Determining the Impact of Customer Relationships:  Social Media Measurement & Analysis
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Determining the Impact of Customer Relationships: Social Media Measurement & Analysis

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How to develop a measurable social media campaign.

How to develop a measurable social media campaign.

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Determining the Impact of Customer Relationships:  Social Media Measurement & Analysis Determining the Impact of Customer Relationships: Social Media Measurement & Analysis Presentation Transcript

  • Determining the Impact of Customer RelationshipsSocial Media Measurement & Analysis
    Karen O’Brien, Partner
    Chris Terschluse, Analyst
    Crimson Interactive Services
    September 2009
  • If Organizations Aren’t Saying Something About Their Company or Brand…. Someone Else Is!
    • The Internet has become a vibrant social space where individuals communicate, collaborate, and share
    • While many consumers remain skeptical of traditional advertising techniques, many embrace the transparency and authenticity of the social web
    “Total US Social Network Users will Grow 44% by 2013”
    - eMarketer
    Source: http://www.emarketer.com/Article.aspx?R=1007252
  • Effective Measurement is Necessary as Social Media Marketing Continues to Grow in Importance and Use
    • In a recent poll by MarketingProfs, 70% of marketers do not believe they adequately measure their own social media campaigns
    • Creating highly measurable campaigns will provide value both strategically and financially
    • Social media marketing requires listening and learning, engaging with customers and building relationships, while measuring the marketing effectiveness of our efforts
    Source: MarketingProfs, ROI Success Stories August 2009
  • Strategy Development is Critical while Standard Social Media Measurement Practices Remain in their Infancy
    Understanding what we want to accomplish & who we want to target, defines the strategic objectives of the marketing strategy & determines the relevant metrics used to measure success
    The Customer
    Who is the target audience?
    What is their online behavior?
    What motivates them to buy?
    The Business (Product/Service)
    What are we trying to accomplish?
    How do we position ourselves?
    What actions do we want them to take?
    Social Media Strategy
    Strategic Business Objectives
    Relevant Success Metrics (KPI’s)
  • Establishing Impactful Relationships via the Social Web Requires a Social Media Marketing Cycle….
    Organizations should consider starting with one or more of the following strategies:
    Engage
    Create an active dialogue with customers and establish impactful long-term relationships
    Measure
    Create measurable objectives based on web analytics & social media metrics to analyze online conversation
    Listen
    Discover real-time insights from relevant, impactful conversations occurring online
    Optimize
  • Listen
    There are a Number of Reasons Organizations Listen to the Online Audience
    The Compliment
    The Crisis
    The Expressed Need
    The Complaint
    The Thread
    The Competitor
    The Audit
    The Crowd
    The Influencer
    The ROI
    Source:http://www.radian6.com/blog/80/top-10-reasons-brands-should-listen-to-social-media/
  • Listen
    Listening to the Internet as a Real-time Online Focus Group Can Reveal:
    • Insight into satisfaction through online sentiment
    • Customer demographics and segmentation
    • Share of conversation and brand health
    • Customer needs, desires, brand associations, and brand loyalty
    • Competitors actionsand consumer response
    • Opportunities such as product ideas, product improvements, and market opportunities
    Source: Nielsen Global Online Survey 2009
  • Listen
    Begin Listening by Identifying Relevant Conversations Across Multiple Components of the Social Web
    • Communication Platforms
    • Blogs
    • Micro-Blogs
    • Social Networks
    • Social Network Aggregation
    • Event Networks
    • Collaboration Tools
    • Wikis
    • Social Bookmarking Sites
    • Social News Sites
    • Opinion Sites
    • Multimedia
    • Photo Sharing Sites
    • Video Sharing Sites
    • LiveCasting Sites
    • Audio & Music Sharing Sites
    • Reviews/Opinions
    • Product Reviews
    • Q & A
    • Employer Reviews
    • Entertainment
    • Media & Entertainment platforms
    • Virtual Worlds
    • Game Sharing Sites
  • Measure
    Marketers Should Measure Both Conversational Data as well as Traditional Web Analytic Data
    Web Analytics:
    Traffic, unique visitors, click rate, bounce rate, inbound links, click through path, time spent on site, & number of subscribers
    • Social Media Analytics:
    Satisfaction, product reviews, motivation, brand positioning, consumer opinions, unmet needs, customer demographics & segmentation
    Source: http://www.visibletechnologies.com/solutions/trucast.php
  • Traditional Web Analytics ProvideAnswers to Questions About the Media
    Measure
    How many visitors came to the site?
    How long did they stay?
    Where did they go?
    Where did they come from?
  • Traditional Web Analytic Tools Collect DataAbout Use of Individual Web Pages
    Measure
    Source: http://www.webtrends.com
  • Social Media Analytics Provide Answers to Questions About the Audience
    Measure
    Who are they?
    What are they talking about?
    Why is it important to them?
    Where did they hear the message?
    How did they share the message?
    How engaged are they?
  • Social Media Analytic Tools Collect Conversational Information Across the Social Web
    Measure
    Source: http://www.radian6.com
  • Measure
    Analyzing the Rich Data Set Provides Valuable Insight into the Target Audience
    Number of Posts & Online Sentiment by Topic or Product
    Time series charts measuring online conversational activity and buzz
    Tag clouds identify brand associations, related topics/trends & discussions
    Share of voice online among competitors
    Sources: http://www.visibletechnologies.com & http://www.radian6.com
  • Engage
    Gaining a Deeper Understanding of the
    Online Audience Leads to Effective Relationship Building
    “Companies that are both deeply and widely engaged in social media surpass their peers in both revenue and profit performance by a significant difference” - Wetpaint/Altimeter Group ENGAGEMENT db Study 2009
  • Engage
    Identify and Target Connections with Online Influencers to Begin Engaging the Market
    Consumer technographics reveal segments or touch points among the online community
    Find the sources of influence in your market: forums, blogs, videos, social networks, Twitter etc.
    Determine online influencers to utilize word-of-mouth marketing and engage the target audience
    Provide influencers with relevant content and allow them to spread messages into the online community
    24%
    37%
    21%
    51%
    73%
    18%
    Source: http://blogs.forrester.com/groundswell/2009/08/social-technology-growth-marches-on-in-2009-led-by-social-network-sites.html
  • Benchmark Against Previous Tactics to Develop More Effective & Impactful Engagement Strategies
    Optimize
    Tracking changes in the level of content engagement & syndication over time, allows marketers to optimize social media marketing
    Marketers can work to adjust their content strategy to increase interaction on their website
    Marketers can discover optimal methods and locations for seeding content by measuring spread of shared or viral information
  • Optimize
    Track interaction through actionable items such as RSS subscriptions, social bookmarks, tags, diggs, downloads, uploads, newsletter subscriptions etc.
    The Conversational Index (ratio of blog posts to comments and track backs) offers valuable insight into the effectiveness of a content strategy by subject or a topic of conversation.
    Metrics for word-of-mouth spread of shared content:
    • Social Velocity – (Distance/Time) Rate a message travels over a given time
    • Direction – Where the message is heard/discussed and who’s listening
    • Amplitude – The size of the conversation around the brand/product
    • Period – The duration of the conversation around the brand/product
    Source: YouTube Analytics
    Tracking Metrics of Interaction & Syndication Provides Direction for Social Media Optimization
  • The Sales ROI of Social Media Marketing May Be Determined by Understanding the Effect of the Web’s Quantitative & Qualitative Impacts on Key Business Outcomes and Objectives
    • Have sales increased over Q1?
    • What is the change in online sentiment?
    • What are people saying about your products?
    • What kind of customer evidence exists?
    • What web content has led to sales conversions?
    • What was the response for viral efforts?
    • How many Facebook fans or Twitter followers have made a purchase online?
    • How has an increase in online voice impacted sales?
    • What are the conversational trends that are impacting sales?
    • What engagement efforts were used to cause change?
  • Through Careful Benchmarking, Sales Trend Analysis, & Cost Analysis, Marketers Can Assess the Bottom–Line Impact of Relationships
    • Cost Reduction – improved efficiency for research & development, service & support teams, problem solving,or internal communications
    • Reach (Breadth) - Increasing sales revenue by increasing net new customer count
    • Reach (Depth)- Increasing sales revenue by helping customers buy deeper into the product line
    • Frequency- Increasing sales revenue by shortening the time interval between transactions
    • Yield - Increasing sales revenue by driving customers to increase their average per transaction spending
    ROI can be determined by layering data sets together, linking changes in web and social media measurements to their impacts on sales metrics
    Establishing KPI’s around reach, engagement, and influence metrics, will provide quantitative & qualitative insight into key business outcomes such as sales, market share etc.
    Financial Impacts of Social Media Marketing
  • Organizations Can Leverage IndividualComponents of Social Media Marketing
    Engage
    Create an active dialogue with customers and establish impactful long-term relationships
    Measure
    Set objectives based on web analytics & social media metrics to monitor, analyze and track those conversations
    Listen
    Discover real-time insights from relevant, impactful conversations occurring online
    Optimize
  • Listen
    Mini®Listens & Uses Consumer Insight to Position It’s Marketing Efforts
    CHALLENGES
    • BMW’s Mini Cooper faced increased competition in 2006 when competitors Volkswagon and Honda entered the small-car segment with new models
    • Mini needed to keep the brand relevant without the release of a new model or addition of new features
    SOLUTIONS
    • Monitored online conversation around the Mini brand to gain insight into consumer attitudes and behavior
    • The Mini marketing team discovered that owners of the car considered themselves a an exclusive club
    • Marketing efforts were shifted towards Mini owners rather than prospective buyers in hopes to spread word-of-mouth by energizing their influential car owners.
    RESULTS
    • Between February and August 2006 a pattern emerged: when online promoter activity increased, sales increased
    • Mini sales only declined 4% - which was a considerably good for the tough year
  • Listen
    Salesforce.com Taps Consumer Insight to Improve Product Development
    CHALLENGES
    Salesforce.com’s on-demand services must constantly be updated to evolve to meet rapidly changing customer expectations
    Developers and marketers within the company generally disagreed on new features, slowing product development
    SOLUTIONS
    Created IdeaExchange, an online community platform which allows customers to submit ideas
    IdeaExchange functions as a social news site, in which members can submit and then vote on ideas, allowing the best ideas rise to the top
    RESULTS
    The IdeaExchange has generated over 10,000+ ideas
    Salesforce.com was able to release 4 new updates in 2007 which include over 300 new features, compared two releases in 2006 with half as many features
  • Linksys Support CommunitiesDeliver Significant Savings
    Measure
    CHALLENGES
    Linksys needed to develop an innovative approach to contain support costs while still offering responsive customer service
    SOLUTIONS
    Linksys introduced a unique online customer support community that includes a self-support knowledge base “Ask Linksys” and other various support channels
    Dedicated a staff to closely monitor the community and answer any questions that community peers could not solve
    RESULTS
    Four million users visit Linksys’ support community each month to exchange ideas, tips and information
    3,000 new threads are generated each month, 1,000 of which moderators are able to answer
    An estimated 120,000 cases a month are answered through peers and Ask Linksys
    Email support was discontinued entirely, with no negative reaction from consumers
    Linksys has been able to save millions of dollars in support costs
  • Engage
    Dell Turns to Blogger Outreach and Twitter to Create a Dialogue
    CHALLENGES
    In June 2005, Dell faced a negative blog storm around the company from thousands of consumers dissatisfied with their computer products and customer service
    Initial online sentiment was at an all-time high of 49% negative
    SOLUTIONS
    Dell closely monitored conversation around their products and service
    Technicians were dispatched to reach out to complaining bloggers to solve their problems
    Created Direct2Dell, an extensive community and blog portal, to establish a direct dialogue with customers
    Established over 80 branded Twitter accounts
    Utilized URL tracking in order to tailor and optimize offerings and products sold via Twitter
    OUTCOMES
    Negative online sentiment dropped to only 22%
    Direct2Dell is ranked by Technorati in the top 700 amongst corporate blogs
    Direct2Dell receives over 5 million unique visitors a month
    The Dell Outlet Twitter account has reached 1 million+ followers and generated over $3 million in revenue
  • Engage
    Microsoft Uses Social Media to Generate Awareness for a Product Launch
    CHALLENGES
    In preparation for the launch of Microsoft’s new product Windows 7, Microsoft wanted to establish a direct dialogue with IT professionals and those who were unsure of the new technology. Crimson worked closely with Microsoft to identify and engage the target audience with a dedicated team of social media marketers.
    SOLUTIONS
    The team began social media monitoring, identifying relevant conversations and influencers among the online community
    The @MSSpingboard Twitter account was created, supporting multiple languages
    Used Twitter to actively engage IT pros, answering questions and providing links to a number of Windows 7 related websites and a TechNet community portal
    Twitter feedback is utilized to optimize content creation and distribution
    OUTCOMES
    After only a few months the number of engagements per week have reached between 1,000-1,200 (a significant increase from an initial 40-60)
    @MSSpringboard has reached over 6,000+ followers
    Web traffic to related Windows 7 sites has significantly increased
    Source: MarketingProfs, Social Media ROI Success Stories
  • Questions? Please contact:Crimson Consulting4970 El Camino Real, Los Altos, CA 94022650.960.3600 www.crimson-consulting.com
    Karen O’Brien
    Partner, Interactive Services
    415.720.6859
    kobrien@crimson-consulting.com
    T: @bondjanebond