Understanding
Social Media Measurement:
A Road Map
Tara Coomans
Akamai Marketing
www.akamai-marketing @TaraCoomans
#akamaimkting
27% of Businesses Measuring Social ROI
63% Measure Followers/Likes
61% Measure Click Through Rates
51% Measure Brand Mentions
35% of Companies
Measuring Social ROI
are Satisfied
SOURCE: http://www.nectarom.com/assets/Social-Media-Study-Quick-Summary_0213.pdf
•HOW to measure Social Media
•WHAT to measure in Social
Media
• A sample ROI model
Social Media is the Support Beam to Your
Business Goals
NO INVESTMENT,
NO RETURN
Revenue Word of
Mouth
Not Everything That Can Be Counted,
Counts
Not Everything That Counts, Can Be
Counted
What You Measure,
Depends on Your Destination.
Increased sales
Reduce Customer Service
Costs
Create community
Increase web traffic
Increase reach
Brand awareness
Qualitative Quantitative
Customer Feedback
Increase trust
Increase loyalty Increased leads
Website conversions
Shorter Sales Cycle
What Value Does Word of Mouth Marketing
Have?
65% of New Business
Comes From Referrals 40% of Small
Businesses Say Referrals
Bring in Bigger Returns
than Traditional Marketing
4X More Likely to Buy
When Referred by a
Friend.
Source: https://s3.amazonaws.com/ambassador/downloads/infographic/netpromo-v5.jpg
Social Media
Supercharges Word
of Mouth
Faster
More Nimble
More Reach
How Do We Quantify Word of Mouth
Volume
Few
Messages
Many
Messages
X Impact
Network
Sender
Closed/
Trusted
Large/Dis
persed
+
-
Influential
Not
Influential
+ -
Content
Message Source
+ Irrelevant
Key Buying
Factor
-
+ Personal
Experience
- Secondhand,
Hearsay
= WOM Equity
McKinsey Quarterly Research
ROI Data
Measure Success Outside of Social Platforms
INCREASED
LEADS
conversion of
sm followers
vs.
other
marketing
programs
#downloads + #webinars +
lead generation from SM
#downloads + #webinars +
lead generation from other sources
INCREASED
SALES
revenue
per
follower
#followers + #fans + #subscribers
revenue
DECREASED
CUSTOMER
SERVICE COSTS
customer
resolution
time
social media
comparison
# customer service cases on social
media/time
# customer service cases on traditional
methods/time
CAMPAIGN
EFFECTIVENESS
cost per conversion digital methods
cost per conversion other methods
ROI Data
SAMPLE CASE STUDY: Menu Launch
30-Day Campaign
ROI
• Invite 10 Food Bloggers, local and regional to
review.
• Choose variety of writers and photographers, write
a minimum of 2 posts.
• Bloggers also post on Facebook & Twitter
• Average Twitter Audience: 5,000
ROI: Influencer Program Costs
Set Up Social Media Assets Market Value
Training of Personnel $3,000
Social Media Monitoring Platform $2,000
Social Media Consulting / Campaign Strategy /
Blogger Management/Costs/Analysis
$7,200
Cost of Content Creation $7,000
Cost of Brand Owned Content Creation $1,000
$20,200
ROI: Cost Savings
Incoming Clicks EXAMPLE:
•2500 New Non-paid Visitors
•“Honolulu Restaurant” Keyword term
• Average CPC . 71
•5% Made Reservations
Online
CPC Value: $1,775
EXAMPLE:
•30 Blog Posts, local & regional
•Total Page Views: 380,727
•Total Unique Page Views: 267,299
•Average Twitter Reach: 5,000
•Average Facebook Reach: 3,200
Media Equivalency Value: (Debatable) $6,480
ROI: Cost Deflection
Media Equivalency
EXAMPLE:
•Average check increase of $5.00/check
•Increase of 10 checks/day
•Increased total is 75 checks/day
Revenue Increase: $17,400
(during 30-day campaign)
ROI: Increased
Revenues
Based on:
•Trust Factor - Low
•Relevance Factor - High
•Quantity/Volume - Medium
•Network Value - Medium
Independent Reviews (25)
Independent Social Media
Mentions (250)
WOM Value: $5,600
ROI: Word-of-Mouth
Value
Source: http://www.mckinseyquarterly.com/A_new_way_to_measure_word-of-mouth_marketing_2567
Incoming Traffic Value +
Media Equivalency Value +
Word of Mouth Value +
Product Development (savings) +
Customer Service (savings) +
Increase in Revenue (or other strategic goals)
during campaign
Gain of Social Media Program- Social Media Program Cost
Total ROI
Measuring
Set Up Social Media Assets Market Value
Cost Deflection (Media Equivalency) $6,480
Cost Savings (Online) $1,775
Word of Mouth Value $5,600
Total Revenue Increase $17,400
$31,255
Total ROI $ 31,255 - $ 20,200
$ 20,200 = 5%
•Restaurant traffic increases by 10 checks/day
•Reservation rate up 20%
•Geolocation “Check-ins” up 5%
•Reservations spend up to 10% more
•20% Increase in independent reviews (25)
•10% Increase in positive independent reviews
•5% Increase Unsolicited Positive or Neutral Social
Media Mentions: (250)
KPI’s Worth Tracking
Before We Press
“Go” Baselines in Place?
Business Goals
Established?
Website Easy to
Update?
Landing Pages Up?
Web Analytics in
Place, Optimized?
Don’t Measure Social
Media in the Social
Channel
Thank You!
Join me online for more resources and conversation:
www.akamai-marketing.com
@taracoomans
facebook.com/AkamaiMarketing
This Presentation is Available on My Slideshare
Channel:
Slideshare.com/TCoomans