2. Return-on-Consumers’ Investment 1. Traditional Return-on-Investment revenues expenses (employees, paid advertising) revenues (various methods for tracking) 2. Return-on-Consumers’ Investment revenues expenses (employees, paid advertising) social metrics (# of page views, # of “likes”, etc.) revenues revenues (various methods of tracking) ie. $500,000 (revenue) with 1 million “likes” = $0.5 per like of “Fan Page” Changes in social media metrics used to evaluate objectives (ie. brand awareness, brand engagement, and word of mouth).
3. Steps in Tracking ROI 1. Identify Objectives 2. Select Metrics Based On Objectives 3. Determine Revenues 4. Return on Consumers’ Investment
5. 3. Tracking Revenues Could also be a hybrid. 1. Sale is online. 2. Sale via phone. 3. Sale is offline. RO(C)I
6. 3. Tracking Revenues - Online 1. User clicks from social website. (ie. Facebook.com) 2. Website detects “referrer”. (ie. Zwinky.com?from= Facebook ) 3. Pass “referrer” to tools. (ie. Tracker.com?from= Facebook ) 4. Track sales from each social website. 5. RO(C)I (ie. $600 from FB, 200 “likes” = $3 per “like”)
7. 3. Tracking Revenues - Telephone 1. User clicks from social website. (ie. Facebook.com) 2. Website detects “referrer”. (Changes site # to 1800 FACEBOOK ) 5. RO(C)I (ie. $600 from FB, 200 “likes” = $3 per “like”) Each phone # is under $10/month! 3. Operator knows referrer.
Weaknesses: Assigns a value to each “metric” but relationship may not be direct. Not all companies solely generate their sales online. Although very accurate in itself, may not be precise if products also sold offline.
Weaknesses: Same as ‘online’.
Weaknesses: Relies on human responses. Sample may not accurately reflect entire market. Only interested parties may respond to surveys.
