Social media marketing may be all the rage, but few companies are measuring results with any level of precision. The research would indicate that only 14% of senior marketers whose companies use social network marketing say they are tying their efforts to financial metrics. With social media becoming so engrained in the way companies do business, measuring its contribution on a wing and a prayer is no longer enough. CIOs need to help enforce disciplined approaches to website analytics, synchronizing metrics to capture and track leads and building 360° views of the customer.

1. Measuring Social ROI:
The CIO’s Role
Paul Gillin
Author:
The New Influencers
Secrets of Social Media Marketing
Social Marketing to the Business Customer

2. Click to Right
Time is edit Master title style
Perceived Value of Social Business
Increased market share 81% 17%
2%
Decreased costs 37% 53% 10%
Improved talent retention 58% 37% 4%
Improved speed to market/innovation 65% 30% 6%
Improved product/service quality 68% 28% 4%
Improved collaboration with partners
65% 30% 5%
Improved brand or stock value
67% 29% 4%
Improved marketing/sales effectiveness
84% 13% 2%
0% 20% 40% 60% 80% 100% 120%
Advantage No Impact Disadvantage
Source: Economist Intelligence Unit Survey of 329 Business Leaders, 2012

3. Click Another Channel? style
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Who Has Primary Responsibility for Social Business
Marketing and branding
41%
Marketing Communications (e.g., Public Relations)
40%
Distributed throughout the organization
17%
Sales
16%
Customer service
11%
Human Resource
10%
Research and Development (R&D)
8%
Education and Training
7%
Centre of Excellence
6%
Source: Economist Intelligence Unit
Survey of 329 Business Leaders, 2012

4. Click to edit Master title style
Executives See Greatest Benefit of social engagement in…
• Project management
• Innovation
17% • Collaboration
• Efficiency gains
• Cost savings
Yet only 17% have
81% responsibility well-
agree that social distributed throughout
engagement has the organization
tangible benefits
Source: Economist Intelligence Unit
Survey of 329 Business Leaders, 2012

5. How to Share Influence
ClickWeedit Master title style
PRE MEDIA AGE MASS MEDIA AGE SOCIAL MEDIA AGE
Talk face to face Personal blog Comments on blogs
Phone call Social network page Comments on websites
Talk face to face
Talk to shop worker Widgets Viral emails
Phone call
Consult a professional Video sharing site Auction websites
Talk face to face Talk to shop worker
Readers Letters Photo sharing site Wish lists
Talk to shop worker Consult a professional
Phone in; TV / Radio Chat rooms Ratings on retail sites
Readers letters
SMS Message boards Reviews on retail sites
Phone in; TV / Radio
Email Social Bookmarking Price comparison sites
Instant Messenger Chat room Social shopping sites
Consumer influence channels
Twitter: @pgillin
Source: Universal McCann Erickson

6. Customer Service Matters
Click to edit Master title style
Service Topic Consumers who General Consumers who have
have not used social population used social media for
media for customer customer service
service
Additional amount consumers 11% 13% more 21% more
will spend for excellent service
Have not completed intended 49% 55% 83%
purchase because of poor
customer experience, previous
12 months
Number of people customers 9 15 42
tell about good customer
service experience
Number of people customers 17 24 53
tell about poor customer
service experience
Twitter: @pgillin

7. Click to edit Master title style
“Companies that are highly effective communicators
had 47% higher total returns to shareholders over the
last five years compared with firms that are the least
effective communicators.”
Towers Watson 2009/2010 Communication
ROI Study Report

8. Click to edit Master title style
“Our data show that fully networked
enterprises are not only more likely to be
market leaders or to be gaining market share
but also use management practices that lead
to margins higher than those of companies
using the Web in more limited ways.”
McKinsey 2010 survey of 3,249 executives

9. Service With a Smile
• 55% of respondents became a customer of a
company because of its reputation for great
customer service
• 40% began purchasing from a competitive brand
simply because of their reputation for great
customer service
• 85% of consumers said they would be willing to pay
more over the standard price in order to ensure a
superior customer experience.
- RightNow Technologies 2010 Survey of
2,217 North American consumers

10. There are business benefits
to encouraging customers
to talk publicly – whether
81% positive or negative
agree
67%
agree
Responsibility distributed Responsibility assigned
throughout the organization to one department
Source: Economist Intelligence Unit
Survey of 329 Business Leaders, 2012

11. Adoption of social channels is strong; with 59% of
organizations having adopted Twitter and 60%
adopting Facebook, and almost 85% of those who
have adopted one, have adopted both together.
However, adoption seems to have been the easy
part. Justification, integration, and strategic
measurement continue to be the most challenging
aspects of implementing new social channels.
- ThinkJar/Sword Ciboodle
survey of 400 customer
service practitioners, 2012

12. Disconnect
When selecting a new channel for customer
service, who drives the decision?
Internal team
Customer research
Consultants/integrators
Customer co-creation
Analysts and pundits
Other
0% 20% 40% 60% 80% 100%
Source: ThinkJar/Sword Ciboodle, 2012

13. New Channels of Complaint
Companies are quick to deploy the
Where Crises Originate Blog
latest social media technology, yet
20%
most have not prepared for the
threat of social media crises…we
found that more than three-fourths
Twitter could have been diminished or
18% YouTube averted.
22% --Altimeter Group
Communi
ty Facebook Social Media Crises Reaching Mainstream
22% Other
14% Media
4%
10
8
6
4
Data source: Altimeter Group, 2011
2
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

14. The Sales Funnel
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Suspects
Qualified Prospects
Hot Prospects
New Clients
Image Credit: Retail Sales Systems, LLC
Twitter: @pgillin

15. Flipping the Funnel
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Respond &
Iterate
Invite
Engagement
Listen
Go Where the People Are
15

16. ClickFlattening It title style
And to edit Master
Source: Monitor

17. Click to edit Master title style
Twitter: @pgillin
@pgillin

18. Today, Integration Means “Everything”
Value of Specific Marketing Communications Programs
100
75
10 of 14 achieved
50
50% top 2 box score
25
0
Public Internet Word of In-store/ Direct Social Mobile
Relations Mouth/Viral Point of Sale response Networking Marketing
advertising
General Search Engine Sales Event Sponsorship Branded Videogame
Advertising Marketing Promotion Marketing Entertainment Advertising
Source: Association of National Advertisers, 2010

19. Room for Improvement
% of Companies Measuring ROI
30%
25%
20%
15%
10%
5%
0%
Social Network Mobile Email Direct mail
Marketing Advertising Marketing marketing
Source: Columbia University/ American Marketing Association 2012

20. What CIOs Can Do
• Set up listening posts
• Get people focused on analytics that
matter
• Invest in marketing automation
• Integrate customer service and external
data for 360º customer view
• Drive consensus on ROI measurement

21. Opportunities in Listening
Click to edit Master title style
LinkedIn Answers Quora

22. 38 Minutes on Twitter
Click to edit Master title style
Twitter: @pgillin

23. Click to edit Master Theystyle
What the Heck Are title Thinking?
Epson reported
that revenue per
visitor nearly
doubled after the
reviews were
launched.
Twitter: @pgillin

24. What We Usually Measure
Click to edit Master title style
Hits Traffic Unique Visitors
Visits Likes Followers
Bookmarks Page Views Clicks
These Indicate
Activity but NOT
Engagement

25. Terms of Engagement
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Downloads Subscriptions
Repeat Visits
Comments
Shares Retweets
Bookmarks Employment applications
Pages/visit Lead forms Forwards
Phone calls Ratings Reviews

26. Measuring the Immeasurable
Click to edit Master title style
Lift Studies Headline Counts
Store visits Speaking Invitations
Net Promoter Score Coupons redeemed
Employment applications
If You Can Measure It,
You Can Calculate Its ROI

27. Click to Things Thattitle style
Oh, the edit Master You Know!
Thanks to Web Analytics…
March 30 April 4
April 9
Prospect reaches website Prospect responds to e-mail
Prospect attends
through search query "small invitation for "Choosing Small
webcast, stays 45 minutes and
business accounting," views Business Accounting Software"
submits a question related to
four pages and subscribes to webcast 30 minutes after e-mail
legal practices.
newsletter. is sent.
April 10
April 12
Prospect clicks link in webcast
Prospect downloads trial
summary e-mail to visit product
version of your small business
description page. He downloads
accounting software for legal
PDF of product brochure about
practices.
software for legal practices.

28. Click toMarketing
ERP for edit Master title style
Graphic provided by Ifbyphone. Sources here

29. Click to editSocial title style
CRM Goes Master

30. Stagger Activities
Click to edit Master title style
White Paper Promotion Timeline
Task Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Home page link
E-mail newsletter
E-mail blast
Blog promotion
Twitter messaging

31. Look for Impact
Click to edit Master title style

32. Lead to edit Master title
Click Gen Excellence style
73 blogs
17 bloggers
600% jump in
leads
Top quality
“Get engineers talking to engineers and get everyone else out of the
middle.”
Rick Short, Marcom Director
@pgillin
Twitter: @pgillin

33. A Reader is aMaster title style
Click to edit Lead
Each blog has the
option to ask a
question of the
engineer
@pgillin

34. Basic Business Metrics
Click to edit Master title style
Lifetime Value of a Customer =
(Longevity * Revenue) * Margin
Conversion Rate = New Customers/
Visits or Leads
Value of a Lead/Visitor =
Visitor * Conversion Rate * Lifetime
Value

35. ClickLet’s Make it Real style
OK, to edit Master title
Typical customer Curly spends
$10,000/year with you
Curly is with you for five years
Your profit margin is 10%
Lifetime value of Curly is
($10,000 * 5) * .1 = $5,000

36. Click to edit Master titlea Visitor
Applying ROI: Value of style
Monthly Visitors 10,000
Conversion Rate .5%
Lifetime Value $5,000
Calculation (10,000 * .005 * 5)/10,000
Value of a
$25
Visitor

37. Value of a Blog
Click to edit Master title style
Monthly Search Traffic 3,000
Estimated Traffic w/Blog 4,000
Value of a Visitor $25
Monthly Value of a Blog $25,000
Monthly Blog Expense $6,000
ROI ($25,000-$6,000)/$6,000 316%

38. Value of Twitter
Click to edit Master title style
 You send 50 tweets a month…
 Generating 1,000 visitors to
your website…
 2% of whom become leads…
 5% of whom become
customers.
Therefore, the value of a tweet is:
(1,000 * .02 * .05 * 5000)/50 = $100

39. Click toYou! Master title style
Thank edit
Paul Gillin Site: gillin.com
508-656-0734 Blog: paulgillin.com
paul@gillin.com Twitter: pgillin
Twitter: @pgillin