A presentation from a web seminar held for Markedu - about ROI in Social Media Marketing The topic - Return on Marketing Investment (ROMI) on social media marketing was luckily well received by the attendees. I was particularly curious how attendees at the webinar would receive my Roy and Ruth characters. Roy of course is the ROI character and Ruth the ROT (Return on Time) character. These two must go hand-in-hand when measuring the marketing ROI for social media marketing campaigns or activities. Learn more about other web seminars over at Markedu (copy/paste below to your browser) http://www.markedu.com/web-seminars

1. Measure,
Monitor and
React to increase
your Social
Media Marketing
ROI with Michael
Leander
Michael Leander on
Twitter

2. These slides were presented by marketing
speaker Michael Leander at a free Markedu web
seminar
You can check here to see more free web
seminars about marketing, social media, email
marketing, branding and more

4. Today’s content
• Introduction to ROMI (Return on Marketing
Investment) also known as Marketing ROI
• How to identify social media marketing goals
or KPI’s
• How to calculate the ROI for social media
marketing activities
• Which tools to use to monitor and measure
your social media marketing ROI

5. 90-9-1 rule of thumb
• 90% will only consume content
• 9% will engage periodically, but only when the
conversation stirkes them as interesting
• 1% is the engaged audience driving the
conversation in your social community. They
support and provide value for the community
to read, hear, view

7. Half the money I spend on
advertising is wasted; the trouble
is I don't know which half.
John Wanamaker (1838-1922)

8. The sole purpose of marketing is to get
more people to buy more of your product
or service, more often, for more money.
That is the only reason to spend a single,
dollar, yen, euro. If your marketing is not
delivering paying customers to the cash
register with their wallets in their hands
ready to buy your product or service, don’t
do it.

9. Marketing, no matter what practitioners
thought in the past is more science, than art.
It is no longer necessary to rely on hunch,
hope, mythology and experience or on
creative breakthroughs and divine
illumination.
The data and tools currently exists to
dramatically improve a company’s marketing
programs for new and established products
and services.
All that is required is the will to use them
Dr. Kevin J. Clancy

11. Where are the challenges?

12. Short vs. long term effect and impact
on cash-flow in social media marketing

13. A bit about my own experience (mostly
relevant to small businesses or not)

14. Hunter Farmer

15. Much of the time I spend on
social media [marketing]
activities is relevant; the
trouble is I don’t know which
[and why]
Michael Leander, 2011

16. Roy Ruth
VS. ROT = Return on Time

17. More work
More
details ROT Problem
More
numbers
More
people?
More
money?

19. What is ROI? A simple example
Marketing campaign investment of €100.000
Generates product revenue of €500.000
Cost of goods € 250.000
Cost of sales € 100.000
Gross marging equals: € 150.000
Marketing ROI is 50% (invested € 100K and
returned €150K)

20. The complexity of numbers for ROMI
Net
Tracking actual Returns &
present
gross margin Referral value
Value
Customer lifetime Value (Incremental
Customer Value)

22. What is providing the highest ROMI?
Don’t believe other people’s surveys. Find studies relevant to your
situation, your market, your region

23. Where should you be?
How should you be there?
How do you know you are in the right place?
How do you prove your business case?
How do you justify your investment?
How do you improve your results?

25. Defining owned, paid and earned media

27. Four approaches – where are you?
Basic ROMI Full ROMI
• Be realistic in
You measure only You measure everything
and completely. terms of what you
certain parts of the
funnel in order to
Your organization
understands and agrees
can track
• Work with
ROMI Measurement
understand the with the choices you
response value of make because there’s
your activities
solid data to support estimated numbers
your investments.
if you don’t know
the exact figures
You don’t measure the Calculate ROI on some • Measuring partly is
investments. have a
performance of any of
your investments. In fact, general idea of how your much better than
marketing is viewed as a investments perform not meausuring at
cost, not an investment at relative to each other, but
all. Your company isn’t you can’t pinpoint the all
sure what works and what exact return you’re
doesn’t, and it’s a struggle generating.
to meet goals.
(c) Michael Leander
Dedication to ROMI

28. How to identify social media
marketing goals or KPIs?

29. In your market, who is buying now ...
3% are buying now
6-7% are open to the idea
30% are not thinking about it
30% don’t think they are interested
30% are sure they are not interested

31. What is your objective?
• Convenience
Customer • Allow other customers to service their peers
service
• Inform/Educate customers
• Push promotional messages
Customer
retention • Allow customers to review/endorse
• Acquire permissions for dialogue
• Inform/educate
Customer
acquisition • Promote

32. Simple tracking of results
• If you cannot properly track all channels, start
with the bottom up approach
• Let me show you how – it is simple

33. Getting started
• Start with the end in mind
– What is your purpose – what
do you want to accomplish
• Outline the ideal funnel
– Steps in the funnel
– OTS = Opportunity to See
– Incubation time
• Define your mix & assets
• Understand what to track
and how to track

34. Create your funnel

35. Get this slide when you complete
the evaluation survey

36. AID+LIRA
Attention > Interest > Desire + Like – Interaction – Recommendation - Action

37. Putting a value to your goals
• The value of a like/fan/member?
• The value of a share/recommendation
• The value of an email permission
• The value of a lead requesting certain
information
• The value of a customer

38. Examples from my businesses
• We only measure these things and put a
monetary value on each
– A permission to email: € 5
– A concrete sales lead: € 200
– A firm order: € 700
• But we track our progress by measuring
– Fans/likes/members
– Website traffic & conversions
– Recommendations and endorsements (NEW)

39. Simple tracking – B2B example
• Track where leads come from
• Add opportunities when they arise allows to
track total revenue by source of lead

41. www.socialmention.com
Listen and alerts
- Setup alerts for your brand
names / company name etc
- Take notice of your sentiment
- Interact with ”talkers”
- Beware of what people see
when using services such as
social mention

42. Dashboard keeps you up to date

43. http://swixhq.com/

44. Is this relevant to your marketing ROI?
http://www.klout.com

46. • Campaigns
• Attach content to
campaign
• Measure effect of
campaign
• Measure effect of
content

48. THE STREAM MIX

49. MEASURING
27
18
22
21
0
29
39
41
14
34

50. Live example of tracking results and reacting

51. 51

52. The measuring e-cosystem
User Post Campaigns Contents
Reports
Management Management Management Management
•Multi-User •Multi-channel •Goal Setting •Multi-
•Landing Pages
•Multi- Org •Scheduling •Web Analytics dimensional
•Media Library
•Role Based •Automation •Strategic • Date-Time
•Polls
------------------- •Customizable •A/B Testing Range
• Branded URL
•Asset •Workflow •RSS Feed and •Export to CSV
• WhiteLabel
•Followers Media • Downloads
Comprehensive Analytics
API’s
User Interface
Applications
Business
Mobile Apps
Coupons

53. 5 people to get free 1 telephone
consulting about your social media
ROI – value of € 350
send me an email to
mln@fokusintegrated.com

54. Learn more about this topic
Michael Leander is an international
marketing speaker. He has spoken in 35+
countries and at countless webinars..
Find him here
http://www.twitter.com/michaelleander
Speaking: http://www.michaelleander.me
Consulting: http://www.michaelleander.com
Email: leander@michaelleander.com