How do you go about measuring ROI in social media? Why is it so important? Why are so many marketers falling on their face? Is it really all about engagement? Do you need more followers? This presentation answers these questions in detail, giving an overview of what is right and why.

1. Social Media ROI: Avoiding the Abyss What should I be measuring? How do I monitor performance? What’s the ROI? Do I need more followers? By VikramBhaskaranCEO and Co-founder, GoJeeno

2. Why Go Social?

4. Every customer is directly acquiredBut what if… …our customers were our evangelists? Would we continue touching each customer directly?

5. Social Media Marketing: How our Game Changes People trust their friends more than an advertisement Peer Pressure Sells! …But where are these guys? …How can we identify and harvest them? You don’t need to sell to the world- just sell to the evangelists!

7. Social Network is Made of

8. Individuals and Connections

9. Directed and Undirected Relationships

10. Information Conduits

12. In Other Words.. What they should be What they are

13. Avoiding the Abyss What we are measuring is WRONG How then can strategies based on the wrong metrics give us the right result?

14. The Business Truth Your Business doesn’t really care about your number friends or followers. What it really cares about is: -That’s not just $$s today but $$s forever!    Profitability Future

15. Sub-Optimal Marketing Resource Allocation All customers are treated equal 𝐶𝑜𝑠𝑡 𝑝𝑒𝑟 𝐶𝑢𝑠𝑡𝑜𝑚𝑒𝑟=𝑇𝑜𝑡𝑎𝑙 𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔𝐶𝑜𝑠𝑡𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐶𝑢𝑠𝑡𝑜𝑚𝑒𝑟𝑠

16. Why Is This Wrong? The 80: 20 Rule in Profitability Top 20% of customers account for over 80% of profits

18. Allocate more resources to high value customers

20. The loss makers could be the customers that are evangelizing our products to the high rollersNot servicing ‘low’ Alex could mean losing ‘high’ Charlie as well! Charlie, the review-reading High Buyer Alex, the Super-Talker Low Buyer

21. Identifying the Influencers Social Profitability (or) Dollar worth of Word of Mouth = Net Present Value of Future Profits attributable to an individual’s influence

23. Direct Purchases made by customer

24. Purchases made by referrals

25. Purchases made by referrals’ referrals and so on

26. By capturing attenuation effect of Word of Mouth

29. 𝑇𝐶𝑉=1−𝐼𝑛𝑓. 𝑅𝑎𝑡𝑖𝑜 𝐼𝑛𝑑𝑖𝑣𝑖𝑑𝑢𝑎𝑙 𝑃𝑟𝑜𝑓𝑖𝑡𝑎𝑏𝑖𝑙𝑖𝑡𝑦+ 𝐼𝑛𝑓 𝑅𝑎𝑡𝑖𝑜 𝑋𝑇𝐶𝑉 𝑜𝑓 𝐼𝑛𝑓𝑙𝑢𝑒𝑛𝑐𝑒𝑒𝑠𝑁𝑜 𝑜𝑓 𝐼𝑛𝑓𝑙𝑢𝑒𝑛𝑐𝑒𝑒𝑠 (or Proportional Individual Profitability) (or Proportional Social Profitability)

30. How it Works (1-Inf. Ratio) X π1 + Inf. Ratio [ (1-Inf. Ratio) X π2 + Inf. Ratio [ (1-Inf. Ratio) X π3 + Inf. Ratio […]]] Proportion of customer’s purchase attributable to own decisions Proportion of 1st degree referral’s purchase attributable to influence Proportion of 2nd degree referral’s purchase attributable to influence …And so on…

32. Nurture High TCV Customers

33. Appraise Customers based on TCV

34. Seed the right Influencers to maximize spread and profitability, subject to marketing budget

35. Minimize Cost

36. Identify Key players

38. Max Gains

39. Own purchase data

40. Influence & Referral Purchasesdata

41. Customer conversations

42. Social network activity

43. Customer Transactions

45. Questions? Comments? Queries? Feedback? Email: vikram@gojeeno.com Twitter: twitter.com/gojeeno Or visit us at www.gojeeno.com