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

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