In the Hot Seat: How to Measure ROI in Social Media

PRESENTERS: Daniel Edward Craig Josiah Mackenzie @ReviewPro

September 25, 2012

Founded in October 2008, ReviewPro has thousands of hotel clients in more than 70 countries around the world.

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Some background…

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Introducing our presenters

Daniel Craig • Former hotel general manager • Author, consultant & leading voice in social

media and reputation management in the hotel industry

• Industry Advisor, Engagement with ReviewPro • @dcraig on Twitter

Josiah Mackenzie • Founder of Hotel Marketing Strategies & Tnooz

node • Works with hotel executives to increase sales by

providing better service through social channels • Director of business development at ReviewPro • @HmarketingHelp on Twitter

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Questions and comments

mention @ReviewPro

1. Why Is It Important to Measure ROI?

2. Setting Objectives

3. Measuring ROI

4. Social Analytics

5. Website Analytics

6. Review Analytics

7. Other Important Benefits

8. Q+A

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Overview and Agenda

• To understand the impact of social media on your hotels

• To guide planning and strategy decisions

• To convince the executive team of the resources you need

• To make smart choices about prioritizing time and resources

• To get the buy-in of everyone participating

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1. Why is it important to measure ROI?

2. Setting Objectives

1. Identify objectives: driving revenue, building awareness, increasing guest satisfaction, managing reputation

2. Create a way to measure progress towards these objectives

3. Understand which key performance indicators mean something – and which are unhelpful

4. Develop a custom ROI report for your organization based on the points above

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How does your hotel/hotel group measure ROI in social media?

By reach: number of followers, likes, etc

By engagement: number of retweets, shares, comments

By revenue: leads, conversions, bookings

By reputation: reviews and ratings on reviews sites and OTAs

We don’t currently measure ROI in social media

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Poll #1 – Results

3. Measuring ROI in social media

• eConsultancy-Adobe survey: Only 12% of companies able to track direct revenue impact of social media

• Three main responsibilities of social media managers: community management, content development and analytics

• “Vanity Metrics” – what do they tell us?

• Measure: reach, engagement, advocacy and revenue

• Three types of metrics: social, website and review

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Brand Awareness and Revenue

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4. Social Analytics

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Mitchell Fawcett Marketing Communications

Manager O'Neill Hotels & Resorts

www.oneillhotels.com @MitchellFawcett

Facebook Insights

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Key Metrics to Track – Facebook

1. “Talking About”

2. Reach

3. Virality

4. Check-Ins (“Were Here”)

5. Demographics

6. Page Views & Unique Visitors

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Conversation Calendar

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Twitter

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1. ReTweets and @Mentions

2. Mentions by Influencer

3. Photos

4. Guest Sentiment

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Twitter Analytics Example

How do our guests feel about wi-fi charges?

Social Analytics Report

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Facebook: - Insights (fan growth, engagement, reach,

check-ins, page views and unique visitors) - Most Popular Post - Revenue - Website Traffic - Guest Feedback Twitter: - New Followers - ReTweets & @Mentions - Most Popular Tweet - Revenue - Website Traffic - Guest Feedback

Other Social Platforms

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• Google+: followers, pluses, comments, shares

• YouTube: subscribers, friends, views, likes, comments, shares

• Foursquare: likes, tips, visitors, check-ins, shares, photos, redemptions

• Pinterest: followers, likes, comments, re-pins, click-throughs

• Blogs: subscribers, sources, keywords, visitors, length of visit, comments, post shares

5. Website Analytics

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Martin Soler Marketing Director

www.wihphotel.com @wihphotel

Google Analytics

Key Social Metrics to Track on Your Website

1. Traffic Sources

2. Social Visitors Flow

3. Pages

4. Social Plug-ins

5. Conversions

6. Conversion Paths

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Social Traffic Sources

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Social Visitors Flow

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Booking path: Social

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Booking Path: Shopper

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Conversions

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Offline Analytics

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How did you find the hotel?

22.9%

20.7%

18.2%

17.0%

12.3%

3.1%

2.0%

1.6%

1.5%

0.5%

0.2%

Friends and Family

OTAs

TripAdvisor

Other

Repeat Guest

Travel Agent

Magazine

Facebook

Blog

Guide

Twitter

6. Review Analytics

• Key performance indicators – Overall guest satisfaction in online reviews – Volume of online reviews – Position of hotels on review sites in each regional market – Ranking of hotels among their competitive set

• Review analytics for revenue management – Maximizing ADR – Optimizing distribution – Increasing conversion rates

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Review Analytics: Overall Satisfaction

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Review Analytics: City Ranking

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Review Analytics: Comp Set Ranking

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Note: this data is a sample for demonstration purposes only

Review Analytics: Optimize Distribution

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Review Analytics: Increase Conversions

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7. Other Important Benefits

1. SEO influence on search rankings and visibility

2. Psychographics: targeted marketing

3. Direct bookings, relationships and loyalty

4. Cost savings vs. paid media: advertising, print, tradeshows

5. Real-time feedback Careful not to exaggerate the role of social media:

• Paid advertising (email, CPC, OTAs) drives more direct bookings • People still book by traditional channels • Social media amplifies paid media, drives traffic to these channels

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Key takeaways

1. Use ROI metrics to guide strategy, obtain resources, and create buy-in across the organization

2. Measure ROI based on business objectives

3. Create an ROI report to track key social, website and review metrics

4. Look beyond “vanity metrics” to reach, engagement and

conversions

5. Consider additional benefits like cost savings and efficiencies when assessing returns on social activities

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Questions & Discussion

More answers @ReviewPro

info@reviewpro.com

www.ReviewPro.com/demo