Transcript of "Determining the Impact of Customer Relationships: Social Media Measurement & Analysis"
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 />
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
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 />
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
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</li></ul>Source: MarketingProfs, ROI Success Stories August 2009<br />
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 />
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 />
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 />
Listen<br />Listening to the Internet as a Real-time Online Focus Group Can Reveal:<br /><ul><li>Insight into satisfaction through online sentiment
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 />
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 />
Traditional Web Analytic Tools Collect DataAbout Use of Individual Web Pages <br />Measure<br />Source: http://www.webtrends.com<br />
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 />
Social Media Analytic Tools Collect Conversational Information Across the Social Web<br />Measure<br />Source: http://www.radian6.com<br />
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 />
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 />
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 />
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 />
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
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</li></ul>Source: YouTube Analytics <br />Tracking Metrics of Interaction & Syndication Provides Direction for Social Media Optimization<br />
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?
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?</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
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</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 />
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 />
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
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
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.</li></ul>RESULTS<br /><ul><li>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 </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 />
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 />
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 />
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 />
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 />email@example.com<br />T: @bondjanebond<br />
A particular slide catching your eye?
Clipping is a handy way to collect important slides you want to go back to later.