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1. Measuring the ROI of
Social Media
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2. Measuring Social Media ROI is Possible
And Impossible at the same time
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3. Three Dimensions of Measurement
Returns What “Returns” did you get?
How much of “Returns” can be
Attribution “Attributed” to the investment?
Will you get “More Returns” in “Future”
Future Potential for the current “Investment”?
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4. Types of Returns
Returns
A clear & direct metric
Tangible Units Sold, Leads Generated, Total
Registrations, Referral Traffic
At most an indicative metric
Intangible Brand Awareness, Reputation, Customer
Satisfaction, Customer Loyalty
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5. Three Dimensions of Measurement
Returns What “Returns” did you get?
How much of “Returns” can be
Attribution “Attributed” to the investment?
Will you get “More Returns” in “Future”
Future Potential for the current “Investment”?
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6. Attributing Returns to Investment
Attribution
Establishing unbroken chain of events from
the “investment” to the “return”
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7. Unbroken Chain of Events: e-commerce
Attribution
1. You Post a Link of 2. Total 3500 people 3a. Total 17 of these
your Product Page on visit product page buy the product in
Facebook through that link first visit
3b. Total 250 people 4. In 15 days period,
register for Free Trial 34 people upgrade to
version paid from trial
Investment: Posting a link on Facebook
Result: 51 product units sold
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8. Unbroken Chain of Events - Services
Attribution
1. You see 38 tweets 2. You respond to all 3. Total 7 people
by people looking for of them introducing interact with you for
web design your services further details
4. You close business
worth $7.5K with 3 of
them.
Investment: Listening on Twitter & Responding to prospects
Result: $7.5K worth of Business
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9. Unbroken Chain of Events: CRM
Attribution
1. You see a –ve 2. You interact with 3. Customer now
tweet by a customer the customer & appreciates your
about your product resolve the issue service on twitter
4. You get 6 more
customers worth $9K
through this referral
Investment: Customer service on Twitter
Result: $9K worth of Business
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10. Attribution is a Hard Problem
Attribution
More often than not, it’s hard to
Broken Chains establish a credible sequence of events.
Not all the metrics are available or
Missing Metrics captured automatically.
Multiple marketing efforts with a single
Mixed Influence outcome coincide with each other.
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11. What are Broken Chains of Events?
Attribution – Broken Chains
You Promote your
product on LinkedIn
You use a Blog for
thought leadership You get $20K
worth of Business
with “unknown
You interact with source”
people on FB/Twitter
You resolve people’s
issues on FB/Twitter
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12. Fixing Broken Chains
Attribution – Broken Chains
• Ask your customers
where they came from
“if you can”
• Could be part of
registration process or
included at some
other step
• Not reliable but might
provide indicators
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13. Attribution is a Hard Problem
Attribution
More often than not, it’s hard to
Broken Chains establish a credible sequence of events.
Not all the metrics are available or
Missing Metrics captured automatically.
Multiple marketing efforts with a single
Mixed Influence outcome coincide with each other.
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14. Missing Metrics Examples
Attribution – Missing Metrics
How many issues
were resolved on
Twitter?
How many $ were
saved/earned by
resolution of issues?
Did you note down
that FB was used for
Market Research?
And that lead came
from an introduction
over LinkedIn!
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15. Resolving Issues around Metrics
Attribution – Missing Metrics
Issue: All the metrics are not captured in a tool.
E.g. if you resolved a customer issue on
Twitter, which tool recorded this?
Resolution: Needs deploying a tool or a simple manual
capturing of the data in a document. The
choice depends on the scale.
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16. Resolving Issues around Metrics
Attribution – Missing Metrics
Issue: All the metrics are not fully measurable.
E.g. value of resolving a customer issue on
Twitter. Is it $20 or $2K or $2M?
Resolution: Needs a simple model to find approximate
value. E.g. resolving a customer issue could
be worth the business given by that customer.
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17. Attribution is a Hard Problem
Attribution
More often than not, it’s hard to
Broken Chains establish a credible sequence of events.
Not all the metrics are available or
Missing Metrics captured automatically.
Multiple marketing efforts with a single
Mixed Influence outcome coincide with each other.
www.42inception.com

18. The problem of Mixed Influences
Attribution – Mixed Influence
Social
Media
TV
Online
Reputation
Print
Impossible to measure influence of a
Offline single campaign when everything is
executed together
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19. Three Dimensions of Measurement
Returns What “Returns” did you get?
How much of “Returns” can be
Attribution “Attributed” to the investment?
Will you get “More Returns” in “Future”
Future Potential for the current “Investment”?
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20. Measuring Potential ROI
Future Potential
Question: What’s the value of a Fan or a Follower?
Answer: Default is $0. A fan or a follower is a
relationship. The value depends on who the
person is and how you extract value from
the relationship.
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21. Summary
• Measuring Social Media ROI is about
– Measuring the returns
– And attributing them appropriately to Social
Media efforts
• It can be simple or difficult depending on:
– Type of return
– Type of Social Media effort
• The value of a fan or follower is only a
potential value.
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