1. ROI OF SOCIAL MEDIA MARKETING
B2B LEADS
Social Media Marketing
Search Engines Newsletters
Online Surveys Webinars
RSS / News Sites
COMPANY LANDING
HOMEPAGE PAGES
CALL TO ACTION ELEMENTS
Whitepapers, Thought Leadership, Webinars, Videos, Podcasts
Web Analytics:
CRM System
Conversion % of CTA
Leads from Social Media Marketing and Online
Marketing which are now registered in CRM as Online
Leads
Lead
Validation
SALES
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2. Hard Numbers: Calculating Your Return
The underlying ROI calculation is consistent with core marketing metrics: customer lifetime value,
conversion rate, and the value of a lead or visitor, are the foundation.
Here’s an illustration of how we would assess the value of a Twitter program that consists of one to two
tweets a day.
 Number of tweets per month: 50
 Number of monthly web site visitors generated through Twitter: 1,000
 Visitor-to-lead conversion rate: 2%
 Lead-to-customer conversion rate: 5%
 Lifetime customer value: INR 5,000 (1,000*.02*.05*5,000)/50 = INR 100 revenue per tweet.
From here, determining the ROI of this Twitter program is straightforward:
 Monthly value of Twitter: INR 5,000
 Monthly Twitter expense: INR 4,134 (INR 50,000 employee, with fully burdened salary, at 4.3
weeks/month; assuming 1 hour/day for 2 tweets)
 ROI: (5,000-4,134)/4,134 = 21%
The key metrics – conversion rate, lifetime customer value and visits referred from Twitter – all change
the ultimate ROI. And two tweets daily is a bare minimum.
What’s Engagement Worth?
Early measures of ROI are still valid. Among them:
 How many visits / registrations / Downloads?
 How many appointments booked?
 How many new leads have been acquired?
Advanced marketing practitioners are moving on to value engagement – often with degrees that ascribe
tangible money value to varying levels of commitment.
The top elements that are being monetized are:
 Retweets / Mentions
 Registrations / Downloads
 Facebook Fans
 Blog comments
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3. Social Media focused on Driving ROI, by
B2B Social Media Marketing Maturity
phase
Source: “MarketingSherpa Benchmark Report: 2011 Social Media Marketing,”
Trial Transition Strategic
5%
Improving the cost efficiency of customer support 9%
programs 15%
45%
Achieving or increasing measurable lead generation 41%
from Social Marketing 44%
35%
Achieving or increasing measurable ROI from Social 49%
Marketing programs 63%
60%
Converting Social Media members, followers, fans into 66%
customers 65%
CONFIDENTIAL DOCUMENT NOT TO BE CIRCULATED WITHOUT A PRIOR APPROVAL | 2012 © TheSocialPeople