measuring social roi: the cio's role
DESCRIPTION
Social media marketing may be all the rage, but few companies are measuring results with any level of precision. The research would indicate that only 14% of senior marketers whose companies use social network marketing say they are tying their efforts to financial metrics. With social media becoming so engrained in the way companies do business, measuring its contribution on a wing and a prayer is no longer enough. CIOs need to help enforce disciplined approaches to website analytics, synchronizing metrics to capture and track leads and building 360° views of the customer.TRANSCRIPT
Paul Gillin
Measuring Social ROI: The CIO’s Role
Author:
The New Influencers
Secrets of Social Media Marketing
Social Marketing to the Business Customer
Click to edit Master title styleTime is Right
37%
81%
58%
65%
68%
65%
67%
84%
37%
30%
28%
30%
29%
53%
17%
13%
2%
10%
4%
6%
4%
5%
4%
2%
0% 20% 40% 60% 80% 100% 120%
Increased market share
Decreased costs
Improved talent retention
Improved speed to market/innovation
Improved product/service quality
Improved collaboration with partners
Improved brand or stock value
Improved marketing/sales effectiveness
Advantage No Impact Disadvantage
Source: Economist Intelligence Unit Survey of 329 Business Leaders, 2012
Perceived Value of Social Business
Click to edit Master title styleJust Another Channel?
Marketing and branding41%
Marketing Communications (e.g., Public Relations)40%
Distributed throughout the organization17%
Sales16%
Customer service11%
Education and Training7%
Human Resource10%
6%Centre of Excellence
Research and Development (R&D)8%
Who Has Primary Responsibility for Social Business
Source: Economist Intelligence Unit Survey of 329 Business Leaders, 2012
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17%
81% agree that socialengagement hastangible benefits
• Project management• Innovation• Collaboration• Efficiency gains• Cost savings
Yet only 17% have responsibility well-distributed throughout the organization
Executives See Greatest Benefit of social engagement in…
Source: Economist Intelligence Unit Survey of 329 Business Leaders, 2012
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Twitter: @pgillin
How We Share Influence
Consumer influence channels
Source: Universal McCann Erickson
PRE MEDIA AGE
Talk face to face
Talk to shop worker
SOCIAL MEDIA AGE
Personal blog
Social network page
Widgets
Photo sharing site
Chat rooms
Message boards
Video sharing site
Comments on blogs
Comments on websites
Viral emails
Wish lists
Ratings on retail sites
Reviews on retail sites
Auction websites
Social Bookmarking
Chat room
Price comparison sites
Social shopping sites
Consult a professional
Readers Letters
Phone in; TV / Radio
Talk to shop worker
Talk face to face
Phone call
SMS
Instant Messenger
MASS MEDIA AGE
Consult a professional
Readers letters
Phone in; TV / Radio
Talk to shop worker
Talk face to face
Phone call
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Twitter: @pgillin
Customer Service Matters
Service Topic Consumers who have not used social media for customer service
General population
Consumers who have used social media for customer service
Additional amount consumers will spend for excellent service
11% 13% more 21% more
Have not completed intended purchase because of poor customer experience, previous 12 months
49% 55% 83%
Number of people customers tell about good customer service experience
9 15 42
Number of people customers tell about poor customer service experience
17 24 53
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“Companies that are highly effective communicators had 47% higher total returns to shareholders over the last five years compared with firms that are the least
effective communicators.”
Towers Watson 2009/2010 Communication ROI Study Report
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“Our data show that fully networked enterprises are not only more likely to be
market leaders or to be gaining market share but also use management practices that lead to margins higher than those of companies
using the Web in more limited ways.”
McKinsey 2010 survey of 3,249 executives
Service With a Smile
• 55% of respondents became a customer of a company because of its reputation for great customer service
• 40% began purchasing from a competitive brand simply because of their reputation for great customer service
• 85% of consumers said they would be willing to pay more over the standard price in order to ensure a
superior customer experience.
- RightNow Technologies 2010 Survey of 2,217 North American consumers
Responsibility distributedthroughout the organization
Responsibility assignedto one department
There are business benefitsto encouraging customersto talk publicly – whether
positive or negative81%agree
67%agree
Source: Economist Intelligence Unit Survey of 329 Business Leaders, 2012
Adoption of social channels is strong; with 59% of organizations having adopted Twitter and 60% adopting Facebook, and almost 85% of those who have adopted one, have adopted both together. However, adoption seems to have been the easy part. Justification, integration, and strategic measurement continue to be the most challenging aspects of implementing new social channels.
- ThinkJar/Sword Ciboodle survey of 400 customer service practitioners,
2012
Disconnect
Other
Analysts and pundits
Customer co-creation
Consultants/integrators
Customer research
Internal team
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
When selecting a new channel for customer service, who drives the decision?
Source: ThinkJar/Sword Ciboodle, 2012
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20110123456789
10
Social Media Crises Reaching Mainstream Media
Facebook14%
Com-munity
22%
Twitter18%
Blog20%
YouTube22%
Other4%
Where Crises Originate
Data source: Altimeter Group, 2011
Companies are quick to deploy the latest social media technology, yet most have not prepared for the threat of social media crises…we found that more than three-fourths could have been diminished or averted.
--Altimeter Group
New Channels of Complaint
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Twitter: @pgillin
Hot Prospects
Qualified Prospects
Suspects
New Clients
The Sales Funnel
Image Credit: Retail Sales Systems, LLC
Click to edit Master title styleFlipping the Funnel
15
Respond & Iterate
Invite Engagement
Listen
Go Where the People Are
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Source: Monitor
And Flattening It
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Twitter: @pgillin@pgillin
Today, Integration Means “Everything”
0
25
50
75
100Value of Specific Marketing Communications Programs
Public Relations
Internet Word of Mouth/Viral
In-store/Point of Sale
Direct response advertising
SocialNetworking
MobileMarketing
General Advertising
Search EngineMarketing
SalesPromotion
EventMarketing
Sponsorship BrandedEntertainment
VideogameAdvertising
10 of 14 achieved 50% top 2 box score
Source: Association of National Advertisers, 2010
Room for Improvement
Socia
l Netw
ork M
arketing
Mobile
Adverti
sing
Email M
arketing
Direct
mail m
arketing
0%
5%
10%
15%
20%
25%
30%
% of Companies Measuring ROI
Source: Columbia University/ American Marketing Association 2012
Click to edit Master title styleOpportunities in Listening
QuoraLinkedIn Answers
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Twitter: @pgillin
38 Minutes on Twitter
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Twitter: @pgillin
What the Heck Are They Thinking?
Epson reported that revenue per visitor nearly doubled after the reviews were launched.
Click to edit Master title styleWhat We Usually Measure
Hits
Visits
Bookmarks
Unique Visitors
Page Views
Likes Followers
Traffic
Clicks
These Indicate Activity but NOT
Engagement
Click to edit Master title styleTerms of Engagement
Repeat Visits
Shares
Bookmarks
Subscriptions
Employment applications
RetweetsComments
Downloads
ForwardsPages/visit
ReviewsPhone calls
Lead forms
Ratings
Click to edit Master title styleMeasuring the Immeasurable
Lift Studies
Store visits
Headline Counts
Employment applications
Speaking Invitations
Net Promoter Score Coupons redeemed
If You Can Measure It, You Can Calculate Its ROI
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March 30Prospect reaches website
through search query "small business accounting," views four pages and subscribes to
newsletter.
April 4Prospect responds to e-mail
invitation for "Choosing Small Business Accounting Software"
webcast 30 minutes after e-mail is sent.
April 9Prospect attends webcast, stays
45 minutes and submits a question related to legal
practices.
April 10Prospect clicks link in webcast
summary e-mail to visit product description page. He downloads PDF of product brochure about
software for legal practices.
April 12Prospect downloads trial
version of your small business accounting software for legal
practices.
Oh, the Things That You Know!
Thanks to Web Analytics…
Click to edit Master title styleERP for Marketing
Click to edit Master title styleCRM Goes Social
Click to edit Master title styleStagger Activities
White Paper Promotion Timeline
Task Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Home page link
E-mail newsletter
E-mail blast
Blog promotion
Twitter messaging
Click to edit Master title styleLook for Impact
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Twitter: @pgillin
Lead Gen Excellence
73 blogs
17 bloggers
600% jump in leads
Top quality
“Get engineers talking to engineers and get everyone else out of the middle.”
Rick Short, Marcom Director
@pgillin
Click to edit Master title styleA Reader is a Lead
Each blog has the option to ask a question of the engineer
@pgillin
Click to edit Master title styleBasic Business Metrics
Lifetime Value of a Customer = (Longevity * Revenue) * Margin
Conversion Rate = New Customers/ Visits or Leads
Value of a Lead/Visitor = Visitor * Conversion Rate * Lifetime Value
Click to edit Master title styleOK, Let’s Make it Real
Typical customer Curly spends $10,000/year with you
Curly is with you for five years
Your profit margin is 10%
Lifetime value of Curly is($10,000 * 5) * .1 = $5,000
Click to edit Master title styleApplying ROI: Value of a Visitor
Monthly Visitors 10,000
Conversion Rate .5%
Lifetime Value $5,000Calculation (10,000 * .005 * 5)/10,000
Value of a Visitor $25
Click to edit Master title styleValue of a Blog
Monthly Search Traffic 3,000
Estimated Traffic w/Blog 4,000
Value of a Visitor $25
Monthly Value of a Blog $25,000
Monthly Blog Expense $6,000
ROI ($25,000-$6,000)/$6,000 316%
Click to edit Master title styleValue of Twitter
You send 50 tweets a month… Generating 1,000 visitors to
your website… 2% of whom become leads… 5% of whom become
customers.
Therefore, the value of a tweet is:
(1,000 * .02 * .05 * 5000)/50 = $100
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Twitter: @pgillin
Paul Gillin
508-656-0734
Site: gillin.com
Blog: paulgillin.com
Twitter: pgillin
Thank You!