This document discusses measuring the return on investment (ROI) of social media marketing. It emphasizes that social media requires resources like people, technology, and time to implement successfully. It then outlines a process for proving the business value of social media through a proof of concept that isolates patterns and quantifies changes in key metrics like sales, transactions, and customers. By linking social media activities to changes in these metrics over time, the ROI can be calculated by determining the revenue gains and cost savings. This process helps justify continuing to allocate resources to social media marketing.

1. RETURN ON INFLUENCE:
THE
SOCIAL
MEDIA
ROI

2. MAIN LINE -> SOCIAL MEDIA IS NOT FREE

3. 1. IT TAKES PEOPLE

4. 2. IT TAKES TECHNOLOGY

5. 3. IT TAKES TIME

6. … ALL OF WHICH ARE LIMITED RESOURCES. YES! THEY ARE :)

7. Okay dude.
I’m going to take a chance
on this social media thing you
are talking about ,
it better make good business
sense! OK?

8. Yes Sir!
#1: It will result in a cost reduction.
Maybe in customer service?
Reason #2:
It will generate more revenue.
It will give you more transactions,
more net new customers,
more customer loyalty,
etc.

9. Ok! Let me figure out what
program I have to cut down
to fund Social Media
program.
Remember that our bonuses
are on the line.

11. Okay, Sexy!
This Social Media thing is ON.
You know we shrank our traditional media
budget by 10%
and our outbound call budget by 25%.
Now we can afford a team of social media
Ninja’s. Dude give me a hell yeah?

12. Yupiee!!!
I have a job!!!

13. I told my friends to
check out our
corporate blog.
Dude, we are
Facebook WOW!!!
Let’s start engaging!!!

14. ONE MONTH LATER…
Cool.

15. Oh on facebook! my! We have Neat, we even have
lots of new comments on the blog!
visitors to our website!
And 2 new applications
What about our
Twitter?

16. I Feel Like I'm On Top
of the World

17. THREE MONTHS LATER…
OK.

18. Guys! Our Google Analytics
are through the roof!
Our social mentions
are wicked good!
We have liftoff with Social Media!

19. Measuring social media
ain’t that tough!

20. SIX MONTHS LATER…
Anything?
Nope. Increase in sales?
Has our customer
service improved?
Nothing.

21. What kind of mood is
The Brand Manager in today?
Not good.
He just told me that he doesn’t care how many
new visitors the website gets, or how many
Impressions we have, unless it means we’re
selling more stuff.

22. Dude. I’m sorry
your Social Media program
Isn’t generating revenue for me.
But why? We need to allocate
Our website is getting resources where we can
mad hits, Facebook page has make money.
more than 60K likes!
And we have 6,000 followers
on Twitter now!
It’s just business.
You know!

23. Damn.
This social media
measurement
stuff isn’t working.
We need to start
tying this stuff to actual
business performance
Where should
I start from?
Let’s see…
At the beginning?

26. I need proof that
what we’re doing
is actually working.
START WITH PROOF OF CONCEPT

28. IS SOMETHING HAPPENING HERE?
7% YOY GROWTH

29. 1.) ‘XXX'CREATES 5.)TWEETUP/ FB 9.)FACEBOOK ADS
SOCIAL EVENTS PROMOTING
MEDIA PROPERTIES NEW PRODUCT/SERVICES
2.)CONTEST ON
FACEBOOK PAGE 3.)PARTICIPATION &
ENGAGEMENT 8.)SOCIAL MEDIA
WITH THE FANS WORKSHOP
7.)'XXX' STARTS TWEETING
4.) PRESS RELEASE 6.)BLOGPOST 10.)UPLOAD NEW TVC ON
YOUTUBE

30. IS SOMETHING HAPPENING HERE?

31. IS SOMETHING HAPPENING HERE?

32. MEASURE –
HOW WAS THIS
GROUP
INFLUENCED?

33. We overlaid all of our
Timelines and noticed
that since our social
Media activities began,
everyone
seems to love us.
Groovy!
The latest numbers indicate Let’s figure out
that our YoY sales $ are up 60%. what.
Our individual transactions have doubled,
as have our transacting customers.
Something’s working!

34. How long Oh wow.
will all this This R.O.I. thing
analysis take? wasn’t at all about
measuring media,
impressions and
eyeballs!
It’s all a process
of elimination, really.
Isolating patterns,
quantifying deltas,
proving ad-hocs…
Then all
we have to do is
figure out what the cost
savings and revenue gains
are, and plug them
into the equation.

35. I’ll start crafting some
wicked blog posts.
Dudes, we are
ON THIS!!!
Let’s start engagin’!!!

36. Finally, someone with some
real metrics for me to sink my teeth into!
Good job, Sparky! You done good!

37. So I guess Social Media
is going to stick around a little while
longer after all, isn’t it?
Yes sir.
Looks like our budget
is safe for now.

38. OLD MONK for
Everyone!

40. THANK YOU
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