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Kirrihill Wines: Calculating Social Media Marketing ROI


KirrihillI made a deal with Kirrihill Wines a week or so ago.

We didn’t sign any contracts or even shake hands. I haven’t met anyone from the company, I’ve never been to see their grapes growing, in fact I haven’t even been to the region.

The deal we’ve made isn’t written down on paper, in fact it hasn’t even been spoken about. What we have is a social media marketing pact. They’ve engaged me in an online dialogue and we’ve made an exchange.

The exchange was as follows:

  • As an ‘influencer’ I get: a dozen bottles of wine
  • As a wine manufacturer they get: a conversation

Zakazukha Zoo isn’t a blog about wine. I’m not an influential wine critic. While I’m under no obligation to blog about their product, if I like it, statistics show that the chance of me recommending it to my friends is greater than 50%. They are presuming I will at least like the wine and they are hoping I will love it. They have confidence in their product and as someone with some social media reach, they think my dialogue is worth investing in.

Here’s why…

The reason they chose to send me 12 bottles, as opposed to one bottle, or a gift voucher, or a nice comment on my blog, is because the following information is public knowledge about my reach as an influencer:

  • I have a blog which is regularly read by at least 30 people (they don’t know the actual stats, but that’s the number of regular commenters)
  • I blog mostly about social media, Google and Facebook, but I also mention wine from time to time and I have blogged specifically about Kirrihill Wine.
  • I have 177 friends on Facebook
  • I have 34 Twitter followers
  • I have 30 connections on LinkedIn

I’m going to presume they have this information stored in a database somewhere and while I’m clearly not James Halliday, I’m also not a hermit. I’m not a hugely powerful wine influencer, but I’m someone they think would be handy to have on their side. In their database I will probably look something like this:

  • Name: Matt Granfield
  • Industry Authority Score: 1/10 (I have very little influence in the wine industry)
  • Social Authority: 6/10 (My Facebook and LinkedIn connections are bang on the median, but I have a larger blog following than your average Australian)
  • Industry Reach: 0 (I have no obvious wine industry connections)
  • Social Reach: 271 (the total number of social media connections I have)

If I like the wine, their stats will tell them that following is likely to happen:

  • I will buy 3 bottles each year for the next five years
  • Based on my social authority, I will influence 5% of my social reach into buying one bottle each
  • Based on my industry authority, I will influence 5% of my industry reach into buying one bottle each

So, presuming the average price of a bottle of wine is $15, and they’ve already sent me 12 of them, you can use the following equation to figure out the value (ROI) of the social media pact I’ve made with Kirrihill:

ROI = 3 x 5 x $15 + 271 x 5 ÷ 100 x $15  + 0 x 5 ÷ 100 x $15 – $15 x 12

ROI = $248.25

So, Kirrihill Wines will make about $248.25 from me this year. That’s not too bad really. Obviously the figures I’ve used are examples, but they’re probably not far off the mark. I’ll report back in 12 months time and let you know if I’m right!

P.S. It’s good to see Kirrihill Wines have taken my advice and put a tear-off tag on the back of their bottles so you can remember what wine you drank. I’m claiming full credit for that one, even if I find out the labels were printed before I mentioned it.

P.P.S I love the packaging, and it’s nice to see they are launching a range of wines called ‘companions’ with a social media marketing campaign. Bloody marvellous work and full credit to Network PR.

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7 Responses to Kirrihill Wines: Calculating Social Media Marketing ROI

  1. Julian Cole says:

    Great analysis Matt, it is great to see that you have through through the numbers on this one too. I wish that the case was that they had access to that data but I think it is more of a guesstimation of your reach and influence.

    Network PR however have been in this game for awhile and seem to be quite good at blogger outreach. I have a high regard for Jenni Beattie who used to work there.

    This brings me to an interesting point, full disclosure is one thing but what has this post told me about the wine?

    That they are engaging in a social media strategy! Is that knowledge meant to make me buy a wine? I do hold the wine in a high regard for engaging in social media BUT if I actually cared about wine, I dont know if this would influence me.


    The only question I ask is, am I meant to be influenced by what you have just written?

  2. Matt Granfield says:

    Jules, this post has nothing to do with wine! It’s about figuring out ROI on a social media marketing campaign – that’s why I calculated my wine industry authority score as 1/10. If Julie Delaforce from Network PR thought I was only going to blog about Kirrihill in a SMM context she would have sent me a marketing plan, not nine litres of vino! I reckon Julie knew she’d get a bit of SMM buzz out of me, but she was far more interested in what would happen when I shared the wine with my friends, which is exactly what I’ve done. I’ll write more about the wine once I’ve sampled a few more drops, but I can say, to you, right now, that as I write, the glass of 2008 Semillon Sauv Blanc sitting next to my laptop is going down a treat 🙂

  3. Hey Matt,

    This is the most interesting article I have read about Social Media Marketing in a long time! I love the idea of this. Thank you for blogging about this. As President and CEO of a market research firm in Chicago, I think this is a great way to get people talking online about your products. This is becoming so popular in fact, that we have developed a new program for our customers called SafetyNet. We monitor the online buzz for our clients and they get an outsourced “community manager” for $49.95 per month. It is a win/win for all involved.

    Additionally we do mystery shopping for companies of all kind. I will tell you that many shoppers who shop for us will actually purchase a product from the store they are “mystery shopping” just because they are being exposed to it at that moment. Many shoppers tell us they became a fan of a particular store or product just because of their mystery shop assignment from us. It is an added perk for our customers!
    Which brings me to your point. Your blog doesn’t talk about how good the wine is- but it makes me curious enough about it to purchase a bottle next time I am in the wine aisle to try it. Any company that is this innovative in their marketing approach makes me curious enough to try it out! Just my personal opinion.

    Kathy Doering, Ann Michaels & Associates, Ltd.

  4. Currently nursing a sore head from a wine event last night here in Melbourne. Matt, in another post you say social media marketing isn’t a digital thing, it’s a product thing, which is a great statement to make, very true. Ultimately the product has to stack up, and while I didn’t part with a dime last night (thanks to the good people at Cathay Pacific), I also have nothing good to say about most of the wine I had.

    Except that there was enough to have a little bit too much =]

  5. Pingback: STEVE HEIMOFF » Blog Archive » Telling it like it is

  6. Hi Matt – great example of influencer marketing at work; thanks for posting. I’ve summarized and commented on your article in my own blog –

    In response to commenter Julian Cole, I think that this post is brilliant at causing buzz about Kirrihill. Aren’t we all sick of simple product reviews? I’m more likely to try Kirrihill now out of pure curiosity (and here I echo your other commenter Kathy Doering) than if I had read someone’s post about the various flavours and hints and such present in the wine. I think that your blog reaches a different audience and gives the winery some great exposure to folks that might not have been checking out wine blogs, but are nevertheless potential wine buyers.

  7. Good post. I learn one thing more challenging on completely different blogs everyday. It would always be stimulating to learn content material from other writers and practice just a little one thing from their store. I’d want to use some with the content material on my blog whether you don’t mind. Natually I’ll provide you with a hyperlink on your web blog. Thanks for sharing.

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