Social Media Measurement The Why’s and How To’s @eyelona Ilona Olayan www.socialstrategy1.com
Evolution of Online Marketing Relationship Value: Web as a relationship management platform Primary Goals: Engaging prospects and customers outside of their website Secondary Goals: Lead generation, drive traffic, thought leadership and branding Measurements: Cost of sales, customer retention, brand penetration, measurement from interaction/direct results stage Marketing tactics: Video communities Two-way ads Messaging connections using trigger marketing Successful tactics from direct results stage Experimentation Value: Web as a promotional vehicle Primary Goals: Trial of a new media concept, gain eyeballs, build brand and drive awareness Measurements: Cost per impression Marketing tactics: Branding – buttons, banners Email – newsletters, list rentals 3 Direct Results
Value: Web as a direct results platform
Primary Goals: Drive traffic and lead generation
Secondary Goals: Thought leadership and branding
Measurements: CPL, CPC, brand measurements confirmed through surveys
Lead gen – white papers, webcasts
Branding – microsites
Email – list rentals
Consider… Social networks and blogs are the 4th most popular activity…ahead of personal email 82.5 million people created online content in the US alone in 2008 – 116 million this year and growing 71 million on social networks 21 million posted blogs 15 million uploaded videos 11 million participated in virtual worlds Yelp! had 38 million unique visitors in August and 12 million reviews to date 87% trust peer recommendations 6 Source: eMarketer
Fiduciary Responsibility Social media strategy because it touches every facet of your business Your company’s success or failure will be largely dependent on your social media success. So what are the steps that companies need to take in social media? There are 4 primary ones: Listen: What is being said about us? Learn: After listening you can then join and contribute to the conversation React: This means what are you doing about it what is being said? Are you improving your product or service based on this feedback? Sell: All of the first three steps contribute to your ultimate goal of selling more! 7
According to McKinsey (April 2010): “The rewards of pursuing excellence in word-of-mouth are huge, and it can deliver a significant competitive edge few other marketing approaches can match” “It’s the most disruptive factor in marketing” “Marketing-induced consumer-to-consumer word of mouth generates more than twice the sales of paid advertising” When McKinsey weighs in, your know you’re talking about a topic that has C-Suite attention 8 The Power of Word of Mouth
Who is Watching Those Mentions For Your Brand and What Can You Do With It? Using Human Intelligence to ‘make sense of the noise’ Gauge relevant sentiment Develop online business strategy Establish FAQs to address underlying online sentiment Execute implementation strategy Engage with audience using FAQs as general guidelines Proactive – with coupons, incentives and promotions Reactive - by selectively responding to sentiment with fact Escalate comments which can lead to sales or marketing opportunities (i.e. leads, testimonials, legal) Identify similar online communities for business benefit and proactively participate Analyze and discuss important metrics acquired through systems like Social Strategy1 Make recommendations to adjust strategy based on sentiment 9 Don’t Miss the Opportunity to Connect with Buyers!
10 Social Media for Lead Generation
Dunkin Donuts Online Success Maintain 80% fewer Facebook and Twitter followers than Starbucks Dunkin’ Donuts fans 35% more likely to recommend the brand (Starbucks lack of personal connection, superiority of taste, shareholder value) Online Marketing Approach is “turn real people into online celebrities” Contest Customer submitted pics of themselves drinking iced coffee in the winter matched with in store discount Results 140 submissions generated 3.9 million product plugs through posts and status updates Next online only contest drew 290,674 submissions and now an annual event
Gap’s Real Monetization Story Resulted in 440,000 purchases equating to $11 million in sales. With a national TV campaign, what’s the likelihood they would have gotten nearly 500,000 paying buyers in the store? 13
Monitor Conversations about Your Brand and Competitors Proven value of monitoring conversations and responding to leads 8th Continent monitored mentions of Silk brand soy milk, one of their competitors, and offered trial coupons to users One tweeter received a coupon after tweeting about her bad experience with Silk chocolate soy milk –redeemed that week. Coupons distributed via social media resulted in 39% redemption rate, versus the 0.7% redemption of hard copy coupons During coupon promotions they saw huge spikes in their fan base and a lot of pass along 14
Measurement Revenue Revenue is one form of the metrics we use to measure While much of social media is free, we do know the cost of engagement as it relates to: Employees Time Equipment Opportunity cost (what they’re not focusing on or accomplishing while engaging in social media). Tying those costs to the results will reveal a formula for assessing the “I” in investment.
What’s the Cost of Doing Nothing? 16 “In 2011 there will be an estimated 3 billion people using the Internetto communicate, collaborate and link with other like-minded folks.”
Tom Hayes | Jump Point
Do You Really Want to Take That Risk?
Contact Information Ilona Olayan | Director, Marketing and Sales Support | Social Strategy1 www.socialstrategy1.com firstname.lastname@example.org Twitter:@eyelona & @sstrategy1 17