4.20 pm How to Monitor and Measure Social Media ROI Marshall Sponder, Senior Analyst – WCG In this session Marshall will highlight what you need to do in order to measure your social media activities against your goals and how to translate this into ROI.

1. Finding Return on Investment
and Reverse ROI In Social Media
Marshall Sponder
Monitoring Social Media 2010 London
November 22, 2010
Social Media Analytics Book

2. http://www.scribd.com/doc/38176762/Tracking-Social-Media-ROI-using-Spectrum-Analytics
A good place to Start:
Situation Today: We’re capturing a fraction
of the data needed to measure Social Media
ROI

3. 1) Social Media is about beginning
and deepening relationships over
time.
Friends, Likes, Shares, Tweets,
ReTweets are qualitative ; the value
is “soft” and can be estimated, but
not known precisely.
2) “soft” values are
difficult to plug into
return on investment
equations.
3) Formulas for ROI and
Social Media Metrics are
immature, need further
research.

4. … before meeting the client for the first time

5. Once you access situation
you have enough
information to pose the
right questions to clients
and get answers you need
to move forward
measuring ROI and
Reverse ROI.
Reverse ROI are actions in
Social Media that
strengthen brands, need
to listen to those
conversations online
when we find them.

6. Use Listening Systems
to Find common
ground between
analysts and
organization.
a) Find voices of
Clients on The
Web.
b) Find how clients
searched the
web.
C) Analyze Clients
website

8. Use Benchmarking Tools for initial Goal Setting
How much traffic from Social Media should our business be getting?
Compete.com Traffic Dashboard, October 2010 for Industry Category: Entertainment
Guide: Restaurants and Dining

9. Tried Listening for Social Media ROI and
Reverse ROI at a popular NYC Restaurant
Chain, Havana Central

10. Initial Ask from
Havana Central was
ROI related but
Social Data , while
promising, failed to
produce any true
ROI numbers

11. Found Metrics to use but were they the Right Ones?
Average Opentable Reservation =
3.6 people
Average Reservation yields $186.00
Average meal costs $51.66 cents
EST Value of a tweet = $51.66 x 2

12. Tweet for a Drink?

13. ..and much of the
data is
“ultraviolet”
In pulling metrics data, reports too often focus
on the wrong “diagnostic” information instead
of the insight derived from it

14. Once we learn to ask the right questions
• We find out what the client really needs.
• If ROI is desired, it’s important to level set
expectations.
• Still writing the book on how Social Media
Builds Relationships, optimizing business
communications, increases awareness of
product and brand.
• Knowledge to find ROI or Reverse ROI still in
it’s infancy and fragmented, need to work
together to share our insights and refine out
analytics tracking.