Return on Relationships is Social Media’s ROI. This presentation aims to explain how the old paradigm of "Pay to Play" has been replaced by "Play to Play" and why investing in dialogue and Relationships has replaced huge financial budgets in the Social Media space.

1. ROR = Social Media’s ROI How Return on Relationships makes THE difference

2. The Old Model ROI = Return on Investment In marketing terms, huge investment was made in creating content for: TV Radio Magazine/Newspaper adverts Direct Mail Billboards

3. The New Model Social Media Channels Reach people where they are interacting UGC – User Generated Content Get your consumers talking about your product Create dialogue Get into a conversation with consumers Viral and Word of Mouth People trust people – have a virtual (global) sales force

4. The Basics of Social Media ROI Where’s the money.....? http://www.slideshare.net/thebrandbuilder/olivier-blanchard-basics-of-social-media-roi More on Olivier Blanchard (worth a look!): http://thebrandbuilder.wordpress.com/

5. The Context http://www.theequitykicker.com/wp-content/uploads/2009/07/image1.png

6. Facebook’s Stats http://www.facebook.com/press/info.php?statistics (as at 31 Jan 2010) >350 million active users (that’s more than the population of the USA!) 50% of our active users log on to Facebook in any given day >35 million users update their status each day with more than 55 million updates >2.5 billion photos uploaded each month >3.5 billion pieces of content (web links, news stories, blog posts, notes, photo albums, etc.) shared each week >3.5 million events created each month >1.6 million active Pages on Facebook >700,000 local businesses have active Pages on Facebook Pages have created more than 5.3 billion fans About 70% of Facebook users are outside the United States >65 million active users access Facebook through their mobile devices. Mobile device users are almost 50% more active than non-mobile users.

7. Facebook’s Population

8. Social Media Marketing by Definition Organic Transparent Authentic Community User generated Content Word of Mouth Viral Social media marketing is about building ways that fans of a brand or company can promote it themselves in multiple online social media venues. -Wikipedia

9. Social Media ROI: Socialnomics http://www.youtube.com/watch?v=ypmfs3z8esI

10. Gary Vaynerchuck: On Social Media ROI

11. Gary Vaynerchuck: On Social Media ROI

12. Cost Comparison Direct Mail - $15k = 200 new customers Billboard - $7.5k = 300 new customers Twitter - $0 = 1,800 new customers To get the same from traditional channels: Direct Mail = $135k for 1,800 new customers Billboard = $45k for 1,800 new customers

13. The Trust Equation Nielsen Global Online Consumer Survey of >25,000 Internet consumers from 50 countries.

14. The Trust Equation (cont’d) Economist - A special report on social networking – “Profiting from friendship”

15. Traditional Marketing One mouth - Telling isn’t Selling

16. Social Media Marketing Dialogue - Two ears, two eyes, one mouth

17. Pay.....! Attention......? “You can’t buy attention anymore. Having a huge budget doesn’t mean anything in Social media ... The old media paradigm was PAY to PLAY. Now you get back what you authentically put in. You’ve got to be willing to PLAY to PLAY” Alex Bogusky, Co-Chairman, CP&B

18. ROI of TV.......?

19. Old ROI versus New ROR Traditional - ROI High up-front investment High on-going investment High additional PR costs Not easily measurable No active dialogue Mainly –ve feedback High customer support cost ($12 via contact centre) High market research costs High product development costs High customer acquisition cost Social Media - ROR Low up-front investment Low on-going investment Low additional PR costs Totally measurable Active dialogue Mainly +ve feedback Lower support costs ($0.25 via self-service) Low market research costs Low product development costs Low customer acquisition cost

20. Direct ROR of Dialogue Increased Trust Increased Affinity Increased Advocacy Increased Satisfaction Reduced -ve sentiment Reduced complaints Reduced resolution times

21. Heaven or Hell? http://darmano.typepad.com

22. Your Social Media Presence Must Be........ Open – a true dialogue with customers Promote free speech (-ve comments are opportunities to learn!) Welcoming – your customers should feel that they matter Getting customers to create content and share with their friends is marketing you simply can’t buy at any price! Personal – people like interacting with people Create an approachable and available persona to front your interactions Honest – admit when you get it wrong and fix it (fast!) You gain greater loyalty when you handle problems well Authentic – true to your brand’s marketplace Your Brand integrity and tone of voice must feel (and be) “real” Coherent – resonate with your Marketing Social media must have the same “feel” as your other (traditional) channels Used internally too – create the same dialogue with staff! With a tool this powerful, you’re able to engage your employees in a deep and intimate dialogue too...

23. Some Successes - Socialnomics

24. Some Successes - Socialnomics

25. Some Successes - Socialnomics

26. Some Successes - Socialnomics

27. Tangible results

28. Sean McDonald from Dell: Traditional vs. Social Media investment http://www.youtube.com/watch?v=iBAoAfIKORI

29. Some Successes - Socialnomics

30. Customer conversations

31. Some Successes - Socialnomics

32. Some Successes - Socialnomics

33. Online is the future

34. Budget Allocation

35. And finally......... http://www.youtube.com/watch?v=sIFYPQjYhv8

36. Do you remember when a website was optional.....? Do you remember what happened next....? If you’d like to discuss your Social Media Strategy: Rory Murray www.returnonrelationships.net @rorymurray Rory (at) returnonrelationships.net +44 7813 939916