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Setting up a Social Media Measurement Program - Dispelling #SMROI Myths & Case Studies by @DrNatalie
 

Setting up a Social Media Measurement Program - Dispelling #SMROI Myths & Case Studies by @DrNatalie

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Wondering how to set-up a social media measurement program? This presentation walks you through some social media ROI myths. It explores why creating a business case is more important than ever if you ...

Wondering how to set-up a social media measurement program? This presentation walks you through some social media ROI myths. It explores why creating a business case is more important than ever if you want to keep or increase your social media budget - that's because the pragmatists (Early Majority) want to understand how social media is moving the needle on traditional business metrics.

For most people, while we know social media is here to stay and something that companies pretty much need to do, few are clear on where the real business value comes from.

Often times people present metrics or KPIs (Key Performance Metrics) as their ROI. ROI is not a metric. It's a comparison of the benefits vs the costs of doing something. Costs tend to be made up of the costs of people, process and technology. It's the benefits that most people find more difficult to give attribution to and why more people are unsure of how to calculate social media ROI. This is something that I help companies understand.

This presentation uses case studies of the comparison of the costs vs. the benefits of using social media monitoring.

The case studies include examples from:
• Insurance Company who wanted to look at the effectiveness of an advertising campaign vs. a competitors campaign

• A craft company who creates products for scrap booking-type crafts; they wanted to look at product development & the effectiveness of their marketing

• A company that creates medical devices for diabetes & insulin injections who wanted to look at the effectiveness of their product launch and marketing

• A healthy kid snack company who wanted to examine a product launch and their product marketing

The technology used to do the evaluations was Crimson-Hexagon.

For more information or help with evaluating your social media initiatives you can find me at www.DrNatalieNews.com or on Twitter at @drnatalie

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    Setting up a Social Media Measurement Program - Dispelling #SMROI Myths & Case Studies by @DrNatalie  Setting up a Social Media Measurement Program - Dispelling #SMROI Myths & Case Studies by @DrNatalie Presentation Transcript

    •     By Dr. Natalie Petouhoff @drnatalie www.drnatalienews.com/blog   Real Social Media Monitoring Case Studies   Demystifying the ROI of Social Media  
    • This  presenta,on  is  about  how  to  set-­‐up  a     measurement  programs   to  calculate  the  value  ROI  of  Social  Media   And  get  more  business  value     out  of  social  media….     If  you’d  like  help…     Contact  Dr.  Natalie  Petouhoff     www.DrNatalieNews.com     @drnatalie  
    • 3 Agenda • Look at ROI Myths   • Set-up a social media measurement program   • Calculate business impact & ROI   @drnatalie
    • •       Learning is the desire to discover new things We are amazed by new things… @drnatalie
    • •        @drnatalie It’s the new shiny object And Social Media? @drnatalie
    • But the amount of information – can feel like an insurmountable blur @drnatalie
    • It can generally be useless @drnatalie
    • Today’s goal is to… Provide… •  Marketers •  Brand Managers •  Product Managers •  Consumer Insights Teams & •  Market Research Professionals w An understanding of the benefits of: •  Having deep, real-time insights •  Using insights to make business decisions & •  Being able to be an invaluable resource to CEO- suite@drnatalie
    • ssss   To TAKE THE CHAOS TO ORDER Using context @drnatalie
    • 10 Business As Usual Executives want to know what the business value of social media is @drnatalie
    • WHERE  ARE  WE   WITH  RESPECT  TO  BEING  ABLE    TO  CALCULATE  ROI  OF  SOCIAL  MEDIA?   Most  marketers  indicate  social  media  measurement  is  a  high  priority  &     48%  feel  pressure  to  report  qualified  outcomes  of  social  media.  
    • Less  than  20%  of  marketers     can  calculate  the  ROI  of  Social  Media   MARKETERS  ARE  UNSURE  HOW  TO   CALCULATE  SOCIAL  MEDIA  ROI  
    • Some  brands  forge  new  ground  by  ac,vely  making     social  media  part  of  their  cultural  DNA.     SOCIAL  IS  JUST  IN  SOME  BRANDS’  BLOOD   OTHERS  WANT  PROOF     BEFORE  THEY  TAKE  THE  LEAP  
    • SOCIAL  MEDIA  ADOPTION  HAPPENED  QUICKLY   Companies  jumped  into  social  media  without  extensive  ROI  calculaRons       There  wasn’t  any  real  business  analysis.      It  happened  because  the  boss  said  so,  or  because   a  social  media  PR  disaster  could  cost  much  more.       Examples:  
    • ARE  YOUR  SOCIAL  MEDIA   EFFORTS  WORTH  THE  MONEY?   Jus,fying  the  business  case  for   listening  &  engaging  on  social  media   is  a  BIG  ques,on.      
    • BUT  IS  CALCULATING  SOCIAL   MEDIA  ROI  EVEN  POSSIBLE?   Skep,cs  think  social  media  is  too  “fluffy”  to   adequately  measure  return  on  investment  (ROI)  
    • Misconceptions of ROI •  That’s funny •  But ROI is not obvious to everyone •  And your boss would like a number @drnatalie You may have heard…   “Would you calculate the ROI of your mom or your pants? Then why would you calculate the ROI of social media? It’s obvious!” http://www.flowtown.com/blog/what-is-the-roi-of-your-mom @drnatalie
    • Social  Media  Myth  #1   “Social  media  ROI  cannot  be   calculated  because  there  are   too  many  unknowns…”  
    • Social  business  is  s,ll  business…   …and  the  business  of  business  is   increasing  shareholder  value.   TRUTH  IS…  
    • WHAT  IS  ROI?    A  NUMERICAL   VIEW  OF  STRATEGY   And  high  ROI  means  execu,ve  approval   for  your  ini,a,ve.  
    • Enhanced   Brand   protec,on…   BeXer   Consumer   Insights…   Faster  lead   genera,on/   increased  lead   conversion  rates   Reaching  PR   objec,ves   faster,  beXer,   cheaper…   Increased   awareness,   reach,  relevance,   engagement…   Reduc,on  in  call   center  costs/   increase  in   customer  revenue   Decrease  in   customer  churn/   inc  customer   life,me  value   DOES  YOUR  STRATEGY  INCLUDE  BUSINESS  FUNDAMENTALS   LIKE  COST  SAVINGS  &  REVENUE  GENERATION…   If  your  strategy  includes…   Social  media  ROI  predicts  if  you’ll  reach  the  goal…  
    • Social  Media  Myth  #2   “Would  you  calculate  the  ROI   of    pu^ng  phones  on  every   desk  in  your  company?     smROI  doesn’t  have  to   calculated!  ”  
    • Except  businesses  do…     Evaluate  produc,vity  benefits  vs.  costs.           And  also  the  systems  needed  to  support  the   business  ac,vi,es.       HMMM….  
    • TRUTH  IS…   There  was  a  day  when…     Secretaries  answered  the  phones   and  typed  EVERYTHING  for   workers.     Along  came  phone  switches  and   desktop  computers…     Someone  did  ROI  calcula,ons  for:     Ge^ng  a  company-­‐wide  phone   switch  and  phones  on  every  desk   top.  (Ask  Nortel  and  Avaya…)     And  a  computer  on  every  desk.     And  apps  to  get  your  work  done  -­‐-­‐   like  email,  word  processing   programs.  
    • Social  Media  Myth  #3   Metrics  =  ROI  
    •     KNOW  WHAT  ROI  IS  AND  ISN’T   Many  people  mistake  social  media  data,  metrics  and   Key  Performance  Indicators  (KPIs)  for  ROI       Metrics  are  used  to  measure:  Reach,  Relevance,   Shares,  Likes,  Engagement,  Purchases     But  that’s  NOT  ROI        
    • COLLECT  SOCIAL  MEDIA  DATA,   METRICS  &  KPIS   Website  analy,cs  and  marke,ng  automa,on  data   help  provide  insight  into  what  you’re  doing  right  &   how  you  can  improve.  
    • TRUTH  IS…   Metrics  are  the  like  ingredients  in  a  good  recipe.     They  go  into  the  ROI  calcula,on,   but  they  aren’t  the  finished  dish.  
    • Misconceptions of ROI… There’s a change in metrics!! • We have 500 more “Likes” • 10X click-thru rate on “Buy Now” button • $5M in annual support savings & sales advocacy • Viral videos increased company sales +700% • Social microsites secured 1,000,000 fans and a 10% increase in same-store sales E I have an ROI!! e Note to self: Metrics are necessary… But they are not ROI @drnatalie
    • ROI  VS.  METRICS   Ac,vity  Metrics     #  of:   News  Releases   Media  Interviews   Analyst  Briefings   Blogger  Engagements   Blog  Posts   Video  Posts   Podcasts   Web  Site  Page  Edits   Reach  Metrics     #  of:   Earned  Media  Placements   Earned  Media  Impressions   Paid  Media  Impressions   News  Release  Downloads   Analyst  Report  Men,ons     Relevance  Metrics   #  of:   Key  Message  Penetra,on   Earned  Media  Share   Share  of  Conversa,on   Word  of  Mouth  Volume   Click-­‐Through    Volume  /  Rate     Return  on  Investment   •  Earned  Media  Value  vs.  Marke,ng  Spend   •  Lead  Value  vs.  Marke,ng  Spend   •  Brand  Equity  Growth  vs.  PR  Spend   •  Focus  group  vs.  Social  Media  Monitoring  or  Community  
    • ROI  IS  LIKE  LOOKING  AT   AN  ESCHER  DRAWING   It’s  a  complexity  issue       •   Tradi,onal  business  goals  &  metrics   •   Social  media  business  goals          and  metrics   •   How  social  media  affects          tradi,onal  business  
    • Myth #4 “ROI is too difficult because I’m not a “math” person.” @drnatalie
    • Real-world Examples   @drnatalie
    • Analyzed online conversations: • Their brand • Key competitor Ran nat’l ad campaigns & wants to understand: • Effectiveness of messages and • Drivers of consumer purchase intent Case Study: Major Insurer Advertising Effectiveness & Competitor Evaluation @drnatalie
    • Insurer Ad Effectiveness • Insurer’s ad campaign is liked • Didn’t generate conversation about buying or switching insurers @drnatalie
    • Insurer Ad Effectiveness • Insurer’s ad campaign is liked • Didn’t generate conversation about buying or switching insurers • Competitor ad campaign is more divisive @drnatalie
    • Insurer Ad Effectiveness • Insurer’s ad campaign is liked • Didn’t generate conversation about buying or switching insurers • But spurs a conversation trend related to purchasing • Competitor ad campaign is more divisive @drnatalie
    • Conclusion of social media monitoring • Both campaigns generate healthy “buzz” • But positive sentiment doesn’t reflect intent to purchase • Using context avoids misinterpreting positive sentiment for a social buying gesture- intent to purchase @drnatalie
    • ROI of social media monitoring ROI = Benefits - Costs x 100 = Percentage Return on the Investment Costs What is the cost? •  People- to do the analysis •  Process- process to compile the information •  Technology- social media monitoring tool What is the benefit? •  If the commercial drove sales? •  Number of leads? •  What is a lead worth? •  Number of lead conversions? •  What’s a sale worth? @drnatalie
    • Case Study: Craft Company Product Development & Marketing Wants to understand: • What topics dominate craft-related conversations? • Is marketing having the desired effect? • What’s lacking in the product line and accessories? @drnatalie cccccccccc
    • Identified New Product Opportunities Discovered opportunity to develop more male-centric product line & accessories Consumers’ expressed strong desire for: • More & better supplies & accessories • Improved access to purchase those accessories @drnatalie
    • •  In-house Research •  Quickly and cost effectively identifies new product & market opportunities •  Prompts development of new product accessories •  Enables additional sales •  Expands market share •  Marketing •  Gained increased confidence leveraging social-media •  Confirmed effectiveness of current messaging and promotional approach Conclusions of social media monitoring @drnatalie
    • ROI of social media monitoring ROI = Benefits - Costs x 100 = Percentage Return on the Investment Costs What is the cost? •  People- to do the analysis •  Process- process to compile the information •  Technology- social media monitoring tool What  is  the  benefit?     •  What  does  it  cost  the  company  to  go  to  market   with  a  product  that  isn’t  what  customers  really   wanted?   •  What  would  this  type  of  market  research   normally  cost  the  company?   •  How  long  would  it  normally  take  to  get  that  kind   of  feedback?  What’s  the  general  cost  for   product  dev  to  launch  a  product?   •  What’s  the  value  of  finding  a  new  product  to   provide  their  market?   •  What  was  the  value  in  revenue  of  the  new   products/  accessories?   •  What’s  the  value  of  key  messaging  that  works?   Higher  lead  conversa,on  rate?     @drnatalie
    • Case Study: Medical Device for Diabetes & Insulin Product Launch Marketing • What core messages will resonate most with these consumers? • How do patients discuss the complexities of treatment & control? • What is the significance for the new product launches? Wants to understand diabetes & insulin: @drnatalie
    • Lifestyle Consumers’ Concerns Top Conversations Lifestyle   Treatment Success   Support   Device comments? LOWER   @drnatalie
    • Opportunity for brand to: • Get more engaged • Become trusted-partner • Create a online Community for • Advice • Recommendations • Shared-support Conclusions of social media monitoring @drnatalie
    • ROI  of  social  media  monitoring   ROI  =  Benefits  -­‐  Costs  x  100    =  Percentage  Return  on  the  Investment                              Costs     What  is  the  benefit?     •  What’s  the  value  in  knowing  what  to  put  the  emphasis  of   content  online?   •   I.e..,  to  create  an  editorial  calendar  that  has   content  that  specifically  addresses  why  people   might  not  use  their  medicine   •   And  which  means  that  don’t  feel  as  well  and  they   don’t  live  as  long  or  buy  the  medicine-­‐  which   affects  sales   •  What  is  the  value  of  becoming  a  trusted  resource  for   pa,ent  concerns?  Enhanced  brand  trust?   •  Did  the  online  community:   •   Deflect  any  calls  to  the  call  center?   •  Increase  the  efficiency  or  effec,veness  of  the  calls?     •  Did  the  company  use  the  content  in  the   community  to  update  their  FAQs  or  knowledge   base  which  helped  self-­‐service?     What is the cost? •  People- to do the analysis •  Process- process to compile the information •  Technology- social media monitoring tool @drnatalie
    • Case Study: Healthy Snacking & Kids Campaign Planning: Product Launch & Marketing Wanted to know the nature of online conversations: • Concerns parents have providing kids a healthy diet • What factors drive purchase decisions and habits? @drnatalie
    • “Healthy” in Kids Snack Foods: More Effectively Resonate with Consumers NutriRon   Allergies   Top Conversations Convenience   Taste   Not as High   @drnatalie
    • Opportunities for Brand: •  Better launch messaging •  Product packaging • On-going campaign messaging Conclusions of social media monitoring @drnatalie
    • ROI  of  social  media   ROI  =  Benefits  -­‐  Costs  x  100    =  Percentage  Return  on  the  Investment            Costs     What  is  the  benefit?     •  What’s  the  cost  of  market  research?   •  Focus  group  of  12  people  =  15K     •  How  many  would  you  need  to  do  to  get   the  same  volume  of  content?   •  12  x  $15K  =  $180,000   •  What’s  the  value  of  targe,ng  the   message  for  a  campaign?   •  What’s  the  value  of  being  able  to  run  an   AB  test  of  taste  vs.  allergies  to  see   which  one  really  gets  the  most   responses?   ROI  of  social  media  monitoring   ROI  =  Benefits  -­‐  Costs  x  100    =  Percentage  Return  on  the  Investment                              Costs     What is the cost? •  People- to do the analysis •  Process- process to compile the information •  Technology- social media monitoring tool @drnatalie
    • How to Set-up A Social Media Measurement Program 6. Hone the analysis / teach the system 7. Analyze the information 8. Create appealing presentation of data 9. Present information to stakeholders 10. Take action on the data & repeat! @drnatalie How  to  Mone,ze  Facebook   With  Social  Commerce   By  Dr.  Natalie   1. Get executive buy-in & support 2. Choose Staff 3. Determine your business goals •  Product Development •  Product Launch •  Product Marketing… 4. Choose a social media monitoring system 5. Start listening to online conversations
    • Wayne St. Amand Vice President, Marketing
    • SOCIAL MEDIA IS EVERYWHERE, AND EVERYONE IS USING IT. WE ANSWER THE QUESTIONS.
    • 1.75 BILLION POSTS PER WEEK 100+ BILLION POSTS TO DATE 250+ MILLION POSTS PER DAY
    • MASSIVE OPPORTUNITY NOT FULLY LEVERAGED BY MOST •  Social media is the largest source of unfiltered information ever available about how consumers truly think and feel •  The vast majority of companies have yet to take advantage of this intelligence to influence their business decisions Achieving Social Intelligence The management and analysis of customer data from social sources, used to activate and recalibrate marketing and business programs.  
    • SOCIAL INTELLIGENCE CREATES ACTIONABLE INSIGHTS True Social Intelligence Delivers •  Consumer insights to drive business success –  Greater marketing effectiveness –  On-target product planning –  Deeper competitive insights –  Understand purchase triggers However, most of today’s tools do a terrible job of helping you achieve true Social Intelligence
    • MOST SOCIAL MEDIA MONITORING IS BROKEN Keywords and semantics don’t work well in social media •  Traditional tools lack the ability to understand context •  A computer cannot replace human judgment •  Human analysts cannot scale or provide consistency •  Predefined rules cannot support the dynamic nature of the social media conversation •  Surface-level monitoring lacks accuracy and deep insight NLP Semantic Search Manual-coding Keyword Sentiment Monitoring
    • 59   THE CRIMSON HEXAGON FORSIGHT® PLATFORM
    • Scalable Accurate Replicable A REVOLUTIONARY APPROACH Context Nuance Judgment
    • Posi,ve   Nega,ve   23%  66%   Major  Automo@ve  Brand   SENTIMENT ALONE IS INCOMPELTE 102,784  men,ons   11%   Neutral   11%   9%   18%   9%   11%   8%   11%   12%   11%   Love  Chevy   Legendary   Want  One   Looks  &   Design   Performance  Great  Business  Maintenance   Prefers   CompeRtor   Asking  advice  
    • ANALYTICS BEYOND SOCIAL CustomerFeedback MarketResearch SocialWeb FacebookPages PROPRIETARY ONLINE
    • GLOBAL CONVERSATION ‫اﳋﻴﺮ‬ ‫ﺻﺒﺎح‬ GrüßgoX 早上好 hej bonjour Γεια  σου selamat  pagi konbanwa 안녕하세요 zdravstvuyte merhaba  selam boas sawa  dee-­‐kanamaskar
    • ADDITIONAL RESOURCES: Request an Online Demo: http://www.crimsonhexagon.com/products/request-a-live-demo Customer Case Studies: http://www.crimsonhexagon.com/customers/#casestudies Overview Video: http://www.crimsonhexagon.com/products/overview-video/ Data Sheets & White Papers: http://www.crimsonhexagon.com/products/whitepapers/
    • For  more  informa,on  on  how  to  calculate     the  ROI  of  Social  Media   Or  get  more  business  value  out  of  social  media….     Contact  Dr.  Natalie  Petouhoff     www.DrNatalieNews.com   DoctorNatalie@gmail.com     @drnatalie