The ROI of Social Media seems to be something many people want, but few know how to calculate. As a specialty, in this presentation I look at why there hasn't been more focus on this topic and why its time for people to learn how to do this. I distinguish the difference between metrics and ROI. ROI is looking at the actual value of the social media program vs the cost to deliver it. And I address why might happen if we as a industry don't focus on this more!

1. Transforming Social Media into Enterprise Social Business: Numbers into Business Insights By Dr. Natalie Petouhoff Author of Like My Stuff! Scan this QR Code for this preso + more good stuff! www.drnatalienews.com Learn Share Grow! Slide 1 - @drnatalie #pivotcon

2. Where are we in social media? *Adopted from: Crossing the Chasm” by Geoffrey A. Moore, Roger’s Diffusion of Innovations 1962 and Gabriel Tarde 1890 Social Media Adoption Curve* Phase 1 | Phase 2 | Phase 3| Phase 4 | Phase 5 As an industry, we are in Phase 3. www.drnatalienews.com Learn Share Grow! Slide 2 -- @drnatalie #pivotcon

4. If you are in an org or selling to an brand, you’ll have to convince this large group, the early majority, why they should do social media www.drnatalienews.com Learn Share Grow! Slide 3 -- @drnatalie #pivotcon

5. If social media is an business changing paradigm, as a company you’ll have to get the early majority to buy-in The Social Media Adoption Chasm How can you get the early majority to believe? 5

7. If successful, a vendor can create a bandwagon effect in which the momentum builds and the product becomes ubiquitous.Learn Share Grow! @drnatalie #pivotcon

9. We will continue to see interdepartmental fighting to control social media initiatives, which results in fractured brand equity and confused social consumers

10. Companies who are successful, will create momentum and fuel the fire and social media will becomes ubiquitous

11. When the majority of the organization is collaboratively engaging in social media, employees and customers win

12. When employees and customers win, so will the company.www.drnatalienews.com Learn Share Grow! @drnatalie #pivotcon

13. Innovators and Early Adopters are the people who camp over nite at the Apple store to get the newest tech… 5

15. They need assurances

16. SHOW THEM: what they’re going to buy will work

17. They dislike unpredictability

18. They are hard to win over5

20. Pragmatist often become an Evangelist’s

21. They influence others through WOM channels

22. Especially the Late Majority5

24. Calculate value & ROI

25. Do more of the right things

26. Put structure around what can seem unstructured

27. Benchmark “As Is” and create a “Could Be” plan

28. Justify the plan to upper management by showing them the business reasons

29. Track the progress, gather the right metrics

30. Assess the progress & iterate and

32. Many innovators didn’t ask for budget, they just started doing social media

33. Early adopters had a gut feel that this would be important…

34. We’re trying to figure out what this all means…www.drnatalienews.com Learn Share Grow! Learn Share Grow! Slide 11 -- @drnatalie #pivotcon

35. Social Media Industry Phases & ROI Social Media Adoption Curve Phase 1 | Phase 2 | Phase 3 | Phase 4 | Phase 5 www.drnatalienews.com Learn Share Grow! Learn Share Grow! Slide 12 -- @drnatalie #pivotcon

36. ROI Myths You can’t calculate social media ROI You can, but it requires learning some new things It requires complexity thinking… that you understand: Traditional metrics and ROI calculations Social media metrics and ROI calculations The affect social media has on business and what increases /decreases It’s hard to attribute what came from social media and what came from traditional venues It requires learning to how to assign attribution Metrics give you ROI You have to take the metrics and use them to calculate business value

37. Metrics that get you to ROI… but aren’t ROI… Number of… Blog Posts Video Posts Podcasts News Releases Media Interviews Analyst Interactions Briefings / Inquiries / Consults Events Managed Direct Mail Campaigns Web Site Pages/Edits Web Site Pages/Edits What are you doing?

38. Metrics that get you to ROI… but aren’t ROI… Number of… Earned Media Placements Print / Online / Broadcast Business / Consumer / Trade Earned Media Impressions Print / Online / Broadcast Business / Consumer / Trade Earned Media Prominence Headline Citations Lead Paragraph Citations Cover/Feature Stories Photo/Graphic Placement Paid Media Impressions # of Event Attendees # of Collateral Downloaded… Who are you taking to?

39. Metrics that get you to ROI… but aren’t ROI… Number of… Key Message Penetration Earned Media Share Share of Voice compared to competitors Word of Mouth Volume Online Search Rank / Share Click-Through Volume / Rate Qualified Leads Who cares about what you are saying?

41. Awareness of brand/company

42. Perceptions of brand/company

43. Affinity for brand/company (favorability, preference)

44. Advocacy for brand/company (Net Promoter score)

45. Market strength

46. Sales/revenue growth

47. Market share

48. Profitability

49. Employee Retention

50. Employee perceptions of brand/company

51. Employee morale/engagement

52. Advocacy (WOM)

53. Awards

54. e.g., Fortune Most Admired, Best Place to Work…What value are your bringing?

55. ROI is… Learning what you got from your investment ROI = Benefit – Investment x 100 Investment ROI = $10,000 – $5,000 x 100 $5,000 ROI = $5,000 x 100 = 100% $5,000

56. Don’t let how you approach social business stop the progress of your company The chasm is a drastic lull in that occurs after the visionaries and innovators have done as much as they can And the pragmatists will not buy into this new paradigm unless they can reference other pragmatists Which is a catch 22 – because the pragmatists don’t care yet. Pragmatists dependent exclusively on references from others in their own industry and are highly support oriented

58. Then integrate interactions

59. Unify traditional and social3. Create a business case 4. Deploy and assess 5. Review lessons learned and repeat.

60. Don’t do the ostrich… Imagine how silly you might look…

61. … take your head out of the sand… and cross the chasm… learn how to calculate ROI!!!

62. @drnatalie www.drnatalienews.com 310-910-1542 Link to the Social Media ROI videos: http://www.drnatalienews.com/blog/did-u-see-the-videos-on-the-roi-of-social-media Thank you! Curious about The ROI of Social Media? Link to white papers on the ROI of Social Media: http://www.drnatalienews.com/blog/roi-of-social-media-white-papers-by-dr-natalie-petouhoff Get the book::

63. Appendix… Getting Started on Social Media ROI What is Social Media Monitoring? Social media monitoring is a process by which you monitoring the conversations that your stakeholder groups are having. Stakeholder groups can be groups of customers, influencers, brand ambassadors, press, etc… These conversations occur between you and them and the stakeholder groups also talk amongst themselves on social channels. Some of the paid social media monitoring services also include print, radio and TV monitoring and conversations in those mediums.

64. Appendix… You’ll want to look at how your company or department is collecting real-time feedback on the quantity, quality, tone of the ongoing social interactions. With this information you can several things. One is to avoid risk. There are many cases of social media brand damage- consider Dominos, Nestle, Gap, Motrin, United Breaks Guitars, Southwest Airlines, BP and now Netflix. If a brand is monitoring for what is being said –to and about your brand or company, you can detect a disaster and take it off line and resolve it before it blows up.

65. Appendix… You can also use social media monitoring to be proactive in your outreach to various stakeholder groups. You can use monitoring to learn who your superusers are, i.e., the 1% out of your 1-9-90 principle in social media. The 1-9-90 principle is the ratio of people who post about your brand = 1%, the people who respond to those 1% are called the responders and they respond to what the 1% posts. The rest of your stakeholders are in the 90%. This 90% are called lurkers because they mostly read content. They don’t very often post or respond. But they are still important. (The ratio 1-9-90 may very depending on the vertical industry you are in, but it is a good baseline to understand that most of your stakeholder generate and spread and the rest just read it.)

67. Sentiment towards your competitors

68. Share of voice of your brand compared to your competitor

69. What are the top conversations and buzz around your company

70. Are you interacting with the most important people- the 1 and 9%

71. Is the content you are creating the type of content your stakeholders are interested in and have you make it social media oriented, meaning is it something they want to share with others?

72. What channels are you syndicating the content on?

74. Appendix… Here’s a blog post I did about social media monitoring and the affect it might have had on Netflix and Blockbuster if they had not only been monitoring but also taken the information about their company and integrated it back into the company. That doesn’t happen all that often. It’s a organizational change management issue and something that very skilled leaders are learning how to facilitate. Even in the best of situations, in the current environment, interdepartmental collaboration may be lacking. One of the best techniques to move things forward is to show a pocket of success. You might also take meetings with other like-minded individuals in other departments so that you can hear their point of view and discuss what their views and yours are in the arena of social media and social media monitoring tools. Here’s the blog post that might give you some insight into the power of social media monitoring: Could Social Media Monitoring Have Saved Netflix & Blockbuster from Themselves?

75. Appendix…

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