Get the DL on ROI: How To Calculate Social Media ROI for Business
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Measuring social media ROI is key to building and refining your social marketing strategy. It shows you what’s working and what’s not—allowing you to shift resources and tactics to be more effective. But how do you calculate ROI? There is a straightforward two-part formula that focuses on Return and Investment. This session aims to cover a wide variety of business goals (brand awareness, revenue, customer satisfaction, etc.) to follow and most importantly showcase how to calculate ROI step by step. You’ll learn: How-to demystify social media ROI Which KPIs support the various business goals you may have How to create better content to support different business goals Watch On-Demand: https://www.falcon.io/cmp/roi-resources/
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Get the DL on ROI: How To Calculate Social Media ROI for Business
- 2. Get the DL on ROI: How To Calculate Social Media ROI for Business Welcome to: With: • Marissa Ryan, Co-Founder & CMO at VisualFizz • Andrius Knispelis, Senior Product Manager at Falcon.io
- 4. R I O
- 6. Must-read
- 8. $200 product Promoting Email list ( 5% conversion rate ) Each new email is worth $10 SoMe Goal: Drive email sign-ups Increase Email signups
- 9. ROI = investment r tu e rn + + + = $4000 investment $4000 $4000 $200 product Promoting Email list ( 5% conversion rate ) Each new email is worth $10 SoMe Goal: Drive email sign-ups Increase Email signups Lets say… you invested $4000, you got 700 new email signups What’s the ROI?
- 10. 700 signups ROI revenue investment - = investment $7000 r t u e r n = $7000 revenue $10 value x = $4000 investment $4000 $4000 Increase Email signups + + + $200 product Promoting Email list ( 5% conversion rate ) Each new email is worth $10 SoMe Goal: Drive email sign-ups Lets say… you invested $4000, you got 700 new email signups What’s the ROI?
- 11. = $7000 revenue ROI revenue investment - = $7000 $4000 investment $4000 700 signups $10 value x = $4000 investment Increase Email signups + + + $200 product Promoting Email list ( 5% conversion rate ) Each new email is worth $10 SoMe Goal: Drive email sign-ups Lets say… you invested $4000, you got 700 new email signups What’s the ROI?
- 12. = ROI $3000 net profit 75% = $7000 revenue 700 signups $10 value x = $4000 investment = investment $4000 75% 50% 34% 61% Identify what works best Increase Email signups + + + $200 product Promoting Email list ( 5% conversion rate ) Each new email is worth $10 SoMe Goal: Drive email sign-ups Lets say… you invested $4000, you got 700 new email signups What’s the ROI?
- 13. Ultimately, what social media ROI means to your business is entirely dependent on your objectives Increase sales Business Goal: Provide sales team with high quality leads from social Social Media Goal: Improve customer satisfaction Business Goal: Reduce customer support response time on social Social Media Goal: Increase brand awareness Business Goal: Create a buzz on social media surrounding our upcoming product launch Social Media Goal: Awareness Conversion Customer Experience Goals
- 14. directly calculate true social media ROI the same way as other channels? ? No. 😵 ( But don’t panic ) Can you
- 15. ? directly calculate true social media ROI the same way as other channels? Why can’t we Short term efforts have long term (“permanent” results) impacts Social media does not occur in a bubble - it impacts and is impacted by other strategies in your marketing mix. Social is almost always a part of the customer journey in some way. However, social media is not as often the last touchpoint. Because of this, true attribution of success can be difficult.
- 16. How can we measure our Social Media efforts? Track, Measure, Attribute, Repeat Separate by Goals to Demystify Consider Social Media a Critical Part of the Marketing Mix 2 1 3
- 17. Consider Social Media a Critical Part of the Marketing Mix Social Media is often an afterthought; Something brands know they “should be doing” but don’t consider critical to marketing and sales. 1 1. Align social media campaigns with other marketing initiatives 2. Consider social media the “face” of your brand 3. Measure performance over time 4. Pay close attention to AB variables and tests 5. Remember the Rule of 7 It takes ~7 touchpoints for a consumer to become loyal. Consider this when creating social media campaigns Customer 1 Customer 2 Customer 3 Customer 4 1 Social Search Engines OOH ( Billboard, Radio, TV, Mailer, etc) Word-of-Mouth / Review 2 Word-of-Mouth / Review Social Search Engines Website LPs 3 OOH ( Billboard, Radio, TV, Mailer, etc) Word-of-Mouth / Review Social Sales Team Outreach 4 Search Engines Sales Team Outreach Website LPs Search Engines 5 Website LPs Email / Phone / Conversion Form Word-of-Mouth / Review Social 6 Email / Phone / Conversion Form Website LPs Social Email / Phone / Conversion Form 7 Purchase Purchase Purchase Purchase Rule of 7
- 18. Awareness Conversion Customer Experience Separate by Social Media Goals to Demystify 2 These goals are nothing new - social media goals are business goals, and all departments share these core business goals. See: Brand Awareness, Branding See: Sales See: LCV, Customer Retention
- 19. See: Brand Awareness, Branding Types of Campaigns • Announcements (awareness related) • New product launches • Service-focused posts that describe what you offer • Introducing the individual to your brand, products, or services • Content that speaks to the “Top of the Funnel” KPIs to focus on • Overall profile performance • Follower growth rate (compare over time) • CTR of traffic to landing pages • Engagement Metrics (likes, comments, shares, etc) • New User traffic from Social Media 2 Awareness Separate by Social Media Goals to Demystify New User social media traffic All User traffic social media traffic
- 20. See: Sales Types of Campaigns • Product-Focused posts (focused on sale) • Lead generation focused posts (get a quote, sign up, join our exclusive community, etc.) • Discounts and Coupon-related posts • Value Points • Brand Personality • Expertise • Reviews • Content that speaks to the “Middle of the Funnel” KPIs to focus on • Conversion Rate • Click-Through-Rate • Impression Rate • Bounce Rate (GA ) • Exit Rate (GA ) 2 Conversion Separate by Social Media Goals to Demystify
- 21. See: LCV, Customer Retention 2 Customer Experience Separate by Social Media Goals to Demystify Customer Service • Focuses on the satisfaction and retention of one individual person • Usually a direct 1 : 1 experience • Not usually visible to the public • Takes place at one snapshot of time Customer Experience • Focuses on the public appearance of how the brand handles unsatisfied customers • Not a direct 1 : 1 - anyone can see the interaction • A publicly-visible customer support channel • Support given today is visible for the long term VS
- 22. See: LCV, Customer Retention Types of Campaigns • Sharing of support options and positive feedback • Sharing of UGC • Content that reveals the brand personality • Visible responses to negative feedback, comments, or negative reviews • Control the conversion: always respond to negative feedback • Discounts for loyal/existing customers • Content that focuses on LCV and speaks to the “Bottom of the Funnel” • Differentiators from Competitors • Brand Personality • Values and Mission • Dedication to Quality KPIs to focus on • Reach • Engagement Rates • Sharing/recommending/tagging specifically • Traffic rates from social • Return Rate ( Returning Visitors from Social) • Average Order Value 2 Customer Experience Separate by Social Media Goals to Demystify
- 23. Track Measure Attribute Repeat 3
- 24. Goal Action How do you know if your actions contribute to you achieving your goals? Daily activities Longer term Metrics
- 25. Average Engagement Rate Virality Rate Reactions Comments Saves Shares CTA Clicks Bounce rate Conversion Rate Click-Through Rate Email list sign-ups Trials Purchases Downloads of an eBook Response Time Net Promoter Score Customer Satisfaction Score Customer Testimonials Sentiment Sign-ups for newsletter a Reach Engagement Conversion Experience Reach Impressions Net New Fans Engaged Users Fans
- 26. 12 11 9 13 10 8 Tue 24 Sun 22 Mon 23 Sat 21 Fri 20 Thu 19 Wed 18 Tue 17 Mon 16 Sun 15 Sat 14 Wed 11 Thu 12 Fri 13 2K 2K 2K 2K 2K 2K 2K 2K 2K 2K 2K 2K 2K 2K 6 4 1 5 Fans The total number of people who have liked or followed your channel(s). Reach
- 27. Tue 24 Sun 22 Mon 23 Sat 21 Fri 20 Thu 19 Wed 18 Tue 17 Mon 16 Sun 15 Sat 14 Wed 11 Thu 12 Fri 13 4 0 1 4 7 9 8 3 0 4 4 1 0 0 12 11 9 13 10 8 6 4 1 5 1 0 0 0 1 2 3 1 0 2 1 0 0 0 New Fans Gained This metric counts the daily fluctuations of your fans count. It is calculated by subtracting the values of the Fans metric over the period. Reach / Lost 3 0 1 4 6 7 5 2 0 2 3 1 0 0
- 28. Reach Net New Fans This metric counts the daily fluctuations of your fans count. It is calculated by subtracting the values of the Fans metric over the period. Tue 24 Sun 22 Mon 23 Sat 21 Fri 20 Thu 19 Wed 18 Tue 17 Mon 16 Sun 15 Sat 14 Wed 11 Thu 12 Fri 13 3 0 1 4 6 7 5 2 0 2 3 1 0 0 12 11 9 10 8 6 1 5
- 31. Tue 24 Sun 22 Mon 23 Sat 21 Fri 20 Thu 19 Wed 18 Tue 17 Mon 16 Sun 15 Sat 14 Wed 11 Thu 12 Fri 13 73 3 8 7 9 7 5 6 2 4 3 7 5 3 4 Reach Reach Anywhere from 9 to 73 Day - Week - 28 Days
- 34. Users who did X Users who had a chance to do X Engagement Action X Posts where action X was possible
- 35. Reactions Comments Saves Shares Engagement Users who did X Users who had a chance to do X Action X Posts where action X was possible Reach Number of Posts Engaged Users Total Comments More important Less important
- 36. Engagement What is the percentage of people that shared your posts Number of Shares Total unique views Virality Rate How many people like, share, or comment on your posts Total Engagements Number of Posts Average Engagement Rate Reactions Comments Saves Shares More important Less important Users who did X Users who had a chance to do X Action X Posts where action X was possible
- 38. Engagement Campaign A Campaign B Campaign C Campaign A Campaign B Campaign C You did this This happened
- 39. What percentage of people convert into leads/sales/etc. Number of conversions Total trafic Conversion Rate Conversion What percentage of people click on your posts Clicks Impressions Click-Through Rate (CTR ) How many of these ? ? Become these What’s the average cost of each click you receive. Ad spend Number of clicks Cost-Per-Click (CPC ) Ad spend Number of Impressions / 1000 What’s the average cost of each 1000 impressions you receive. Cost-Per-Mile (CPM )
- 40. What are people saying about your brand? Are your customers pleased with the support they receive? How quickly are you replying to messages? Customer Testimonials Response Time Customer Satisfaction Score Customer Experience How likely people would recommend this company to a friend or colleague? Net Promoter Score
- 41. Track Measure Attribute Repeat 3
- 42. Tracking is critical to any marketing action - start now • In-platform tracking • UTM tracking (usually measured in Google Analytics) • Campaign planning • Staying consistent with tracking requires some forward thinking. Plan out your campaigns well in advance, and stay consistent with your UTM use. 3 Track https://www.visualfizz.com/services/social-media-marketing-agency/? utm_source=webinar&utm_medium=referral&utm_campaign=measurewhatma tters&utm_id=falcon-event&utm_term=social-media&utm_content=example- UTM UTM example
- 43. Measure data from multiple locations • In-platform • metrics provided by facebook, instagram, linkedin, etc. • Website traffic • Google Analytics or another analytics • Visitor Behavior • New vs Returning • Landing vs Exit page performance • Combine with Sales data for the most complete picture 3 Measure Measure over time Against your own data Tue 24 Sun 22 Mon 23 Sat 21 Fri 20 Thu 19 Wed 18 + 61% Tue 17 Mon 16 Sun
- 44. • Create posts and social media content that provides value at each stage 3 Attribute • Measure social media’s impacts on the full marketing strategy Top of funnel Brand Awareness Mid of funnel Conversion Bottom of funnel Customer experience, LCV
- 45. • Continued efforts and campaigns over time = • AB testing • “Always Be Testing” especially on social media 3 Repeat success
- 46. Track Measure Attribute Repeat 3