2012 05 the roi of search and social
DESCRIPTION
How to develop a rational process for tracking and measuring ROI of Inbound Marketing activities.TRANSCRIPT
The VALUE of Search and Social
Gillian Muessig, President & Co-founder, SEOmoz
GlobalEIM| November, 2011
ROI
ROI is a business metric,not a media metric.
ROI
ROI is media agnostic100%
ROI
Every resource has a cost
NOT ROI
Non-financial positive and negative KPIs
Clicks, hits, complaints, CTR, press, content views, brick and mortar store numbers, employment apps,
FB friends, likes, comments, and shares, blog comments, UGC submissions, social mentions,
twitter followers, tweets and re-tweets
NOT ROI
You Get the Idea
NOT ROI
Those are non financial KPIsnot ROI
ROI
Financial ROI of Social Media
ROI
Average sales before SMM initiative
ROI
Average sales after SMM initiative
ROI
AfterBefore
Avg growth 10% Avg growth 16%
ROI
If your cost
<
Increases receipts
ROI
You have achieved apositive ROI.
ROI
Ok. We’re done. Bye bye.
ROI
What?You want more?
Ok.
Positive KPIs
An increase in POSITIVE KPIs
Positive KPIs
Number of Customers
Positive KPIs
Average Dollar Value per Purchase
Positive KPIs
Customer Lifetime Value
Positive KPIs
Increased Average Margin
Negative KPIs
Decrease in returns
Negative KPIs
Decrease in customer complaints
Negative KPIs
Decrease in left over stock
Negative KPIs
Decrease in bad sentiment
Negative KPIs
Decrease in need for paid ads
Negative KPIs
Decrease in recalls or failed new products
ROI
Ok. NOW we’re done. Bye bye.
Think more deeply about VALUE
No. Wait. There’s more.
LINKS: HOW WE GET AROUND
LINKS: VOTES OF POPULARITY
LINKS: A REALLY BAD SIGNAL
LINKS: A REALLY BAD SIGNAL
SOCIAL SIGNALS ARE BETTER
A BETTER SIGNAL
NEWS EVENT
TWITTER: <60 SECONDS
Users: 50mm 750mm 200mm 120mm 10mm
Users: 14mm Millions 14mm 6.5mm
22 MINUTES
RADIO: 1+ HOURS
TV: PM NEWS
TV: PM NEWS
SOCIAL SIGNALS
FASTER DELIVERY
NEWS SOURCE
GOOGLE PIVOTS
IMMEDIACY
SENTIMENT
ROI
So what good is it to me?
FOCUS GROUPS ARE BOGUS
FOCUS GROUPS ARE UNCOMFORTABLE
YOU’RE NOT PARANOID
IT’S THE BEST WE HAD
FASTER ANSWERS, LARGER DATASETS
REPLACES FOCUS GROUPS
CROWD SOURCING
Image credit: http://www.businessesgrow.com/2011/08/31/the-top-five-crowdsourcing-mega-trends/
FUND RAISINGWITHOUT
MIDDLEMEN
Image credit: http://www.psn.ie/parents_pa/other-fundraising-events.html
CROWD SOURCE SIMPLE TASKS
CROWD SOURCE SIMPLE TASKS
CROWD SOURCE MARKETING
Involvement Marketing
ASK ME ANYTHING
What color do you feel like this morning?
A SIMPLE QUESTION
What color do you feel like this morning?
MARKETERS SOULS SING!
More than 1000 responses within 1 hour
POETRY
WHAT CAN YOU DO WITH IT?
HEADS UP, CORPORATE BUYERS!
INDUSTRIAL DECISIONS
ASK US; WE’LL TELL YOU
GET SOME PERSPECTIVE
MASS MARKETED PRODUCTS
OPM
INDUSTRIES IN NEED OF PIVOTING
SOME PEOPLE DON’T ASK
THOUGHT LEADERS
THOUGHT LEADERS DON’T ASK DIRECTIONS
Apple - BMW
Crowd source everything – R&D, improvements, innovations, marketingGovernments, NPOs, for-profits
Basic Necessities - no need to crowd source around these, except perhaps marketing
BMW
FINAL THOUGHTS
ONLINE REPUTATION
FINAL THOUGHTS
The ROI of Social Media = Adjusted Gross Receipts
less Cost of Initiative
FINAL THOUGHTS
The VALUE of Social Media is much more
ROI
So how do I sell this to a clientor my boss?
ROI
Why should I spend money on SEO?
CTR
We’re all clicking on Organic SERPs
Organic
Paid
<20% of marketing budget
>80% of marketing budget
CTR
All the money is spent on Paid Ads
Organic
Paid
88% of marketing budget
12% of marketing budget
CTR
SEO represents ahuge potential
for ROI
ROI
Fine. But I do really need to be #1?
CTR
Do I really have to rank #1?
ROI
How will I know SEO made me money?
ROI
Look for the lift
ROI
Yes! That lift!
