Likes UP: Social Media ROI Pyramid

“ROI Pyramid” framework  originally created in 2010 by Altimeter Group’s Jeremiah Owyang

Apply the Social Media “ROI Pyramid” In Your Measurement Strategy

(Above: First, recognize there are three types of role, all who need different types of information about your social business efforts)

(Above: Secondly, understand the high level types of data they need in order to be actionable)

Matrix: Understand the Social Media ROI Pyramid

Who it’s for
How to generate
What no one tells you

Business Metrics
Executives, and everyone else who supports them, which of course, is everyone.
This is a roll up formula of Social Media Analytics. Use tracking software or referral traffic to infer how customer engagement moves down marketing funnel. Existing CSAT methods should also incorporate social channels, and measure a sample of sentiment from customer communities. Cost reduction is a formula based on reduced costs and time in these lower-cost channels.
The pyramid is smaller at top as their are less metrics to give to busy executives. There’s really only three: increased top line, reputation, and reduced costs. Compare these lower cost channel to existing marketing efforts to get additional budget, and benchmark over time.

Social Media Analytics
The Corporate Social Strategist and the internal stakeholders and internal clients (leaders of the ‘spokes’ in the hub and spoke model)
This is a formula based on Engagement Data (the tier below), there are no industry standards, so pick one and benchmark over time
We’ve identified there are 16 analytics, but there are many more in existence, you’ll have to create these formulas on your own

Engagement Data
Those who are deploying social media: community managers, developers, designers, agency partners, IT.
This data is already created by many social tools, and a variety of analytics are already available to gather this info from brand monitoring to the analytics provided by Facebook and Twitter and others. Don’t forget to include traditional web analytics. Read the research report on Social Marketing Analytics to learn about the existing formulas.
Don’t ever give this to executives until you’ve first given them business metrics or expect many months focused on ‘more followers’ without a business purpose.

#LikesUP for Social Media ROI