • Provide a better experience to customers
• Avoid Facebook dependency
• Increase customer data quality and depth

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Use cases: Qualification of already known
contacts with rich social information
Music Artist
(EMI)
Music Artist
(Sony)
Hockey team
(LA Kings)
Ecommece
website
ROI Value Value Value Value
Valuation of a qualified
email adress
$4 $5 $5.25 $2
Monthly profile
acquisition volume via
Facebook apps
600
(0.35% fans)
30,000
(0.33% fans)
16,000
(10% fans)
40,000
(6% fans)
Percentage of acquired
profiles not yet in your DB
10% 50% 50% 50%
Value for that 1 month
campaign
$240 $75,000 $43,500 $43,000
3

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Fourth ROI: Direct Selling on Facebook
Do you automate posting of exclusive offers on Facebook?
4
Potential value:
100,000 * $0.20 = $20,000 / month
ROI Value Justifications
Number of fans 100,000 Depends on pages
Average monthly sales
objective for each fan
$0.20 Depends on each company
Indirect ROI • Fulfill fan's expectations by posting
useful content
• Surf on social word of mouth to
touch friends of fans
• Lower resources needed for posting
through automation

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Fifth ROI: The reality check
Post-acquisition campaigns buying behaviour
How can I check sales against social activities?
► Neolane tracks post-acquisition or post-"social qualification" buying
behaviors of contacts
► Variables that can be taken into account:
 "X contacts acquired through Facebook represent $Y billion revenue"
 "X contacts qualified through Facebook represent $Y billion revenue"
 "My customers that are fans spend X% more"
 "My 1,000 most active fans spend X% more"
 Etc.
5
Potential value:
Variable

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Revenue:
1. Cost reductions:
2. Conversion:
3. Qualification:
4. Direct selling:
5. Post acquisition
buying behaviors:
Investment:
Overall investment in
software and human
resources:
Total Facebook Direct ROI
Total ROI:

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The Neolane Social Marketing ROI
approach for Twitter

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First ROI: Conversion of followers into opt-in &
monetizable contacts through Direct Messages
Do you use messages and Direct Messages to
convert followers into addressable contacts?
1
ROI Value Justifications
Value of an opt-in contact $2 Depends on brands
Number of followers 100,000 Depends on brands
Targeted conversion rate
per month
4% Conversion rate obtained by LA Kings
Indirect ROI • Limit Twitter dependency
• Provide 1:1 experience to followers
Potential value:
$2 * 4% * 100,000 = $8,000 / month

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Second ROI: Direct Selling on Twitter
Do you automate posting of exclusive offers on Twitter?
2
ROI Value Justifications
Number of followers 100,000
Average monthly sales
objective for each follower
$0.20
Targeted conversion rate
per month
4% Dell Outlet Twitter account case:
1.5 million followers on their @DellOutlet account
promoting discounts on Dell hardware.
Result: $6.5 million in revenue from their
Twitter presence
Indirect ROI • Fulfill fan's expectations with useful content
• Lower resources needed for posting through
automation
• Reach friends of followers
Potential value:
100,000 * $0.20 = $20,000 / month

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Total Twitter Direct ROI
Revenue:
1. Conversion:
2. Direct Selling:
Investment:
Overall investment in software and human resources:
Total ROI:

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More information
For more information about Neolane Social Marketing:
http://bit.ly/NeoSocial
@Neolane