The Business of Influence – Measurement
 

The Business of Influence – Measurement

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Presentation to the HWZ Social Media Conference, Zurich, 30th June 2011

Presentation to the HWZ Social Media Conference, Zurich, 30th June 2011

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    The Business of Influence – Measurement The Business of Influence – Measurement Presentation Transcript

    • //The Business of Influence
      Philip Sheldrake
      Social Media Measurement and the Influence Scorecard
      4th Swiss Conference on Communications Controlling
      30th June 2011
      1
    • //4th Swiss Conference on Communications Controlling
      Zurich
      30th June 2011
      4th Swiss Conference on Communications Controlling
      30th June 2011
      2
    • //Three things…
      Social media
      changes nothing and everything
      Measurement
      the latest thinking from AMEC
      The Influence Scorecard
      business performance management
      4th Swiss Conference on Communications Controlling
      30th June 2011
      3
    • //Social media
      changes nothing and everything
      4th Swiss Conference on Communications Controlling
      30th June 2011
      4
    • //An illustrated history
      Content – an illustrated history
      http://mnwh.li/content-illustrated-history-1000
      By @karoshikula & @sheldrake
      4th Swiss Conference on Communications Controlling
      30th June 2011
      5
    • 30th June 2011
      4th Swiss Conference on Communications Controlling
      //Changes nothing .1
      My lovely marketing & PR dept.
      www.flickr.com/photos/iangallagher/490333150
      6
    • 30th June 2011
      4th Swiss Conference on Communications Controlling
      //Changes nothing .2
      My lovely marketing & PR dept.
      www.flickr.com/photos/iangallagher/490333150
      www.flickr.com/photos/jeremylevinedesign/2815977968
      7
    • //Changes nothing .3
      The digital / social “bolt on”
      Do you recognise this picture?
      How many of you consider your digital activities to be integrated seamlessly into everything you do?
      4th Swiss Conference on Communications Controlling
      30th June 2011
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    • //Changes nothing .4
      Digital is not ...
      a new team or department.
      something to procure, design or manage separately.
      Digital does…
      require new skills.
      bring new opportunities, and threats.
      But think about it. Would you have…
      4th Swiss Conference on Communications Controlling
      30th June 2011
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    • 30th June 2011
      4th Swiss Conference on Communications Controlling
      //Changes nothing .5
      A telephone section?
      www.flickr.com/photos/iangallagher/490333150
      www.flickr.com/photos/mightyohm/3040031278
      10
    • //Changes everything .1
      The Cluetrain Manifesto
      The Internet allows markets to revert back to the days when a market was defined by people gathering and talking amongst themselves about buyer reputation, seller reputation, product quality and prices.
      This was lost for a while as the scale of organisations and markets outstripped the facility for consumers to coalesce. The consumers’ conversation is now reignited.
      4th Swiss Conference on Communications Controlling
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    • //Changes everything .2
      Social analytics
      If you could go back to the mid-90s and offer a marketer a little box that could sit on her desk and let her listen in on thousands of customer conversations and participate in those discussions regardless of geography or time zone, it would appear so far-fetched that she’d probably call security.
      The Social Web Analytics eBook 2008, Philip Sheldrake.
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      30th June 2011
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    • //Changes everything .3
      Social analytics is the application of search, indexing, semantic analysis and business intelligence technologies to the task of identifying, tracking, listening to and participating in the distributed conversations about a particular brand, product or issue, with emphasis on quantifying the trend in each conversation's sentiment and influence.
      4th Swiss Conference on Communications Controlling
      30th June 2011
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    • //Changes everything .4
      Perception is reality
      May have been a relevant axiom for 20th Century marketing and PR practice, but now…
      Reality is perception
      Real-time social marketing and PR must, by nature, be authentic. Real-time PR marks the death of ‘spin’. You can’t fake it.
      4th Swiss Conference on Communications Controlling
      30th June 2011
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    • //Measurement
      the latest thinking from AMEC
      4th Swiss Conference on Communications Controlling
      30th June 2011
      15
    • 2010
      //AMEC Barcelona Principles
      • Goal setting and measurement are important
      • Media measurement requires quantity and quality
      • AVEs are not the value of public relations
      • Social media can and should be measured
      • Measuring outcomes is preferred to measuring media results (outputs)
      • Organisational results and outcomes should be measured whenever possible
      • Transparency and replicability are paramount to sound measurement.
      4th Swiss Conference on Communications Controlling
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    • //AVEs
      Advertising value equivalence is a specious sum based on false assumptions using an unfounded multiplier, only addressing a fraction of the PR domain.
      4th Swiss Conference on Communications Controlling
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    • //But…
      “The world of online marketing has been suffering from a delusion of precision and an expectation of exactitude.”
      Social Media Metrics, Jim Sterne, ISBN 978-0470583784
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      18
    • 30th June 2011
      4th Swiss Conference on Communications Controlling
      //AMEC valid metrics framework
      19
    • 2011
      //Applying the AMEC framework
      From the Lisbon conference:
      Select relevant metrics.
      Track over time to identify trends.
      Consider plotting the ‘Target Audience Effect’ outcome metrics against the ‘Intermediary Effect’ metrics.
      Not exhaustive – may be other metrics that are appropriate to the campaign being measured.
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    • //AMEC framework examples
      See the presentation from Ruth Pestana and Mike Daniels, 8th June 2011:
      www.slideshare.net/ArunSudhaman/amecs-new-valid-metrics
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    • //Influence Scorecard
      business performance management
      4th Swiss Conference on Communications Controlling
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    • //So what?
      As Katie Delahaye Paine likes to say, if you want to know how good your metrics are –
      ask “So what?” three times.
      Measure What Matters: Online Tools For Understanding Customers, Social Media, Engagement, and Key Relationships, Katie Delahaye Paine, ISBN 978-0470920107
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    • //Return on investment
      ROI is a measure of the financial return secured for the capital employed.
      The AMEC Lisbon delegates rated the measurement of public relations ROI their number 1 priority.
      4th Swiss Conference on Communications Controlling
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      No.1
    • //Intangibles .1
      20th Century business was built around tangible assets (land, plant & machinery).
      The 21st Century business is more reliant on intangibles (intellectual property, brand, reputation, social dialogue), for which traditional accounting analyses are poorly designed.
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    • //Intangibles .2
      Intangible assets tend to only have strategic value when they're 'in the mix'.
      30th June 2011
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    • //Balanced Scorecard
      So that's one reason why Kaplan and Norton developed the Balanced Scorecard approach, designed to augment the lagging (financial) indicators of business success, with non-financial drivers of future financial performance.
      Balanced Scorecard: Translating Strategy into Action, Robert S. Kaplan and David P. Norton, ISBN: 9780875846514
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    • //Influence
      You have been influenced when you think in a way you wouldn’t otherwise have thought, or do something you wouldn’t otherwise have done.
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    • 30th June 2011
      //The Six Influence Flows .1
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    • //The Six Influence Flows .2
      A new and simple model to think about what we’re trying to achieve.
      Avoids words and phrases that come with the ‘baggage’ of historic and current use and misuse otherwise likely to confuse or narrow our thinking.
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    • //Influence Scorecard .1
      How can we systematically learn from and manage influence flows?
      How do we define, develop, and execute a consistent and coherent influence strategy?
      How do we prioritize investments in influence-related human, information, and organisational capital?
      Kaplan and Norton’s strategy map tool and Balanced Scorecard framework are well suited to these efforts.
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    • //Influence Scorecard .2
      The Influence Scorecard serves as both the methodology for defining influence strategy and the tool for executing it.
      It’s a subset of the Balanced Scorecard, contains all the influence-related objectives and metrics extracted from their functional silos.
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    • //Influence Scorecard .3
      Consider the hypothetical instance of two organisations designing, executing and analysing exactly the same public relations strategy delivering precisely the same results for the same investment.
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    • //Influence Scorecard .4
      The two organisations are different (different missions, visions, values and objectives).
      Their priorities will differ, and so therefore will their portfolio of investments in all kinds of assets.
      And so the specific role PR plays will be different, and so therefore its contribution to success; its ROI.
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    • //Influence Scorecard .5
      AMEC’s working group asserts:
      “ROI = ROIROI = Money In, Money OutTotal Value of PR > ROITotal Value of PR = Tangible + IntangibleTotal Value of PR = Near-Term + Long-Term”
      The Influence Scorecard encompasses tangibles & intangibles, near- and long-term.
      30th June 2011
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    • //Influence Scorecard .6
      Ultimately, the ease and effectiveness with which we manage and learn from influence flows is integral to the ways all stakeholders interact with organisations to broker mutually valuable, beneficial relationships.
      30th June 2011
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    • //ROI .1
      When the boss rules
      ‘Look, I’m told we’re investing in this. Now we just need to work up the numbers to get it through finance.’
      When efficiency rules
      ‘This investment will speed the process up.’ ‘Er, but it’s not actually a bottleneck.’
      When the guru rules
      ‘Well the book’s at number 1.’
      When last year rules
      ‘Well we did it this way last year ...’
      30th June 2011
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    • //ROI .2
      When the competition rules
      ‘They’ve gone for it, so ...’
      When vanity rules
      ‘We can afford it and it’ll be a testament to our time.’
      When experience rules
      ‘Do you think the CMO’s background in advertising sways the budgeting process?’
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    • //ROI .3
      When rules rule
      ‘Let’s treat it as three separate projects so each comes under the limit demanding cost justification.’
      When paralysis rules
      ‘I just don’t know.’
      And when all else fails – when cost rules
      ‘Just make a decision on a least-cost basis because this sort of thing never has a tangible ROI.’
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    • //ROI .4
      I prefer it when strategy rules…
      the Influence Scorecard approach.
      30th June 2011
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    • //The Business of Influence
      Reframing Marketing and PR for the Digital Age.
      Philip Sheldrake, Wiley, May 2011
      ISBN 978-0470978627
      www.influenceprofessional.com
      Thanks for your attention.
      @sheldrake #infpro
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