Anything that can be measured can be used to calculate ROI, and that includes social media. Many people say the ROI of social marketing can't be measured, but I beg to differ. Here are some guidelines for measuring the value of a visitor, a community and even a tweet!

1. Unraveling the Mysteryof Social Marketing ROI Paul Gillin, author The New Influencers Secrets of Social Media Marketing Social Marketing to the Business Customer

2. Is it Return on Investment or Risk of Inaction?

3. It’s Simple, Knucklehead (GAIN FROM INVESTMENT - COST OF INVESTMENT) ROI = COST OF INVESTMENT

4. Types Of Financial Impact B. Costs Avoided A. Revenue Anything that leads to A or B, But only if you can directly equate its value to an action

5. These are NOT ROI Press coverage Impressions Website Visitors Video views Click-throughs Retweets Coupons distributed Store visits “Buzz” Friends Blog comments Employment applications FaceBook friends Twitter followers But if you can quantify their financial impact, you have ROI!

6. What You Need Historical Metrics Excellent CRM Tools and Practices Clearly Understood and Applied Web Analytics

7. Basic Business Metrics Lifetime Value of a Customer = (Longevity *Revenue) * Margin 𝐂𝐨𝐧𝐯𝐞𝐫𝐬𝐢𝐨𝐧 𝐑𝐚𝐭𝐞=𝐍𝐞𝐰 𝐂𝐮𝐬𝐭𝐨𝐦𝐞𝐫𝐬𝐕𝐢𝐬𝐢𝐭𝐬/𝐋𝐞𝐚𝐝𝐬 Value of a Lead/Visitor = Visitor * Conversion Rate * Lifetime Value

8. Okay, Let’s Make it Real Typical customer Moe spends $10,000/year with you Moe is with you for five years Your profit margin is 10% Lifetime value of Moe is ($10,000 * 5) * .1 = $5,000

9. CRM Essentials Must be used by everyone who touches the customer Must document online, offline and landline communications Must span the engagement lifecycle Must enable segmentation and grouping

10. Web Analytics Must track individual visitors Must document paths to desired destinations Must identify referring sources You must use them

11. Applying ROI: Value of a Visitor

12. Value of a Blog

14. Generating 1,000 visitors to your website…

15. 2% of whom become leads…

16. 5% of whom become customers.Therefore, the value of a tweet is: (1,000 * .02 * .05 * 5000)/50 = $100

17. Cumulative ROI: the Eye Chart You want to launch a customer support forum to reduce your costs of telephone support Estimated admin costs: ½ FTE yr 1, ¼ FTE yr 2 1/10 FTE yr 3 Estimated savings: 1 FTE yr 1, 1.5 FTE yr 2, 2 FTE yr 3

18. Measuring the Immeasurable Headline Counts Lift Studies Store visits Speaking Invitations Net Promoter Score Coupons redeemed Employment applications If You Can Measure It, You Can Calculate Its ROI

19. Thank You! Site: gillin.com Blog: paulgillin.com Twitter: pgillin Paul Gillin 508-656-0734 paul@gillin.com