#twooc
Day TWELVE: Measuring Return on Investment
The small print:
All this material, whilst given freely for this course, is for your use only, and not for dissemination to anyone else, even inside your own organisation. Please do recommend that your colleages sign up for the course so that they can participate too at http://twooc.wodpress.com @lizcable @TrinityVisionUK
155
#twooc
DAY 12: Outline Measuring Return on Investment Activity:
Search for current conversations using #twooc on your Twitter profile, and get a feel for what’s going on in our “classroom”.
Read through the notes for the day and:
Decide on your Social Media Metrics to measure success, and start measuring them.
Set yourself some targets.
Put a date in your diary to review your progress.
Create your own Influence Leaderboard, and check it often.
E-tivity:
Register for or find our your scores on the following Influence scales and tweet to your #12dot followers:
Klout Score Kred Score Social Influence (Followerwonk)
Set yourself a goal for improvement.
Tools: www.klout.com www.kred.com www.followerwonk.com
Resources: “Social Media Metrics” Jim Sterne (Book) http://www.targeting.com/articles.html
@lizcable @TrinityVisionUK
156
#twooc
Calculating Return on Investment (ROI) Calculating Costs In order to calculate the ROI of any activity, we need to understand how much it costs us to deliver. This crude calculation may start you thinking. FIRST: What is your time worth? How much you earn a year, divided by number of hours: 4.14 (weeks in a month) x 5 (working days in a week) x 8 (working hours in a day) = 1656 total working hours (adjust the formula if you work more or less) e.g. At £25k a year that works out at £15 an hour. Of course, tweeting can be done in “stolen time”; on your mobile while you’re waiting for a meeting to start, or queuing for a taxi, but let’s still count it. So, if you start logging the time you spend on social media (and be strict about just logging the time spent on your business connections and networks) you should know how much you are investing in this activity. For the moment, we’ll count it all as marketing activity, but it could be for Customer Service, Recruitment, or any other business purpose. Think about the ACTUAL TACTICS you will employ, and how much time will they take? e.g. Reach:
Following 100 relevant people a week? Sourcing & writing 10 tweets a day?
Engagement: Responding to others 10 times a day? We’ll come back to this.
Calculating Results: Now the bit that some people find difficult to quantify – that is, the outcomes of social media. For me, it’s very simple, the Key Performance Indicators of social media for sales should be the same as the KPIs for the rest of your business, and these usually boil down to two things: 1.
Reducing Costs
2.
Increasing Sales
However, because investing in Social Media is investing in building a community of repeat business (whereas an advert in a newspaper is of its nature a one-hit wonder), or if you are building a community for reasons other than sales – with #twooc we are building a community of learners there is also value in measuring:
@lizcable @TrinityVisionUK
157
#twooc 3.
REACH, or indeed all the parts of:
The key thing is to MEASURE them:
When people phone your business do you ask how they found you?
When you get a new piece of business do you ask if they follow you on Twitter?
Do you encourage customers to Tweet you for customer service?
Do you market your Twitter presence:
On your website?
In your email signature file?
On your printed literature?
On your business cards?
On pages 160 & 161 of this guide, you’ll find over one hundred suggested metrics for measuring social media success. These are for all social media tools, not just Twitter, but read through the list and adopt and adapt the ones that make the most sense to you. You may also like to use the matrix on the next page.
In the Action matrix, fill in the amount of each action you want to take per day or per week (per day is better).
In the Results matrix, fill in the results you measure, once a week.
This is just an idea, a starting point, and pretty soon your use of Twitter will become intuitive, and rather than measuring individual types of tweets, you’ll just be measuring your tweeting time.
I like to use the following rule of thumb; no more than one in ten tweets will be about me. That means 9 out of 10 times, often even more, I’m tweeting to and about other people. Engaging with them, and amplifying their messages. This is how it works. Don’t be tempted to just market market market.
@lizcable @TrinityVisionUK
158
#twooc
Twitter ROI matrix Action Broadcasts Tweets (syndicated) Broadcast Tweets with links (syndicated) @replies @mentions Re:Tweets #ffs How many people in your interest area will you follow? How many people will you list? Others:
Tool Twitter, socialbro etc. Bit.ly Twitter Twitter Tweetreach or Twitter Twitter/Buffer Twitter/Refollow
Measure How many people @replied you How many people @mentioned you (could be #ff’s or #rfr or paper.li listings) How many people retweeted you Total impressions of a tweet Total actual audience of a tweet (removing duplicate impressions to same viewer) How many people clicked on your links Responses on Facebook (via #fb) Responses on LinkedIn (via #in) New Followers New Lists you’ve been listed on Meetings resulting from Twitter Invitations to tender, referrals and pitches resulting from Twitter Bookings and Sales resulting from clicks on bit.ly links Others:
Tool Twitter Twitter
Amount
Result
Twitter Tweetreach or Twitter Tweetreach
Bit.ly Syndication Syndication Twitter Twitter
Remember to initiate and measure offline invitations and meetings that come about as a result of connecting on Twitter.
@lizcable @TrinityVisionUK
159
#twooc
102 Social Media Metrics (based on Jim Sterne’s book Social Media Metrics with additions) Volume of consumer-created buzz for a brand based on number of posts Buzz by time of day / daypart User-generated content created that can be used by the marketer in other channels
Competitive buzz Buzz by category / topic Buzz by social channel (forums, social networks, blogs, Twitter, etc) Impact on online sales Mainstream media mentions Rate of virality / pass-along Change in virality rates over time Second-degree reach (connections to fans, followers, and friends exposed - by people or impressions) Embeds / Installs Likes / favorites Social bookmarks Percentage of buzz containing links Links ranked by influence of publishers Percentage of buzz containing multimedia (images, video, audio) Influence of consumers reached Influence of publishers reached (e.g., blogs) Influence of brands participating in social channels View-throughs Tags added Impact of offline marketing/events on social marketing programs or buzz Savings generated by enabling customers to connect with each other Earned media's impact on results from paid media @lizcable @TrinityVisionUK
Number of virtual gifts given Seasonality of buzz Savings per customer assisted through direct social media interactions compared to other channels (e.g., call centers, instore) Suggestions implemented from social feedback Costs saved from not spending on traditional research Buzz by stage in purchase funnel (e.g., researching vs. completing transaction vs. post-purchase) Impact on offline sales Discount redemption rate Impact on other offline behavior (e.g., TV tune-in) Leads generated Products sampled
Visits to store locator pages Conversion change due to user ratings, reviews Customer acquisition costs through social media Change in market share Attendance generated at in-person events Job applications received Friends User-initiated views (e.g., for videos) Comments Ratings Increase in searches due to social activity Demographics of target audience engaged with social channels Time spent with distributed content Time spent on site through social media referrals 160
#twooc Effective CPM based on spend per impressions received Interaction/engagement rate Frequency of social interactions per consumer Polls taken / votes received Purchase consideration Number of user-generated submissions received Social media habits/interests of target audience Number of chat room participants Wiki contributors Customers assisted Impact on first contact resolution (FCR) Volume of customer feedback generated Research & development time saved based on feedback from social media Responses to socially posted events Shift in buzz over time Percentage of videos viewed Customer satisfaction Rate of customer/visitor retention
Impact on customer lifetime value Customer retention costs through social media Amount of buzz based on number of impressions Asset popularity (e.g., if several videos are available to embed, which is used more) Fans Followers Growth rate of fans, followers, and friends Downloads
@lizcable @TrinityVisionUK
Number of interactions Ratio of embeds or favoriting to views Subscriptions (RSS, podcasts, video series) Pageviews (for blogs, microsites, etc) Change in search engine rankings for the site linked to through social media Change in search engine share of voice for all social sites promoting the brand Demographics of audience reached through social media Contest entries Geography of participating consumers Languages spoken by participating consumers Method of content discovery (search, pass-along, discovery engines, etc) Clicks Percentage of traffic generated from earned media Brand association Exposures of virtual gifts Relative popularity of content Registrations from third-party social logins (e.g., Facebook Connect, Twitter OAuth) Registrations by channel (e.g., Web, desktop application, mobile application, SMS, etc) Employees reached (for internal programs) Share of voice on social sites when running earned and paid media in same environment Sentiment by volume of posts Sentiment by volume of impressions Shift in sentiment before, during, and after social marketing programs Attributes of tags (e.g., how well they match the brand's perception of itself) First Negative Ranking Uploads
161
#twooc
Measuring Influence There are some commonly used terms for well-connected people online, they’re called “Mavens”, “Amplifiers” or “Influencers”. Mavens are useful because they are well connected in their niche area of interest and expertise. It should be your aim to connect with mavens, engage with them, influence them, and hopefully, to become a maven yourself. When you link with people on Twitter, horrid as it may seem to say it, those with more followers are obviously more useful to you than those with less, because if they retweet your message, you’ll reach more people. So it is useful for you to know who has the most followers in your field. However “number of followers” is not the best measure of Influence:
What if they never tweet?
What if they tweet a lot but never retweet?
What if they retweet all the time, but no-one clicks on their links?
What if they’ve used some kind of automated following tool, and their followers are not relevant to your industry even though THEY are?
What if they don’t follow back?
This is one of the conundrums of social media, and there are several people working away to solve it. There are a variety of free online social tools that measure “trust”, “authority”, “influence” etc. Find out the Klout & Kred of the well-known “leaders” in your field. Notice who is doing well online, compared with offline. Can you help the offline laggards who are well-known in their industry with their online presence? This may be a way of becoming a part of their trusted network. Find the people in your field who do have high Klout & Kred for those topics, are they equally well known offline? How can you connect with and influence them?
@lizcable @TrinityVisionUK
162
#twooc
Using Kred to measure your influence and the influence of others Kred is an influence measure online. Kred measures your influence and your outreach. This is how Kred describes how their scoring system works: Kred scores reflect Trust and Generosity, the foundations of strong relationships. All of our Kred badges show Influence Scores on the upper left and Outreach Levels on the lower right.
Influence is the ability to inspire action. It is scored on a 1,000 point scale. We measure Influence by assessing how frequently you are Retweeted, Replied, Mentioned and Followed on Twitter. If you connect your Facebook account to your Kred profile, you get Influence points when people interact with your content on your wall and the walls of others who have registered their Facebook account with Kred. Facebook interactions counted towards your Kred include Posts, Mentions, Likes, Shares and Event Invitations. Outreach reflects generosity in engaging with others and helping them spread their message. Since we believe that the capacity generosity is infinite, your Outreach score is cumulative and always increases. As of June 2012 the highest Outreach Level anyone has reached is 12, and we expect that higher levels will certainly be achieved in the future. We measure Outreach on Twitter by your Retweets, Replies and Mentions of others. When your Facebook account is connected to your Kred profile, you get Outreach points for interactions on your own wall and the walls of others who have registered their Facebook account with Kred. Interactions counted towards Kred include Posts, Mentions, Comments and Likes.
To use Kred, simply visit http://kred.com and sign in with Twitter. You can see your own Kred score, influence and outreach score, how many retweets and new followers you’ve had etc. You can look up competitors and see influential tweeters in your field on Kred as well. Have a play!
@lizcable @TrinityVisionUK
163
#twooc
Create Your Own Leaderboard If you like, you can create your own leaderboard to benchmark your success against your colleagues and competitors. You’ll need to use Google Chrome (you can use Firefox, but Chorme is better) Chrome 1. 2. 3.
Download Google Chrome if you don’t already have it Switch to the Chrome browser Download the Klout extension for Chrome: https://chrome.google.com/webstore/detail/jjaakbhpcbpmojkhpiaacepfcaniglak/
Now whenever you are on Twitter the Klout score of every user will be displayed next to their name. The next step is to create a PRIVATE list on Twitter of the people you want to track. Go and look at your private list – it will look something like this:
Then click on ‘tweets’ and you can see their Klout scores as an orange icon next to their name:
@lizcable @TrinityVisionUK
164
#twooc So now you can keep track of leaders in your field, using a private list as a leaderboard, with no-one the wiser! Even if you don’t formally measure ROI, this is a great way to ensure you are on track. Now give yourself a pat on the back! Well done for completing the course! ď Š See you online tonight between 8pm and 9pm for #twoocchat. @lizcable
@lizcable @TrinityVisionUK
165