Social Media Arithmetic: The Metrics and Monetization of Social Media

  • 894 views
Uploaded on

Financial Institutions are looking at Social Media as another channel to get their story out to customers. Traditional marketing and web metrics may not be appropriate to measure the impact or …

Financial Institutions are looking at Social Media as another channel to get their story out to customers. Traditional marketing and web metrics may not be appropriate to measure the impact or success of a Social Media strategy. In this session we will discuss how companies are measuring Social Media, and which of those approaches can be adopted, by Financial Institutions in particular, to define the effectiveness of their approach. We will also discuss how some of these metrics can be used to measure ROI or monetization of Social Media itself.

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
894
On Slideshare
0
From Embeds
0
Number of Embeds
1

Actions

Shares
Downloads
12
Comments
0
Likes
1

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Social Media Arithmetic:The Metrics and Monetization of Social Media Presented by Al Cadena, Senior Account Director, Digital Strategy, Beeby Clark+Meyler Kevin Magee, Global Director, Client Development, Expion
  • 2. Today’s talk Overview Approach to Social Media • How should I look at it? Relevant Social Media Channels • Which ones should I investigate? The Banking Industry • What’s going on? Competitive Social Media Analysis in the Banking Industry • How do you compare to your peers? The ROI Challenge • Yes you can Takeaways 2
  • 3. Social Media 3
  • 4. What is Social Media? 4
  • 5. 5
  • 6. Approach to Social Media Q: What do I analyze? A: Relevant Social Media channels. Q: How do I analyze it? A: Quantitatively and Qualitatively. Q: Who’s doing that? A: Staff and agencies, using good tools. Q: When do I do this? A: Daily. Q: Why? A: It’s the future of your business. 6
  • 7. 7
  • 8. Relevant Social Media Channels Social Networking sites • Facebook • Twitter • LinkedIn Mobile check ins • Yelp • FourSquare App reviews • iTunes store • Android store Chatter monitors 8 • Google Search – simple: Radian 6 & Vocus – more sophisticated examples
  • 9. Banking Industry & Social Media 9
  • 10. Are you ready for Social Banking?Convert the value ofyour network . MovenBank: customers with strong Facebook pages will qualify for better rates or offers http://www.huffingtonpost.com/2012/03/01/facebook-banks_n_1250696.html 10
  • 11. The Big Challenges Amplified Regulations Negativity Regulations We Can’t Regulations Measure 11
  • 12. What’s going on in Social Media? 12
  • 13. Some Constraints1. Privacy: The Gramm Leach Bliley Act (GLBA) requires financial institutions to protect the personal information of its customers. When posting or communicating over social media, financial institutions and their employees must remember that the information being published can be accessed by the public at large and personal information cannot be disclosed.2. Informal Posts May Be “Advertising”: The FDIC broadly defines the term advertisement as “a commercial message, in any medium, that is designed to attract public attention or patronage to a product of business.” This definition is broad and could include informal communications in the form of tweets, blogs and comments.3. Required Advertising Statements: If a financial institution is engaging in advertising over social media, there are a variety of technical requirements that must be followed. For example, the FDIC requires an official advertising statement and/or the FDIC logo be used. 12 CFR § 328.3. Another example requires banks advertising loans for dwellings to include the “equal housing lender logotype” and/or indicate that the bank makes such loans without regard to race, color, religion, national origin, sex, handicap, or familial status. 12 CFR § 328.3. 13 Source: http://fbtbankingresource.com/social-media-landmines-for-Financial-Services
  • 14. What are the roadblocks? Use their voice56% fear loss of control – unclear messaging, employees breaching security policies52% are concerned about regulatory issues – compliance, security, audit trails40% have resource constraints – time and budget as well as workflow efficiencies36% don’t know how it should fit into their organization12% don’t know how to identify real customers – i.e. who are they really talking to? 14
  • 15. Competitive Social Media Analysis in the Banking Industry 15
  • 16. There’s a movement happening The percentage of consumers who have defected to smaller and more community-centered banks continues to rise Acquisition of new customers by smaller banks and credit unions has increased by 2.2 percentage points to an average of 10.3 percent in 2012 19 percent of customers indicate promotions were the reason they selected their new bank and 32% will stay for the next year Sticky-ness: 46 to 51 percent of customers who chose the new bank because of either good service experience or positive recommendations say they definitely will not leave within the next yearJ.D. Power and Associates 2012 U.S. Bank Customer Switching and Acquisition Study 02/2012 16
  • 17. What’s the conversation on Bank Facebook pages?Frequently discuss fees and other rates at their respective banks41 percent of studied social conversations dealt with customer serviceBeyond the customer service conversation, wait times were an especiallysensitive issueFocusing on answering specific questions can help banks improve theircustomers’ perceptions of them... http://www.emarketer.com/Article.aspx?R=1008765 17
  • 18. Top Ten Banks Globally by Fan Count Active Posting Strategy yields more impressions 18
  • 19. Much different picture when you sort for active fans Large Banks struggle to engage 19
  • 20. Does size really matter? How do they do it? Big Banks struggle to get fans engaged 20
  • 21. Engage vs Promote wins for USAA 21
  • 22. Top Bank Posts • 10,000 Facebook Top 27 banks posts over this time period. • We analyzed these to get to the top 100 posts • 100% of top 100 posts Top 6 • Capital One, USAA, Chase, ING Direct, B of A, and Ally • 87% of top 100 posts Top 3 • Capital One(40%), USAA(28%), and Chase(19%) • Capital One had 40% of the top posts #1 • “Top post – Yea!!! Capital One is bringing DOUBLE MASTERY and another free gift to Farmville players. Check it out. http://zyn.ga/6C5 • 2379 comments and 13740 likesPosts are from January 1st 2011 to Feb 7, 2012 and ranked by fan comments. 22Top 27 banks were selected based total Facebook fans
  • 23. Top Posts grouped into 6 types Findings: 67% fan engagement and 33% promotional Q&A Trivia Money, Sports, Entertainment 50% Promotional/Giveaway 24% Day Celebrations 14% Product Promotions 9% Public Relations 3% 23Expion Social Software Copyright 2012
  • 24. When fans talk to you, do you talk back? 24
  • 25. Track, Measure and Optimize Action your content Why does some content work 25
  • 26. Know your Fans Use Social Info to reply with context and relevance 26
  • 27. Geo Target to DMA 27
  • 28. Local Pages Managed Centrally 28
  • 29. Local Pages Managed Locally 29
  • 30. The ROI Challenge 30
  • 31. How do you monetize social?How do you measure success in a social media effort; what kind of metrics do you use? Number of Followers Number of people who like your brand Manage and monitoring dispute resolutions Number of customer service touches Level of Fan engagement How much traffic you can drive Don’t really measure it Can you measure conversations in branches?http://www.bai.org/bankingstrategies/marketing-and-sales/marketing-and-promotion/banking-on-the-social-network 31
  • 32. What is the value of a banking customer Mass Market Household earned $630 for the bank Affluent Household earned $1193 Your number could be higher But Or lower There is a NUMBER http://www.newsobserver.com/2012/03/11/1922944/to-increase-revenue-banks-target.html#storylink=misearch 32
  • 33. One to One to Many 33
  • 34. The ROI Challenge In the absence of eCommerce, how do you track back to sales? Very difficult. But you can build a model to see how hard your media is working for you. The POEM model of media efficiency – all paid & owned media must generate earned media to offset the cost of media. Step Tactic Notes 1 – Owned Track You can’t measure anything if it’s not Media impressions trackable. All digital touchpoints must be properly tagged and tracked before any campaign begins. CPW and agencies should track. 2 – Paid Media Guaranteed # of Establish a Cost Per Impression (or impressions Action, etc.) for your Paid Media. Media company should keep track of impressions. 3 – Earned Calculate # of Track via Radian 6 or other tool the Media impressions # of earned media impressions during the run of paid media. 34
  • 35. POEM model of media efficiency Calculating costs, using an example of a $1MM digital media budget. You divide the guaranteed # of impressions by the total. Only paid media will give you a guaranteed impressions. # of POEM KPI Impressions Notes (Total #) Paid Media CPI 1MM What the media buy (1MM) guaranteed. Effective CPI is $1 Owned Pageviews, 100K People who visited website etc. (1.1MM) as a result of media. Effective CPI is $0.90 Earned Comments, 400K People who generated likes, posts, (1.5MM) stories in social media as a mentions, result of campaign. etc. Effective CPI is $0.67 Takeaway Social Media can be efficient in driving the cost of paid media down if it 35 generates a significant amount of earned (positive) media.
  • 36. Takeaways 36
  • 37. Key Takeaways Social Media Explorer Banking Industry The traditional marketing mindset of one-way communications and control over messaging stifles many bank marketing efforts. Social media management software solutions offer secure solutions for banks (marketing actually posts and engages through the SMMS software few in the banking industry are either aware or confident in such approaches The existing regulatory policies aren’t as constricting as bank marketers may think. Customers in aggregate are inconsistent on many issues related to banks. The majority of consumer comments about banks online is positive. Compelling advertising works If you are out of sight on social media, you will be out of mind. 37
  • 38. Takeaways Your organization must become a social media savvy organization for its own survival. You must adapt the following attributes: AUTHENTICITY TRANSPARENCY IMMEDIACY PARTICIPATION CONNECTEDNESS ACCOUNTABILITY. --Source: Social Corp 38
  • 39. Summary Know what you are measuring Measure everything Record and store everything Native Facebook is risky Social is not a channel by itself, integrate Paid + Earned + Owned Forget Tabs, focus on the newsfeed Social is one-to-one-to-many 39