Social Media - Measurement

Social media - measurement
Justin Souter
Souter Consulting Limited
28/10/2009
1
© Justin Souter 2009 - Social Media measurement @ TaaD

So:
You’ve got sign-off to go ahead with your social media initiative
You’ve got your blogs, your wikis, your twitter account etc. set up
BUT:Do you know what difference it’s going to make?
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Agenda
Context
Measurement
Return on Investment
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People have got used to this
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"Half the money I spend on advertising is wasted; the trouble is I don't know which half.“
John Wanamaker
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Is anyone measuring at all?
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“I have a better answer to defining social media ROI: don’t”
Nick O’Neill
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Social Media Measurement
Here's a framework for measuring social media:
Attention
Participation
Authority
Influence
Sentiment
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Some *are* trying…
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McKinsey – ‘Measurable gains’
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http://www.broadstuff.com/archives/1847-Summary-of-McKinsey-Survey-of-Web-2.0-Use.html

Cause & effect – Adam Parker stylee
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Reason #1:
COST REDUCTION
Reason #2:
REVENUE GENERATION
Remember what Mr. Bossman said…
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I shrank my PR budget by 20%
and my outbound call budget by 40%.
Now I can afford a team of social media
Rock stars. Can I get a hellz yeah?
Okay, hotshot,
You have your Social Media doohickey.
Now I’d better see some real results!
Or else…
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Yeah but…
What about
the P&L?
Monitoring to base…
Monitoring to base…
Our Google Analytics are through
the roof! Even our social mentions
are wicked good!
We have liftoff!
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What kind of mood is
The old man in today?
Not good.
He doesn’t care how many visitors
the website gets, or how many
eyeballs we estimate we’ve reached unless it means we’re selling
more stuff.
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Darn it.
This media measurement
stuff isn’t working.
We need to start
tying this stuff to actual
Business performance.
Where to start?
Let’s see…
At the beginning?
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Step 1: Establish a baseline
8% YoY Growth
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Baselines illustrate deltas (changes)
Is something happening here?
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R.O.I.
RETURN
ON
INVESTMENT
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THE R.O.I. EQUATION
(GAIN FROM INVESTMENT - COST OF INVESTMENT)
ROI =
COST OF INVESTMENT
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Non-financial impact = potential.
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ROI = actualized potential.
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10 ways to measure social media success
Traffic
Interaction
Sales
Leads
Search marketing
Brand metrics
PR
Customer engagement
Retention
Profits
Props to Econsultancy
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Bringing things together
McKinsey benefits:
Internal purposes
Customer-related purposes
Working with external partners/suppliers
Appears to show real in-use benefits
Useful for business cases!
Jon Yongfook Cockle
Qualitative
Quantitative
Online & Offline
Olivier Blanchard
Reduce costs
Revenue generation
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The take-away
Measurement is important, and the frameworks are increasingly robust
The basics are free, more sophisticated tools available from monitoring firms
Start thinking about measurement right at the start
You can measure lots of things, but the Business folks will only be impressed if it reduces costs and / or makes more £
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Olivier Blanchard
Principal, BrandBuilder Marketing
864.630.7398
www.thebrandbuildermarketing.com
@thebrandbuilder(on Twitter)
www.smroi.net
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Resources
Yongfook / Egg & Co
Oliver Blanchard
Adam Parker
Dave McClure
MyDelicious links on ROI
Other links are embedded on the slides…
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Souter Consulting Limited
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What can I do for you?
Please contact me to see how we can work together!
Justin Souter
Justin.souter@souterconsulting.eu
http://twitter.com/souterconsults
http://souterconsulting.eu
07717 725504