November 2010                                                           Gleansight                                        ...
Gleansight: Social Media Marketing                                                                                        ...
Gleansight: Social Media Marketing                                                                                        ...
Gleansight: Social Media Marketing                                                                                        ...
Gleansight: Social Media Marketing                                                                                        ...
Gleansight: Social Media Marketing                                                                                        ...
Gleansight: Social Media Marketing                                                                                        ...
Gleansight: Social Media Marketing                                                                                        ...
Gleansight: Social Media Marketing                                                                                        ...
Gleansight: Social Media Marketing                                                                                        ...
Gleansight: Social Media Marketing                                                                                        ...
Gleansight Social Media Marketing
Gleansight Social Media Marketing
Gleansight Social Media Marketing
Gleansight Social Media Marketing
Gleansight Social Media Marketing
Gleansight Social Media Marketing
Gleansight Social Media Marketing
Gleansight Social Media Marketing
Gleansight Social Media Marketing
Gleansight Social Media Marketing
Gleansight Social Media Marketing
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Gleansight Social Media Marketing

  1. 1. November 2010 Gleansight . Social Media Marketing With more than 500 million people on Facebook, and with media outletsContent reporting every day on the brief, sometimes bizarre messages that celebri-Part 1: Topic Overview ties, politicians and corporations send out on Twitter, it’s clear that socialPart 2: Reasons to ImplementPart 3: Value Drivers media has entered the mainstream. Consumer product companies arePart 4: Challenges paying their agencies big money to incorporate social media into theirPart 5: Performance Metrics marketing campaigns. Retailers have moved beyond customer reviews,Part 6: Success StoryPart 7: Vendor Landscape and are giving consumers a much larger role in social selling. And you can scarcely watch a commercial without seeing the iconic Facebook,Sidebars:Survey StatsBenchmark KPIsCore TechnologiesGleanster Numbers Twitter and YouTube icons as part of the message. But the ROI on this effort is still squishy at best. Brands are still trying to determine the value of a Facebook fan, and there continues to be no consistent barometer of success. Given the dearth of reliable data, it’s no wonder that companies Rate & Review are struggling to determine just how much social media marketing is right Related Research for them. And practitioners are left to talk as much about the cost of not Tell a Friend participating in social media marketing as of the value of doing so. ThisNote: This document is intended for individual Gleansight explores what top performing companies are doing – anduse. Electronic distribution via email or by post- measuring – as they make their initial forays into social media marketinging on a personal website is in violation of theterms of use. and how they’re working to achieve their desired business objectives.Entire content © 2010 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
  2. 2. Gleansight: Social Media Marketing 2Survey Stats Part 1: Topic Overview With the phenomenal growth of Facebook and the staggering amount ofThe research findings featuredin this Gleansight benchmark attention paid to Twitter and YouTube, it’s clear that social media marketingreport are derived from the is on a rapid growth trajectory. Every day, established brands gainQ3 2010 Gleanster “Voice footholds on Facebook, lured by the giant audience and the opportunity toof the Customer” survey. communicate with its users. A few particularly aggressive companies have• Total survey responses: 396 begun creating large-scale viral campaigns—asking for customer photos• Qualified survey responses: 284 of their products, for example, or launching cause-based initiatives that• Company size: Very Small (18%); purport to have a larger sense of purpose. Small (31%); Medium (18%); Large (20%); Very Large (13%) Others have begun transacting commerce These days, brands are looking to social media• Geography: North America through Facebook applications and “tabs” marketing to increase customer acquisi- (67%); Europe (15%); Asia/ on their fan pages. Merchants and hospital- tion, advocacy and engagement, as well as Pacific (17%); Other (3%) ity companies have begun jumping on the increase return on marketing investment (i.e., location-based mobile marketing platforms. get consumers to buy more). Think of it as• Industries: Consumer and And some brands have found that they can word-of-mouth marketing writ large because Retail (19%); Technology and drive sales the conversations play Media (25%); Financial services by coddling out in the electronic (15%); Pharmaceuticals and Healthcare (12%); Telecom- bloggers or by directing “Despite the flurry town square. Marketers have long known that munication (4%); Other (25%)• Job levels: C-level (4%); SVP/VP special codes or promotions of activity, social consumers trust the opinion of people (13%) Director (20%); Manager (34%); Staff (19%); Other (10%) to customers who follow them media marketing they know – and even consumers they don’tSample survey respondents: on Twitter. Yet, despite the flurry remains experi- know –far more than they trust the opinion of• Director, Fujifilm Medical Systems of activity, social media marketing mental in nature.” the marketer hawking their goods or services.• General Manager, Genuine Health remains experi- Suddenly, marketers mental in nature, and marketers are making• CEO, HobbyTown USA can participate in the conversation and up the rules as they go. To date there is still affect the way consumers interact with one• Marketing Director, Siemens no consistent toolkit or industry standard to another and with their brands. Today’s social• Manager, Fidelity help marketers figure out how to brand, staff, media tools allow marketers to engage deploy and measure their social media efforts.• Manager, Chevron with customers who are active online and In truth, social media is hardly a new phenom- on mobile devices, in the hope not only of• Marketing Manager, Kohler enon. Companies like MySpace, Friendster securing their business, but also, impor-• CEO, Intercontinental Systems and SecondLife were born, raised cash and tantly, of spurring them to recommend the faded from glory long before Twitter became a brand to others in their network. This form of• Director, Unilever media darling. While indie bands, in particular, social selling is truly revolutionary in that it’s• Vice President, Retail, may have recognized the power of MySpace, enabling marketers to reach consumers they StonehamBank building digital fan bases by giving away never would have been able to reach through their work, launching albums, and sharing traditional push marketing, including email. the experience with online listeners, most Five years ago, a tech-savvy, digitally focused marketers stayed away from early social media company could find satisfied and particu- efforts, which were used after all by young larly unsatisfied customers venting on any consumers who looked askance at brands number of electronic forums, including online Rate & Review that appeared to be trying to encroach on bulletin boards, chat rooms and blogs, but their space. Even Facebook, the 800-pound Related Research the conversations were more isolated and gorilla in social networking, began with modest therefore harder to find. It’s the interconnected Tell a Friend ambitions. It wasn’t until 2006, when it opened nature of today’s social networks and the way the door to everyone – and then, more recently, they broadcast messages, creating permanentNote: This document is intended for individual made it easier for companies to marketuse. Electronic distribution via email or by post- search-friendly records, that make them soing on a personal website is in violation of the there – that brands started paying attention. powerful—and, also, potentially dangerous.terms of use.Entire content © 2010 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
  3. 3. Gleansight: Social Media Marketing 3Benchmark KPIs Part 2: Reasons to Implement Brands have plenty of obvious and some not-so-obvious reasons to addGleanster uses 2-3 key performanceindicators (KPIs) to distinguish “Top social media marketing to their overall communications and marketingPerformers” from all other companies strategy. The prevalence of Facebook and Twitter in their competitors’(“Everyone Else”) within a given dataset, thereby establishing a basis campaigns, the success of some high-profile efforts, and the idea that youfor benchmarking best practices.By definition, Top Performers are should fish where the fish are, clearly are having an impact on marketingcomprised of the top quartile of budgets. But, according to Gleanster research findings, the largest differ-qualified survey respondents (QSRs). entiator between Top Performers and Everyone Else lies in the area of increasing customer engagement: Top Performers place a higherThe KPIs used for distinguish-ing Top Performers focus on emphasis on increasing customer engagement, a nod perhaps to theperformance metrics that speakto year-over-year improvement in lingering inability to put classic ROI metrics on the marketing spend.relevant, measurable areas. Notall KPIs are weighted equally. 87% 90% 93%The KPIs used for this Gleansight are: Most• Improved customer- support effectiveness Compelling• Improved market research Reasons to effectiveness Implement*• Increased customer advocacy Increase customer Increase customer Increase return on advocacy marketing investment acquisitionTo learn more about Gleanster’s * According to Top Performers, based on 284 Qualified Survey Responses to the Q3 2010 Gleanster Voice of the Customer surveyresearch methodology, please clickhere or email research@gleanster.com. Increase customer acquisition. The are far removed from business transactions. basic business premise behind social No doubt, brands will improve measurement media marketing is that organizations can in terms of dollars-and-cents outcomes. extend their customer base by leveraging Increase customer advocacy. Brands are the networks of people who have already well aware of the inherent value of word of “friended” (or “fanned” or “liked” or “followed”) mouth marketing and the importance of having them. Most social media platforms are set satisfied customers share their brand experi- up to automatically push their participants’ ences with others who are or might become ideas, thoughts and comments out to the customers. And since social media platforms people that are connected to them – and are built around the idea of sharing, it stands sometimes to the people who are another to reason that marketers would utilize these step removed. Marketers have long known tools as a vehicle for spreading positive that consumers trust the recommenda- word of mouth. The fact that social media tions of people they know (and even other content is indexed by search engines makes customers they don’t know) more than brand it of particular value over the long-term. messages. Authentic recommendations or referrals from friends/fans can heavily Increase customer engagement. Enticing influence the purchase decisions of others. consumers to interact with the brand through new contact methods provided by social media Increase return on marketing investment. platforms is seen as an important reason Companies and brands have some fairly well- for engaging in a social media marketing established formulas for determining the impact Rate & Review campaign. Increasing customer engagement or effectiveness of traditional marketing efforts. goes hand in hand with increasing customer Related Research They have long histories of measuring the advocacy in that it stresses the importance of open rate, click-through rate and the financial Tell a Friend getting customers to interact with the business success of an email campaign. But the tools in a new and visible way. Customers who make for measuring ROI in social media marketingNote: This document is intended for individual a brand a larger part of their life are likely touse. Electronic distribution via email or by post- largely remain a work in progress. While it’sing on a personal website is in violation of the spend more, become stronger advocates fairly easy to track the redemption rate of anterms of use. and have longer connections to the brand. online coupon, most social media actionsEntire content © 2010 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
  4. 4. Gleansight: Social Media Marketing 4 74% 77% 79% 66% ** Compelling Reasons to Implement* Increase market Increase store Increase customer“Social media exposure/brand awareness and/or website traffic engagement * According to Top Performers, based on 284 Qualified Survey Responses to the Q3 2010 Gleanster Voice of the Customer surveyhumanizes the ** According to Everyone Else, shown only when a notable disparity occurs relative to Top Performers Increase store and/or website traffic. practitioners (or the brands they work for) hip. The connection between a Facebook post It’s true that social media events can havebrand and makes and store traffic is pretty slim, except that it strengthens the relationship with the customer a negative impact on a brand’s reputation. But the way a company deals with a crisisit more real and and might make them more inclined to shop with a company in the future. That said, can exacerbate or defuse the situation. Increase membership in branded online some marketers are finding success withtangible.” delivering traffic-boosting messages inside their social media channels, using sales or customer communities. Branded online communities have had a head start in the customer engagement game. Successful other promotions – particularly messages communities often drive themselves. MembersScott Wilder, ex-General Manager, that are identified as “exclusives” – within recruit others and the search-friendly nature ofOnline Communities, Intuit those messages. Group coupon or shopping the user- generated content tends to be visible. networks have proven to be good customer But customer communities take a lot of work, acquisition tools, and location-based apps and seeing this as a reason to implement social can be used to target shoppers in the media marketing campaigns is an indicator of proximity of a physical store location. how brands struggle with community growth. Increase market exposure/brand Increase customer loyalty. It’s surpris- awareness. It used to be said that any publicity ing that, among Top Performers, customer is good publicity. Now it might be said that any loyalty netted out to be the lowest primary social media mentions are good mentions. It’s factor in a brand’s decision to move into not entirely true, of course. There is a lot that social media marketing. Brands used to talk can go wrong in social media. But brands have about improvement in customer loyalty as a learned that good social media participation big motivator. There are likely many reasons by employees, customers and other advocates for this shift, not the least of which is an can, in fact, build stronger brand awareness. improved understanding of what’s possible. The visible and indexed nature of social media It’s also true that the customers who are means that any customer interaction with a most drawn to a company’s social media brand is a public interaction, and the visibility presence – those that tend to become the of that interaction, through the networks and biggest advocates – are loyal to begin with. through search, can have a lasting impact. Change brand perception. Social media is hot now, but that doesn’t make social media 62% 66% 68% Less Rate & Review Compelling Related Research Reasons to Tell a FriendNote: This document is intended for individual Implement*use. Electronic distribution via email or by post- Increase customer Increase membership in branded Change branding on a personal website is in violation of the loyalty online customer communities perceptionterms of use. * According to Top Performers, based on 284 Qualified Survey Responses to the Q3 2010 Gleanster Voice of the Customer surveyEntire content © 2010 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
  5. 5. Gleansight: Social Media Marketing 5Core Technologies Part 3: Value DriversA successful social media In the rush to Facebook, marketers are discovering that different kindsmarketing effort requires multiple of content drive different kinds of results – and different social networksdisciplines and applications tofully realize the power of social respond in different ways. It was not that long ago that the experts warnedconnections. Following are some that brands could not “sell” in social media, that the audience wouldof the key technology enablers.Social media monitoring tools. rebel, and the social media efforts would fail. We have learned, however,A successful social media marketing that, when done correctly, it absolutely is possible to promote goods andcampaign should be backed by aconsistent, objective and ongoing set services to online fans and friends. As shown in to the FLASH charts inof monitoring metrics. Most monitor- this section, Top Performers are focused most heavily on taking advantageing vendors classify posts basedon whether their tone is positive or of the “social” aspect of social media marketing, indicating a begrudgingnegative, giving some insight intothe general response or perception acceptance of the current state of ROI measurement.of the company. They also measurethe volume of relevant conversationand sometimes the level of consumer 85% 86% 94%engagement or brand advocacy. Thesefactors can help brands adjust their Mostsocial strategy and start to determinewhether their social media efforts are Importantaffecting the overall brand promise.Specialized social media apps. ValueMany brands get started with simpleinteraction-based campaigns that Drivers*are built around content or links. But, Leverage the reach and Identify and engage Give consumers a good reason toincreasingly, brands are investing in multiplier effect of social networks top influencers want to share brand-related contentlarger apps or self-contained socialmarketing vehicles or websites that * According to Top Performers, based on 284 Qualified Survey Responses to the Q3 2010 Gleanster Voice of the Customer surveycan stand on their own or can beembedded into sites, blogs or socialnetworks. Generally more expensive, Give consumers a good reason to want on a small scale. Influencers are a funny breed.these apps give the brand more to share brand-related content. Good Brands should foster a positive relationshipcreative control over the social media community managers have learned over time with them, but should be careful not to “buy”experience and can form the basisfor longer-term or repeat engage- that one of the keys to a successful engage- their influence. Just showing them respect andments. Choose a vendor with a track ment campaign is to provide quality content attention, and giving them early information,record, who can demonstrate that that is relevant to the brand but which does should be enough to keep them involved.they can work in the social environ- not necessarily promote consumption ofments you are interested in, and who Leverage the reach and multiplier effect the brand. Marketers who run social mediawill use metrics to quantify success. of social networks. Social media platforms efforts for companies large and small need work by allowing people to connect and to remember that customers want to take communicate with circles of friends, each with the lead in advocating for the brand. Brands their own circle of friends. These overlapping might point them in the right direction, but and interconnected circles allow users to consumers will be most inclined to interact broadcast their stories to their networks, and with the content if it provides value, solves also allow the information to creep into the a problem, or is just plain interesting. larger networks. Marketers who create interest- Identify and engage top influencers. The ing offers, content or apps for these networks influencers and brand advocates that gravitate can find that the social capital pays off by to a company’s online communities and social sparking a “me too” connection to the brand. media sites are the Holy Grail for marketers. Adjust promotional tactics as needed, Rate & Review These are the people who will tell the brand based on campaign performance. Top story, rally others to the brand’s side, and Performers are outdistancing others by Related Research speak up when the need occurs. With the paying closer attention to the effectiveness of right social media monitoring tools, brands Tell a Friend their social media marketing, and changing can identify these people without engaging in course when necessary. Done right, socialNote: This document is intended for individual social media marketing themselves, but they’ll media campaigns can be pretty flexible inuse. Electronic distribution via email or by post- generally be at a loss to do anything about iting on a personal website is in violation of the scope and design, allowing marketers toterms of use. without joining the social media universe, even shift gears to reflect facts on the ground. InEntire content © 2010 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
  6. 6. Gleansight: Social Media Marketing 6 74% 79% 68% **Core Technologies(Continued) ImportantOnline community platforms.A component of the overall social Value Drivers *media marketing effort, branded onlinecommunities can provide continuedaccess and personalized connec-tions that may be harder to maintain Generate new content Adjust promotional tacticson external networks. Vendors in this and conversation on as needed based on campaign landing pages campaign performancespace should be able to integrate witha brand’s existing registration system, * According to Top Performers, based on 284 Qualified Survey Responses to the Q3 2010 Gleanster Voice of the Customer surveyprovide tools or moderation services to ** According to Everyone Else, shown only when a notable disparity occurs relative to Top Performershelp build the community and maintainorder, and allow users to syndicate fact, because of the two-way nature of most no slam dunk. They require a lot of TLC, andtheir content/participation into and social media, brands can get laurels for are something of a slow build. The challenge,out of other social media channels. adjusting their efforts in the face of criticism frequently, is in keeping the focus on buildingContent/promotion management or a lack of response. Either way, the ability the community long enough to actually buildtools. Social media tools are, by and to modify a campaign to make it more the community. Done correctly, brandedlarge, built to respond to our needto post and share our thoughts now. effective or to draw a larger response has communities can pay off in spades.They are not typically content manage- clear benefits that are not as readily available Integrate social media with other media buysment systems, meaning they lack the in more traditional marketing campaigns. and campaigns. Social media marketing isability to pre-post or re-use content ina database format. An effective social Generate new content and conversation seductive because there’s the perception thatmedia strategy will have to have a on campaign landing pages. Content costs you can do it on the fly – that you don’t needsystem to calendarize the campaign, money, and marketing content can sometimes the kind of planning and back-end supportto repurpose content across multiple come across as, well, marketing content. as you do for email marketing campaigns orplatforms, and to gauge the effective- User-generated content, on the other hand, traditional marketing efforts. More and moreness of any particular message. is generally authentic and is perceived by the marketers are adding Facebook and TwitterCRM integration. audience as trustworthy. This user content mentions to their ads and marketing collateral.Mapping social media activity to CRMsystems will let brands understand the can also make static pages seem alive, The callouts frequently are mere invitationsextent to which that activity is resulting offering a constant stream of changes. Brands to join or follow the brand on those sites. Butin incremental sales lift and affecting need to be willing to take their lumps, though, aggressive marketers are finding ways to bringthe customer purchase behavior. because these unvarnished and sometimes value to the fan for taking the action. They areSimple sharing of content or branding impolitic comments can be off-putting. offering exclusive content, special deals or earlyexposure is unlikely in the near termto provide CRM integration. But information. The comingling of social media Host one or more branded online customercoupon codes that lead to sales will marketing with other campaigns can have the communities. Branded customer communi-allow brands to do some mapping of effect of making the entire brand seem more in ties can be an effective way to gain customersocial handles to their CRM system. line with the sensibilities of today’s consumer. insights, marshal enthusiasm and develop advocates. Communities generally have strong value in natural search. But they are 70% 71% Less Important Value Rate & Review Drivers* Related Research Integrate social media with other Host one or more branded media buys and campaigns online customer communities Tell a Friend * According to Top Performers, based on 284 Qualified Survey Responses to the Q3 2010 Gleanster Voice of the Customer survey ** According to Everyone Else, shown only when a notable disparity occurs relative to Top PerformersNote: This document is intended for individualuse. Electronic distribution via email or by post-ing on a personal website is in violation of theterms of use.Entire content © 2010 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
  7. 7. Gleansight: Social Media Marketing 7 Part 4: Challenges Creating a positive and productive social media marketing experience takes ingenuity, work and a bit of luck. Many companies are taking a leap of faith that, by subjecting their brands to the uncontrolled flow of social conversations, they will earn the respect and admiration of their customers.“Social media But they are learning that even well-intentioned social media campaigns are fraught with danger, that it’s possible to fail, and to fail publicly. Theymarketing is have also learned that while some of the biggest campaigns look easy, they are anything but. As the FLASH charts in this section indicate, mostgoing to blow the brands are still struggling with campaign creation as well as with promotion and tracking.shingles off theroof once people 92% 94% Mostreally figure out Challenginghow to use it.” Aspects*Megan O’Connor, Director, Social Effectively promoting social Creating “viral worthy”Media Marketing, Levi Straus & Co. media marketing campaigns content * According to All Companies, based on 284 Qualified Survey Responses to the Q3 2010 Gleanster Voice of the Customer survey Creating “viral worthy” content. Ever since media campaigns can sell themselves. the first Mentos-meets-Coke video popped Tracking and measuring success. The up on YouTube, social media marketers have explosive growth of social media opportunities been focused on developing the perfect viral has not brought along an equally explosive video or YouTube moment. Problem is, it’s ability to measure the effectiveness of those virtually impossible to predict what content campaigns. And because brands are using will take off in the social sphere. The online a variety of platforms and tools to broadcast audience is not easily taken in by brand their messages, they are finding that they do messages, so marketers are well advised to not have one clear and consistent dashboard create authentic, shareable content (video to monitor success. There is progress being or otherwise), and open themselves up for made, however, and some prominent vendors customer review and commentary. With are introducing increasingly sophisticated luck, they’ll find something that works. But monitoring engines that will help to further more often than not, customer or third-party quantify and qualify social media success. content stands a better chance of going viral. Securing executive level buy-in. Senior Effectively promoting social media executives tend to focus on core business marketing campaigns. As with any new objectives and programs that can bring tool, marketers are finding that they have to measureable results. And many tradi- Rate & Review learn how to build and market their campaigns tional companies are very protective of effectively. The language of social media – brand image, making them leery of the Related Research from the words we use to the way we describe free-wheeling nature of the social Internet. ourselves and our customers – are different Tell a Friend All of this puts social media marketing at a than in traditional media, which makes it disadvantage. The tools are changing fast,Note: This document is intended for individual hard to fit into the cookie-cutter approaches the analytics are in their infancy, and there’suse. Electronic distribution via email or by post- often used for old-school marketing. Theing on a personal website is in violation of the no controlling what someone might say.terms of use. good news is that, when done right, social Wise marketers will seek executive buy-inEntire content © 2010 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
  8. 8. Gleansight: Social Media Marketing 8 76% 78% 83% Challenging Aspects* Making the business Securing executive Tracking and case in terms of ROI level buy-in measuring results * According to All Companies, based on 284 Qualified Survey Responses to the Q3 2010 Gleanster Voice of the Customer survey using metrics that are available. And they value of integrating their campaigns, they are will focus on other tangibles, like customer finding it hard to incorporate the somewhat interaction, in their attempt to secure uncontrolled nature of social interactions executive buy-in. They might also stress into their structured marketing plans. It is the risk of inaction, of not being a part of the no surprise that companies are struggling conversation should something go wrong. with how to adapt to social media marketing Making the business case in terms of ROI. because they have spent generations plotting, As discussed above, the metrics available for refining and pushing their own narrative. assessing social media marketing are not as Securing the right organizational robust as marketers have been accustomed to resources. Figuring out the right organizational for email or other marketing activities. There is structure for a social media marketing effort is significant debate over the value of a Facebook no easy task, in part because it’s impossible to fan or the ROI benefit of a customer engage- compartmentalize social media as a pure disci- ment community that is not big or tied directly pline. It’s part marketing, part PR, part product to sales. Add to that the fact that most social development and part customer service media activity is not mapped into a company’s (among others). In 2010, companies are trying CRM system, and it becomes virtually impos- to consolidate their social media marketing sible to measure effectively. This is starting to efforts into small SWAT teams or centers of change, but it will likely be some time before excellence. But within a few years, they will be we have access to the kinds of metrics that can expected to make social media a part of every- provide a reliable assessment of social efforts. one’s job. In any event, the people running the Integrating social media into the overall social media efforts need to be empowered marketing mix. Gleanster survey respondents to be vocal, persistent and proud. They need point to marketing integration as both a value to have access to those with information, and driver and a challenge to their social media they need the company to be in their corner. marketing efforts, in pretty even numbers. This suggests that while marketers see the 63% 71% Less Challenging Rate & Review Aspects* Related Research Securing the right Integrating social media into Tell a Friend organizational resources the overall marketing mixNote: This document is intended for individual * According to All Companies, based on 284 Qualified Survey Responses to the Q3 2010 Gleanster Voice of the Customer surveyuse. Electronic distribution via email or by post-ing on a personal website is in violation of theterms of use.Entire content © 2010 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
  9. 9. Gleansight: Social Media Marketing 9Gleanster Numbers Part 5: Performance Metrics The science of measuring social media marketing is still a work in7,000,000 progress. As noted earlier, the social media landscape changes every day,Number of “fan votes” that werecast for an M&M’s social media and the shifting ground makes it that much harder to determine whethermarketing campaign in 2009 the social media efforts are meeting the company’s overall business goals. Social media monitoring tools can measure the ratio of positive-to-negative94 sentiment and the volume of relevant conversation. But, as the FLASHPercentage of companies thatregard “creating ‘viral-worthy’ charts in this section show, the top metrics employed by companies do notcontent” as the biggest challenge necessarily correlate to the top reasons they launched their campaigns inwith social media marketing the first place. In fact, Top Performers indicate that their primary reasons81 for implementing a social media marketing campaign are customer acqui-Percentage of Top Performers sition, return on marketing investment and customer advocacy – none of(compared to 70% of Everyone which surface as one of the most commonly used metrics. This will changeElse) who use “consumer engage-ment rate” to track social media as companies demand better metrics from solution providers and as socialmarketing campaigns media activity becomes more closely mapped to their CRM systems.79Percentage of Top Performers 81% 70% ** 86%(compared to 66% of Everyone Else)who view “increase customer engage- Mostment” as a reason to implement asocial media marketing campaign Commonly79 UsedPercentage of Top Performers Metrics*(compared to 68% of Everyone Else) Consumer engagement Audience growth rate - e.g.,who view “adjust promotional tactics rate - e.g., # of click-thrus, # of Facebook fans, Twitteras needed based on campaign registrations, etc., per week followers, etc., per weekperformance” as an important value * According to Top Performers, based on 284 Qualified Survey Responses to the Q3 2010 Gleanster Voice of the Customer surveydriver for social media marketing ** According to Everyone Else, shown only when a notable disparity occurs relative to Top Performers Audience growth rate. The most visible inspired to participate and can be compared metric in almost any social campaign, audience to earlier time periods. But it does not yet growth is easily charted over time and can compare that number with the overall reach of be seen in the number of people who follow the campaign, meaning that there’s no knowing a brand, “like” a brand, take a poll, submit how many people chose not to participate. a picture or share content. A handful of Volume of relevant comments/posts. Top brands have built enormous fan pages on Performers are more likely to measure the Facebook, sometimes through contests, volume of relevant content than Everyone coupons or classic marketing efforts. Else, a sign perhaps of the work involved Customer engagement rate. Another in determining relevance of user content. metric that carries over from email marketing, In most cases, it’s much easier to see how customer engagement rates can be fairly much content is produced overall than it is simple to see. How many people are clicking to narrow down into positive or negative or Rate & Review through a link, completing a registration relevant or not. Measuring customer sentiment process, rating a video or responding to some of social media posts can be a tricky task and Related Research other call-to-action? Top Performers are is an art that is being perfected every day. Tell a Friend monitoring this to a much greater extent than Customer acquisition rate. Customer Everyone Else, indicating that they are going acquisition was the number one reason toNote: This document is intended for individual to the numbers they have in the absence ofuse. Electronic distribution via email or by post- implement a social media marketing campaign,ing on a personal website is in violation of the the numbers they want. Customer engage- yet it fell in the middle of the pack of the topterms of use. ment speaks to how many people have beenEntire content © 2010 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
  10. 10. Gleansight: Social Media Marketing 10 69% 73% 77%61% ** Commonly Used“Integration with Metrics*the brand strat- Customer advocacy Customer acquisitionegy and offline Volume of relevant score - e.g., NPS rate comments/posts * According to Top Performers, based on 284 Qualified Survey Responses to the Q3 2010 Gleanster Voice of the Customer surveymedia is key. If ** According to Everyone Else, shown only when a notable disparity occurs relative to Top Performerssocial media is metrics used. This goes in large part to the disparate tools and platforms that are used will change over time as companies become more adept at creating social programs that to conduct social media marketing efforts, are more closely tied to business goals andsiloed, it will be making it difficult to determine which partici- pants are customers, become customers, as they improve their data integration. Customer acquisition cost. Increasinga one-hit won- or change their purchase behavior. Customer advocacy score. The Net Promoter customer acquisition was cited as the top reason that Top Performers implement socialder. A TV spot Score, popularized in the last decade, delivers a single number used to measure how likely media marketing campaigns, yet customer acquisition costs are measured by only 59%should point to a a consumer is to recommend a product or of these companies. The oft-stated discon- service. While it can be tracked over time, it nect between social efforts and company can be difficult to make a correlation between CRM systems is a likely barrier to successfulFacebook page changes to the score and a specific social media marketing activity, as a consumer’s measurement of customer acquisition cost. Brand awareness/exposure measure.and vice versa. propensity to recommend a brand can be influenced by any number of factors. Social media campaigns work for the most part by facilitating the viral or organic spreadEvery touchpoint Return on marketing investment. The number two reason brands begin a social of a company’s message through the social graphs of the customers who buy into the media marketing campaign is that return message. It’s a generally accepted principleshould link and on marketing investment lags as a metric used to measure the effectiveness of those that this organic distribution of the message will ultimately result in increased brand visibility,point to other campaigns. This is true because a lot of money can be spent on social media oppor- which can be readily measured through aided and unaided brand awareness studies.touchpoints.” tunities that do not tie back directly to the company’s CRM systems, their point-of-sale systems and their core business goals. ThisBert DuMars, VP, eBusiness and Inter-active Marketing, Newell-Rubbermaid 52% 59% 62% Less Commonly Used Rate & Review Metrics* Related Research Brand awareness/ Customer acquisition Return on exposure measure cost marketing investment Tell a Friend * According to Top Performers, based on 284 Qualified Survey Responses to the Q3 2010 Gleanster Voice of the Customer surveyNote: This document is intended for individualuse. Electronic distribution via email or by post-ing on a personal website is in violation of theterms of use.Entire content © 2010 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
  11. 11. Gleansight: Social Media Marketing 11 . Part 6: Success Story Major consumer brands spend millions of dollars every year on sponsor- ship deals as a way of grabbing consumer mindshare during activities that would otherwise seem far-removed from their core go-to-market message and brand promise. Mars Chocolate North America, no stranger to such deals, has a longstanding relationship with NASCAR, which has More Success Stories been supported in recent years by an innovative social media marketing campaign looking to identify the M&M’s Most Colorful Fans of NASCAR. The campaign, now in its third year, has been sweet for the brand, which says it is seeing a higher level of engagement and activity through its integrated marketing approach. The Challenge selected through voting of registered users at NASCAR.com/mostcolorfulfans. The campaign NASCAR has one of the most brand-loyal is supported by Facebook and Twitter feeds fan bases in all of sports and is second only and was expanded this year to allow partici- to the NFL in TV viewership. M&M’s, which pants to upload their photos through Sprint has had a NASCAR relationship for 20 years, smart phones. entered the 2008 season looking for “Mars wanted to Winners in early a fan-friendly way to boost customer leverage the NASCAR rounds get gift cards, while theNote: The original version of this Success Story engagement while employing the fans’ legendary enthu- ultimate winner gets a $10,000 prize andmay have been prepared—and previously pub-lished—by an enabling solution provider. If so,it is edited and reproduced here by permission. social media tactics that were beginning siasm with a campaign is showcased for a year in a displayWhile reasonable efforts have been made toverify the accuracy of the information contained to hold sway. that would connect at the NASCAR Hall of Fame. racing fans to theherein through independent fact-checking, Mars wantedGleanster disclaims liability for any contentthat was developed and submitted by third to leverage The Results M&M brand andparties. Success Stories are selected based the NASCARsolely on the merits of the content as judged The simplicity of the fans’ legendaryby Gleanster’s Research Oversight Committee. contest matchedVendors are not charged a fee for inclusion andno preference is given to vendors based on theirability to purchase other Gleanster products or enthusiasm with a campaign that to one another.” with the natural enthusiasm ofservices. Any questions or concerns regarding would connect the fan base wasthis particular Success Story–or Gleanster’s racing fans to the M&M brand and to oneselection criteria or policies, in general–should a hit for Mars, which found that the sharing another. The company understood that itbe directed to successstories@gleanster.com. and engagement on social media propertiesCase studies may be submitted for publish- needed to have an integrated approach to theing consideration using the Success Stories drove entries, buzz and word of mouth. The campaign, one that involved digital creative,Submission Form. company reports that it saw exponential growth public relations, media and the promotions in engagement (measured in votes), submis- team. And officials knew they would need to sions and media impressions in 2009 over measure reach, engagement and sentiment 2008. Some 5,700 photos were submitted – and gain a clear understanding of how the in 2009, up from about 2,000 photos the campaign would address business goals. first year. About 7 million votes were cast in The Solution 2009, up an astounding 1400% from 2008. Rate & Review The M&M’s Most Colorful Fans of NASCAR “M&M’s Most Colorful Fans of NASCAR Related Research contest is a deceptively simple campaign that contest is unique because it’s 100 takes advantage of NASCAR fans’ passion percent fan generated,” noted Suzanne Tell a Friend for the sport and the most basic social media Beaudoin, vice president of sponsor-Note: this document is intended for individual sharing tools. Participants are encouraged to ships and sports marketing.use. Electronic Distribution via eamil or by post- upload colorful photos depicting their enthusi-ing on a personal website is in violation of theterms of use. asm for all things NASCAR, and winners areEntire content © 2010 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.

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