Measuring social engagement in the retail beverage business

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Measuring social engagement in the retail beverage business

  1. 1. Measuring social “engagement” within the beverage business?
  2. 2. Our unique approach to measuring social engagement Note: Off the shelf ‘sentiment’ metrics are based on automated word counting and volume of conversation. Our Approach: • Is built upon a validated Linguistics based approach known as ‘Stance Shift Analysis’ • Uncovers the meaning of conversations. • Generates a metric called the Semantic Engagement Index (SEITM) • Closely maps hard sales data – this helps to provide actionable insights and ROI using media mix modeling.
  3. 3. The SEITM measures the degree to which customers are “engaged” with the brand, as it transpires through the language used on social media platforms.
  4. 4. Our Semantic Engagement Index (SEITM) correlates with brand sales. 20 40 60 80 100 120 140 160 180 200 220 70 80 90 100 110 120 130 08/24/09 09/14/09 10/05/09 10/26/09 11/16/09 12/07/09 12/28/09 01/18/10 02/08/10 03/01/10 03/22/10 04/12/10 05/03/10 05/24/10 06/14/10 07/05/10 07/26/10 08/16/10 09/06/10 09/27/10 10/18/10 11/08/10 11/29/10 12/20/10 01/10/11 01/31/11 02/21/11 03/14/11 04/04/11 04/25/11 05/16/11 06/06/11 06/27/11 07/18/11 08/08/11 08/29/11 09/19/11 10/10/11 10/31/11 11/21/11 12/12/11 01/02/12 01/23/12 2009 2010 2011 2012 EngagementIndex SalesIndex Sales & Engagement Score Sales Index Semantic Engagement Index Summer Promo Winter Promo Summer Promo Source: internal Sales data; Nielsen BuzzMetrics data as of January 29, 2012 …no other social media metric has this sort of predictive power against hard sales.
  5. 5. We can determine which social channels are the most important sales drivers. 0.0 50.0 100.0 150.0 200.0 250.0 60 70 80 90 100 110 120 130 08/24/09 09/14/09 10/05/09 10/26/09 11/16/09 12/07/09 12/28/09 01/18/10 02/08/10 03/01/10 03/22/10 04/12/10 05/03/10 05/24/10 06/14/10 07/05/10 07/26/10 08/16/10 09/06/10 09/27/10 10/18/10 11/08/10 11/29/10 12/20/10 01/10/11 01/31/11 02/21/11 03/14/11 04/04/11 04/25/11 05/16/11 06/06/11 06/27/11 07/18/11 08/08/11 08/29/11 09/19/11 10/10/11 10/31/11 11/21/11 12/12/11 01/02/12 01/23/12 2009 2010 2011 2012 EngagementIndex SalesIndex Sales & Engagement Score – by Channel Facebook Twitter Boards Blogs &Groups Sales Index Source: internal Sales data; Nielsen BuzzMetrics data as of January 29, 2012
  6. 6. Value and Price Coolness, funky, style, Décor Taste and product quality In-store customer experience Good value Price Food prices Staying in Seating/chairs Toilets Richness Latte Amazing taste Like no other Cool brand Funky Stylish Artwork/Decor Social Engagement and competitive brand position Bubbles represent conversational clusters, whilst size indicates level of buzz. Brand V Brand X Brand Y Brand W Brand Z Brand Y is least differentiated by social conversations. Note: Separate analysis – Adapted Statistical Correspondence Analysis Brand Z is associated with conversations around taste and quality.
  7. 7. Customer experience and atmosphere drive engagement and footfall Business Questions 1) How can we drive positive social engagement and more customers into stores? 2) What are the key image, experiential and promotional strategies we need to put in place in order to drive sales? Insight & Outcomes We found the key drivers to Positive SEI were: 1. A place to hang out 2. To meet people 3. Atmosphere The client developed a ‘2 for 1’ promotion to drive store level sales. Sales increased by 23% on year on year basis. Positive Social Engagement 100 Place to Hang Out 211 Place to Hang Out 83 To Meet People 325 To Meet People 188 Atmosphere 466 Atmosphere 288 To Meet People 229 To Meet People 85 Food A 271 Food A 74 Note: Separate analysis - Classification & Regression Trees (CART)
  8. 8. • Capability to measure and monetise the impact of social brand conversations on sales performance. • Provide insight into what the brand’s advantages are relative to competitors. • Understand and quantify how and why consumers engage with the your brand and its stores. • Quantify the degree of passion and engagement towards a brand’s beverages and food products. • Provide insights into promotions/events and causes for success and shortfall. What can we do for beverage businesses?
  9. 9. Michael Wolfe CEO Bottom Line Analytics Global E: mjw@bottomlineanalytics.com M: 770.485.0270 www.bottomlineanalytics.com Masood Akhtar Partner, Analytics (EMEA) Bottom Line Analytics Global E: ma@bottomlineanalytics.com M: +44 7970 789 663 www.bottomlineanalytics.com

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