Radian6: ROI of social media (return on investment) White paper

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Reading: Social media ROI Assessment has been a contentious issue, either simply, a single measure of the number of fans or sales, or simply an immeasurable, or not, this white paper from Radian6 may inspire you to measure ROI first by setting your own business goals, and cannot be measured by a single standard, different departments should develop their own KPI, the white paper has some examples, it is worth seeing.

Radian6, a well-known social media monitoring firm, published in February a white paper on "Roi on social media" (download address), explaining the doubts about the return on social media investment, the real situation and how to monitor ROI. Looked very valuable, so the main part of the translation.

. Marketers do not know how to measure the ROI of social media

First, this white paper describes the importance of social media and the reality that many people do not know how to measure the ROI of social media. Less than 20% of marketers feel they can measure the ROI of social media, a lenskoldgroup report says.

But 55% of marketers think it is important to measure the ROI of social media, for the following reasons:

①65% people have the need to improve the effect;
②59% people need to improve the integration of social marketing and other marketing methods;
③48% people are under pressure to quantify marketing effects.

But it has to be said that social media is still at a more difficult stage to measure:
①41% are still in the experimental stage of social media;
②19% people can not determine marketing goals;
③18% 's people have a very low budget for social media.

The effect of social media is difficult to measure, why is there a lot of brand investment?

1. Others do, we also have to do. Some brand bosses will ask, "What have we done on Facebook and Twitter?" "In many cases, the leadership is not sure what they want, but they know that the competitor is investing, so they have to join the camp;"
2. The unpredictable PR crisis that has to be addressed in social media;
3. Some enterprises are relatively forward-looking, social media as part of their brand building;
4. Some enterprises do not have the money in other media marketing, through the social media marketing has been customer and user advice;

two. What is the goal of social media?

You need to use the SMART methodology (concrete, measurable, executable, real, timed) to achieve social media goals.

(a) What are the typical social media business goals?

1. Understand what consumers and potential customers are saying about your company through a social media monitoring system;
2. Collection of competitive intelligence;
3. Online interaction with consumers and potential customers;
4. Establishment of opinion leaders through the sharing of relevant content;
5. Dissemination of information maximization in the social channel;
6. Support existing sales and marketing activities;
7. Support Recruitment and customer relationship management;
8. Establish a consumer community that can provide support and advice.

(b) Before considering how social media can help you achieve your goals, you need to consider:

1. What can you do in the face of direct and constant feedback from consumers?
2. How to make use of the advice, traffic, and word-of-mouth spread through social media?
3. How can consumers help other consumers to be valuable?
4. If you can reach more target consumers, how can you help?

three. Different indicators to be understood by different sectors

Many people use social media data, metrics, and KPIs as ROI for social media. In fact, metrics and data are not ROI. The indicator is the positive or negative change in your business activity, and is the number that describes which trade indicators are up and down. To get ROI, you need to understand metrics and turn them into business benefits. For different departments, the indicators to be considered are not the same.

(a) for marketing staff:

1. By understanding the flow of sources to subdivide the site traffic;
2. Tracking user cookies;
3. Data for consumers and potential consumers;

(b) for public relations professionals:

1. Social media metrics are generally:
2. Number of online participants;
3. Website registration number;
4. Average stay time;
5. Online sales;
6. Sales/revenue growth;
7. Market share;
8. Disseminating value media versus PR spending;
9. Brand Guide value vs PR cost;

(c) for customer service personnel:

Customer service specialists want to see the metrics they need to understand to reduce the cost of the Customer service center.
1. The average processing time of users ' complaints;
2. First telephone resolution rate;
3. Customer service salary;
4. Number of customer service;
5. The amount of complaint information posted in the community.

In general, data needs to be collected before or after the social media program is implemented. And when you report data or metrics, make sure you know who your audience is. General CEO, CFO and other senior leaders want to understand the strategy, bottom line benefits. And the manager level of people want to know more tactical level of indicators, such as the number of posts Ah, forwarding volume Ah, and so on.

four. ROI costing:

ROI is not an indicator, but you need metrics to measure the business value of the plan. The ROI calculation formula is as follows:

Roi= (revenue-cost)/cost *100

About the cost, mainly consider three aspects: Manpower cost, marketing operation cost, technology cost (including software and implementation)

Here's an example of how to calculate the ROI of social media. The world of Atlantis in San Antonio has done a social media campaign to make a big increase in income, which is the dream of every marketer! The Ocean World wants to start a new kind of entertainment, under the influence of influential people's Word-of-mouth marketing, in the roller coaster community to carry out the Atlantis roller coaster trip. Did you know about the roller coaster community before? The key to this project is to bring together the top-rated bloggers and forum participants, and to treat the bloggers who are keen on roller coaster as VIP members of the event.

The marketing team publishes content based on social profiles of audiences, catering to audiences ' interests, attitudes, hobbies and motivations. After the roller coaster community was established, the team combined 11 videos and 45 pictures. and publish the content on YouTube and Flickr. Bloggers can easily see the content, and if it's interesting, share it with their blogs. The content will also be used on the Marine World Roller coaster site, with a variety of social media sharing options.

American roller coaster enthusiasts were invited to the media and became the first users to use the new roller coaster. These users have made positive comments on YouTube videos. What's the result? The event received links from 50 independent web sites, including 30 from roller coaster enthusiasts.

For the ROI of this activity, we need to consider two things: the benefits of the activity and the cost of the activity.

Income：

The Ocean World Team later conducted a two-week survey to see how the project works. They asked two questions:

1 Did you come to the Atlantis tour today?
2. Where did you know about the trip to Atlantis?

The value of each visitor is calculated by a formula, which brings more than 2.6 million of the revenue to the park because of the information that visitors hear about it on the Internet.

Spend:

Now let's look at the cost. The estimated cost comes from three aspects: manpower, process and technology.

Manpower: The number of people who invest in this activity * the time they spend * their hourly salary;
Process: Creative spending, media day decorations cost, marketing materials;
Technology: The cost of the marketing system for the activity, the cost of shooting
Finally, by calculation, three flower costs add up to 44000 dollars.

ROI = (2,600,000–44,000) *44000 x 100% = 5,809%

That means $58.09 trillion in revenue for every 1 dollars spent. All this encourages the target audience to join the new roller coaster.

Five. Move forward and act:

PS: I think this part is for inspirational.

As an industry, most people have not yet begun to measure the ROI of social media. This white paper shows the importance of measuring social media, especially if you want to identify the business value of what you do. It's time to dive in and get to know your data solidly. In addition, to provide valuable information to your brand, you can shape yourself into opinion leaders, especially if you are good at measuring the ROI of social media. Doing this requires courage, perseverance and detail perfectionism. However, with practice and a little self-discipline, you will become an expert in this field in the near time.

To see the English version, please download here. Download Address: Http://vdisk.weibo.com/s/2EKrC

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This article is from @socialbeta content contributor @ Bubu

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