Investing in social media
Upcoming SlideShare
Loading in...5
×
 

Investing in social media

on

  • 845 views

Measuring ROI and Building a Business Case

Measuring ROI and Building a Business Case

Statistics

Views

Total Views
845
Slideshare-icon Views on SlideShare
845
Embed Views
0

Actions

Likes
0
Downloads
13
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • Social media websites will, by 2012, have reached 500 million daily users.Facebook has as many regular users as the entire population of the United States, and has twice as many registered users.Although Facebook will soon plateau, most other social media is growing exponentially.
  • Google plus is actively trying to become a leader in social media. Following the failure of Google Buzz, Google launched “+” which had an remarkable growth rate but a very low usage. Google introduced Brand Pages, which proved that Google can provide the innovation needed to get the Plus network active.
  • Example of a suggested method to measure social media ROI
  • Celebrity premiere parties were held around 13 college campuses to raise interestHorror fans were taped watching the film to show their reactionsPromo clips and fan reactions were posted on many social networking sitesThe Twitter campaign released new info during Twitter’s slowest hours- 2-6 AMBy creating one of the biggest viral movie campaigns of all time, hundreds of thousands of fans literally demanded that the film be brought to their local theaters. In fact, over 150 fans were listed within the credits simply for making the most noise around the net, which is a big reason why a $10,000 film grossed over $107,000,000 at the box office and an additional $16,000,000 on DVD
  • Qualified employees were asked to volunteer to answer questions on TwitterEach response was catalogued so that other users could find information faster
  • Qualified employees were asked to volunteer to answer questions on TwitterEach response was catalogued so that other users could find information faster

Investing in social media Investing in social media Presentation Transcript

  • Social Media:Measuring ROI and Making the Business Case Carmine Porco – January 25, 2012 Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 1
  • Prescient FocusFounded in 2001 • “The focus of Prescient is to emphasize the business side of websites and to deliver measured value. It’s not enough to be cool: we must deliver measured performance in the form of bottom line return on investment so our clients can show how the site is delivering value to their organizations.” • Toby Ward, President & Founder Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 2
  • What is Prescient?Prescient has: • A proven methodology for gathering and assessing web-specific data from internal and external stakeholders • Wide and deep experience in aligning information to business requirements • A range of techniques to ensure user requirements and audience knowledge drive a design that delivers client needs Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 3
  • Our Clients Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 4
  • Discussion Topics• Social Media Statistics• Why use Social Media?• Measurement Software• Social Media and ROI• Case Studies Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 5
  • Social Media Statistics Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 6
  • What is Social MediaErik Qualman: http://youtu.be/auiczd4OUms Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 7
  • What is Social MediaErik Qualman: http://youtu.be/auiczd4OUms Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 8
  • What is Social Media Media for social interaction, using highly accessible and scalable publishing techniques. A common thread running through all definitions of social media is a blending of technology and social interaction for the co-creation of value. Wikipedia, 2012 Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 9
  • Social Media Visitor Growthhttp://www.searchenginejournal.com/the-growth-of-social-media-an-infographic/32788/ Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 10
  • Facebook Participation (by country) Country Facebook Population % on Facebook 24 month Users Growth Rate USA 126 m 307 m 41% 352% UK 27 m 62 m 44% 137% Canada 15 m 34 m 44% 61% More Canadians on Facebook than people living in New Zealand, Ireland and Norway combined.Source: eMarketer, October 2010 Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 11
  • Who Is Using Social Media? Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 12
  • Facebook - Usage statisticsSource: DigitalSurgeons Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 13
  • Twitter - Usage statisticsSource: DigitalSurgeons Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 14
  • Google plus – Losing Steam?Source: http://www.flowtown.com/blog Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 15
  • Why use Social Media? Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 16
  • Why use Social Media?o Social networks can be used to increase brand awareness, band recall or market penetrationo Presence networks or blogging can be used to create a buzz or increase awareness around certain productso eCommerce networking can be used to provide incentives and discounts for prospective customers Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 17
  • Getting Social "Social media and networks, online communities and other Internet communications tools are important to me in the workplace."Source: Insidedge Survey: January 2011, 1000 respondents Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 18
  • Face It “Face to face communications is important to me in the workplace.”Source: Insidedge Survey: January 2011, 1000 respondents Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 19
  • Increase Social Recruitment Social Media can be a valuable tool for engaging and drawing young, tech savvy individuals to your organization. Here are a few things to consider about your social media sites: o Think of your pages as microsites of your website o Showcase blogs about tips on getting hired at your firm o Practice good reputation management o Feature success of current employees o Get familiar with tools for job seeking in the age of social media like LinkedIn Strictly Confidential © 2012 Prescient Digital MediaSource: http://www.socialtoaster.com/blog-entry/tips-using-social-media-engage-potential-employees Not For Distribution 20
  • Reach Customers through Social Media Apps o “There’s an App For That” o The mobile app today is what the website was ten years ago, turning it into a necessity for many businesses o Webtrends Mobile Analytics offers 5 tips in developing your app: • Weigh the options – Mobile App or Mobile Websites • Consider where your app will be used • Be aware of various screen sizes • Follow existing UI conventions • Design for touchSource: http://mashable.com/2010/07/07/designing-mobile-apps/ Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 21
  • Latest Trends Gartners top ten consumer mobile applications for 2010 • Money Transfer • Location-based services • Mobile Search • Mobile Browsing • Mobile Health Monitoring • Mobile Payment • Near Field Communication Services • Mobile Advertising • Mobile Instant Messaging • Mobile MusicSource: http://www.gartner.com/it/page.jsp?id=1230413 Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 22
  • Why Does My Organization Need It? An organization without Web 2.0 tools, or plans to use them, risks being out-maneuvered by the competition, being left-behind, or outright failure Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 23
  • Measurement Software Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 24
  • Measurement Softwareo Platforms such as YouTube and Facebook have built-in tools which can be used to view analytical data for your specific pageso Facebook fan pages can also be linked to Google Analytics to provide more information on visitor statistics, visitor countries, traffic sources and keyword searches, etc. Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 25
  • Measurement SoftwareRadian 6 • Allows for real time viewing of conversations taking place around your brand or products • Aggregated data ensures the most relevant information is retrieved • Also provides tips on social media strategies, how to interact with consumers, methods to handle negative feedback and best interaction guidelines on the social web Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 26
  • Measurement SoftwareLithium • Uses frequent word analysis to keep your organization on top of emerging topics providing a competitive edge • Provides the ability to monitor team responses, activities and involvement with social customers through email alerts and reports • Search expands over various social media channels including Twitter, Facebook, YouTube and Flickr as well as active blogs and forums, quality data is provided while eliminating spam and duplicate information Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 27
  • Measurement Software SocialMention • Analysis platform used to aggregate content into a single stream of information • Quickly track and measure what people are saying about your organization or product across a vast social media landscape in real time • Monitors 100+ social media properties including Twitter, Facebook, FriendFeed, YouTube, Digg, Google, etc. Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 28
  • Measurement SoftwareAlterian • Provides the ability to monitor brands, address customer service issues, conduct unbiased research and generate sales leads • Answers questions such as “What are people saying about your brand?” and “What is the competition doing?” • SM2 coverage includes blogs, message boards and forums, wikis, video and photo sharing websites and social networking sites Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 29
  • Measurement SoftwareOther software: WebTrends Salesforce Topsy Youtube Insight Tweetstats bit.ly Twitter Analyzer Klout Coremetrics Backtype Boardreader CoComment Hootsuite Omgili Graphs IceRocket Compete Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 30
  • What to MeasureWhat types of metrics can be measured? • Brand Awareness • Brand Recall • Customer Retention • Propensity to Buy • Financial (profit, revenue) • Market Penetration • Customer Demographics Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 31
  • What to MeasureOther tools can help you: • Track the number of visits • New visitors, repeat visitors • Page views and average time • The number of RSS subscribers • Number of inbound links • Revenues from direct sales, affiliates, partners, resellers etc. • Weekly rank • Click throughs with advanced attribution models • Email opens and forwards Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 32
  • Always remember:Tools are a vehicle, not a story. Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 33
  • Social Media ROI According to 2011 study by Hypatia Research , 40% of professionals do not measure ROI of Social Media Programs at least once a yearSource: 2011 Hypatia Research 34 Strictly Confidential © 2012 Prescient Digital Media Not For Distribution
  • Can’t miss what you can’t measureSource: Marketing Profs Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 35
  • How to Measure Social Media ROI Step 1: Establish a baseline • Before Social media: 8% YoY Growth • After Social Media: TBD Step 2: Create activity timelines • Weekly time lines based on social media activity (ie. Joe starts tweeting, new podcast, whitepaper, press release) Step 3: Look at sales revenue, number of transactions, net new customers • Transaction data should be specific (frequency, reach, yield) Step 4: Measure transactional precursors Step 5: Overlay all timelines • Activities, social data, web data, transactions, loyalty metrics etc Step 6: Look for Patterns and Prove RelationshipsSource: http://www.slideshare.net/thebrandbuilder/olivier-blanchard-basics-of-social-media-roi?from=ss_embed For Distribution 36 Strictly Confidential © 2012 Prescient Digital Media Not
  • Social Media and ROI Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 37
  • Social Media and ROIo ROI is best determined when Social Media goals are aligned with Business goalso Determine the goals of the organization and ensure they align with the strategyo All goals must be measurable Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 38
  • Define Measurable Goalso Determine which social media platforms can be leveraged to achieve these goalso Ensure all channels are working in tandemo Different Social Media platforms can be utilized in various environments so as to provide the best results through their use Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 39
  • External Social Media Platforms Conversation Enabled Publishing Platforms Social Networks Social Bookmarking Democratized Content Networks Presence Networks (Micro-blogging) Content Sharing Sites Virtual Networking Platforms Location-Based Social Networking eCommerce Networking (Social Buying) Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 40
  • ROI from Web 2.0 …some companies use Web 2.0 in revolutionary ways. This elite group of organizations—3 percent of those in our survey—derived very high levels of benefits from Web 2.0’s widespread use, involving employees, customers, and business partners, according to the survey. Respondents at these organizations reported higher levels of employee benefits than internally networked organizations did and higher levels of customer and partner benefits than did externally networked organizations. In applying Web 2.0 technologies, fully networked enterprises seem to have moved much further along the learning curve than other organizations have. The integration of Web 2.0 into day-to-day activities is high, executives say, and they report that these technologies are promoting higher levels of collaboration by helping to break down organizational barriers that impede information flows.Source: www.holtz.com Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 41
  • ROI from Web 2.0Source: www.holtz.com Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 42
  • ROI from Web 2.0Source: www.holtz.com Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 43
  • ROI from Web 2.0o 52% of organizations using Web 2.0 tools including social media achieved Best-In-Class performance compared to only 5% that didn’to Companies using Web 2.0 tools achieved 18% increase in engagement vs. 1% among those that didn’t Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 44
  • Employee Networking Up 15% 18% enterprise deployment 21% limited deployment 17% have no plansSource: The Social Intranet Study 2011 Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 45
  • www.PrescientDigital.comStrictly Confidential © 2012 Prescient Digital Media Not For Distribution 46
  • Case Studies Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 47
  • The Smell of Successo July 18: 94 million views on YouTube • All time most viewed sponsored channelo 186 personalized responses • 34 million aggregate views • Billion PR impressions in a week • 80,000 Twitter followers • 630,000 Facebook fan base - Fan interaction +800%o Traffic to OldSpice.com +300% Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 48
  • Show me the moneyo Old Spice sales +106% for four weeks ending June 17 • +4.8 share points in category that grew 17.7%o Gillette body wash +277% • National drop-off of high value couponso How much of Old Spice’s recent gains come from ads and how much from the coupons? • “It’s impossible to know,” said P&G spokesman Mike Norton (Advertising Age). Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 49
  • The Gap: Reaching new Customerso The Gap teamed with group-buying site Groupon, offering a nation wide deal; $50 worth of apparel for $25o In one day, 441,000 groupons were sold bringing in a little more than $11 milliono The deal brings Gap a ton of cash and, hopefully, new customerso “We want to reach them in ways that are part of their everyday life, so it becomes like a conversation” – Gap’s Senior Director of Media Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 50
  • Intuit: TurboTax campaign o To help build its brand among a younger generation of tax payers and promote a free online TurboTax service • More than 10,000 participants • 10% lift in purchase intent • 165 million audience impressions • 100,000 people to SuperStatusContest.com • Online unit sales for TurboTax +36% in the quarterSource: Marketing Profs Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 51
  • Intuit: Key Lesson “I would say the No. 1 thing [to do when launching a social campaign] is to get the measurement right before you launch. Ask yourself what you want to learn and how [you will measure it]. Don’t do this as you go because this type of campaign is too dynamic.”— Seth Greenberg, Director of Online Marketing, TurboTaxSource: Marketing Profs Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 52
  • Intuit: TurboTax Inner Circle o Web based community comprised of 17,000 customers o Tested 30 product concepts, and 20 made it into next year’s TurboTax product o Reduces support costs by minimizing support call volume and decreasing detractor statements o Drives revenue by identifying issues important to customers: one feature alone attributed to a revenue lift in the millions of dollars o Highly engaged: 60%+ participation rate per interactionSource: Groundswell Awards Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 53
  • Starbucks – Value in user-generated content and Feedback Mystarbucksidea.com (Democratized content network) o A site where customers from around the world can submit and prioritize ideas for improving Starbucks o Ideas being worked on by Starbucks show their progress reports, thus increasing the sites transparency o The site • Share • Vote • Discuss • SeeSource: http://www.forrester.com/Groundswell/embracing/mystarbucksidea.html Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 54
  • Content and Feedback Generationo Consumer Insight • Customer ratings and reviews rose to the top of useful marketing feedback, as they delivered tangible ROI insight • In a study conducted in 2009, 80% of respondents reported that consumer stories and suggestions shape products and serviceso MarketingProfs Study concluded that user-generated content would increase in 2010 • A 400% increase in use of Twitter comments to inform decisions about products and services • 59% increase in use of customer ratings and reviews • A 24% increase of social media for pre-sales Q&A Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 55
  • Paranormal Returns Paramount film Paranormal Activity was a success as a result of fans actively promoting the movie online o Production budget just under $10,000 o Never originally in theatres, videos of audience reactions and twitter posts went viral eventually making it into a national blockbuster o The movie has created over $193 million in revenueCasestudiesonline.com Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 56
  • Best Buyo Best Buy introduced a new way to answer customer questions: Twitter Twelpforceo Using 2,900 employee volunteers Best Buy answered 40,000 questions o Not only did this skyrocket over 12 months Best Buy’s twitter following, it also improved employee morale across the company on a very low budgetCasestudiesonline.com Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 57
  • #McDstorieso Became a magnet for criticism of the brand.o “Fingernail in my Big Mac once” and “ordered a McDouble. Something in the damn thing chipped my molar.” o McDonald’s may haveo Launched another hashtag another issue with campaign called #littlethings. #LittleThings: DoubleTree by Hilton recently launched a Promoted Tweet campaign with the same hashtag.Casestudiesonline.com Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 58
  • Pink Ponies Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 59
  • 6 Killer Reasons Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 60
  • Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 61
  • Executives get it94% of executives are using Web 2.0 to boost internal communications Strictly Confidential © 2011 Prescient Digital Media Not For Distribution © 2012 Prescient Digital Media Not For Distribution Strictly Confidential 62
  • The competition gets it87% of organizations have at least one intranet 2.0 tool Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 63
  • Adds ‘tacit’ knowledge & context to2012 Prescient of content. Strictly Confidential © a sea Digital Media Not For Distribution 64
  • New hires expect it Employees under 40 use social media everyday; they expect that the companyStrictly Confidential © 2012for alsoMedia Not For Distribution they work Prescient Digital does. 65
  • Virtually every single knowledge worker under the age of 50 uses social media Strictly Confidential © 2011 Prescient Digital Media Not For Distribution © 2012 Prescient Digital Media Not For Distribution Strictly Confidential 66
  • Q&A Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 67
  • Carmine PorcoGeneral Manager & V.P.Prescient Digital Mediacporco@prescientdigital.comwww.PrescientDigital.comwww.IntranetBlog.comwww.Facebook.com/Prescient-Digital-Mediawww.Twitter.com/intranet2416.986.8800 Strictly Confidential © 2012 Prescient Digital Media Strictly Confidential © 2012Prescient Digital Not For Distribution Not Distribution 68
  • What is Social MediaErik Qualman: http://youtu.be/auiczd4OUms Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 69
  • Provide Technology They Already Use Consumers want to: Business users want to: • Keep informed of what friends are doing • Keep informed of what colleagues are and thinking doing and thinking • Easily tap into their opinions and advice • Easily tap into their opinions and advice • Mobilize them for events and causes • Mobilize them for events and projects • Control what others can see and know • Control what others can see and know about me about me • Tailor the platform with extensions and • Tailor the platform with extensions and applications applications • Tag videos and postings that other people • Tag documents and postings that other should see, filtering out the noise people should see, filtering out the noise • Know which sources and Web sites • Know which sources and Web sites friends use colleagues useSource: Gartner Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 70
  • Social Engagement at HRPA HRPA is the first professional association in Canada to adopt social networking to leverage their diverse member networks Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 71
  • Ongoing Feedbacko 800 members joined within first 30 days of launch; 60 active discussions created across broad subject matter groupso Speechbobble’s Analytics Panel – monitors trending topics, informal leaders and member feedback to inform strategic decision making Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 72
  • Ronald McDonald House Charitieso Launched “Day of Change”, a campaign driving people to donate spare change at McDonald’s restaurantso 150,000 Facebook page fans; 50,000 Twitter followers; 180,000 interactions created on fan pages in 28 dayso Increased online donations in August 2010 by 130% compared to August 2009o E-newsletter subscriptions grew by 748% during the campaigno Total donations received amount to nearly $25 million Source: www.socialmediaexaminer.com 73 Strictly Confidential © 2012 Prescient Digital Media Not For Distribution
  • New ideas at British Telecom (Ideas Jar)o BT Ideas encourages staff to submit ideas onlineo Implemented ideas pay out rewardso Approx 10% of ideas are implementedo 10% of the savings up to a maximum of £30,000o BT paid out £400,000 (about US $700,000) to employees last yearo Saved £100m (US $173 million) over four years Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 74