HOW TO MEASURE THE EFFECT OF SOCIAL MEDIA MARKETING ON YOUR BUSINESS?

2. How to measure
the effect of
Social Media Marketing
on your business?
@mertanen
#socialfest2012

3. Simple formula
Sales? Growth of sales? Margin? Customer life time value? Other?
Gain from investment – cost of investment
ROI = Cost of investment
Cost of work? + Cost of media? + Cost of agency? + Cost of tools?

4. What is the ROI of your relationships?
Source: http://www.flickr.com/photos/xavivix/5917616223/

5. Social Marketing

6. Customer Relationship Management
Source: http://www.flickr.com/photos/english106/4357529719/

7. Broadcasting
Source: http://www.flickr.com/photos/rodrigobasaure/593942499/

8. She likes it!

9. It’s all about sales
Source: http://www.flickr.com/photos/68751915@N05/6551534889/

10. Internet has always been social

11. Everything is social

12. Everything is social

13. Everything is social

14. http://www.flickr.com/photos/nslashdot/5074635716/

15. Advertising doesn’t equal marketing

16. Marketing as a whole

17. Measuring framework
http://www.flickr.com/photos/kazk/198640938/

18. Measuring framework
1. Purpose. What are we trying to achieve? Different point of views.
 Product / service development
 Processes (delivery, marketing etc.)
 People (customers, partners, personel, recruiting)
 Promotion = sales
 Pricing

19. Measuring framework
2. Goals
 We are creating more development ideas and new innovations
 We are improving our delivery and marketing processes
 We are activating people, including our customers, partners and staff
 We are growing our sales in different sales channels
 We are trying to improve our profit by testing different kind of pricing

20. Measuring framework
3. Key performance indicators about product, processes & people
 Number of new development ideas and innovations (by channel, e.g. Facebook)
 Number of feedback regarding to our current products / services
 Quality and the tone of voice from customers
 Task completion rate (by channel)
 Number of recommendations (yes, likes too)
 Number of product / service evaluations
 Number of complaints regarding to our delivery process
 Number of posts (by channel, by content type)
 Number of fans, followers, subscribers (by channel)
 Number of people involved

21. Measuring framework
3. Key performance indicators about pricing & promotion
 Number of promotions (by channel, by content type)
 Number of reach: visits, fans, followers, subscribers etc. (by channel)
 Engagement (bounce rate, number of shares, retweets etc.)
 Number of pricing tests (by channel)
 Sales, growth of sales, sales margin (by channel)
 Return on investment
 Return on ad spent

22. So what test?
Source: http://www.kaushik.net/avinash/kill-useless-web-metrics-apply-so-what-test/

23. Continuous action model
1. Analysis
2. Decisions
3. Action!

27. Asking the right questions

33. "Not everything that can be counted counts,
and not everything that counts can be counted."
Source: http://www.flickr.com/photos/mansionwb/3585890288/

34. Measuring, analyzing and optimizing
and changing marketing to make
results.
Petri Mertanen
Senior Designer
Marketing Analytics
Mobile: +358 400 792 616
Email: petri.mertanen@zeeland.fi
www: http://zeeland.fi