The Business Case for Social Media


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What is the bunsiness case for social media and how do you know if it is moving the

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  • Arthur Before I talk about how The Business Case for Public Relations ties in with social media, I’d like to briefly explain how this industry advocacy campaign fits into our mission at PRSA. PRSA’s mission is twofold. The first part is what we’re doing here today: advancing the knowledge and capabilities of public relations and other communications professionals. We also help to set standards of excellence through our various awards programs, including the Silver and Bronze Anvil Awards. In fact, two years ago, we updated our Bronze Anvil categories so that we’re now recognizing the best use of social media and other forms of online communications, like blogs and podcasts. So if you’re looking to get recognition for your work in this space, you might want to consider entering. And we also created and help to manage the industry’s only professional certification, the Accredited in Public Relations or APR program.
  • Arthur The second part of our mission is advancing the public relations profession, which we do through industry advocacy. Advocating for greater industry diversity is something PRSA began to do more than 20 years ago. Today, our National Diversity Committee: Produces case studies, podcasts and research on diversity in public relationsConducts outreachto high school students in inner city and other minority neighborhoods to educate them about careers in public relations And it was more than 60 years ago that PRSA started advocating standards of ethical conduct for the profession. Much of the guidance we’re now providing applies to deceptive online practices, such as whether or not it’s OK to: Engage interns to write positive product reviews on online message boards. Creating a fake identity or impersonate another individual online. Post a positive product review on a blog, without disclosing that the product was received for free. Pay for positive Tweets.
  • Arthur More recently, PRSA began a campaign to promote greater understanding and adoption of public relations services, which we call The Business Case for Public Relations Series of tools, available online, to help public relations practitioners: Communicate the roles, outcomes and value of public relations. Create a better appreciation for what we do as a profession. Sell-in public relations services to your clients or senior management. Why focus on these things, and why now? A few reasons: Public relations is more important than ever before, given the explosion of consumer engagement through new and social media, the collapse of reputation and trust in major institutions and the evolving needs and concerns of corporate CEOs.  At the same time, though, our industry receives a fair amount of criticism from individuals who don’t fully understand the practice and application of public relations. As an industry, we’ll all benefit from more accurate and better-informed perceptions of the value and role of public relations in the diverse organizations it serves.
  • Arthur Today, we’re going to discuss how does the Business Case applies to social media. It’s really about two things: First, it’s about validating public relations professionals as effective caretakers of social media programs, and there are several benefits of such an approach: Social media puts the customer in control, and public relations professionals are accustomed to operating in an environment where we don’t control the message. Public relations is a two-way discipline. It disseminates information about an organization and brings back information for analysis and action. Like all the different forms of traditional media, social media is really just a conduit to engage audiences and build relationships.
  • Arthur Because at the end of the day, the problem of what to say and how to say still remains.
  • Arthur The second way that the Business Case applies to social media is the need to quantify social media outputs and measure their impact on the achievement of key business outcomes that align with organizational goals. As PRWeek pointed out in its 2010 Agency Business Report, a familiar theme is now emerging, which is “an emphasis on measurement, especially in the digital age.”
  • Arthur Measurement, as Ketchum’s Ray Kotcher notes here, is exploding in importance. But, why now, and why specifically with regard to social media? I think there are two reasons: When the economy is weak, as it has been for some time, the idea of value and getting the most return on your investment really come to life, and that mindset is continuing today. It’s actually a good take-away for the industry that will continue to serve it well, even in good times. The second reason is that digital marketing disciplines are well suited to sophisticated analytical methods ... and it’s expectedthat public relations practitioners who employ social media strategies and tactics will apply them.
  • Arthur Of course, good public relations professionals have always measured the impact of their with traditional public relations programs; but today, we need to adapt those measurement techniques to the changing way that information is delivered and consumed. Think about it: a big part of what public relations professionals have traditionally done is to arrange publicity for their clients in traditional media, whether through a press conference, news release, special event or other tactic. Today, traditional media — while still important — is facing an uncertain future: More and more daily newspapers are closing. More and more people are getting their news from alternate sources.
  • Arthur We see evidence of this in Mashable’s “News Media Content Trends” for 2010 Customers are no longer tuning in to Brian Williams nightly to receive their news; they’re turning on their computers. Whether it’s from our Twitter homepage or an RSS reader or a Facebook feed, we now get bites of information that at best satisfy us, or at worst direct us to places where we can get more information. News – probably the most famous example of which is a USAirways flight going down in the Hudson – is now being broken in real time via social media platforms. And guess what – traditional media are starting to understand this. And finally, marketers now understand that they don’t need to communicate through the media’s filter. They can take their messages directly to the customer.
  • Arthur And as Richard Edelman noted in a recent interview with PRWeek, having conversations with customers is a much better way to make a living than calling reporters.
  • Arthur So as the communications channels change, we must change our strategies and tactics as public relations professionals. By the same token, we also must adapt the means of measuring and evaluating the business outcomes that we influence through these new channels. Kami, by the way, is an SNCR fellowthis year ... Congratulations, Kami.
  • Arthur But even some sophisticated users of social media are having a tough time measuring the impact of their efforts.Dell, remember, is a company that sold more than $2 million worth of computers from a Twitter account offering Twitter-only specials, which was a great way to quantify and measure the impact of its campaign. But even Dell has some difficulty with the measurability of social media ... Does any of this sound a little “squishy” to anyone?
  • Arthur So, what are the keys to social media measurement? Here are some key takeaways. The foundation for success is laid during the program planning process; before you can evaluate your social media program, you must know what it is you’re evaluating. And to determine what it is you’re evaluating, you need to work through these four questions. This will help to ensure that your objectives are tightly focused and measurable. Like David Rockland, research director at Ketchum likes to say, “If you don’t know where you are going it will be hard to figure out if you’ve arrived.”
  • Arthur You also need to apply the use of business terminology to how you discuss the outcomes that public relations helps to drive. Remember, we’re not talking about outputs, such as “increased buzz.” If you say to a brand manager that your objective is to “increase buzz,” you’ll probably get a strange look ... Because it’s not a metric they understand or have used. What you’re really talking about is how increased awareness translates into measurable business outcomes, such as increasing sales or rebuilding trust after a crisis. Stop talking about PR in terms of things such as “buzz” and “clips.” Some other things to consider include ... Reserve budget for measurement. USC Annenberg suggests holding back 3 – 7 percent of the total budget for measurement. Don’t wait until the end to measure; periodically take stock of how effective your efforts are, and use that information to make needed changes. And finally, there are a number of companies and individual thought leaders who are active in this space; if you need help, call one of them. And now, I’d like to turn the presentation over to someone who knows quite a bit about measurement in the social media space,who can provide some additional context and real life examples from her work. Kami ...
  • KamiInterest = Outputs: Attitudes = Outtakes:Action = Outcomes:
  • KamiMeet with your CFO and/or CMO to devise measurement ideasMeasurement standardizationThe AVE mythology vs. new measuresEngagement IndexReputation tracking over time, sentiment, etcCoorelate activities with business data
  • KamiOutputs are the easiest to measure, but they tell you the least. Use Free programs like Google AnalyticsFollowing counts: Who is following you, spambots, friends, foes, do you know the difference?Number of mentions: Mentions are great, but are people taking action?Number of links: Number of links are helpful, but referral traffic is betterSubscriptions: Are also wonderful, show interest, but how many are actually reading, clicking through and interacting, the open rate and the click rate are more interesting. How touse analytics:Set up funnels to see action path, track referrals and reward them, find influencers and build relationships, determine popular and relevant keywords, popular content informs futurecontent
  • KamiMeasure outcomes or Actions, not outputs or Interest measures.Sentiment Analysis: Many paid monitoring services offer it, Radian6, etc.Relationship Survey: IPR, Survey by Linda Childers Hon and James E. Grunig, Institute for Public Relations measures Control Mutuality, Trust, Satisfaction,Commitment,Exchange Relationship andCommunal Relationship Satisfaction: Cross tab satisfaction scores with the level of interaction with social propertiesSearch engine placement and search traffic resulting in an action of some kind, download of whitepaper, request for info, the Digg Stampede vs. the Stumble Upon signup
  • KamiMeasure outcomes or Actions, not outputs or Interest measures.Correlations: Correlating campaigns with real world actions, like recycling.Butts in Seats: Stakeholder action like sales, petitions, voting, donations and much moreCoupons and Codes: Foursquare, QR Codes, links, even emailBenchmarking: compare your sentiment analysis to a competitor’s, sales, etc.The Funnel:(take a page from marketing) Track referral traffic, keywords and which kind drives more action, requires backend tools like Salesforce and othersSurveys, Ask them: Don’t forget the old school stuff, it works for a reason
  • KamiProgram built on social media tools as a backbone, and meant to build and engage the community, customersCorrelations: Correlating campaigns with real world actions, like recycling.
  • KamiThey also must become self-sustaining, have revenue goalsConsumer recycling goals (50% by 2015)Use of recyclable materials
  • Kami
  • Kami – 2007Little corporate support at the time, park-level programMarketing add on
  • Kami
  • Kami – 2007Little corporate support at the time, park-level programMarketing add on
  • Kami – 2007Little corporate support at the time, park-level programMarketing add on
  • Kami – 2007Little corporate support at the time, park-level programMarketing add on
  • Kami
  • Kami – 30% increase in positive commentsCorresponding decrease in negative comments
  • KamiInteresting here is that when it come to profit, both Gross Margin (Gross Income/Net Sales) and Net Margin Growth (Net Profit/Revenue), the Selectives and Mavens again did better than average, with Mavens doing especially better than average.Which leads to the question, how can companies move through the levels to Maven status, what does it take?Internal evangelistManagement buy inGuidelines as guardrailsCultural shiftAnd how can PR help to lead that change?
  • KamiInteresting here is that when it come to profit, both Gross Margin (Gross Income/Net Sales) and Net Margin Growth (Net Profit/Revenue), the Selectives and Mavens again did better than average, with Mavens doing especially better than average.Which leads to the question, how can companies move through the levels to Maven status, what does it take?Internal evangelistManagement buy inGuidelines as guardrailsCultural shiftAnd how can PR help to lead that change?
  • KamiCharlene Li and Wet Paint collaborated last July, “Engagementdb” Correlated the financial performance of the Top 100 brands to financial performanceTop 100 brands according to Business Week/Interband Best Global BrandsLooked at social presence and social engagementClassified companies as:Wallflowers – Six or fewer channels, less engagedSelectives – Six or fewer channels, highly engagedButterflies – Six or more channels, less engagedMavens – Six or more channels, highly engaged
  • KamiClearly this is not causal but a correlation. Caveat is that the overall culture in the organization may have led to both better performance AND higher than average profitThis chart shows revenue growth for each of the four areas of Wallflowers, Selectives, Butterflies and MavensThose with the most engagement had better overall growth
  • KamiInteresting here is that when it come to profit, both Gross Margin (Gross Income/Net Sales) and Net Margin Growth (Net Profit/Revenue), the Selectives and Mavens again did better than average, with Mavens doing especially better than average.Which leads to the question, how can companies move through the levels to Maven status, what does it take?Internal evangelistManagement buy inGuidelines as guardrailsCultural shiftAnd how can PR help to lead that change?
  • Kami
  • The Business Case for Social Media

    1. Social Media and The Business Case for Public RelationsTM<br />Kami Watson Huyse, APRPresidentZoetica Media<br />Arthur Yann, APRVice President, Public RelationsPublic Relations Society of America<br />
    2. Arthur Yann, APRVP, Public Relations, PRSA@arthury<br />
    3. Professional development<br />Seminars, panels, conferences<br />Awards<br />Accreditation<br />Networking<br />Advancing the Professional ...<br />
    4. ... And the Profession<br />Advocacy<br />Industry diversity<br />Ethical conduct<br />Ethics<br />
    5. ... And the Profession<br />Advocacy<br />Greater understanding andadoption of public relationsservices<br />
    6. Business Case and Social Media<br />Richard Edelman<br />“For the first time, [public relations] has access to the money that is digital.”<br />Paul Taaffe<br />“Though digital is still a competitive space, PR agencies will continue to take an increasing share as the market expands.”<br />Marian Salzman<br />“[Public relations] won't win the tech wars ... we'll have to prove value in the message creation department.” <br />
    7. But, Fundamentals Aren’t New<br />“The newest computer can merely compound, at speed, the oldest problem in the relations between human beings, and in the end the communicator will be confronted with the old problem, of what to say and how to say it.”<br />- Edward R. Murrow<br />
    8. Business Case and Social Media<br />“As the industry begins to show signs of life again, a number of familiar themes surface ... one of these is an emphasis on measurement, especially in a digital age."<br />
    9. Business Case and Social Media<br />Ray Kotcher<br />“Measurement is exploding in importance.”<br />Paul Taaffe<br />“Marketing clients are increasingly demanding the measurement and ROI piece.”<br />Liz Kaplow<br />“We are accountable to C-suite executives ... PR will be expected to measure its contribution to identifiable business objectives.”<br />
    10. The Shrinking News Hole<br />
    11. Social Media: The New Channel<br />Mashable: “2010 News MediaContent Trends to Watch”<br />News consumption = acollection of streams<br />News breaks through real-time social media platforms<br />Marketers are skippingjournalists and deliveringmessages themselves<br />
    12. Business Case and Social Media<br />“My job was simply to call reporters and get stories placed. Their job is literally to be involved in conversations. It's such a better job.”<br />Richard Edelman<br />
    13. Measuring Social Media’s Value<br />Not long ago, social media ROI was little more than counting eyeballs, blog RSS readers, Facebook fans, and Twitter followers.<br />Today, smart companies are measuring social media ROI against clear business objectives, such as customer engagement or revenue <br />
    14. Social Media: The New Channel<br />Erin Nelson, CMO, Dell<br />“I think [social media] can and has to [be measured].”<br />“We're focused on ‘does it enhance the customer experience?’ Does it look like revenue and profit are following?<br />“I know engagement with a fan on Facebook is a really good thing. I don't measure if that shortens the sales cycles.”<br />“The things I can measure I feel great about. Those I can't I'm not losing sleep about.”<br />
    15. Before You Can Measure<br />You must set objectives by answering four questions:<br />Whom are you seeking to affect?<br />What about them are you seeking to affect?<br />How much is a successful affect?<br />By when will this affect have occurred?<br />“If you don’t know where you’re going,it’s hard to know if you’ve arrived.”<br />
    16. Your Role<br />Put program objectives into business terms<br />Shift the conversation to outcomes (behavioral, attitudinal), from outputs (clips) to show how social media drives business performance.<br />Ensure adequate budget<br />3 – 7 percent of the total (USC Annenberg)<br />Use measurement prescriptively to change and improve the program<br />Consult measurement specialists, as needed<br />
    17. Kami Watson Huyse, APRPresident, Zoetica Media@kamichat<br />
    18. Social Media Measurement<br />
    19. Use what already works<br />Measurement standardization<br />Define Engagement<br />Reputation Management<br /> But how ... ?<br />Measurement Notes<br />
    20. Beware Outputs or Interests<br />Following counts<br />Number of mentions<br />Number of re-tweets/shares<br />Number of links<br />RSS Subscriptions<br />But are they taking action?<br />
    21. Attitudes – 5S<br />Sentiment Analysis<br />Survey Relationship<br />Satisfaction Scores<br />Search Action<br />Stickiness<br />
    22. Business Outcomes and Actions<br />Correlations<br />Butts in Seats<br />Coupons and Codes<br />Benchmarking<br />The Funnel<br />Ask them why?<br />
    23. Greenopolis was launched by Waste Management VC to increase recycling and reduce waste<br />Its goals are summed up in its tagline: “Learn. Act. Reward. Together.”<br />Online<br />Greenopolis Community, Twitter, YouTube,Facebook and User Generated Content<br />On-Street<br />Greenopolis Recycling Kiosks<br />Stakeholder Rewards<br />Greenopolis Rewards program<br />Waste Management: Greenopolis<br />
    24. Greenopolis Measures<br />
    25. Changing the Culture<br />
    26. Launch a Pilot Program<br />
    27. Pilot Results<br />Online coaster community<br />12 coaster sites<br />50 unique links<br />Lower cost <br />ROI = $2.6MM<br />
    28. Cross Functional Teams<br />
    29. Adoption<br />
    30. Adoption<br />
    31. Network Solutions<br />
    32. Sentiment Analysis<br />
    33. Baylor HCS: Share of Voice<br />April 2009<br />
    34. Baylor HCS: Share of Voice<br />October 2009<br />
    35. Engagementdb 2009<br /><br />
    36. Correlation: Revenue Growth<br /><br />
    37. Correlation: Gross Profit<br /><br />
    38. Conversation Starters<br />@lettergirl<br />#journchat<br />
    39. Contact<br />Arthur Yann, APR<br />212.460.1452<br /><br /><br />Kami Watson Huyse, APR<br />713.568.5750<br /><br /><br />Communication Overtones [Blog]<br />@kamichat<br />