We’re entering a new era of social media marketing — one based on information and rationalization. It's not just about measuring tweets, re-tweets and followers. These slides demonstrate a few methods on how to measure your Return of Investment (ROI). This presentation was delivered by Maria McGowan at PodCamp Halifax in January 2011.

1. The ROI“Return on Investment” of Social Media Maria McGowan Internet & Marketing Specialist Greater Halifax Partnership @mariamcgowan @greater_halifax

3. In 2011, here’s the focus

4. It’s not just about Facebook likes or followers on Twitter

5. But they’re good for measuring “engagement” For example Shares Mentions (positive, negative or neutral) Blog comments Retweets @mentions email opens and click through rates “likes” of a Facebook page … That kind of stuff

6. It’s really about Lowered cost of new customer acquisition Reduction in average customer serving costs Increasing customer satisfaction

7. Some people think “Show me the ROI or all this is a waste of time”

8. Here’s what you can do

9. Social Media Objectives You must measure social media against your social media objectives What are they? - awareness? - lead generation? - more relationships?

10. 3 categories of measurement Quantitative Metrics Qualitative Metrics ROI Metrics

11. #1 Quantitative Metrics These metrics are data-intensive and number-oriented. 3 categories of measurement

12. Good example Capitalizing on Twitter’s real-time nature for exclusive, limited – customer / limited-period offers

13. #2 Qualitative Metrics These metrics that have an emotional component to them. Here’s a campaign to increase Satisfaction 3 categories of measurement

14. Good example Users who are part of this network feel that they have some role in the decision making process of the company and it makes them feel a part of it.

15. #3 ROI Metrics In the world of social media, all roads should lead to ROI. Conversion rates 3 categories of measurement

16. Here’s how 5Fortune 500 companies use Social Media

17. Branding Create buzz 180 million + total upload views on YouTube channel and sales increased 27% in six months (Nielson).

18. E-Commerce Drive people to their landing page then Dell can easily track their prospects' behaviour. In 2009, $6.5 million in revenue from Twitter

19. Research a tool to do simple, anecdotal research. Hey PodCampers, can you think of more?

20. Customer Retention It costs 3-5 times as much to acquire a new customer as it does to keep a current one.

21. Lead Generation Don’t sell online? Use social media to drive prospects to a website where they can download a whitepaper, listen to a podcast, or watch a video. Once you've captured the prospect's contact information, you can re-market to them via email, direct mail, etc

22. Let’s do some math

23. Customer Lifetime Value (CLV) It’s the most important formula in social media CLV is the amount of revenue a customer will bring to your company over the course of his/her lifetime with your brand.

24. Customer Lifetime Value (CLV) Example: Cable TV provider knows that a typical customer spends $80 per month and that the average customer stays with the company for three years. $80 x 12 months x 3 years = $2,880 (CLV)

25. Customer Lifetime Value (CLV) Once you know the CLV, you can decide how much $ you'd like to invest to acquire a customer (allowable cost per sale) Many people use 10% of their CLV as a starting point. In the cable TV example, the CLV is $2,880 and 10% of that is $288 (allowable cost per sale)

26. Applying ACPS to Social Media $288 is what it takes to get 1 customer. Let’s say you want to run a Social Media campaign to get 100 customers $288 x 100 = $ 28,800 campaign budget

27. What $28,000 can get you Create: Landing page? Mobile application? Monthly e-newsletter with cable TV tips to stay in front of prospects and new customers?

28. Design landing pages on your website to capture prospects and help convert them into paying customers. The landing pages would be designed specifically around the social media campaign, and you would need Google Analytics etc installed to track traffic and conversions. The key point is that all of your social media programs (Facebook, Twitter, YouTube, etc.) should drive people to the landing page on your website where you can convert them from tire kickers (prospects) to paying customers. Test, test, test… The ROI

29. Pay off? More engagement with your customers. …listening, feedback, interactive, brand strength, and measurability! Thanks! Maria McGowan Internet & Marketing Specialist Greater Halifax Partnership @mariamcgowan @greater_halifax