- Start at Slide #21.
- Read this slideshare and understand the principles of how to measure social media ROI.
- Or buy Oliver Blanchard’s book Social Media ROI if you prefer, which is aimed at organizations.
A great table and explanation of the difference uses and value of the two forms of measurement for social marketeers, from Angie Schottmuller in Search Engine Watch:
|Cost-Based Analysis (CBA)||Return on Investment (ROI)|
|Formula||Benefits – Costs||( Benefits – Costs ) / Costs|
|Example||$12,000 B – $1,000 C
= $11,000 CBA$61,000 B – $50,000 C
= $11,000 CBA
|($12,000 B – $1,000 C) / $1,000 C
= 11 or 1100% ROI($61,000 B- $50,000 C) / $50,000 C
= 0.22 or 22% ROI
|Format||Dollar Value||Percentage or Ratio|
|Purpose||Analyze estimated cost impact. e.g. make a profit, break-even, take a loss.||Analyze investment effectiveness for generating a profit.|
|Common Use||Compare options using a common currency and justify bottom-line feasibility of spending.||Assess profitability as a basis for continuing and prioritizing future investments.|
|Answers…||Will we come out ahead?||How effective were we at coming out ahead? What kind of payback did we get for the investment?|
Note: An ROI of 1 or 100% implies you’d get back what you put into it, while CBA, also sometimes known as Cost-Benefit Analysis, has a $0 “break even” point.
Notice how in the examples above, the CBA for two different tactics with very different costs could be the same, while respective ROI sheds further light on the investment effectiveness.
Anyhow that’s not all from Angie, in the post there’s also a very helpful section on different calculation formulas which comes with the following presentation including said formulas for social SEO among others:
Your amount of commercial experience in a senior eCommerce role?
>Running e-commerce & content for global startup MedicExchange for 18 months (mid 2006 – end 2007) and heading up e-commerce in terms of marketing and SEO at eBay Inc’s Shopping.com UK for 15 months (June 2010 – Sept 2011); most recently in an innovative social commerce analytics role (contract) for Sony EU.
Your level of PPC Account Management and Optimisation skills?
>Ran the PPC campaign for MedicExchange to promote the site globally to specialists in the US, EU and Asia; monitored the results and altered the bidding and budget accordingly to optimise results; site estimated worth of $15m when I exited in 2007)
Your multichannel marketing (Print, Display, PPC, SEO, Mobile, Affiliate) experience?
>Shopping.com was a truly multi-channel marketing role, working with BallouPR to create print-based marketing in the form of a shopper survey in the Metro, and working with the Sun to run a Xmas mercy story for example; I worked in close collaboration with the PPC manager at Shopping.com to maxmise our ROI based on my previous experience at MedicExchange; in SEO I took the lead for building backlinks through blogger outreach, for undertaking an audit of on-page technical fixes including keyword optimisation and removal of duplicate content issues; on the mobile side we used CRM to promote our mobile app to our customers; I took the lead to build the affiliate network by building a relationship with independent consumer organisation Which? including taking free guides on our site, and for example working with 3M to promote a mobile app ‘Shopping Genius’ which was powered by our affiliate feed.
Your level of Google Analytics & Adwords experience?
>I’ve used Google Analytics to measure the success of standard web analytics social SEO initiatives in numerous roles, and used Adwords to research keywords for both PPC and social SEO purposes.
That you have a track record of improving conversion, sales or other metrics?
>Most recently I’ve contributed to the success of Sony EU Q3 marketing metrics by setting up a social dashboard with partner Socialbakers to capture performance against agreed KPIs and feeding that back into improved performance in the order of a 5-10% improvement in both UK and DE.
Despite tough competition Shopping.com UK maintained a steady visitor rate throughout 2011 of 1.5m visits every day, with 17m qualified leads delivered to merchants each month, despite the impact of Google Panda’s algorithm changes.
In terms of the ratio of orders to clicks Shopping.com UK returned a broadly steady 1.5% conversion in Q2 and Q3 2011, achieving sixth place out of the top ten comparison sites in the marketplace.
If you have any Product Management experience?
>After being headhunted to set up the ICAEW community, working with Microsoft UK, I was given a product management role as the community platform was the very first iteration of the code by the software builders. More recently at Sony EU the role involved product managing a social dashboard, starting by crowdsourcing metrics from across EU social media managers, and creating a multi-data driven dashboard from providers including Reevoo, Socialbakers, and Radian6.
This approach is very different from the earlier search
model of using authority as a measure of trust. In a
document-based world (such as the early days of
the Internet when only web pages existed), trust was
measured by how credible a document was. The
credibility was measured by how many citations (links)
a web page received. This is why link building is such
an important aspect of SEO. Web pages need links to
improve their credibility or “trust” in the eyes of the search
engines. This, in turn, improves their rankings.
But, as the patent states, in a social environment, you
don’t measure trust by authority; instead, you measure it
by intimacy. For example, if a family member recommends
a good restaurant, you’re more likely to believe them than
an anonymous reviewer online. That’s because you know
your family member, and because of that relationship/
closeness, you have trust.
Social search represents considerable opportunity for
search engines because they want to deliver more
personalized search results. But in order to do so, they
need to understand who you know and how well you
know them. Tapping into your online social signals allows
them to do just that.
Here’s a reminder of what Google said about social search in 2011:
My Jim Carrey reply after the film ‘No’ maybe, but I’ll let you know:-)
My sixth sense, and the other 5.
To connect with likeminded professionals and to discover new information that can benefit me.
Twitter, it’s simpler!
King Richard III discovered in my home town of Leicester.
A 140-character busting feature for use once in a while!
The head of MI6?
Sensitive dependence on initial conditions:-)
Richard Branson, so I can tweet the inside stories of the VIPs with Galactic tickets:-)
No one specific, just to free up follower space!
Because it’s time..
#thinslicing (I even added it to my blog title)
Base them on connections in my past, present and future.
The right time, place and inspiration all rolled up together.
Not really, I am quite a conservative Tweeter.
Start off slowly, read other tweets, re-tweet, and join in when you feel you have something to share.
A day or so, but no more!
More fun features;-)
@John_Rice for the eccentric marketing style;-)
It’s a complete waste of time, when it’s really not that bad:-)
To get unusual inspiration.
@sunnysingh_nw3 for an insider’s perspective of Indian culture, from the safety of west London:-)
I wait for inspiration, and a live issue, to come together.
I’ve worked in public health so I guess I’d have to have a serious answer for that but I don’t!
I was setting up communities for accountants and it seemed like a cool way to relax at the time.
Still waiting for Twitter to do it’s magic. Though I really liked my answer to a Jim Carrey joke after watching the film ‘No’.
Make me smile:-)
That’s a secret:-)
er, tweeting like no one is watching.
The same, but smaller.
Trying out Google Hangout, which nicely records your video, and serves up the embed code..looks like I need some more light, and a microphone.
‘How to be a genius in low status job’ was the cheeky title of a quick blog post I wrote in 2006 after working at Headshift (now part of the Dachis Group, who specialise in employee advocacy) and just before beginning work at a startup which I helped take to $15m value (well at least on paper:-). Here’s the post:
So you’re near the bottom of the corporate ladder; use this to your advantage in the following ways:
1. Find out what’s really going on.
2. Look up some clever ideas on what this really means.
3. Figure out how to incorporate these ideas with your own day to day activities.
4. Change the organisation from the inside out.
5. Write a blog about it, maybe.
6. Finally, stop dreaming, wake up and go to work!
Update 13 Feb, 2013. This individual approach, systematically applied to improve innovation within the enterprise for example, is now titled ‘employee advocacy’ and measured with tools such as ‘eNPS’. A brand new tool to help make this happen, by giving all employees access to common content to publish on their social networks is called Addvocate:
Imagine you could join the conversation your employees are having about your brand, figure out who they are, and validate them for it. Addvocate makes it easy to track the social voices of your business, foster a sense of community, and empower that community to be heard.
It’s currently in ‘paid beta’ – as of 22nd January – launched by the former head of social at Salesforce, Marcus Nelson, with the added benefit that you choose how much you want to pay pay per user. And “Addvocate will honor that price for the next 6 months”. A similar platform (“Klout for employees of a brand”) is offered by Dachis. Called ‘Employee Insight’, it’s features include:
I was just reminded about these employee advocacy services this morning in a discussion on the community manager forum e-mint about whether the good old days of community management were over. My reply was to the effect that far from over, the role of the ‘CM’ is expanding as a result of their supporting role with such expanding employee advocacy programmes:
The benefits of employee advocacy cannot be underestimated: Ramping community management up to the levels required to effectively engage millions of customers who are trying to interact with a company socially just can’t work. Using automated engagement tools instead actually kills the point (and much of the benefit) of being socially connected with the marketplace. And, as invaluable as community managers are, they have their own point of view that can’t possibly represent the entirety of the company. No, to accomplish this, employees themselves must be externally engaged in a proactive and strategic manner that maximizes the benefits of becoming a social business.
Apart from the value of such a programme to a ‘social business’ strategy it appears to me worth considering ways to start such an initiative with something more tactical, for example how that employee social content can benefit SEO. For this go no further for a good outline of the value of employee content to raising your site visibility than a recent e-book from Boston-based Catalyst:
While your content should live on your website, it should
also be shared across your social networks. Your set-up needs
to identify who will share your content. While at least one person should be responsible for it, don’t
overlook the potential to leverage employees in your
content sharing efforts. This group is often overlooked for
this purpose, yet these individuals are ideal because they
care about your industry, have a vested interest in helping
your company succeed, and are easily contacted. Try to
have these folks share your content with their audience to
help you get the viral ball rolling.
However, you have to be careful with tapping into
employees for this purpose. Not all employees will be
willing to share work-related content with their personal
networks. That is why a clear social media sharing policy
must be in place before your campaign starts.
So there are a number of cautionary notes to consider before undertaking employee advocacy. For instance, compare my 2006 post with this 2013 employee advocacy update. The former about ‘How to be a genius in a low status job’ is ‘bottom up’ in style, and the second clearly ‘top down’. Ideally, to have both ‘belt and braces’ you have the two approaches working in partnership. Otherwise, there’s always the risk the approach will back fire, create resentment and diminished performance, and end up on the scrap heap of failed ‘management/internal comms initiatives’:
So clearly before implementing such a potentially valuable initiative, even within a company with a very entrepreneurial-style culture like eBay, there are a few basic issues worth considering:
1. Is employee advocacy right for your company, are there ways to reach customers within more conventional means worth considering first so it’s an evolutionary process?
2. If you already have a well supported social media programme, and consider employee advocacy is the right next step have you got the necessary policies, and procedures in place?
For employee advocacy to stand the best chance of succeeding it’s my belief that a development approach which includes both senior management and employees would yield the the best results, and spot potential problems earlier rather than later. To what degree does your strategy have that approach built-in from the start? Be honest with yourself, are employees simply consulted about the advocacy initiative, or are they actually invited to participate in its design and build? After all, as Naz Madjm, of SoMazi points out in a recent e-consultancy post on advocacy through social media, “winning the confidence and social voices of your staff, while a complex and delicate undertaking, is one of paramount importance in our interconnected world”.
Searching through case studies from Sony’s social summit earlier this year (only now do I have the time to read them!) I came across a nice deck on how Sony Music Entertainment promoted a song by Willie Nelson and Snoop Dog, to their respective fans.
And particularly liked the fact that ‘influencer promotion’ was key to success, along with timeliness of the launch and campaign novelty, not to mention the #thinslicing fact that “better tracking analytics would have lead to more intuitive data on users”.
However, as I have recently been talking with Chris Arnold at Awedience about the potential of his product I was drawn to the phrase “Real-time key influencer engagement” as a factor in the campaign.
So I did a search in Google.co.uk with that term and on the first page an article on The Power of Influencer Marketing and Social Media stood out as both recent (Sept 2012) and ’cause it contained all the relevant keywords – influencer and real-time.
And what do you know, when I clicked on the link the piece by SeanClark is about the power of Chris’s real time influencer marketing product. Not to mention the fact that the process of discovery was a nice example of serendipity too.
Digital Influence is one of the hottest trends in social media, yet is largely misunderstood. The Rise of Digital Influence, the new report (March 2012) by Altimeter Group Principal Analyst Brian Solis is a ‘how-to’ guide for businesses to spark desirable effects and outcomes through social media influence.
The report helps companies understand how influence spreads, and it includes case studies in which brands partnered with vendors to recruit connected consumers for digital influence campaigns. Brian evaluates the offerings of 14 Influence vendors, organizing them by Reach, Resonance, and Relevance: the Three Pillars that make up the foundation for Digital Influence as defined in the report.
Also included are an Influence Framework and an Influence Action Plan to help brands identify connected consumers and define and measure strategic digital influence initiatives.