Social Media ROI: Formulas & Conversion Optimization Tips

Social Media, Meet ROI
How To Measure Social Media Beneﬁts and
Increase Conversion

Angie Schottmuller - @aschottmuller

SES Chicago - Nov 13, 2012
#SESCHI #socialproof

About Unbounce

Angie Schottmuller | Chief of Conversion Marketing | angie@unbounce.com

YOUR MISSION:
1.  Quantify social media beneﬁts
2.  Use social media to grow sales

Angie Schottmuller | @aschottmuller

Social Media Beneﬁts"
QUANTIFIED
< GEEK ALERT >
The mathematical formulas in this presentation may cause
extreme jubilation. Prepare to quantify.

Social Media Advertising Value
IMPRESSIONS, TRAFFIC, ARTICLES, PHOTOS, VIDEOS...

What would it cost to
achieve the same, if you
had to pay for it?

SOCIAL MEDIA BENEFITS CALCULATION - REDUCE COSTS

Advertising Value - Social Mentions

_____(#) brand/product social mentions
X _____ (CPI) equivalent display ad costs
______________________________________
= $ Display Ad Impression Value

CPM, or cost per 1,000 impressions, could also be used.



Advertising Value - Social Web Trafﬁc

_____(#) social referral clicks to website
X $_____ (CPC) equivalent social ad costs
______________________________________
= $ Social Ad Value



Advertising Value - Search Web Trafﬁc

_____(#) search referral clicks to website
X $_____ (PPC) equivalent search ad costs
_______________________________________
= $ Search Ad Value



Social SEO Improved Search Rank

( _____% new CTR − _____% old CTR)
/ _____% old organic search CTR
X _____(#) monthly organic search impressions
__________________________________________
= Additional Organic Search Referrals
Rank #
CTR
Rank #
CTR
Optify's Study on Organic Search 1
36.4%
4
7.9%
Click-Through Rates (CTR):
2
12.5%
5
6.1%
http://bit.ly/organicctroptifystudy
3
9.5%
6
4.1%



Ad Value - Social Influencer Mentions

_____(#) social influencers
X _____(#) average social network reach
X _____(#) notable online brand mentions
X $_____ paid spokesman endorsement cost
/ _____(#) ad network reach or volume
___________________________________
= $ Paid Endorsement Value
Tip: Tier endorsement values by social influencer levels.


Ad Value - Social PR Mentions

_____(#) event-related online mentions
X $_____ equivalent press event cost
/ _____(#) avg. mentions from press event
______________________________________
= $ Press Event PR Value



Content Value - UGC Articles

_____(#) brand-focused online articles
X $_____ equivalent content creation cost
______________________________________
= $ Article Value

Tip: Tier costs by content quality (e.g. length, sentiment,
images, uniqueness) and/or Domain Authority levels.



Content Value - UGC Photos

_____(#) user-generated brand photos
X _____% photo shoot quality
X $_____ equivalent photo shoot total costs
/ _____(#) photos from average photo shoot
_______________________________________
= $ Photography Value
HUGE!



Content Value - UGC Videos

_____(#) user-generated brand videos
X _____% brand-produced video quality
X $_____ equiv. brand-produced video cost
_______________________________________
= $ Video Value
HUGE!

Be sure to include resource time, equipment rental, shoot
fee (e.g. location), and editing for video production costs.



Research Value - Social Insights

_____(#) brand online insights/comments
X _____% focus group insight quality
X $_____ equivalent focus group cost
/ _____(#) insights from average focus group
________________________________________
= $ Focus Group Value
HUGE!



Support Value - Online Self-Service

_____(#) weekly support calls per topic
X _____% calls likely solved by self-service
X $_____ average support phone call cost
_______________________________________
= $ Call Support Value


SOCIAL MEDIA BENEFITS CALCULATION - GROW SALES

Sales Value - Social Leads

_____(#) qualiﬁed social leads identiﬁed
X _____% lead-to-customer conversion rate
X $_____ average order value (AOV)
________________________________________
= $ Lead Sales Value (Single Purchase)



Sales Value - Social Leads

_____(#) qualiﬁed social leads identiﬁed
X _____% lead-to-customer conversion rate
X $_____ customer lifetime value (LTV)
________________________________________
= $ New Customer Sales (Lifetime Value)

How To Calculate LTV: http://bit.ly/calculateltv



Sales Value - Social-Aided Conversion

( _____% new CR − _____% old CR)
/ _____% old conversion rate (CR)
X $_____ average product sales value
___________________________________
= Increased Sales Value
HUGE!

Ex: Increased conversion from using
social proof like reviews, testimonies, etc.


Cost-Beneﬁt Analysis
§  SM Labor
§  Awareness
§  Tools & Software
§  Web Trafﬁc
§  Opportunity Costs
§  Advertising
§  IT Labor
§  Lead Generation
§  Training
§  Sales
§  Risk
§  Conversion
§  Customer Retention
§  Loyalty
§  Advocacy
§  Content (Images/Video)
COST
§  Satisfaction
§  Market Research
BENEFIT


The only outcomes that matter...

GROW REDUCE
REVENUE
COSTS
IMPROVE
SATISFACTION

Reference: Jim Sterne's book, "Social Media Metrics"

Use Social Media to"
GROW SALES

Social Media Action Plan
1.  Assess Current State
2.  Map Strategic Plan (Cascade Business Goals)
3.  Deﬁne SMART Goals w/ KPI Metrics
4.  Inventory Tactics
5.  Perform Tactic Competitive SWOT Analysis
6.  Perform Tactic Cost-Beneﬁt Analysis (CBA)
7.  Select Best Tactics for Goal
8.  Implement
9.  Review & Analyze
10.  Test & Optimize

Assessment
§  Current State
§  Metrics Collection
AWARENESS
§  Competitive Analysis
CONSIDERATION
Ask:
CONVERSION
Ø  What's currently being done?
Ø  What's working?
LOYALTY

Ø  What funnel stages need the ADVOCACY
most help?


Strategic Plan Mapping Process
1.  Determine Scope
WHO?
2.  Gather Business Goals

3.  Define Mission/Purpose
WHY?
4.  Cascade/Set Goals

5.  Define KPIs
WHAT?
6.  Choose Tactics

7.  Define Metrics
HOW?

Social Media Strategy Funnel


Strategic Planning Map (Template)
MISSION! GOALS! TACTICS!
WHY ARE WE WHAT DO WE WANT HOW WILL WE ACHIEVE
DOING THIS?
TO ACCOMPLISH?
OUR GOALS?

A
ü  <Metric>
<TACTIC>
ü  <Metric>
<GOAL>
<MISSION>
<TACTIC>
ü  <Metric>
KPI:
ü  <Metric>

B
ü  <Metric>
<TACTIC>
ü  <Metric>
<SCOPE> Goals:
<GOAL>
ü  <Metric>
ü  <dept goal>
A
<TACTIC>
ü  <Metric>
KPI:
B
C
ü  <Metric>
<TACTIC>
ü  <Metric>
C
<GOAL>
ü  <Metric>
D
<TACTIC>
ü  <Metric>
KPI:

http://bit.ly/somostratplan

Social Media Strategic Planning Map
MARKETING SCOPE EXAMPLE:

MISSION! GOALS! TACTICS!
WHY ARE WE WHAT DO WE WANT HOW WILL WE ACHIEVE
DOING THIS?
TO ACCOMPLISH?
OUR GOALS?

?
To build and
engage an army Increase YOY
of advocates sales by 10%
?
that in turn help
to build, KPI Metric:
position, and $ sales in 2013
?
reconcile the
brand.
?


Sales Funnel Opportunities

ü  Boost Awareness
AWARENESS
ü  Increase Market Share
ü  Generate Leads
CONSIDERATION
ü  Acquire New Customers
CONVERSION
ü  Retain Customers
LOYALTY
ü  Optimize Conversion
ADVOCACY
ü  Boost Average Order Value


Conversion Rate =
The % of users that complete a
presented action.

What can social media bring to
the conversion table?
§  Trust
§  Content
§  Real-Time Response
§  Personalized Content
§  Reduced Steps (Social Integration)

Different Types of Social Media...
§  Social Networks
§  Expert Q&A
§  Blogging
§  Review Sites
§  Microblogging
§  On-Site Reviews
§  Bookmarking
§  User-Generated Content (UGC)
§  Media Sharing
§  Social Sign-on
§  Social Listening
§  Star-Ratings
§  Social Curation
§  "Most Helpful" Ratings
§  Discussion Forums
§  Live Help
§  Crowdfunding
§  Geosocial Sites (e.g. Foursquare)
§  Social Ads
§  sCRM
§  Streaming Content
§  Wiki
§  Social Gaming
§  Social Commerce

Social Tools to
Boost Conversion
§  Ratings - Stars / "Most Helpful"
§  Social Share Counts
§  Testimonials
§  Reviews (Sites, On-Site, Geosocial)
§  User-Generated Content (UGC)
§  Social Sign-on
§  Social Integration


SOCIAL MEDIA TACTICS TO BOOST CONVERSION

Star Ratings

Tip: Leverage Schema.org microdata (Aggregate Rating) for
reviews to get rich snippets in search results!

"Less than 10% of
reviews are 2 stars
or less."

- Bazaarvoice, Jun 2012 (across over 2,000 clients)


Social Share Counts
Strategically
position quantiﬁed
social proof near
the call-to-action
button and/or
page/product title.


Social Share Counts

Only display share
counts for social buttons
that regularly
"quantify attention."

Alternative:


Testimonials
A testimony is
simply a 30-
second summary
of a case study.

Radian6 and MarketMotive
effectively use video and
audio for testimonials.

RETHINK TESTIMONIALS...

Image source: http://j.mp/rethinktestimonials


Basecamp.com:

Testimonials

Great
testimonial use
on homepage.

Social proof is
everywhere!

Good Testimonials Include:
§  Use of "I" (customer's view)
§  Customer/persona info
§  Problem/challenge info
§  Solution/satisfaction speciﬁcs


Product Reviews
L.L.Bean Review:
Persona Details!


Product Reviews
J.Jill Review:
Badges for Personas!

"68% of consumers trust
reviews more when they
see both good and bad
scores."

- Revoo Research Report, Jan 2012 - http://j.mp/badreviewscro67

"30% of consumers
suspect censorship or
faked reviews when they
don’t see anything
negative."


Product Reviews
Altrec.com - Review Summary:

Altrec's review template includes sub-
ratings by beneﬁts -- aiding speedy review
submission as well as UX and SEO!

"Shoppers who seek out
bad reviews convert 67%
more than average
consumers."



Product Reviews
OnlineShoes.com - Review Summary:


Facebook Comments (Widget)
ThinkGeek.com:


User-Shared Photos
ThinkGeek.com Action Shots:

"The more product action
shots a customer sees...
the higher the order
value."

- ThinkGeek.com, Nov 2012


Live Help
IconDirect.com displays actual employees by live chat!


Live Help
Gemvara features Live Chat on checkout page:


Expert Q&A
SKECHERS: (Nov 7, 2012)
§  32% conversion increase for products.
§  80% open rate of answer notiﬁcation email.
§  51% conversion rate from answer notiﬁcation email.
§  Reduced bounce rates
§  Decreased customer support requests
§  Resulted in removal of real-time chat (reducing costs)
§  Assisted ability to rank on Google page 1 for "shoes"


Q&A and Review Combos
Site visitors engaging w/ ratings, reviews, or Q&A:

§  Urban Decay (May 2012)
§ 237% increase in conversion
§ 230% increase in AOV
§  Chico’s White House Black Market (Jan 2012)
§ 200% increase in conversion
§ 300% increase in revenue per visitor
§ 250% increase in AOV


Social to Real World
Connections
HUGE!

Engage social inﬂuencers in
the physical world to reap
amazing social and word-of-
mouth PR beneﬁts!

Cheers to @HyattChicago for
going out of their way this
weekend to connect with me
in real life!

Action Plan
1.  Assessment - Analyze current state, include SWOT
2.  Strategy - Map out social media plan by scope
3.  Pitch - Present top ideas to IMF
4.  Prep - Secure resources, budget, tools, training, etc.
5.  Implement - Execute the plan (Abort if necessary)
6.  Review - Analyze activity & ROI using multiple metrics
7.  Optimize - Gather insights and improve for the sequel


Only " It's time for

20% of
YOU to lead
the way.

marketers measure
social media ROI.
- eMarketer, 7 Guidelines of Achieving Social Media ROI, Feb 2010

Key Takeaways
§  Measure your social media costs and beneﬁts
§  Leverage your social interactions for conversion
§  Engage your audience for content
§  Negative reviews add value
§  Test the impact of social media/proof


"The impossible can
become possible,"
"
IF... YOU'RE...
AWESOME!"
- Rhino [Disney's Movie, Bolt]

Not sure if social
media impacts
conversion?
TEST IT!

MISSION: Apply these tips, test social proof for
conversion, and share this presentation so your
social media plans don't self-destruct!

Social Media ROI: Formulas & Conversion Optimization Tips

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