MeasuringYourROI
OnSocialMedia
SoWhat?
*  Measuringwhatmattersmeansmeasuring
relationships
*  Alltransactionsconductedtodayarestilldrivenby
relationships
*  Building,managing,andmeasuringthoserelationships
arefundamentaltoyoursuccessandsuccessof
organization
Notestakenfromoneofmyfavoritemeasurement
books:MeasureWhatMattersbyKatieD.Paine
Measurement
*  Listening/Analysis/Reportingtools=affordable/accessible
metrics
*  AllorganizationshavecoresetofkeypublicAKA
stakeholders
*  Companiesthatlistenandrespond(realtimemarketing)will
surviveandprosper
*  MUSTcontinuouslylistenandevaluateyourmarket-what
arepeoplesayingaboutyou.
Measurement
*  Terms
*  Counting-addthingsupandgetstotals
*  Measurement–takesthosetotals,analyzeswhattheymean,
andusesthatmeaningtoimprovepractice
*  Notthequantitythatmatters-itsqualityofrelationship
*  Goodrelationshipsleadtoprofits
*  averagecorporationspendsaverageof4.5%ofits
marketingbudgetonevaluation
*  79%oforganizationaren’tmeasuringtheROIoftheirsocial
mediaeffortsatall
Whymeasure????
1.  DataDrivenDecisionsMakingSavesTimeandMoney
2.  Ithelpsallocatebudgetandstaff
3.  Gainabetterunderstandingofthecompetition
*
*
Helpsyoustackupagainstpeersandrivals
Givesyouinsightintocompetitivestrengthsandweaknesses
4.  Strategicplanning
*
Datayoucanrelyontoguideyourdecisionsandimproveprograms
5.  Measurementgetseveryonetoagreeondesiredoutcome
*
Realreasonmetricsdon’texististhatnooneeverarticulatedjustwas
thes.m.programswasdesignedtodo
6.  Measurementrevealsstrengthsandweaknesses
*
CPMC=costpermessagecommunicated
7.  Measurementgivesyoureasontosayno
*
Ifyouhavedataonresultsofpreviousprogramsyougainleverageto
turndownrequeststhatwebewasteoftimeorresources
DispellingMythsofmeasurement
*  Measurement=punishment
*  Mostpeoplewhoinstitutemeasurementprogramsfindthey
getpromotionsbecauseoftheirabilitytoidentifystrengths
andweaknessandallocateresourcesintelligently
*  Measurementwillonlycreatemoreworkforme
*  Oncemeasurementsystemisinplace,itmakeseverythingelse
mucheasier
*  Dataisagreatresourceandhelpsensuremaximpact
*  Measurementisexpensive
*  Withoutmeasurementyoudon’tknowifyou’respending
budgeteffectively.
*  Measurementisstrictlyquantitative
DispellingMythsofmeasurement
*  Youcan’tmeasuretheROI,sowhyBother?
*  ROI=ReturnonInvestment
*  HowtoyoucalculateROI?
*  Totalamountofmoneysaveorbroughtinandsubtracttotal
budgetamountinvested,thendivideitbycostofinvestment
*  Measurementissomethingyoudowhenprogramisover
*  Iknowwhat’shappening,Idon’tneedresearch
*  Couldbemoreeffectiveifunderstoodthetruevalueof
measurement.
GettingStarted
*  Babystepsbest,startwithpilotprogram
*  WARNING:
*  Eventuallyyou’llstepontoes/challengetraditional
wisdom/getpushback
*  Baseyourconclusionsandrecommendationsonreal
data=factareonyourside
10?’severycommunication
professionalmustanswer
1.  Whatareyourobjectives?
*
Objectivesmustbemeasurable
2.  Whoisthetargetaudience?
*
*
Defineaudienceasspecificallyaspossible
Prioritypublicismostprofitableandmostvaluable
3.  Whatisimportanttoyouraudiences?
4.  Whatmotivatesthemtobuyyourproducts?
*
Mostimportantquestionformeasurementprogramcause
withdeterminewhatyoumeasure
5.  Whatareyourkeymessages?
*
Shouldreflectwhatmakespeopleattractedtoyouandwhat
distinguishesyoufromcompetition
10?’severycommunication
professionalmustanswer
6.  Whoinfluencesyouraudiences?
7.  Howdoyoudistributeyourproductorservice?
8.  Whatareyougoingtodowiththeinfoyougetfrom
research?
*
*
Neveraskaquestionyoudon’twanttheanswer
Makesureyoucanactoninfoyougetandcanmakechanges
andimprovementsasaresult
9.  Whatotherdepartmentsorareaswillbeaffected?
*
Needbuy-infromeveryoneinvolved
10.  Whatothermeasurementprogramsarecurrently
underway?
*
Useyourresearch!
ReachingMEASURABLEobjectives
*
*
*
*
*
Understandyourbackground
Assembleeveryoneonteam
Writedownandprobetofindoutwhatpeoplereallymean
Askeveryonewhattheirobjectivesare
Onceyouhaveallobjectivesandmetrics–setpriority
Bygettingeveryonetoagreeonastandarddefinitionof
success,youcaneasilyjudgeperformanceandhowyou
stackuptocompetition
EnsuringAccurateData-
4baddatareasons
1.
2.
3.
4.
Incompleteassessmentofvariables
Relevancyofcontent
Commercialservicesomitresults
The(in)accuracyofcontentanalysis
Notes
*  Verycommontoundertakesomepreliminaryresearchto
helpyouwiththefirstfewsteps
*  Doingsmallerstudyintroduceseveryonetoprocessand
advantagesofthedataitgenerates
*  DefineBenchmark
*  Benchmarkstudyispreliminaryresearchdonetolearnabout
audienceorenvironmentORtosetgoalsforfutureprojects
*  Benchmarktocompareagainstisastandardagainstwhich
youmeasureprogresstowardgoals
Step1:DefineGoalsandObjectives
*  Campaignmustincludedesiredoutcomeandthedeadline
*  Ideallybudgetandtargetaudiencetoo
*  Answersshouldrelatebacktostrategiccorporategoals
*  Mostmarketinggoalsfallinto1of3categories
1.  Sales
2.  Messageorpositioning
3.  Publicsafetyoreducation
*  Separateobjectivesforeachspecificpopulation
Step2:Defineenvironment,audience
androleininfluencingthem
*  Examineeachindividualaudience
*  Answerthesetwoquestions
1.  Howdoesagoodrelationshipbenefittheorganization?
2.  Howmightabadrelationshipthreatenit?
*  Tiecommunicationsactivitybacktosales
Step3:Defineyourinvestment
*  Whatwillitcost?
*  Whatisthelevelofpersonneltime?
*  Whatistheopportunitycost?
*  Areyouaddingresourcesorshiftingthemandwhatare
theconsequences?
*  Spend5-7%ofmarketingbudgetonmeasuringthat
program
Step4:DetermineyourBenchmarks
*  Measurementisacomparativetool
*  Benchmarkagainst2-3competitors
*  Stretchgoal
*  Peercompany
*  underdog
*  Compareyourcompanytoitspastperformance
Step5:Defineyourkeyperformance
indicators(KPIs)
*  Eachobjectivemayrequiredifferenttypeofmeasurement
anddifferentKPIs
*  Awarenessvs.Visibility
*  Awareness:person'sknowledgeofbrandormessage
*  Onlymeasuredbysurvey
*  Visibility:volumeofcoverageorwherethestoryappeared
Step6:Selecttherightmeasurement
toolandvendors
*  Measurementtoolsarethetechniquesyouwilluseto
collectdata
*  Mostcasescollectingdataby:
*  Contentanalysis
*  Primaryresearch
*  Webanalytics
*  Toolsmustcollectrightdata,beaffordableand
providedatawhenyouneedit
Step7:TurnDataintoAction
*  Measurementiscontinuousimprovementprocess
*  Learntotranslaterawnumbersintochartsand
graphswithshortheadlines
*  Setuparegularreportingschedule
5waystomeasureROI
*  Howdoyoudeterminethereturn?
1.
2.
3.
4.
5.
Salesorrevenue
Costsavings
Paidvs.earnedsearchrankings
Costavoidance
Socialcapital