Measuring Social Media ROI - Econometrics

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Measuring Social Media ROI - Econometrics

  1. 1. SOCIAL MEDIA ROI: CAN WE MEASURE THE IMPACT OF SOCIAL BRAND CONVERSATIONS? HOW TO MONETIZE THE CUSTOMER EXPERIENCECopyright Bottom Line Analytics, LLC - All Rights Reserved, 2013 1
  2. 2. MONETIZING SOCIAL MEDIA CONVERSATIONSSOCIAL MEDIA ENGAGEMENT INDEXAPPLYING THE SEI℠ METRIC 1. IDENTIFYING CATEGORY DRIVERS AND CONVERSATIONS IMPACTING BRAND ENGAGEMENT 2. QUANTIFYING THE IMPACT OF SOCIAL MEDIA 3. DEVELOPING A CUSTOMER ACQUISITION STRATEGY BASED ON CONSUMER CONVERSATIONS THAT DRIVE BRAND ENGAGEMENT 4. VALUING AND MONETIZING FACEBOOK MARKETING CAMPAIGNS 5. ENHANCING PROMOTION EXECUTION BASED ON CONSUMER ENGAGEMENTABOUT BOTTOM LINE ANALYTICS Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013 2
  3. 3. SOCIAL MEDIA ENGAGEMENT INDEX• Bottom-Line Analytics and a North Carolina partner have developed an innovative new consumer engagement metric called the “Social Engagement Index” or SEI• When developing the SEI℠, our big “ahha moment” occurred when we realized that since social media is a form of word-of-mouth, words and semantics, not sentiment are the foundation for understanding consumer engagement with a brand!• This knowledge was used to create a quantitative social media metric based on Stance-Shift linguistics theory. (Stance Shift theory has been published and peer reviewed) • Uses the Social Media conversations about your Brand as input. • Results in a quantitative engagement score that is a translation of his/her “personal” and “emotional” relationship with a brand • SEI is highly correlated with Brand sales (75% - 85%)• The SEI is more actionable than current sentiment metrics since it is strongly correlated with Brand salesCopyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013 3
  4. 4. WHEN CALCULATING THE SEI℠ METRIC, BRAND CONVERSATIONS ARE SCOREDDIFFERENTLY BASED ON THEIR PERSONAL AND EMOTIONAL CONTENT “I REALLY LOVE HOW MY BAGS FLY FREE WITH MY SOUTHWEST” ENGAGEMENT SCORE “I LIKE THE EVERYDAY LOW RATES OF SOUTHWEST” “I BOOKED A FLIGHT ON JET BLUE TODAY” “THE DELTA FLIGHT ATTENDANT WAS NOT THAT HELPFUL” “MY FLIGHT ON AMERICAN HAD THE RUDEST FLIGHT ATTENDANTS YOU CAN IMAGINE” Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013 4
  5. 5. THE SEI PROCESS CONVERTS SOCIAL MEDIA CONVERSIONS USING STANCE SHIFTTHEORY TO CREATE A QUANTITATIVE METRIC - SEI℠ 1. MINE ALL SOCIAL MEDIA CHANNELS FOR SOCIAL MEDIA BRAND CONTEXT CONVERSATIONS, E.G. CHANNELS BRAND MENTIONS 2. PARSE INTO POSITIVE & NEGATIVE REVIEW POSITIVE NEGATIVE GROUPS. FURTHER DIVIDE INTO KEY TOPICS. REVIEWS REVIEWS 3. DERIVE ENGAGEMENT INDEX FROM 30 LINGUISTIC RULES TO “SCORE” MINED EMOTIONAL SCORE BRAND/TOPIC SOCIAL MEDIA PERSONALIZATION SCORE LOW MED HIGH CONVERSATIONS High Med 4. TIME CODE BY WEEK & AGGREGATE METRICS Low 8 SEI SCORE 6 4 POSITIVE NEGATIVE SCORES SCORES 2 0 Per Per Per Per Per Per Per Per Per Per 1 2 3 4 5 6 7 8 9 10Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013 5
  6. 6. WHERE OTHER SOCIAL SENTIMENT METRICS FALL SHORT, THE SEI℠SHOWS SUPERLATIVE CORRELATIONS TO BRAND SALES! Comparison Of The Correlation To Sales For The SEI Metric Versus Sentiment Metrics For The Six Leading Social Data Vendors SOCIAL ENGAGEMENT INDEX (SEI )POS/NEG RATIO 82.9% METRIC 6 POS/NEG RATIO 5.9% METRIC 5 POS/NEG RATIO 14.8% METRIC 4 POS/NEG RATIO 7.7% METRIC 3 POS/NEG RATIO -3.2% METRIC 2 POS/NEG RATIO 2.8% METRIC 1 POS/NEG RATIO 9.9% -20% 0% 20% 40% 60% 80% 100%Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013 6
  7. 7. SEI℠ HAS PROVEN LINKAGE WITH BRAND SALES The Linkage & Correlation To Sales Over Time Shows That SEI Has Predictive PowerCopyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013 7
  8. 8. MONETIZING SOCIAL MEDIA CONVERSATIONSSOCIAL MEDIA ENGAGEMENT INDEXAPPLYING THE SEI METRIC 1. IDENTIFYING CATEGORY DRIVERS AND CONVERSATIONS IMPACTING BRAND ENGAGEMENT 2. QUANTIFYING THE IMPACT OF SOCIAL MEDIA 3. DEVELOPING A CUSTOMER ACQUISITION STRATEGY BASED ON CONSUMER CONVERSATIONS THAT DRIVE BRAND ENGAGEMENT 4. VALUING AND MONETIZING FACEBOOK MARKETING CAMPAIGNS 5. ENHANCING PROMOTION EXECUTION BASED ON CONSUMER ENGAGEMENTABOUT BOTTOM LINE ANALYTICS Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013 8
  9. 9. 1. IDENTIFYING CATEGORY DRIVERS AND CONVERSATIONS IMPACTING BRAND ENGAGEMENT • WHEN WE LOOK CONSUMER ENGAGEMENT (SEI℠) WITH NATIONAL RESTAURANT CHAINS, RESTAURANT A STANDS OUT AS A GIANT AMONG ITS COMPETITORS Customer Engagement (SEI) by Restaurant Chain 19% 1% 16% 12% Restaurant A 10% Restaurant B Restaurant C Restaurant D Restaurant E Restaurant F 43%Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013 9
  10. 10. 1. IDENTIFYING CATEGORY DRIVERS AND CONVERSATIONS IMPACTING BRAND ENGAGEMENT • ACROSS THE RESTAURANT, “HIGH QUALITY FOOD” AND “FRIENDLY SERVICE” CONVERSATIONS DRIVE CONSUMER ENGAGEMENT TO AN AIRLINE Restaurant Industry Conversations Total Engagement (SEI) by Subject High Quality Food Friendly Service Fresh Tasting Food Quick Customer Service Has a Wide Variety on the Menu Good Value for the Price A Good Place I Can Take My Children 0 10,000 20,000 30,000 40,000 50,000Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013 10
  11. 11. 1. IDENTIFYING CATEGORY DRIVERS AND CONVERSATIONS IMPACTING BRAND ENGAGEMENT • RESTAURANT “A” HAS THE HIGHEST OVERALL ENGAGEMENT WHEN CONSUMERS HAVE “HIGH QUALITY FOOD” RELATED CONVERSATIONS SEI Ratio – High Quality Food Restaurant A Restaurant B Restaurant C Restaurant D Restaurant E Restaurant F - 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 11Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013
  12. 12. 1. IDENTIFYING CATEGORY DRIVERS AND CONVERSATIONS IMPACTING BRAND ENGAGEMENT • RESTAURANT “A’S” COMMITMENT TO HIGH QUALITY FOOD IS DRIVING MUCH OF ITS OVERALL ENGAGEMENT WITH CONSUMERS AND IS PROVIDING IT WITH A COMPETITIVE ADVANTAGE Relationship Between “High Quality Food” Conversations and Restaurant 6 Conversations 5 Restaurant A SEI – High Quality Food 4 Restaurant D 3 Restaurant B Restaurant F 2 Restaurant E Restaurant C 1 0 0 1 2 3 4 5 6 7 SEI - Total Restaurants 12Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013
  13. 13. 2. QUANTIFYING THE IMPACT OF SOCIAL MEDIA • WE FIND THAT CONVENTIONAL ADVERTISING HAS BOTH A “DIRECT IMPACT” ON SALES AND AN “INDIRECT EFFECT” DUE TO ITS INFLUENCE ON SOCIAL MEDIA CONVERSATIONS AND THE SEI • THE LARGE CONTRIBUTION FROM THE SEI℠ SUPPORTS THAT THIS IS A “WORD-OF-MOUTH” EFFECT Net driven by media Marketing Contributions 8% Sub-model 3% 2% 2% 10% 5% SEI Engagement 20% 11% 67% Base Sales Direct Alpha Brand Mass Media Direct Alpha Brand Digital Media Direct Social Media Social Media on SNI Mass Media on SNI Digital Media on SNI SNI Base 13 Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013
  14. 14. 3. DEVELOPING A CUSTOMER ACQUISITION STRATEGY BASED ON CONSUMER CONVERSATIONS THAT DRIVE BRAND ENGAGEMENT • INSIGHTS WERE USED TO DEVELOP A DIGITAL CONTENT STRATEGY AND IN-STORE PROMOTIONS THAT INCREASED SALES Atmosphere >14.0 = 466 0.6% ToMeetPeople> 9.43 = 325 2.6% Most Important Positive Drivers: Atmosphere Place2HangOut <14.0 = 288 >5.46= 211 ToMeetPeople< 1.9% 1. Place to Hang Out 9.1% 9.63 = 188 2. For Meeting People 6.5% Positive SEI 3. The Store Atmosphere 3.93 = 100 4. Beverage Products To Meet People >5.4 = 229 Place2HangOut 3.8% <5.46 = 83 Beverage A 91.9% >6.4 = 271 Place2HangOut 7.7% >3.6 = 126 To Meet People 5.9% Beverage B <5.4 = 85 >5.2 = 211.1 85.5% 1.6% Beverage A <6.4 = 74 Place2HangOut 77.8% <3.6 = 76 71.9% Beverage B <5.2 = 67 70.3% The tree starts with an average SEI score of 100; and each level indicates a higher or lower SEI based on anCopyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013 SEI score for a topic. The percent represents the percent of the sample in each segment. 14
  15. 15. 4. VALUING AND MONETIZING FACEBOOK MARKETING CAMPAIGNS• BY BUILDING A SALES RESPONSE MODEL USING THE SEI℠, WE CAN MONETIZE TARGETED MARKETING ACTIVITIES SUCH AS FACEBOOK CAMPAIGNS 15 Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013
  16. 16. 5. ENHANCING PROMOTION EXECUTION BASED ON CONSUMER ENGAGEMENT • THE BREAKFAST SANDWICH PROMOTION GENERATED A POSITIVE LIFE IN CONSUMER ENGAGEMENT Promotion Results• During a six month time period, the Client featured its Breakfast item with a promotion Artisan Sandwich [Jan 4th - Jan 10th] Lift Over Avg price of $2 with the purchase of a beverage. SEI Pre Promo Promo Post Promo Benchmarks 12 1 12• We analyzed the promotion impact by # Weeks 16 1 16 Pre & Post comparing the baseline average Social Average Wk Engagement Index (SEI) performance prior to POS 6584 135259 100 150 108 169% 150% NEG 2023 60 77 29 160 37 160% and after the promotion to the promotion 60 170 182 65 180 160% Net* 61 72 173% 180% period. 3.2 3.13.37 2.8 Ratio* 3.73 2.96• SEI metrics reflect a significant promo lift in social engagements during the promo week * Net = POS minus NEG Ratio = POS/NEG compared to the benchmark 16wk pre and post periods. The net POS/NEG metric was up 180%. Lift By Channel• The promo lift was occurred across all social Total Blogs Boards Facebook Twitter media channels. 173% 180% 193% 150% 164% 170% 39% 40% 165% 180% Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013
  17. 17. 5. ENHANCING PROMOTION EXECUTION BASED ON CONSUMER ENGAGEMENT • THE BREAKFAST ITEM TRENDED HIGHER DURING THE PROMOTION Weekly Trended SEI ℠ Breakfast Item • The SEI metric identified a significant promo lift for the Breakfast item based on social engagements during the promo week. This is comparable to the lift experience by a previous Free Coupon promotion. • However, the SEI was much Breakfast Item higher during the previous promo possibly due to the excitement created by “Free” product. Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013
  18. 18. 5. ENHANCING PROMOTION EXECUTION BASED ON CONSUMER ENGAGEMENT • AFTER THE BREAKFAST ITEM PROMOTION, CONSUMERS EXPRESSED CONCERNS ABOUT HIGH FAT CONTENT AND MADE DIRECT COMPARISONS TO COMPETITIVE BREAKFAST ITEMS Consumer Responses to Promotions Concerns about Fat and Breakfast Item Comparisons to competitive products Concerns Average Promotion Product Product & Retail Promotion Day Taste Time Diet Occasion All Cluster Cluster Experience Compare Competition Clusters Cluster Breakfast Item 0.10 0.25 -0.05 -0.19 -0.70 -0.10 0.33 2.45 0.15 2.66 3.12 0.46 Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013
  19. 19. MONETIZING SOCIAL MEDIA CONVERSATIONSSOCIAL MEDIA ENGAGEMENT INDEXAPPLYING THE SEI℠ METRIC 1. IDENTIFYING CATEGORY DRIVERS AND CONVERSATIONS IMPACTING BRAND ENGAGEMENT 2. QUANTIFYING THE IMPACT OF SOCIAL MEDIA 3. DEVELOPING A CUSTOMER ACQUISITION STRATEGY BASED ON CONSUMER CONVERSATIONS THAT DRIVE BRAND ENGAGEMENT 4. VALUING AND MONETIZING FACEBOOK MARKETING CAMPAIGNS 5. ENHANCING PROMOTION EXECUTION BASED ON CONSUMER ENGAGEMENTABOUT BOTTOM LINE ANALYTICS Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013 19
  20. 20. ABOUT US Bottom-Line Analytics LLC is a consulting group focusing on marketing and social media analytics Our modeling experts have a total of over 100 years of direct experience with marketing optimization modeling. This includes direct experience in over 35 countries and dozens of product categories. We are dedicated to the principles of innovation, excellence and uncompromising customer service. Most important, however, we are dedicated to getting tangible and positive business results for our clients. 20Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013
  21. 21. OUR TEAM’S EXPERIENCE 21Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013
  22. 22. Contact Information • David Weinberger • Chief Marketing Officer • (o)770.649.0472 • David@bottomlineanalytics.com • Bottom-Line Analytics LLC 22Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013

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