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Yes, Social Marketing ROI
  can be determined.
Kathy Herrmann
    Measurement & Insight
       (757) 497-4811

kherrmann@boomyourbrand.com
   www.boomyourbrand.com
ROI Considerations



3
Start with Objectives
   and Strategy…

…know where you want to go.
Measure results.




The end goal of measurement is not to collect a
         bunch of metrics but to gain
CXOs will look for
    actionable intelligence in
        monetary terms…

    …revenues or cost savings.




6
ROI Primer



7
Agency costs in this
          bucket
8
Rocky Mountain Hotel
    Case Study for Twitter



9
Annual Results:
 Revenues = $31m
 Average Occupancy Rate = 60%
 Average RevPAR = $420

Dec11 – Feb12 results:
 Revenues = $15m
 Average Occupancy Rate = 79%
 Average RevPAR = $831
Formula for Sales Revenue Gain from Social


       Revenues =

       Reach x Impact x Yield

         Influenced
        conversations

                                             11
Reach metrics

Tweets sent = 365
Average followers = 1,777
Impressions* = 1,630,394
Mentions/RTs = 876

* Impressions measure the reach of all tweets, i.e., total
potential number of displays to followers. It equals the sum
of the total followers PLUS their followers.


                                                               12
Impact metrics




   Clicks = 3,606

   (Click-through rate = 0.22%



                                 13
Yield metrics



Lead Conversion Rate = 0.3%
Conversions = 11

Avg. Rev per room = $1,059.29



                                14
Gains results


                            Total Revenues    Revenues
                              for period     Attributed to
                                             Social Media
                                              initiatives
Room Revenues (rounded)         $6,956,376       $     11,700
Food & Beverage (rounded)       $3,473,075       $      5,800
Sundeck (rounded)               $2,626,498       $      4,400
  Total Revenues            $ 13,055,949       $     21,900




                                                                15
Costs



Personnel = $5,667
Social analytics solution = $7,500

Total costs = $13,167



                                     16
ROI Formula


ROI
= (Gains - Costs)/Costs x 100

= ($21,900 - $13,167)/($13,167)
x 100

= 66%

                                  17
Closing Thoughts



18
It is possible to determine ROI
           for social initiatives….

                          …but it starts
                           with good
                          measurement
                           practices….

     …and good measurement starts
19
     with clear objectives & strategy.
www.boomyourbrand.com

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Social ROI Case study of Rocky Mountain Hotel