Social Marketing & PR ROI - Focus roundtable
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The document discusses the ROI of social marketing and public relations, highlighting gains such as increased customer influence and reduced marketing costs, with a formula for calculating ROI. It presents case studies demonstrating effective strategies for enhancing sales and understanding customer insights, comparing costs of traditional focus groups to social media methods. The results exhibit significant improvements in both sales and ROI percentages following the implementation of these social strategies.
Social Marketing & PR ROI - Focus roundtable
- 1. Social Marketing and PR ROI DrNatalieNews www.kathyherrmann.com
- 2. Marketing & PR ROI Gains • Revenues from enhanced Marketing Funnel Dynamics • Increased word of mouth and customer influence: Shares, referrals, online reviews, key message pick-up,… • Increased marketing lead conversion rates • Savings from: • Consumer Insights. • Brand protection. • Reduced marketing costs. • Reaching PR objectives faster, better, cheaper: • Increased awareness, reach, relevance, engagement,… 2
- 3. ROI Costs Common costs for social customer service programs: • People, • Process, • Technology. 3
- 4. ROI Formula ROI = (Gains - Costs)/Costs x 100 ROI is shown as a percentage. 4
- 5. Sample ROI: Client Case Study #1 Sales revenues from Marketing Program (Medium-sized brand for baby care products.) 5
- 6. Challenge 1. To lead and own the conversation on baby care WOM channels. 2. Increase awareness, reach, relevance, share of voice, positive sentiment in online conversations about diapers compared to competitors. 3. Educate moms on the new concept of Babies’ Stage of Development (BSOD) to generate interest for diaper product. 6
- 7. Solution 1. Create online presences and invite parents to share and learn about their babies’ development. 2. Develop online PR program for baby care websites targeted at parents to build up a WOM channel to increase influence among parents and establish/drive loyalty among consumers. 3. Determine ROI of program. 7
- 8. Projected program stats (conservative) • Average volume of social conversations • Before: 1,380,000 in previous 6 mo. • Goal: Add 168,000 convos over a 6-mo period (12% increase). • Add 5,000/mo from registered users uploading photos and essays to branded site. • Add 10% to convo volumes = 23,000 other convos/mo in 3rd party blogs, their own tweets, etc. • Social media sentiment • Before: 42% positive, 36% neutral, 22% negative • Goal: increase positive sentiment • Sales and Revenue • Before: • Annual sales = $156M • Sales/convo before program = $56.52/convo • After: Increase annual sales and value of purchase 8
- 9. Formula for Revenue Gain Revenues = Impact x Reach x Yield Influenced convos * We look at changes before program versus estimates of expected after results. 9
- 10. Impact Impact = Positive sentiment x Listening Rate = 42% x 10% = 4.2% 10
- 11. Reach = Extent of online footprint Reach = 1,380,000 convos in previous 6 months = Avg of 230,000 per month = 5,000 posts/mo on website + 23,000 other convos/mo across web (blogs, tweets, etc). = 28,000 convos/mo = 168,000 add’l convos total for 6 mo 11
- 12. Influence factor = Impact x Reach = 4.2% x (168,000 convos) = 7,056 influenced convos for 6-mo period. * Influenced convos = # of impacted, add’l convos. 12
- 13. Yield Add’l sales = (Rev/convo) x (# Influenced Convos) = $56.52 x 7,056 convos = $398,805 13
- 14. Costs People costs = $49,000 for employees for 6 mo Process costs = $163,000 for agency for campaign Technology = 60,000 community solution Total costs = $272,000 14
- 15. ROI Formula ROI = (Gains - Costs)/Costs x 100 = ($398,805 - $272,000)/($272,000) x 100 = 47% 15
- 16. Actual program stats Registered users = 38,700 (29% higher) Total conversations across social web = 196,560 (17% higher) Social monitoring = 44% positive (+2% climb) Revenues/convo = $61.61 (9% higher) Actual Sales Impacted = $532,842 Actual ROI = 96% (2x higher than forecast) 16
- 17. Sample ROI: Client Case Study #2 Consumer Insight Savings (Medium-sized software company.) 17
- 18. Challenge and Solution Challenge - Cut the cost of gaining consumer insight. Solution – Use social media in lieu of more expensive focus groups. 18
- 19. Program stats Average cost per survey or focus group = $15,000 Recommended # of surveys per year = 1 before each major release = 2x per year. Total cost of recommended surveys = $30,000 19
- 20. Program stats Cost of personnel = 1 marketing person working 20% of time on monitoring = ($112,000 burden compensation) x 20% = $22,400 Cost of social monitoring = $6,000/yr Total costs = $28,400/yr 20
- 21. ROI Formula ROI = (Savings Gains - Costs)/Costs x 100 = ($30,000 - $28,400)/($28,400) x 100 = 6% Recommendation – Do either 2 surveys per year or social. 21
- 22. What if? What if company wants ongoing real-time customer insights? What would ROI be then? 22
- 23. What if costs… Savings Gains = Price of 4 surveys per year = 4 x ($15,000/survey) = $60,000 Costs = Cost of personnel = $22,400/yr = Cost of tech = $6,000/yr = $28,400/yr 23
- 24. What if ROI ROI = (Savings Gains - Costs)/Costs x 100 = ($60,000 - $28,400)/($28,400) x 100 = 111% Recommendation – Do social media for consumer insights or do a mix of social media and surveys. 24
- 25. Contact information Natalie Petouhoff Kathy Herrmann [email protected] [email protected] DrNatalieNews www.kathyherrmann.com @DrNatalie @KathyHerrmann +DrNatalie +KathyHerrmann 25