View this SlideShare on "How to Measure Social Media Effectiveness and Demonstrate ROI" in an increasingly social world!

1. How to Measure Social Media Effectiveness and Demonstrate ROI

2. AGENDA
2. Relevant
statistics
1. The ROI
Challenge
3.
Measurement
Infrastructure
4. The Cisco
Model
6. Auditing
5. Tools

3. THE ROI CHALLENGE
• “The puzzle that can’t be solved”
• The C-Suite remains skeptical
• Measuring best practices still
evolving
• Goal best approaches are easiest
to measure

4. THE ROI CHALLENGE
Many social media activities can't be effectively
measured using a transactional formula. SMM
is often best measured in terms of audience
reach, engagement and sentiment.

5. STATISTICALLY SPEAKING – CMO SURVEY
of marketers say their boards and CEOs are
tightening pressure to measure ROI.66%

6. STATISTICALLY SPEAKING – CMO SURVEY
of marketers said they aren’t able to
quantify whether social media has made a
difference for their companies.
49%

7. STATISTICALLY SPEAKING – CMO SURVEY
of marketers said they had a good sense of
qualitative – though not quantitative –
results.
36%

8. STATISTICALLY SPEAKING – CMO SURVEY
of marketers said they’ve seen a proven
quantitative impact.15%

9. STATISTICALLY SPEAKING – CMO SURVEY
of marketers were using traditional ROI
metrics in 2013, down from 17%.9%

10. STATISTICALLY SPEAKING
Marketers are expected to increase their
share of social media spending from 6.6%
to 15.8% of their budgets by 2018.

11. MEASUREMENT INFRASTRUCTURE
TRADITIONAL / COMMON METRICS
Hits,
Visits &
Page
Views
Revenue
Per
Customer
Buzz
Indicators /
Web
Mentions
Repeat
Visits
Customer
Acquisition
Costs
Sales
Levels
Profits per
Customer
Conversion
Rates
Followers
and
Friends
Online
product/servi
ce ratings
Customer
Retention
Costs
Net
Promoter
Score
Abandoned
Shopping
Carts

12. MEASUREMENT INFRASTRUCTURE
AUDIENCE
REACH
ENGAGEMENT SENTIMENT
The core of social media measurement…

13. IDENTIFY GOALS
• Increase awareness
• Generate leads
• Convert leads to
sales
• Retain existing
customers
• Reduce costs

14. ALIGN OBJECTIVES WITH METRICS
Drucker’s “SMART” Methodology
• Specific
• Measurable
• Actionable
• Realistic
• Timed

15. DEFINE THE RETURN
What does success for your brand look like?

16. CREATE A DASHBOARD
• Create a central hub for data
• Use external tools or Excel
• Convert leads to sales
• Retain existing customers
• Reduce costs

17. AUDIENCE REACH
• Number of fans
• Number of followers
• Number of influencers
• Audience profiling

18. ENGAGEMENT
• Number of likes
• Number of mentions
• Number of shares, retweets, etc.
• Other meaningful interactions
• Response rate
• Conversions

19. ENGAGEMENT RATING SYSTEM
What is engagement worth to your organization?
ENGAGEMENT POINTS
LIKE 1
COMMENT 5
SHARE 10

20. SENTIMENT

21. SOCIAL LISTENING
• Monitoring
• Systems for
quantifying
results
• Charting findings
• Reporting
• Evaluating
growth

22. THE CISCO MODEL
Community Health
Market Perception
Quantitative
“The
Cisco
Model”

23. COMMUNITY HEALTH
Engagement
Customer
Satisfaction
Social
Content
Mobility
Community
membership
s
Positive
third-party
reviews
Ratio of
posts to
comments
Channel/Cont
ent
Subscriptions
Content
views/downl
oads
Customer
retention
Positive
sentiment
overall
Sentiment
compared to
satisfaction
Customer
loyalty
Customer
satisfaction
Facebook
Shares/Like
s
Content
tagged, rated
or ranked
Blog Track-
Backs
YouTube
Likes/Embe
ds
Twitter
Retweets

24. MARKET PERCEPTION
Thought
Leadership
Message
Resonance
Market
Awareness
Share of
Voice
Thought
Leader
Market
Perception
Ratio of
posts to
comments
Topical
Content
Coverage
Thought
Leaders
Quoted
Conversations
containing one or
more key messages
Market
Position
Key messages in social
media conversations
Awareness and
credibility of key
messages
# of times positioned
favorably in convos
versus competition
# of times mentioned in key
blogs and communities versus
competition
Perceived
positioning relative
to the competition
Aided and unaided
awareness versus
competition
Preference in specific
markets versus the
competition
Positive sentiment
versus the competition

25. QUANTITATIVE
Lead Sales /
Market Share
Efficiency of
Communication
Correlation between
social media
conversations and
number of qualified
leads
Desirable
mentions or
key sales
drivers
Cost per
contact or
customer
acquisition
Cost per
qualified
lead
Cost per click thru
Messages
communicated (budget
divided by message
appearances)
Cost per
engagement

26. TOOLS
HOOTSUITE
FACEBOO
K
INSIGHTS
SPROUT
SOCIAL
CROWD-
BOOSTER
GOOGLE
ANALYTICS
KEYHOLE
SOCIAL
MENTION
BUFFER

27. AUDITING
• Measurement best practices are
still evolving
• Not every complex methodology
will work for every brand
• Methodologies may change as
marketing goals change
• Reevaluate often

28. QUESTIONS
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