In this video I offer a step-by-step guide for measuring social media ROI. I explain the definition of a number of terms commonly used in discussions around measuring ROI. I use specific examples for going from business goals to measuring ROI, as well as tactics to move customers down the marketing funnel. After watching this, measuring social media ROI will not be a mystery anymore. If you have any questions about this presentation or any topics about social media, please visit my website and send me a message through the contact page.

1. Open Social Media: Free and Open Education
Measuring Social Media ROI
in Plain English
Sherry Nouraini
Founder/President
Captive Touch

2. Open Social Media: Free and Open Education
What kind of an impact do your activities on
social media channels have on accomplishing
your business goals?
• Let’s define some terms

3. Open Social Media: Free and Open Education
• Business goals/objective
 Specific, measurable, written down
• Tactics
 Specific steps you take to get you closer
to accomplishing your business goals
• Key Performance Indicators
 Specific events you will track to judge if
your tactics are driving the kind of behavior
you desire from your target market

4. Open Social Media: Free and Open Education
How do you decide what tactics to use and what
KPIs to measure?
• The choice depends on your potential
customers:
 Where are they in their buying
journey?
 Are you even on their radar?

5. Open Social Media: Free and Open Education
• What is a customer buying journey?
• How do you define it?
 The most widely used means is
the marketing/sales funnel
• See next slide.

6. Open Social Media: Free and Open Education
Customer buying journey
Determine where your potential customers are
Do they know you exist?
Did they view your information?
Did they ask for more information?
BINGO!
Are they satisfied with your
Service/product?
Are they referring you to
Others?

7. Open Social Media: Free and Open Education
Let’s look at some hypothetical examples
In Honor of Mother’s Day, I’ve chose a Flower
business for our examples:
• Example #1: Well established and widely known
business in the flower industry
- ProFlowers, 1-800-Flowers etc
• Business goal: Increase their Mother’s Day
Flower sale by 50%
• Where are potential customer in the funnel?
• What tactics should they use based on that?

8. Open Social Media: Free and Open Education
Most people
What tactics should they use?
What would the KPIs be?

9. Open Social Media: Free and Open Education
Let’s assume: 1/2 FB fans, Twitter and Pinterest followers
bought last year
Tactic:
• 3 weeks before Mother’s Day announce daily limited
edition deals on “Flowers for your mom”.
• Share link to landing page showcasing the collection of
limited edition flowers on sale.
• Assign a specific landing page and special promo code
for each social network.
KPI:
• Number of click through to the landing page
• Number of flower orders with each promo code

10. Open Social Media: Free and Open Education
Calculating ROI and effectiveness of Social Media
Return
Dollar amount sold associated with social media specific promo code
Investment:
In this case would be mostly time spent by employees during the
3 weeks of promotion:
• Creating the landing page
• Creating the images
• Posting the updates on social networks
Goal= Total Net sales this year
Total Net sales last year
ROI = Net Return-Investment
Investment

11. Open Social Media: Free and Open Education
• Example #2: New Flower business
• Competitive Advantage: Online tool to help
customize a flower arrangement for your mom.
• Business Goals: To gain 100 customers by
Mother’s Day
• Where are potential customer in the funnel?
• What tactics should they use based on that?

12. Open Social Media: Free and Open Education
Everyone is here
• Each step in the journey needs
It’s own goal, and and tactic.
• Does not necessarily translate
into monetary measurements
of ROI, but they would assist
reaching the business goal
• Social media is the assist
Assume 50% success
At each transition

13. Open Social Media: Free and Open Education
Start in January in order to get sales in May (5 months)
Awareness
• Tactic: From Jan-March, find target market on
Twitter, Google Plus, Pinterest, Facebook and engage
at least 400 people on all of these platforms
• KPI:
 Number of people who followed your brand page
on these social media networks
 Twitter, Pinterest and Google plus follower
 Facebook Fans
• ROI: Keep track of all employee time and fees spent
for social media tools and services

14. Open Social Media: Free and Open Education
Interest
• Tactic: In month of April, start a contest and invite
people to use your software to build a custom
flower arrangement for one of your employees.
The employee would chose a winner, who will
then receive a free something.
• KPI:
 Number of people who entered the contest and
tried the software. During the contest you can
collect email addresses for additional touch points
• ROI: Keep track of all employee time and fees spent
for tools for creating the contest and the money
spent on the prize.

15. Open Social Media: Free and Open Education
Desire and/or Action
• Tactic:
3 weeks before Mother’s Day announce daily
deals on custom-made “Flowers for your mom”.
Share link to landing page as a gateway to your
the deal.
 Assign a specific landing page and special promo
code for each social network.
• KPI
 Number of click through to the landing page
 Number of flower orders with each promo code

16. Open Social Media: Free and Open Education
Calculating ROI and effectiveness of Social Media
Return
Dollar amount sold associated with social media specific promo code
Investment:
Investment of employee time and fees paid for contests and special
Promotions.
Goal= Total Net sales Achieved
Total Net sales expected
ROI = Net Return-Investment
Investment

17. Open Social Media: Free and Open Education
Thank you for listening
Any questions?
You can find me here:
http://www.twitter.com/snouraini
http://www.facebook.com/captivetouch
http://www.gplus.to/sherrynouraini
http://www.linkedin.com/in/sherrynouraini

18. Open Social Media: Free and Open Education
What’s new in social media
and
What does this mean for you?
May 10th, 2013
Sherry Nouraini
Founder/President
Captive Touch

19. Open Social Media: Free and Open Education
Google Plus Hangouts
• Viewers can now rewind a live broadcast if they
are late to a hangout on air
• Producers/hosts need to keep in mind:
 There is about a one minute delay between
the live show and what the public sees (those
who are not direct participants)
 It take about a minute from “Start broadcast” and
ability to actually go live. There’s a prep time now.

20. Open Social Media: Free and Open Education
Google Plus Hangouts
• Your connections do not have to have a Google plus
account to hold a hangout with you.
• This is great cause one barrier to entry is removed
• You and your contact only need to install the Google Voice
and chat plug-ins
• You can initiate hangouts right from your Gmail contact list