Posts Tagged ‘Web Worker Daily’
Can the financial return on expenditures for social media business activities– in marketing, PR, customer support, HR, product development or other areas — be accurately measured? Can social media costs be justified on the P&L, so that as belts get ever tighter in this stagnant economy, these projects and tasks can be spared the budget axe?
Among social media pundits, the debate rages on. The “yes” crowd argues that of course social media can be measured, and must be in order to demonstrate value to the business. You wouldn’t buy a new machine tool or enterprise software application without an ROI analysis, so why should social media be any different? Executives don’t care about shiny sparkly things or the latest fads or buzzwords; you’d better know what you want to accomplish, be able to quantify both expenses and revenue, and have the analytics in place to track results before even murmuring the words “social media” in the presence of C-level types.
The “no” group will counter that the metrics and tools haven’t yet matured, or that social media is too amorphous to even be measurable, or that it is rapidly becoming simply part of the plumbing or wiring of a modern organization, making ROI immaterial.
My own thoughts (for what they’re worth) on the matter are that:
- • It’s challenging to measure the true ROI of social media activities with any precision because social media is as much (if not more) about influence than direct action. For example, if John Doe clicks through to your website from a tweet and buys something, that’s easy to measure. But if John Doe is influenced to buy from you based a tweet—but completes the purchase through another unrelated channel—there’s no way to assign the value of that sale to Twitter.
- • That said, there are many aspects of social media that can and should be measured, both to show results and to help guide future activities (e.g. determining which topics generate the highest traffic and comment activity on a company blog, what time of day is most productive for tweeting, etc.). In other words, the statement “ROI is challenging to measure accurately” shouldn’t be confused with “don’t bother trying measure anything.”
- • Metrics can be useful to help determine what to do more of, less of, or differently, but should not as the basis for whether or not to engage in social media. At this point, the adoption of social media tools is so widespread as to constitute just another communication channel. It makes no more sense for a business to shun social media until ROI can be demonstrated than it does to demand an ROI analysis for installing phone lines or email.
So much for my thoughts. What do other pundits have to say? Below are summaries of a variety of posts on the topic of social media ROI measurement from luminaries such as Danny Brown, Brian Solis, Erik Qualman, Michelle Golden and Sharlyn Lauby divided into their respective camps: yes, no, and maybe.
Is social media ROI measurable? Yes.
The Real Cost of Social Media by Danny Brown
This isn’t strictly speaking an ROI article, but Danny does dive into the “I” part of that measure, detailing the true costs (investment) of social media participation.
20 Metrics To Effectively Track Social Media Campaigns by Search Engine Land
Chris Bennett lays out the list of metrics he uses to analyze, track and “prove ROI’ from social media marketing. Compelling piece except for his use of the phrase social media campaign (argh).
Kim Cornwall Malseed summarizes the social media wisdom and ROI results gleaned from a panel of b2b marketing pros including Holger Schulze of SafeNet, Frank Strong of Vocus and Susan Cato of CompTIA. She reports on the revenue achieved, social media strategies used and measurement systems employed for tracking.
ROI: How to Measure Return on Investment in Social Media by Social Media Today
In this long but worthwhile post, Brian Solis reviews the evolution of social media measurement forms (e.g. “return on engagement”), the disconnect between social media marketers (most of whom can’t measure ROI) and CMOs (most of whom expect it), then offers his recommendations for improving the measurement of business objectives from social media.
While acknowledging that tight precision is impossible because the same measures from different tools rarely match exactly (and multiple tools are still needed to end-to-end social media tracking), Angel Djambazov nevertheless makes a strong case for developing ROI metrics for social media campaigns. Quoting Brian Solis and others, Angel points out that particularly in this economy, even great ideas without a hard-number rationale are likely to get slashed; ROI measurements are needed because CMOs demand them. The post also includes some strategies, tactics and tools to assist in social media measurement.
Social Media Monitoring Techniques by WebFadds
Scott Frangos presents a concise but clear outline of basic social media ROI measurement objectives, tools and analytics.
Counterpoint: Why you can calculate an ROI in social media – and why you should do it by iMedia Connection
Uwe Hook responds to the post from Ben Cathers (in the “No” section below) on why social media ROI can’t be measured, laying out a roadmap using metrics such as frequency, yield, sentiment analysis, NetPromoter score and customer lifetime value.
Socialnomics: What Social Media Success Looks Like by Fuel Lines
Michael Gass shares a social media ROI argument in video format. “Socialnomics: Social Media ROI showcases what social media success looks like. Social Media ROI: Socialnomics is by Socialnomics: How Social Media Transforms the Way We Live and Do Business author Erik Qualman. This video highlights several Social Media ROI examples along with other effective Social Media Strategies.” Though a few of the examples are vague or misleading, most are compelling. However, after showcasing companies that have achieved remarkable, quantifiable results through social media, Qualman provocatively asks, “Why are we trying to measure social media like a traditional channel anyway? Social media touches every facet of business and more an extension of good business ethics…When I’m asked about the ROI of Social Media sometimes the appropriate response is…What’s the ROI of your phone?” He seems to suggest that while ROI is measurable, it’s immaterial. Hmm. You can find more of Eric’s insights on his Socialnomics blog.
Making sense of social-media ROI with Olivier Blanchard by SmartBlog on Social Media
Rob Birgfeld talks with Olivier Blanchard, introduced as “perhaps the most sought-after expert for those looking to connect the dots between social media and return-on-investment.” Perhaps. Blanchard contends that most self-proclaimed social media “experts” have difficulty articulating ROI because they have no business management background (agreed, I’ve seen these types — which is why our agency has an MBA who helps clients with social media). With that background, he argues that “the question can be answered in about three minutes. All it takes is someone on the social-media side of the table who understands how to plug new communications into a business from the C-suite’s perspective.” He also makes the case that being able to prove social media ROI is essential. The post just doesn’t specify how to do this.
Social Media ROI — No.
Social media (finally) returns value by The Communicator
Peter Schram doesn’t come right out and say that social media ROI can’t be measured, but rather that organizations should “focus on five key areas where social media will create actual value” that aren’t strictly about sales ROI, including corporate reputation, employee engagement and customer service.
“What’s the ROI of Social Media?” Is the Wrong Question by Golden Practices Blog
Michelle Golden makes a compelling argument that ROI calculations apply only to discrete projects with a beginning, middle and end, such as a direct mail campaign. Social media is a tool, not an event, so such calculations don’t apply.
5 Problems With Measuring Social Marketing by Web Worker Daily
Aliza Sherman articulates some of the frustrations with any social media measurement, much less something as precise as ROI, including the fact that the term “social media” is nebulous and that many traditional marketing concepts (e.g., “reach,” “promotions” and “campaigns”) simply don’t apply to social media –and the industry hasn’t yet developed widely accepted new measures (though Daniel Flamberg attempted to answer this last challenge in 4 Social Media Mining Metrics).
Why you can’t calculate an ROI in social media – and that’s okay by iMedia Connection
Ben Cathers argues that, because the advanced analytics tools that would be required for such measurement have not yet been developed, “In many forms of digital media, you can spend 1 dollar knowing you will earn 1.30…Unfortunately, you cannot do the same in social media, just yet.” He suggests instead that marketers estimate the payback on social media by assigning a value to metrics they can track, such as each follower, each retweet, each “like” of an item, etc.
CEOs Love Pie: The B2B Social Media Case Study, Part 2 by iMedia Connection
In this follow-up post to Conversations that Aren’t about Mel Gibson: the B2B Social Media Case Study, Part 1, Eric Anderson writes that “today you can’t throw a virtual rock without hitting five blog posts about how we all need to simmer down about ROI,” and places himself firmly in the “simmer down” camp. He recommends instead serving them pie, as in pie charts showing measures like “the proportion of their paid impressions that can be replaced or augmented with free impressions. PR agencies have long been selling the value of this pie as earned media or ‘ad equivalency value,’ so CEOs are used to seeing it. They get it. Once you’ve done your social media market analysis, it’s relatively easy to project how big that social media pie wedge will be.”
Social Media ROI…Maybe.
Quantifying Social Results by eMarketer
eMarketer reports that while marketing pros generally agree that quantifying the benefit of social media marketing is important, they are split on whether it is possible. Measuring certain types of activity or behavior is easy; translating those measures into ROI, not so much. As this article notes, “There is a leap, however, between finding appropriate metrics and monitoring them on the one hand, and quantifying results on the other. Marketers must tie the social metrics they settle on directly to business goals, such as increased sales and leads, before social media return on investment can be quantified.”
A call for more accountable social media marketing by iMedia Connection
After acknowledging that “ROI is difficult, if not impossible, to measure with social media. An astounding majority of professionals do not even try to take it into account. According to a survey late last year from Bazaarvoice and the CMO Club, 72 percent of CMOs did not attach revenue assumptions to social media in 2009,” Jerry McLaughlin goes on to say that marketers must do it anyway. For example, one of his recommendations is to “reach specific social media goals with a tangible ROI, such as tracked discounts or coupons.” While that’s certainly not a bad suggestion, it covers only one very limited aspect of what social media marketing can do.
5 Ways To Set Goals & Measure Social Media Marketing Success by Smart Insights
Danyl Bosomworth summarizes a Jason Falls presentation on various ways to measure social media outcomes. While the post seems to suggest that measuring ROI is easy (measurement #5 casually includes “generation of sales and leads from blog visitors and from social interactions”), it also points out several other benefits that unquestionably have value (e.g., product innovation, branding and awareness, links for SEO benefit), though that value may be difficult to quantify. The message seems to be that if you can directly measure sales and leads then by all means do so, but recognize that social media can provide many other important though less quantifiable rewards.
Marketers Use Varying ROI for Social Media by Marketing Charts
According to a new study from King Fish Media, Hubspot and Junta 42 summarized in this post, most marketers perform some type of social media measurement (e.g., website visits from social media referral sites, new fans/followers, number of links shared, etc.). However, nearly half (43%) admit that they aren’t even trying to measure ROI. And only 29% say “they will have to show positive ROI to continue their social media programs.”
How CEOs are Using Social Media for Real Results by Mashable
Though Sharlyn Lauby shares numbers here from two CEOs able to correlate hard sales data with their social media efforts, she also points out that “even when there might not be data supporting a direct relationship between social media activity and sales, sometimes other metrics point to the connection” such as exposure, branding, customer satisfaction, recommendations, even employee recruiting. The conclusion seems to be that ROI may or may not be measurable, depending on a company’s specific circumstances — or at least that not all of the benefits of social media can be captured in precise sales and ROI figures.
How can you increase open rates for your email newsletters? Which common email marketing mistakes should you make sure to avoid? What are the secrets to writing killer subject lines? What campaign elements should make sure to check, and double-check, before clicking the “send” button on that big email blast?
Discover the answers to all of these questions plus email marketing strategy, tips and interesting statistics in these blog posts and articles, some of the best from the last 12 months on the topic of email marketing.
7 Tips for Increasing Your Open Rates and Site Traffic by Web Worker Daily
Dian Schaffhauser offers practical guidance for maximizing the value of email newsletters, such as making your newsletter and website complementary, and crafting headlines that are short, direct and honest.
Profit Week: E-Mail Marketing by MineThatData
Kevin Hillstrom provides a thought-provoking look at the current state of email marketing, where “we celebrate a 0.15% response rate” and concludes that the model is broken. He then suggests an entirely new approach focused around indirect value generation. Hillstrom acknowledges that his ideas may not work, but as he concludes, with only “one in seven hundred customers buying what we have to sell today, what do we have to lose?”
Email is STILL the most effective online marketing tool by Marketing Tips Blog
Mike Alvero reports on a pair of studies showing that email marketing to house lists is the most cost-effective marketing tool available. SEO is #2. Neither of these findings is particularly shocking, but sometimes it can be helpful to have the data to back up your gut instincts.
Learning a Little About Email Marketing by SEOmoz
Though claiming with what I suspect is false modesty to “not know a whole lot about email marketing,” Rebecca Kelley nevertheless manages to pack a lot of information into this post. She shares some SEOmoz experience with email marketing, industry statistics (e.g., “80% of marketers say that email is the strongest performing media buy and that it has a higher ROI than search”), her mother’s resistance to using the Internet (I can totally relate; my mother is the same way), the most important elements of the CAN-SPAM law, and a few helpful tips for improving email marketing success (e.g., “Don’t use (or limit the use of) SPAM filter catch words, like Free Viagra Sex Guaranteed with Credit Card! Though I must admit, that sounds like one hell of a deal…”).
Email marketing’s 8 deadly don’ts by iMedia Connection
Chris Marriott advises email marketers to avoid several common mistakes. Though aimed at retailers, his points apply equally well to brand and b2b marketers: don’t overmail, don’t forget to use segmentation, don’t assume that creative design that’s effective for other types of collateral will work well in an email message—and don’t miss Chris’ post for more tips on email marketing practices to avoid.
How to craft irresistible subject lines by iMedia Connection
Leah Messinger offers practical advice backed up by real-world email success stories from a variety of sources. Among her tips: be direct; highlight a benefit; beware of spam filters; consider mobile devices; and, if appropriate for your audience, use alluring keywords such as “tips,” “tricks” or “secrets.”
31 content tips and ideas for your B2B email newsletter by Email Marketing Reports
Email marketer Mark Brownlow delivers a huge list of tips on both how to generate content ideas (top tips, case studies, reviews, predictions, “best of” lists…hmm, that sounds oddly familiar) and how to manage content (keep a folder, develop reserve content, etc.). A great post to keep handy for when your muse is slacking off.
Are You Scared to Click the “Launch” Button for Your Email Campaigns? by VerticalResponse Marketing Blog
The brilliant Janine Popick provides a vital resource for evert email marketing—a checklist of all the details to walk through before actually launching a big email campaign. Did you remember to remove the word “test” from your subject line? Add alt text for all images? Double-check your links? She’s even left space at the bottom to add a couple of your own checklist items; mine would be “get it proofed” and “make sure HTML and plain text versions are in sync.”
Here’s a brief review of some of the best posts written in 2008 about web analytics. The articles here will show you how to use web analytics more strategically as part of your marketing program design, use some of the new advanced features in Google Analytics, and investigate alternatives to GA that provide unique views of website traffic.
Melissa Burdon advises marketers to act like investigative journalists—ask the tough questions, dig for the story behind the story—rather than beat reporters who just report the who, what, where and when.
What To Expect From Your Web Analytics Tool (Web Analytics Series, Part 2) by NxtERA Marketing Blog
Elana Anderson presents a five-part framework to help companies maximize their investment in web analytics tools to develop integrated, customer-focused marketing programs. Her model outlines a progression of stages from site analysis (available to anyone using free tools) though optimization, targeting, and finally integration—a stage about which she writes “no one has nailed this one and that gives us all something to aspire towards.”
Two Alternative Solutions for Site Analytics by Web Worker Daily
Samuel Dean reviews two alternatives to Google Analytics, opensource web analytics software Piwik and the modestly priced Visitorville. Both are real-time (unlike GA) and both offer unique ways of viewing and analyzing website traffic. What’s more, as Dean points out, “In addition to being useful, these alternative site analytics solutions are fun.”
Google Analytics: Advanced Segments – Beta Feature by limeshot design
Here’s an excellent guide to using the Advanced Segments tool added to Google Analytics last November. While GA still lacks some of the features of high-end analytics packages, it is steadily encroaching further onto their turf with the addition of sophisticated new features. The post details how to use Dimensions and Metrics to set up filters, apply these to default reports, and even perform comparisons. As a real-world example, I recently used Advanced Segments to create lists of the most popular organic search phrases used to find the Spanish language version of a client website (trickier than it sounds, as the Spanish site was a virtual copy of the English site created through MotionPoint rather than a physically separate website), by month.
On the topic of the Google Analytics Advanced Segments tool, Richard Fergie provides more detail and walks through an example of how this GA feature could be used to analyze conversions by day part in order to maximize the profitability of AdWords bids.
Review: Google Insights Can Help Merchants Optimize PPC/SEO Campaigns by Practical eCommerce
Armando Roggio reviews another relatively new tool from Google, Google Insights, a free research tool which “provides detailed search data that can help online retailers improve their pay-per-click advertising and search engine optimization.” Roggio shows how the tool can be used to help marketers determine the most effective marketing messages and discover new markets, as examples, but he also carefully explains the limitation of the tool.
50 Resources for Getting the Most Out of Google Analytics by KISSmetrics
Derek Collins has compiled an impressive and extremely useful list of tools to help web analysts get more out of Google Analytics. The list is also helpfully divided into different groups of resources including resources for beginners, tips & tricks, plugins & hacks, and new/advanced features.