Eventually, you could calculate Lifetime Value of a customer that comes in via Social Networks.
Today’s webcast is sponsored by Unica Corporation. Unica delivers software and services that allow marketers to better understand their customers, establish an interactive marketing practice, and increase marketing ROI both online and offline. Some of the products that are most relevant to today’s webcast are Unica NetInsight, for web analytics, and Interactive Marketing OnDemand which combines analytics, search, testing, and personalization into a single application. Go to Unica’s blog at blog.unica.com to see examples of using web analytics integrated with social media metrics from Facebook and Twitter. In NetInsight you can for example see Twitterers for hash tags that you specify and trend tweets along with web visitation metrics. Or you can see which Facebook users access your Facebook application and what are their demographics, locations, or social graph. With Unica’s Web and email Personalization solutions you can go beyond analytics and take action, e.g. make emails sent from your Facebook application more relevant to an individual’s interests. For a particularly popular download, go to Unica.com/SocialMediaMetricsPaper. This short 2-pager helps you focus your social media metrics to avoid analysis paralysis.
Unica OnDemand Seven Guidelines for Achieving ROI from Social Media The Webinar will begin at 1:00 PM EST You will be connected to audio using your computer’s microphone and speakers (VoIP). A headset is recommended. Or you may select Use Telephone after joining the Webinar. Dial-in phone: (323) 417-4600 Access code: 572-736-743 Presented by: Geoff Ramsey eMarketer CEO Sponsored by:
Geoff Ramsey CE0, eMarketer March 4, 2010 Seven Guidelines for Achieving ROI from Social Media
eMarketer aggregates, filters, organizes and analyzes information from 4,000 sources 30,000-foot view
I. The Marketer View Source: Alterian “Annual Survey 2009”, January, 2010 Over 33% of global marketers said they felt “minimally prepared” to take advantage of new techniques in digital and social media
68% say it’s “critical” or “important” Source: Alterian, Dec, 2009 63% say it’s “overrated” Source: AdMedia Partners, Dec, 2009
% of US companies who are “using” social networks for marketing *64% are “involved with social media,” but only 41% are placing ads on social networks; **among media planners; ***among marketers in North America ~55%
DemandGen, June, 2009 : only 10% of all B2B marketers advertise on social sites
Forrester, March, 2010 : total B2B spending on social media was only $11 million in 2009
Goldstein Group, Nov, 2009: social media accounts for only 1% of total B2B marketing budgets
Think less about buying social media, and more about how you can earn and own it! “ If you’re good, you can get a lot of value on social networks from very little investment. You are almost rewarded for getting better results by spending less money.” --Ian Schafer, CEO, Deep Focus
Social media marketing participation among marketers in the U.S. *Maintain company accounts or profiles on social sites (average of B2C and B2B marketers) “ We spend the majority of our time engaging with people on these networks, not advertising on them.” --Scott Monty, Ford, in an interview with eMarketer 74%* 57% 64% Building own social media presence/ Devoting staff 48% 40% 41% Placing ad dollars on social sites Business.com Mzinga & Babson Forrester
6. Be Authentic, Humble, Transparent. 7. Recruit from your core. 8. Target the Influentials. 9. Adopt a long-term, real-time approach. 10. Integrate with other communications Best Practices for Social Media The Top 2 Objectives for Social Marketing: #1. Enhance relationships with customers/clients #2. Build company’s brand
TRUSTED Sources Friends, Family “ Social Sites” Face-to-face, personal interactions Sources: Edelman; ARAnet; Lightspeed Research;
What about social media measurement and ROI? ???
Less than 1/5 of marketers are measuring the ROI of their social media efforts
MENG................... 12% (US)
Mzinga & Babson.. 16% (global)
Aberdeen Group.... 18% (global)
Econsultancy.......... 19% (US)
BtoB Magazine and the Web Analytics Association % of B2B marketers who are already measuring: Social Media 48% Mobile 17 % Web Sites 88% E-mail 76% Feb 12 survey among 679 B2B companies Video 14 %
What are the problems? 80% of U.S. marketers acknowledge that it is difficult to track ROI with social media – Econsultancy, Feb, 2010 59% of U.S. marketers say social media is either somewhat difficult (39%) or very difficult (20%) to measure – Aberdeen Group, 2009 “ Everybody knows social media is important, but it’s so new that only a few are measuring its business impact with any sophistication.” --Jim Sterne, author, Social Media Metrics
The biggest problem of all: Lack of Clear Objectives
Social Media Measurement Today “ For the few marketers who do attempt to measure social media, the metrics they use are not terribly sophisticated. Most marketers today do not invest sufficient time, effort or money on social media measurement.”
Getting a handle on social media leads to improved business results For those top “best-in-class” companies, a majority of whom monitor social media, these firms were 87 times more likely to see higher returns on their marketing investment. Found a financial correlation between those firms who are “deeply and widely engaged” with social media and those that significantly outperform their peers in revenue and profits.
Determine a dollar value for customers who opt-in to engage with your brand
Consider the cost savings in market research
Integrate social with other metrics
7 Guidelines for Achieving ROI for Social Media
#1. Establish clear marketing goals, and then identify social metrics that directly support those objectives.
e.g., Some marketers seek to boost search activity, which can be done through targeted ads on social networks Boosted brand searches significantly* *Source: comScore, GroupM Search, M80, Oct, 2009 34% of social users have used a search engine to find info on a product or brand after seeing an ad on a social network site Source: Performics and ROI Research, Nov, 2009
#2. Organize your measurements and metrics into a logical framework. Exposure Engagement ROI/ Outcomes
#3. Take a long-term outlook with social media interactions and measurements. It’s a commitment, not a campaign. “ The one thing people need to remember when it comes to social media is that it can’t be a one-time hit when you’re trying to get involved with consumers. The whole purpose is you’re trying to build a relationship with the consumer [and that’s] like building a relationship with anybody.”
#4. If hard ROI metrics are difficult to track directly, consider a range of softer metrics that can be linked back to desired outcomes.
“ Hard” ROI
Consumer Sentiment Video Sharing Rate # of Followers # of Brand Fan Pages # of Brand Searches “ Soft” Metrics (i.e., Measures of Engagement)
Or, create a “ Social Media Dashboard ” composed of soft and hard metrics “ Using a variety of hard and soft ROI metrics can absolutely be accomplished. I would offer that volumes of conversation over competitors, sentiment, the level of influence of those who are interacting with your brand, etc, are but some of the metrics that can be used to construct a dashboard of success.” --Blake Cahill, Visible Technologies
For example, if someone on a blog or social network is trashing your brand, what is it worth to you if one of your passionate brand fans speaks out on your behalf?
#5. Determine a dollar $ value for customers who choose to opt in and engage with your brand via social networks. “ We look at the percentage of Facebook fans that convert to customers, the percentage increase in their frequency of visits, projected increases in their average ticket and...we can project their future value. Are we 100% right? No. But are we directionally correct? Absolutely.” --Jim Ensign, VP
Focus on Your Core: Brand Enthusiasts Prospects Customers CORE People Who Sign Up for Brand Fan Pages: More likely to buy ... 51% More likely to refer .. 60% --Chadwick Martin Bailey, Mar, 2010
Learn how consumers talk about your brand, product or service category
Notice what words and language they use
Learn about their interests and intentions
Discover real or perceived problems with your product or customer service, e.g., via Twitter
# 6. Listening can save you market research $s “ By listening carefully, we harness social media as an early alert system.. so we can react quicker to issues.” --Richard Brinhammer, Dell
Social media provides inexpensive yet powerful opportunities for tapping into the consumer ethos “ I view listening as an important analytic. Listening and other analytics can drive your strategy at a macro-level... They can either reinforce your strategy or correct it, and give you opportunities for ideas, products, services and/or segments.” --Michael Mendenhall, CMO, Hewlett-Packard
#7. Build the technological capabilities to measure your customers’ complete digital footprint – in real time.
Marketers need to capture:
Intentions … serving messages – in real-time – based on the assumed intentions of the consumer.
Mentions … the things people say about your brand are more important than what you say.
See http://blog.unica.com for web analytics + Twitter/Facebook Integration examples Download our popular 2-pager: “ Align Social Metrics with Your (True) Business Goals ” at www.unica.com/SocialMediaMetricsPaper Unica OnDemand Confidential 2010 Unica Corporation Web Analytics Search Bid Management Testing & Targeting Email Marketing
Thank you for tuning in to the eMarketer Webinar: Seven Guidelines for Achieving ROI from Social Media Presented by: Geoff Ramsey eMarketer CEO Questions & Answers Sponsored by:
eMarketer Social Media Coverage Learn more about leveraging social media with eMarketer Total Access. Visit: www.emarketer.com/products Call: 800-405-0844 Email: email@example.com
Twitter: A Strong Current in the Social Media Mainstream
Maximizing the E-Mail/Social Media Connection
Seven Guidelines for Achieving ROI from Social Media
Social Media Misfires: How to Head Off Trouble Before It Hits
10 Best Practices for Success with Social Media
Five Reasons Why Marketers Need to Have a Social Media Strategy
The Future of Social Media Marketing
All reports are available to Total Access clients.