SMC Orlando Presents "Five Effective Social Media Metrics for ROI"

Welcome to
"Five Effective Social Media
Metrics for ROI"

Crowdsourcing
Contests

Greg Rollett
@g_ro
rollettmarketing@gmail.com

Crowdsourcing

the act of outsourcing tasks, traditionally performed
by an employee or contractor to a large group of
people or community (a crowd), through an open
call.

Wikipedia - http://en.wikipedia.org/wiki/
Crowdsourcing

Crowdsourcing Contest

Having this large group of people or community publicly
perform a task as an entry to a contest (hopefully to win
a not lame prize)

From An ROI Side
• How many entrants
• Social reach of the task
• Social engagement
• Cost of advertising / driving traffic
• Revenue Generated from any advertising,
product sales, etc
• Media coverage
• Post usage (stuff you do with entries after
contest)

Appreciate Nurses A
Latte Campaign

The Campaign
• Have nurses tell “their story” on why they
chose to become a nurse
• Need to “like” the HealthCareerWeb
Facebook Page
• Need to share their story
• 1 winner a day for 5 days at random

Driving Traffic
• Email blast to database
• Social media profiles
• Facebook ads

Metrics
• Number of New Followers: 142
• Total Interactions: 63
• Social Reach: 5,026 Facebook Users

More Metrics
Facebook Ads
• Total Spend: $155.79
• Total Clicks: 255
• CPC: $0.61
• Spend per Interaction: $2.47

Some Big Picture
Numbers
• Spend
–Ads: $155.79
–Gift Cards: $125
• Interactions
–63
• Reach
–5,026 Facebook Users through wall posts
–500,000+ Ad Impresions

Pro’s
• Interact with your fans/customers
• Create strong social proof
• Get them interested in product by
empowering them
• Low cost for high visibility
• Hyper targeting and niche specific
• Use in future marketing

Cons
• Fear of low to no entries
• Scared of control over entries
• Difficulties of tracking overall effectiveness
• Prize and reward vs. action

Anthony’s Presentation titled: “How do we
measure success online” can be found via
Prezi at:

http://prezi.com/zq2avx59n-fw/how-do-
we-measure-success-online-smco/

Organic Search Metrics

Social Media ROI

Ashley Lomas
VP of Marketing & Interactive Insights
• Social Media Evangelist
• Years of experience and successful track record
online and offline portfolio includes
organizations such as:

So how does social media
help with organic search?

Andrew Girdwood, head of search at bigmouthmedia, says: “Search and social are joined
at the hip. They represent two of the main fuel cells in a digital campaign. Search and
Social aid one another, boosting one another, while each being an independent entity in its
own right. It’s a healthy relationship.”

Teddie Cowell, SEO director at Guava, adds: "There is a very strong relationship between
search engine marketing and social media. Anything that raises awareness of a brand or
particular website, such that it encourages people to search specifically for the brand or
website, or increases the probability that a searcher might select that brand or particular
website over another within a search engine results page (SERP), is always good for
search engine marketing.

"There is also a very positive effect in terms of reaching large numbers of people and
therefore gaining more links, which is one of the key factors search engines such as
Google look at when ranking web pages."

As Cowan points out, it is important to identify two areas where social media impact SEO in
order to understand properly how the former might drive the latter.

As Cowan points out, it is important to identify two areas where social media impacts SEO
in order to understand properly how the former might drive the latter.

The first, says Cowan, relates to Google’s “universal search” updates which means that
there is increased prominence in the SERPs (search engine results pages) for “non-core”
listings such as images, blogs, news, maps and shopping listings.

Some of these elements fit into the “social” category and some do not. Blogging, for
example, is very much in the realms of social media but influencing bloggers is more the
domain of online PR rather than traditional SEO.

Social Media & SEO
5 Steps to success

1. Find the audience

Understand their behaviors, preferences, methods of publishing,
and sharing.

Most companies that are involved with the social web in the
channels where their customers spend time have a good sense of
where to start.

Many companies are ahead of the game by tracking their audience
via social media monitoring software that identiﬁes keywords,
conversations and inﬂuencers such as Radian6.

2. Define your objectives
Objectives are often driven by marketing or sales, and SEO has long
been directly accountable to substantial improvements in web sales.

Social media is not direct marketing though, so different objectives
and measurements apply.

The role of SEO in a social media effort is to directly influence
discovery of social communities or content via search.

Do a search for Zappos on Google, for example, and you’ll easily
find more than shoes: Twitter, Blog and a YouTube channel are all on
the first page of search results.

3. Establish a game plan

The game plan for reaching objectives in a combined SEO and
social media effort will often focus on content and interaction, since
it is content that people discover and share.

Whether a keyword-focused strategy for reaching goals means
publishing new content or creating an opportunity for consumer-
generated content, it must involve proactive promotion and easy
sharing amongst members of the community.

4. Create a tactical mix

The tactical mix for a social media marketing effort is based on doing the homework of
ﬁnding where the desired audience spends its time interacting with and sharing content.

Whatever the tactical mix is, it’s an investment in time and relationships – not a short term
“link dump” to promote optimized link bait.

Much of the content creation and promotion for a social media marketing effort happens
within the tactical mix and, of course, that means optimizing content for keywords.

Whether content is created by marketers as part of a social destination like a niche
community or a promotion vehicle such as an interactive ad, keyword glossaries become
useful for writing headlines, deciding on anchor text for links and outreach activities like
blogger relations.

5. Measure your goals
Goals measurement should roll up to the speciﬁc objectives, both
direct and indirect. Leveraging both social media monitoring
services as well as web analytics can provide marketers with the
insight to improve results.

Radian6 and Webtrends have recently announced a partnership that
will bring web analytics and social media analytics together all in
one interface.

In the meantime, marketers can use speciﬁc measurement tools to
monitor the effect of their social web participation as well as the
search engine performance of SEO efforts.

Thank you!

Hopefully you found this
information useful?

Social Media Metrics for ROI
June 8, 2010
Social Media Club - Orlando

Murray Izenwasser
@murrayiz
www.ContactMurray.com

© Biztegra, Inc. May not be Reproduced in whole or part,
without express permission. All rights reserved
www.contactmurray.com

If you like
what you
hear, please
Tweet
Post
Blog
about it


So,
Who
Is
this

Guy?


Revenue

(the only
metric that
really
matters)


Very Much!


Oh, You Want
to Know
How?

Quick Question
How are you
measuring
marketing
success now?


With One Of These?
– Pageviews – Number of leads/period – New 'friends' after 30/60/90 days
– Unique visitors – Number of qualified leads/period – Number of friends met online that
– Members – Ratio of qualified to non-qualified users have met offline
– Posts (ideas/threads) leads – Number of friends met online that
– Cost of lead member has subsequently
– Number of groups (networks/ collaborated with
forums) – Time to qualified lead
– Number of ideas that the user has
– Comments & Trackbacks – Lead conversion gotten and then used in their work
– Tags/Ratings/Rankings – Number of pre-sales reference calls – Net Promoter Score
– Time spent on site (to other customers)
– Average new revenue per customer – Meme Lifecycle
– Contributors – Number of mentions (tracked via
– Active contributors – Lifetime value of customers web or blog search engines)
– Word count – Customer satisfaction – Positive/Negative listing ratios on
– Referrals – Number of initiated support tickets major search engines
per customer per period
– Completed profiles
– Support cost per customer in
– Connections (between members) community
– Ratios
– Member to contributor – Product Development
–
–
Posts to comments
Completed profiles to posts
– Number of new product ideas
– Periods – % of ideas from customers /
– By day prospects / community
– Week
– Month – Idea to development initiation cycle
– year time
– Frequency – Revenue/Adoption rate of new
– of visits
– Posts products from community vs.
– Comments traditional sources
– Satisfaction – Retention/Employee turn over
– Affinity – Time to hire
– Quality and speed of issue – Prospect identification cost
resolution – Prospect to hire conversion rate
– Referral likelihood – Hiring cost
– Relevance of content, connections http://www.thesocialorganization.com/social-media-
– Training cost metrics.html
– Cost per number of engaged – Time to acclimation for new http://www.interactiveinsightsgroup.com/blog1/
prospects employees social-media-metrics-superlist-measurement-roi-key-
statistics-resources


Quick Question

What would
you base an
employee’s
pay on?


One Of These?
– Ratios
–
–
Posts to comments
– Week
– year time
– of visits


Probably Not


You May Be Asking…

Um, Then
How?


Establish a
Baseline


With All Of These
– Ratios
–
–
Posts to comments
– Week
– year time
– of visits


Start Your Programs


Track Everything


Create Activity Timelines


Look At Revenue


Match It All Up
How was this group
Touched by SM?

Before After


Easy, Peasy, Lemon
Squeezy?


A Great Little Presentation (special
thanks!)
http://www.slideshare.net/thebrandbuilder/olivier-blanchard-basics-of-social-media-roi


A Very Good Little PDF
http://www.radian6.com/wp-content/uploads/2010/03/Radian6_eBook_March2010.pdf


(You?)


Photo Credits
Alberto Paroni / www.io-me.info

Brian Lary / http://www.sxc.hu/profile/blary54

ilker / http://www.sxc.hu/profile/ilco

Duane Jones / http://www.beglitterati.com

Kriss Szkurlatowski / http://www.sxc.hu/profile/hisks

Svilen Milev / http://www.facebook.com/group.php?gid=307482866218

Andrew Beierle / andrewbeierle.com

Gabriel Del castillo / http://girovisual.com/tours.php

Murray Izenwasser / http://murrayiz.com


The Net Promoter Score
A case for consideration
Mark Krupinski
Director of Social Media, MindComet
@markkrupinski


An unfamiliar
metric in the
world of social
media...

...but used by
business since
2003...

Social Media
Let’s Define It

Social media are
media for social
interaction,
using highly
accessible and
scalable
publishing
techniques...

The Cluetrain Manifesto
Thesis #8

"In both internet
worked markets
and among
intranet worked
employees, people
are speaking to
each other in a
powerful new way."

The Cluetrain Manifesto
Thesis #13

"What's happening to
markets is also
happening among
employees. A
metaphysical construct
called 'The Company' is
the only thing standing
between he two."

Brand Monitoring
Keyword Algorithms

Keyword based
search algorithms w/
"sentiment" attached

(70% accuracy)

Brand Monitoring
Contextual Algorithms

Accurate, but very expensive...

Let’s Define It
"Net Promoter® is both a loyalty metric and a discipline for using customer feedback
to fuel profitable growth in your business. Developed by Satmetrix, Bain & Company,
and Fred Reichheld, the concept was first popularized through Reichheld's book The
Ultimate Question, and has since been embraced by leading companies worldwide as the
standard for measuring and improving customer loyalty.

The Net Promoter Score, or NPS®, is a straightforward metric that holds companies and
employees accountable for how they treat customers. It has gained popularity thanks to its
simplicity and its linkage to profitable growth. Employees at all levels of the
organization understand it, opening the door to customer- centric change and
improved performance.

Net Promoter programs are not traditional customer satisfaction programs, and simply
measuring your NPS does not lead to success. Companies need to follow an associated
discipline to actually drive improvements in customer loyalty and enable profitable growth.
They must have leadership commitment, and the right business processes and
systems in place to deliver real-time information to employees, so they can act on
customer feedback and achieve results."

A Definition Continued
“NPS is based on the fundamental perspective that every company's
customers can be divided into three categories: Promoters, Passives,
and Detractors. By asking one simple question — How likely is it that you
would recommend [Company X] to a friend or colleague? — you can track
these groups and get a clear measure of your company's performance
through its customers' eyes. Customers respond on a 0-to-10 point rating
scale and are categorized...”

Why Did I Pick This Metric?
One simple
Question

Low cost metric to
deploy

Applicable to
External &
Internal
Customers

General Electric
Example #1
“He and other [in 2004] GE Healthcare
executives quickly rolled out net promoter
scores in place of the satisfaction surveys
some divisions were using. ‘It was a 'Texas
hold 'em' kind of thing,’ he says. ‘We went all
in.’

Twenty percent of managers' bonuses were
tied to the scores, which closely tracked
sales growth. Then, in January, 2005,
members of McCabe's team shared the idea at
GE's annual global leadership meeting in Boca
Raton, Fla., where CEO Jeffrey R. Immelt
greeted the approach with enthusiasm.

As a result, in 2006 all GE businesses must
report net promoter scores for the ﬁrst time.
"I have little doubt that this will be as big and
long-lasting for GE as Six Sigma was," says
McCabe of GE's vaunted and much-copied
quality system.”

Charles Schwab
Example #2
“Every day, managers at each of Schwab’s 306 branch
offices and five call centers conduct a similar drill. It’s
an integral part of a new focus on direct customer
feedback that the firm’s founder, Charles Schwab,
credits with turning around the company. When he
came out of retirement to take its helm in 2004, the
business was struggling. ‘We had lost our connection
with our clients—and that had to change,’ Schwab
confessed to shareholders in the annual report.

The new customer feedback system has helped
reestablish that connection. In 2008, the firm saw its
revenues increase by 11% and the scores that
customers gave the company jump by 25%.

And while the financial services industry was rocked
by turbulence, Schwab clients entrusted $113 billion
in net new assets to the firm, and the number of new
brokerage accounts increased by 10%.”

Facebook
Example #3

“More people have posted status updates
worried about Facebook beginning to charge
than privacy concerns. We’ve seen no
meaningful change in any stats [related to these
concerns]. Every time we roll out a product,
our net promoter score initially drops, but
after a few weeks it comes up, it usually is
higher.

After f8, we saw a drop in our net promoter
score, which we thought must be due to privacy
issues. But when we dug into it further, it
turns out it was from a change we made to
our news feed algorithm regarding the relative
weighting of photos versus games. I take our
privacy issues very seriously.”

Example of Implementation

What’s The Good?

Consistent
measuring stick

Great for the
long term

Internal & External
Metric

What’s The Bad?

No scientiﬁc evidence
that "recommending" is
better than other loyalty
questions

Not good for companies
trying to make a “quick
buck”

Metric of correlation

Key Takeaways
Since Brand Monitoring
is not perfect, this is a
good standard to
consider

Use it on a Quarterly
basis as a “secondary”
metric

Use it for both external
and internal customers

Credits
I’d Like to Thank...
Slide 2: http://www.theultimatequestion.com/
theultimatequestion/download_photos.asp?groupcode=6
Slide 3: http://www.flickr.com/photos/porternovelli/
3102296497/sizes/m/
Slide 4 & 5: http://www.ils.unc.edu/dpr/other/blogs/
Slide 6: Courtesy of Mark Krupinski's delicious account
Slide 7: Courtesy of Crimson Hexagon
Slide 8: http://www.netpromoter.com/np/index.jsp
Slide 9: http://www.netpromoter.com/np/calculate.jsp
Slide 10: http://www.flickr.com/photos/wadem/2730257498/
sizes/l/
Slide 11: http://www.businessweek.com/magazine/content/
06_05/b3969090.htm?chan=db and http://www.ge.com/
citizenship/performance_areas/customers_focus.jsp
Slide 12: http://hbr.org/2009/12/closing-the-customer-
feedback-loop/ar/1
Slide 13: http://www.facebook.com/#!/press/info.php?execbios
and http://www.insidefacebook.com/2010/05/26/live-blogging-
facebooks-privacy-changes-presentation/
Slide 15: http://www.flickr.com/photos/andrew_nielsen/
4453152488/
Slide 16: http://www.flickr.com/photos/mscaprikell/30790829/
Slide 17: http://www.flickr.com/photos/carianoff/2849384997/
Slide 18: http://www.flickr.com/photos/psd/2086641/

And Everyone who helped out with this event :)

SMC Orlando Presents "Five Effective Social Media Metrics for ROI"

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