Social media marketing is sometimes criticized for having questionable return on investment, but much of the skepticism arises from the fact that these platforms are so new. The Internet is the most measurable medium ever invented, which means that the online actions that lead people toward a desired goal can be tracked and refined. The key is to start with the object and work backwards to define metrics and tools to measure it. A growing number of corporations are institutions are now doing exactly that. They are measuring not only transactions and leads, but also less tangible results like: Better decision-making Cost avoidance Increases in brand equity Improvements in customer loyalty Crisis containment This presentation describes a disciplined approach to social media measurement and offers case studies of b-to-b and b-to-c organizations that are applying metrics to deliver reliable ROI.

1. Unraveling the Mysteryof Social Media ROI Paul Gillin Author, The New Influencers Secrets of Social Media Marketing

5. ROI

6. Simple Equation (GAIN FROM INVESTMENT - COST OF INVESTMENT) ROI = COST OF INVESTMENT

7. Types Of Financial Impact Orders Subscriptions Leads Upgrades Coupon redemptions

8. Types Of Non-Financial Impact Customer complaints Website Visitors Impressions Positive press Click-throughs YouTube views Retweets Coupons distributed Visitors to a brick & mortar store Positive WOM Delivered emails Negative press Negative WOM Employment applications Blog comments FaceBook friends Social mention Twitter followers

9. Bounty of Choice

11. 7 Steps to Social Media ROI Define the “R” – What are expected results? Define the “I” -- What’s the investment? Understand audiences and what motivates them Choose metrics Choose benchmarks Pick a tool and undertake research Analyze results, glean insight, take action, measure again Source: KD Paine & Partners

12. Key Performance Indicators (KPIs) Cost savings Efficiency Cost per message communicated Cost per new lead/customer acquired Productivity: Increase in employee engagement/morale Lower turnover/recruitment costs Engagement: Ratio of posts to comments % of repeat visitors % of 5+ min visitors % of registrations Trust: Improvement in relationship /reputation scores with customers and communities (Loyalty/Retention) Thought leadership: Share of quotes Share of opportunities Message penetration Positioning on key issues Improvement in favorable/unfavorable ratio Source: KD Paine & Partners

14. Social bookmark activity

15. Comments

16. Inbound links

17. Copycat or parody videos

18. Mashups

19. Blog mentions

20. Discussion group posts

21. Social network membership

22. Bloglines or Blogpulserankings

23. Video viewership

24. Mainstream media references

25. Referral links

26. Search engine results

27. Sentiment analysis

29. Sample Engagement Metrics % increase or decrease in unique visits In the past month, what % of sessions were >5 page views % of sessions >5 minutes in duration % of visitors that return for more than 5 sessions % of sessions that arrive at your site from a Google search/referral/link from your web site % of visitors that subscribe % of visitors that download content % of visitors that provide an email address Ratio of posts to comments Source: KD Paine & Partners, Eric Peterson

31. Advertising something

32. Answering a question

33. Asking a question

34. Augmenting a previous post

35. Calling for action

36. Disclosing personal information

37. Distributing media

38. Expressing agreement

39. Expressing criticism

40. Expressing support

41. Expressing surprise

42. Giving a heads up

43. Responding to criticism

44. Giving a shout-out

45. Making a joke

46. Making a suggestion

47. Making an observation

48. Offering a greeting

49. Offering an opinion

50. Putting out a wanted ad

51. Rallying support

52. Recruiting people

53. Showing dismay

54. Soliciting comments

55. Soliciting help

56. Starting a poll

57. Validating a positionSource: KD Paine & Partners

58. Matching Goals & Metrics Source: KD Paine & Partners

59. Select Tools Source: KD Paine & Partners

60. Blogs: The Low-Risk Option Cheap and easy to create and update Have distinct personal voice Can quickly build traffic through reciprocal links Excellent search engine performance Ability to control discussion Fast, inexpensive alternative to press releases

61. Blogging for Business CEO

62. Advise and Inform

63. Event Promotion

64. Publish Everywhere 44 million members 32 million members 300 million members 1 billion daily views 1 million daily visitors 6 million daily visitors 1.5 million daily visitors 10 million members 50 million members

65. Many Uses for Twitter

66. Engage Popular People 1.7 million followers 1.1 million followers 1.2 million followers 473,000 followers 980,000 followers

67. Needs Definition Peer Support Product lifecycle Viral Marketing Product Architecture Iterative Development Field Testing 360° Of Value

68. Facebook Fans Repurpose media Announcements Feedback/testing Mailing List

69. Create Activity Timelines Source: BrandBuilder

70. Look at Sales Revenue Source: BrandBuilder

71. Net New Customers Source: BrandBuilder

72. Overlay All Timelines activities social data web data transactions loyalty metrics etc. Source: BrandBuilder

73. Look for Patterns Impact Uncertain Impact Impact Impact No Impact Before After Source: BrandBuilder

74. Case Study: Clickable Gurus

75. Case Study: Intel Insiders

76. Case Study: Indium

77. Case Study: Dell

78. Case Study: Catapult

79. Case Study: Stanford University

80. Case Study: Sutter Medical Center

81. Thank you! Paul Gillin 508-656-0734 paul@gillin.com www.gillin.com Twitter: pgillin Subscribe to my free weekly newsletter at gillin.com Available on Amazon or from www.NewInfluencers.com Available on Amazon or from www.SSMMbook.com