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ROR = Social Medias ROI

How Return on Relationships makes THE difference

The Old Model

ROI = Return on Investment In marketing terms, huge investment was made in creating content for:
TV Radio Magazine/Newspaper adverts Direct Mail Billboards

The New Model

Social Media Channels
Reach people where they are interacting

UGC User Generated Content

Get your consumers talking about your product

Create dialogue
Get into a conversation with consumers

Viral and Word of Mouth

People trust people have a virtual (global) sales force

The Basics of Social Media ROI

Wheres the money.....? ier-blanchard-basics-of-social-media-roi

More on Olivier Blanchard (worth a look!):

The Context

Facebooks Stats (as at 31 Jan 2010)

>350 million active users (thats more than the population of the USA!) 50% of our active users log on to Facebook in any given day >35 million users update their status each day with more than 55 million updates >2.5 billion photos uploaded each month >3.5 billion pieces of content (web links, news stories, blog posts, notes, photo albums, etc.) shared each week >3.5 million events created each month >1.6 million active Pages on Facebook >700,000 local businesses have active Pages on Facebook Pages have created more than 5.3 billion fans About 70% of Facebook users are outside the United States >65 million active users access Facebook through their mobile devices. Mobile device users are almost 50% more active than non-mobile users.

Facebooks Population

Social Media Marketing by Definition



User generated Content Word of Mouth Viral

Social media marketing is about building ways that fans of a brand or company can promote it themselves in multiple online social media venues.

Social Media ROI: Socialnomics

Gary Vaynerchuck: On Social Media ROI

Gary Vaynerchuck: On Social Media ROI

Cost Comparison
Direct Mail - $15k = 200 new customers Billboard - $7.5k = 300 new customers Twitter - $0 = 1,800 new customers To get the same from traditional channels: Direct Mail = $135k for 1,800 new customers Billboard = $45k for 1,800 new customers

The Trust Equation

Nielsen Global Online Consumer Survey of >25,000 Internet consumers from 50 countries.

The Trust Equation (contd)

Economist - A special report on social networking Profiting from friendship

Traditional Marketing

One mouth - Telling isnt Selling

Social Media Marketing

Dialogue - Two ears, two eyes, one mouth

Pay.....! Attention......?
You cant buy attention anymore. Having a huge budget doesnt mean anything in Social media ... The old media paradigm was PAY to PLAY. Now you get back what you authentically put in. Youve got to be willing to PLAY to PLAY Alex Bogusky, Co-Chairman, CP&B

ROI of TV.......?

Old ROI versus New ROR

Traditional - ROI
High up-front investment High on-going investment High additional PR costs Not easily measurable No active dialogue Mainly ve feedback High customer support cost
($12 via contact centre)

Social Media - ROR

Low up-front investment Low on-going investment Low additional PR costs Totally measurable Active dialogue Mainly +ve feedback Lower support costs
($0.25 via self-service)

High market research costs High product development costs High customer acquisition cost

Low market research costs Low product development costs Low customer acquisition cost

Direct ROR of Dialogue

Increased Trust Increased Affinity Increased Advocacy Increased Satisfaction Reduced -ve sentiment Reduced complaints Reduced resolution times

Heaven or Hell?

Your Social Media Presence

Must Be........ Open a true dialogue with customers
Promote free speech (-ve comments are opportunities to learn!)

Welcoming your customers should feel that they matter

Getting customers to create content and share with their friends is marketing you simply cant buy at any price!

Personal people like interacting with people

Create an approachable and available persona to front your interactions

Honest admit when you get it wrong and fix it (fast!)

You gain greater loyalty when you handle problems well

Authentic true to your brands marketplace

Your Brand integrity and tone of voice must feel (and be) real

Coherent resonate with your Marketing

Social media must have the same feel as your other (traditional) channels

Used internally too create the same dialogue with staff!

With a tool this powerful, youre able to engage your employees in a deep and intimate dialogue too...

Some Successes - Socialnomics

Some Successes - Socialnomics

Some Successes - Socialnomics

Some Successes - Socialnomics

Tangible results

Sean McDonald from Dell: Traditional vs. Social Media investment

Some Successes - Socialnomics

Customer conversations

Some Successes - Socialnomics

Some Successes - Socialnomics

Online is the future

Budget Allocation

And finally.........

Do you remember when a website was optional.....? Do you remember what happened next....? If youd like to discuss your Social Media Strategy: Rory Murray @rorymurray Rory (at) +44 7813 939916