http://spiral16.com Spiral16 CEO Tracy Panko delivered this presentation on the future of measuring social media success. This talk, spun off of previous presentations, covers suggestions and case studies for achieving ROI in the social media marketing realm.

1. The Future of Social Media Measuremernt Tracy Panko @TracyPanko @spiral16

2. Social Media Isn’t a Fad. It’s here to stay. An average of 900,000 blog posts a day 4-6 million tweets an hour on average Over 30 billion pieces of content (videos, notes, status updates, pages) shared on Facebook in a month

3. Social Media Isn’t Free. It takes valuable time. You need human resources for: Planning Creative insight Content creation Product management Measurement Monitoring …and more.

4. What Does ROI Mean? ROI = (Gain from Investment) - (Cost of Investment) Cost of Investment Return on investment is a popular metric because of its versatility and simplicity. It is challenging to define gains and costs when measuring ROI for social media efforts.

5. There is no way to calculate social media ROI with a one-size-fits-all equation. Image from glynndevins.com -- and modified

6. Why is it Difficult? ROI deals with money invested and money gained—it’s a financial metric. That financial aspect is not clearly defined in social media—it’s not built-in.

7. THE MOST IMPORTANT THING TO REMEMBER Have clearly defined business objectives before you start. Make sure your social media initiatives (nonfinancial) are supporting your business goals (financial)

9. Reduce Customer Service Expenses

10. Reduced Cost Per Transaction

11. Increase in Qualified Leads

12. Higher Value Per Sale

13. Increase in Customer Satisfaction

14. Increase in Total Transactions

15. Introduce New Products/Service Enhancements

16. Increase in Number of Operating Locations/Retail Outlets

17. Attract New Employees

18. Encourage Repeat Purchases

20. Facebook/MySpace

21. Blogs

22. Forums

23. YouTube

24. Foursquare/Gowalla

25. Flicker

26. Webinars

27. PodcastsWhich tool fits your business goals?

29. Retweets

30. Facebook likes

31. Brand mentions

32. Blog comments

33. YouTube views

34. Number of check-insAre these things important? Ask yourself which ones matter to your business.

36. Retail traffic

37. # of transactions

38. New customers

39. Amount per transaction

40. Site visitors

41. Time spent on webpage

42. Conversion stats

43. Positive/negative sentiment

44. Message reach

45. Volume of conversation

46. Relevancy

47. Frequency

48. Linkages

49. Comments

51. Social Media Metrics 67% - Increase in monthly sales leads for companies that blog over companies that don't blog. 434% - Increase in web pages indexed by Google for companies that blog over companies that don't blog. Why Does This Matter to Your Business? Source: Data from over 1,500 small businesses - http://bit.ly/XDkQV

52. Social Media Metrics 43% of US Companies Will Be Blogging by 2012 - eMarketer

53. Social Media Metrics Companies with more indexed pages on Googl, ,aooo an, and nnnn generate more sales leads. Every 50 to 100 incremental indexed pages can mean double-digit lead growth. Growth in new leads accelerates significantly once websites achieve 300+ pages indexed by Google.

54. Social Media Metrics Leads by Indexed Web Pages Source: State of Inbound Marketing Lead Generation Report - http://bit.ly/cVMpkn

55. Social Media is for Leads and Sales Source: State of Inbound Marketing Report - http://bit.ly/aewfHr

56. Blogging More Often Drives Results Source: State of Inbound Marketing Report - http://bit.ly/aewfHr

58. Family and friends of Navy personnel

59. Veterans and former Navy employees

60. Potential recruits

62. 500-700 Twitter mentions

63. 2,500-3,000 visits to the NavyLive blog

64. 10-15K referrals to Navy.milPer week. “Managing Audience Engagement to Gain and Retain Public Involvement” - CDR Scott McIlnay (2010)

65. Example Goal to ROI Goal - Predict opening weekend revenue to increase net profit per movie 12 months before new movie released - Began traditional and social media promotions for new movie During that 12-month time period - Measured the volume of online chatter, website traffic and statistics, and sentiment On the opening night of the movie - Listened to online chatter - how much, where, about whom, positive or negative, website traffic, and statistics

66. Example Goal to ROI Gain - Ability to adjust promotions to increase revenue and developed a matrix to determine how long to keep the movies in the theater across the country based on social metrics as well as sales data Costs - Monitoring tool, website metrics tool, staff time to develop campaigns and evaluate the data ROI -Increase in net profit per movie of 5-7%

67. Example Goal to ROI Company Goal: Win Retail Licensing Program Background: 20-year hunting and fishing TV show Needed to expand their brand association with general outdoor adventure to attract large retailers

68. Example Goal to ROI Tactics Developed an outdoor adventure site to promote outdoor recreation activities Identified influencers in targeted communities like hiking, mountain biking, snow shoeing, bird watching and sent targeted messages about their brand Started a blog and included stories about outdoor adventure activities Began tweeting about specific outdoor recreational activities while shooting TV shows

69. Example Goal to ROI Gains AO measured word association with their brand and saw the new words such as adventure, outdoor, activities, experts, professional, training show up in their semantic cloud. AO illustrated the overwhelmingly positive sentiment associated with their brand and did competitive research on targeted retail brands to compare their sentiment. AO ultimately shared this data with the retailer and earned a licensed goods program worth several million dollars over three years – identified their overall costs of social media efforts including listening, engaging and measuring as $25,000.

70. Conclusion Identify your business’s overall goals and objectives Determine how the social media initiatives/tactics apply to the Business Goals Assign metrics to each tactic to evaluate successes and failures/ways to improve Correlate the social media metrics with the traditional metrics to confirm you are supporting the overall goals of the business (timeline)