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Measuring ROI

for Social Media


Yes , yo u shou ld. Yes, yo u can .

Evo Terra
ASimplerWay.com

Measuring ROI for Social Media

Evo Terra
Shaking Hands with Fellow Graduates by boxercab

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Measuring ROI for Social Media

Evo Terra
adding machine (d) by Aaron Kyle

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Measuring ROI for Social Media


ROI = Return on Investment
not interest
not interaction
not engagement

Evo Terra
ASimplerWay.com

Measuring ROI for Social Media


ROI = Return on Investment
not interest
not interaction
not engagement

ROI

Benefit - Cost
Cost

Evo Terra
ASimplerWay.com

Evo Terra
balance sheet ok by Philippe Put

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Evo Terra
Social Media ROI by Intersection Consulting

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Evo Terra
Social Media ROI by Intersection Consulting

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Evo Terra
Social Media ROI by Intersection Consulting

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Head in the sand by jvh33

Evo Terra
ASimplerWay.com

Head in the sand by jvh33


That gulping sound is coming from your yard by Daniel Greene

Evo Terra
ASimplerWay.com

Head in the sand by jvh33


That gulping sound is coming from your yard by Daniel Greene
Rob Cottinghams Notes from My Metrics Session by cambodia4kidsorg

Evo Terra
ASimplerWay.com

ROI

Benefit - Cost
Cost

Evo Terra
ASimplerWay.com

Your social media plan isnt

Evo Terra
Social Media Plan by javiberm

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Your Social Media Investment


leads to an Action, that
creates a Reaction, which
delivers a Non-Financial Impact, that may ultimately
cause a Financial Impact.

Evo Terra
Stolen from The Definitive Social Media ROI Presentation by Olivier Blanchard | http://smroi.net

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Evo Terra
Not the best hockey game ever by Evo Terra

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Evo Terra
Stand out from the Crowd by Paul likes pics

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HOW TO measure ROI


Showstoppers
Limited access to metrics
Execution roadblocks

Evo Terra
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HOW TO measure ROI


1. Know your clients goals
Selling stuff
Increase sales of XYZ by 10% in Q2

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ASimplerWay.com

HOW TO measure ROI


1. Know your clients goals
Financial Impact

Replacing expensive customer focus groups


Reduce inbound sales calls
Reduce inbound service requests
Reduce advertising expenses
Increased transactions
Higher GP sales
Increased sales efficiency

Evo Terra
ASimplerWay.com

HOW TO measure ROI


1. Know your clients goals
Non-Financial Impact

Increased PageRank
Reduced infrastructure cost
Increased store traffic
Increased site traffic
Improved sentiment
Relevant Fans & Followers

Evo Terra
ASimplerWay.com

Measurement RULE

If you arent influencing it,


dont measure it.

Evo Terra
ASimplerWay.com

HOW TO measure ROI


2. Record every Action
Date & action

Blog posts
Outbound comment
Guest post
Interviewed on podcast
eBook published
Event promoted
Campaign flight
Press release
Influential re-Tweet
Evo Terra
ASimplerWay.com

HOW TO measure ROI


3. Overlay with business metrics

Total Revenues

Site traffic is flat.

Site Traffic
Gross Profit %
Revenues are up!

Twitterers
FB Fans
Conversions per
customer

Evo Terra
ASimplerWay.com

HOW TO measure ROI


3. Overlay with business metrics

Total Revenues

Site traffic is flat.

Site Traffic
Gross Profit %
Revenues are up!

Twitterers
FB Fans
Conversions per
customer

No more conversions, either.

Evo Terra
ASimplerWay.com

HOW TO measure ROI


3. Overlay with business metrics

Total Revenues

Site traffic is flat.

Site Traffic
And sales were already
going up. Youre fired.

Gross Profit %
Revenues are up!

Twitterers
FB Fans
Conversions per
customer

No more conversions, either.

Evo Terra
ASimplerWay.com

HOW TO measure ROI


3. Overlay with business metrics

Total Revenues
Site Traffic
Gross Profit %
Twitterers
Mix of key financial and nonfinancial goals impacted

FB Fans
Conversions per
customer

Evo Terra
ASimplerWay.com

HOW TO measure ROI


3. Overlay with business metrics
SM Campaign launches

10/30 - Mashable.com
guest blogging
9/1 - Influential tweet

7/20 - New product push

Total Revenues
Site Traffic
Gross Profit %
Twitterers
FB Fans
Conversions per
customer

Evo Terra
ASimplerWay.com

Measurement RULE

But you arent done!


Calculate the ROI.

Evo Terra
ASimplerWay.com

Week
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52

GP
Twitter
Revenue
51.06%
2389 $
99,500.67
51.31%
2401 $
99,789.89
51.57%
2413 $
99,987.98
51.76%
2498 $
101,689.45
51.83%
2501 $
100,432.89
51.98%
2500 $
101,678.34
51.66%
2502 $
100,456.89
51.12%
2499 $
100,069.87
51.31%
2501 $ 125,876.56
51.57%
2525 $
125,987.67
51.76%
2567 $
126,123.09
51.83%
2701 $
102,452.98
51.98%
2746 $
99,876.54
52.49%
2767 $
99,333.76
52.96%
2790 $
97,911.67
53.45%
2804 $
96,898.99
53.49%
2825 $
111,522.87
53.52%
2832 $
124,488.77
53.45%
2850 $
136,445.37
53.49%
2988 $
145,998.03
53.64%
3104 $
156,887.33
54.50%
3115 $
160,984.23
55.59%
3148 $
159,845.44
56.53%
3156 $ 161,334.87
57.49%
3178 $
155,989.44
58.99%
3188 $
162,889.44
60.29%
3203 $
169,556.76
61.23%
3267 $
178,943.00
62.47%
3409 $
176,789.44
64.07%
3687 $
180,333.88
66.38%
3898 $
179,445.98
68.35%
4120 $
181,445.00
70.70%
4467 $
183,876.04
$ 4,404,843.13

Gross Profit $
$
50,802.97
$
51,206.57
$
51,564.65
$
52,637.71
$
52,051.67
$
52,849.27
$
51,892.35
$
51,157.75
$
64,592.78
$
64,972.91
$
65,285.34
$
53,098.63
$
51,912.75
$
52,140.14
$
51,854.05
$
51,794.05
$
59,658.42
$
66,621.05
$
72,932.22
$
78,100.68
$
84,160.55
$
87,734.51
$
88,856.16
$
91,201.27
$
89,679.76
$
96,083.53
$
102,226.89
$
109,568.65
$
110,441.45
$
115,546.26
$
119,119.30
$
124,013.92
$
129,998.28
$ 2,495,756.49

Net Profit $ Baseine (net profit $)


SM Fees
Net net net
$ 12,700.74
$13,000.00
$1,000.00
($1,299.26)
$
12,801.64
($1,198.36)
$
12,891.16
($1,108.84)
$
13,159.43
($840.57)
$
13,012.92
($987.08)
$
13,212.32
($787.68)
$
12,973.09
($1,026.91)
$
12,789.44
($1,210.56)
7/20 - New product
$ 16,148.20
$2,148.20
push
$
16,243.23
$2,243.23
$
16,321.34
$2,321.34
$
13,274.66
($725.34)
$
12,978.19
($1,021.81)
$
13,035.03
($964.97)
$
12,963.51
($1,036.49)
9/1 - Influential
$ 12,948.51
($1,051.49)
tweet
$
14,914.60
$914.60
$
16,655.26
$2,655.26
$
18,233.06
$4,233.06
$
19,525.17
$5,525.17
$
21,040.14
$7,040.14
$
21,933.63
$7,933.63
10/30 $
22,214.04
$8,214.04
$ 22,800.32
$8,800.32
Mashable.com
$
22,419.94
$8,419.94
guest blogging
$
24,020.88
$10,020.88
$
25,556.72
$11,556.72
$
27,392.16
$13,392.16
$
27,610.36
$13,610.36
$
28,886.57
$14,886.57
$
29,779.83
$15,779.83
$
31,003.48
$17,003.48
$
32,499.57
$18,499.57
$ 623,939.12
$161,939.12

Evo Terra
ASimplerWay.com

Week
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52

GP
Twitter
Revenue
51.06%
2389 $
99,500.67
51.31%
2401 $
99,789.89
51.57%
2413 $
99,987.98
51.76%
2498 $
101,689.45
51.83%
2501 $
100,432.89
51.98%
2500 $
101,678.34
51.66%
2502 $
100,456.89
51.12%
2499 $
100,069.87
51.31%
2501 $ 125,876.56
51.57%
2525 $
125,987.67
51.76%
2567 $
126,123.09
51.83%
2701 $
102,452.98
51.98%
2746 $
99,876.54
52.49%
2767 $
99,333.76
52.96%
2790 $
97,911.67
53.45%
2804 $
96,898.99
53.49%
2825 $
111,522.87
53.52%
2832 $
124,488.77
53.45%
2850 $
136,445.37
53.49%
2988 $
145,998.03
53.64%
3104 $
156,887.33
54.50%
3115 $
160,984.23
55.59%
3148 $
159,845.44
56.53%
3156 $ 161,334.87
57.49%
3178 $
155,989.44
58.99%
3188 $
162,889.44
60.29%
3203 $
169,556.76
61.23%
3267 $
178,943.00
62.47%
3409 $
176,789.44
64.07%
3687 $
180,333.88
66.38%
3898 $
179,445.98
68.35%
4120 $
181,445.00
70.70%
4467 $
183,876.04
$ 4,404,843.13

Gross Profit $
$
50,802.97
$
51,206.57
$
51,564.65
$
52,637.71
$
52,051.67
$
52,849.27
$
51,892.35
$
51,157.75
$
64,592.78
$
64,972.91
$
65,285.34
$
53,098.63
$
51,912.75
$
52,140.14
$
51,854.05
$
51,794.05
$
59,658.42
$
66,621.05
$
72,932.22
$
78,100.68
$
84,160.55
$
87,734.51
$
88,856.16
$
91,201.27
$
89,679.76
$
96,083.53
$
102,226.89
$
109,568.65
$
110,441.45
$
115,546.26
$
119,119.30
$
124,013.92
$
129,998.28
$ 2,495,756.49

Net Profit $ Baseine (net profit $)


SM Fees
Net net net
$ 12,700.74
$13,000.00
$1,000.00
($1,299.26)
$
12,801.64
($1,198.36)
$
12,891.16
($1,108.84)
$
13,159.43
($840.57)
$
13,012.92
($987.08)
$
13,212.32
($787.68)
$
12,973.09
($1,026.91)
$
12,789.44
($1,210.56)
7/20 - New product
$ 16,148.20
$2,148.20
push
$
16,243.23
$2,243.23
$
16,321.34
$2,321.34
$
13,274.66
($725.34)
$
12,978.19
($1,021.81)
$
13,035.03
($964.97)
$
12,963.51
($1,036.49)
9/1 - Influential
$ 12,948.51
($1,051.49)
tweet
$
14,914.60
$914.60
$
16,655.26
$2,655.26
$
18,233.06
$4,233.06
$
19,525.17
$5,525.17
$
21,040.14
$7,040.14
$
21,933.63
$7,933.63
10/30 $
22,214.04
$8,214.04
$ 22,800.32
$8,800.32
Mashable.com
$
22,419.94
$8,419.94
guest blogging
$
24,020.88
$10,020.88
$
25,556.72
$11,556.72
$
27,392.16
$13,392.16
$
27,610.36
$13,610.36
$
28,886.57
$14,886.57
$
29,779.83
$15,779.83
$
31,003.48
$17,003.48
$
32,499.57
$18,499.57
$ 623,939.12
$161,939.12

Evo Terra
ASimplerWay.com

ROI

Benefit - Cost
Cost

Evo Terra
ASimplerWay.com

ROI

Benefit - Cost
Cost

Benefit: $623,939.12 in net profit dollars, less $429,000 as baseline


Cost : $1000 for 33 weeks = $33,000

4.91 =
ROI

$194,939.12 - $33,000
$33,000
Evo Terra
ASimplerWay.com

What if

You dont win?


Then you dont win.

Evo Terra
ASimplerWay.com

Evo Terra
ASimplerWay.com

Measuring ROI for Social Media


Yes, you should. Yes, you can.

Evo Terra
ASimplerWay.com