Marketing  Profs  Boston  June 09
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  • 1. Tales from the Trenches, How Organizations are Measuring Value in Social Media A presentation for Marketing Profs B2B Katie Delahaye Paine CEO KDPaine & Partners kdpaine@kdpaine.com www.kdpaine.com kdpaine.blogs.com Member, IPR Measurement Commission www.instituteforpr.org People talk, We Listen
  • 2. Why Measure? ―The main reason to measure objectives is not so much to reward or punish individual communications manager for success or failure as it is to learn from the research whether a program should be continued as is, revised, or dropped in favor of another approach ‖ ―If we can put a man in orbit, why Emeritus, University of Maryland James E. Grunig, Professor can’t we determine the effectiveness of our communications? The reason is simple and perhaps, therefore, a little old-fashioned: people, human beings with a wide range of choice. Unpredictable, cantankerous, capricious, motivated by innumerable conflicting interests, and conflicting desires.‖ Ralph Delahaye 2 Paine, Publisher, Fortune Magazine , We Listen People talk, 1960 speech to the Ad Club of
  • 3. Conquering your fears I’m afraid that metrics will • If it’s not working, why keep doing it? reveal that my program isn’t working • If you’re deaf to the conversation, only I’m afraid of what I’ll hear your enemies will hear it I’m afraid I won’t be able to • It’s not about justifying, it’s about justify my improving program/existence I’m afraid I’ll be fired for not • You should be fired for not showing showing the right numbers any numbers I’m afraid to admit that I • Learn the language of business don’t know how to measure first, measurement will follow People talk, We Listen
  • 4. A measurement timeline Social MSM Online Media Eyeball HITS Engagement counting People talk, We Listen
  • 5. Social Media renders everything you know about measurement obsolete Old School PR 21st Century Role o You can’t talkwhen the marketing department is PR talking sales, leads and revenue Impressions are impossible to count in social media Who cares about impressions when you can measure brand engagement ? Who cares about reach when you can measure revenue? Wouldn’t you rather be closer to your customers? People talk, We Listen Page 5 Better measurement tools are available
  • 6. Why Traditional Metrics (AVEs) are like buggy whips They both confuse activity with outcome The goal is to arrive at your destination, not to have a faster horse They both were based on a flawed premise Neither PR people nor horses respond well to beatings Comparing PR to Advertising is like comparing the Surrey With a Fringe On Top to the Space Shuttle – they serve different purposes People talk, We Listen Page 6
  • 7. 12 Signs that it’s the end of measurement as we know it 1. The Dept of Defense considers Twittering and other forms of social media critical to national security 2. BMC Software measures communications effectiveness based on contribution to EPS 3. BestBuy measures 85% lower turnover as a result of its Blue Shirt community 4. State Farm uses an internal blog to measurably improve morale 5. ASPCA correlates increases in on-line donations and increased membership with its social media efforts 6. HSUS generated $650,000 in new donations from an on-line photo contest on Flickr 7. NWF increased wildlife spotting as well as members with its Twitter account 8. The Red Cross measures the effectiveness of Twitter via lives saved and harm avoided 9. ImmunizeBC measures success in terms of vaccines given, awareness AND traffic talk, We Listen People
  • 8. The Engagement Decision Tree Awareness Preference Consideration Trial Purchase Observe Purchas Participa Engage Find / e/Act/Lin te ment Lurk k/WOM People talk, We Listen
  • 9. The measurement fork in the road Marketing/leads/s Reputation/relationsh ales ips To fix this Or get to this People talk, We Listen
  • 10. Goals drive metrics, metrics drive results Reputation/ Relationshi Sales Goal ps Relations Engagem hip ent Index scores Cost per Recomm customer end- acquisitio ations Metri n Positioni Web cs ng analytics Engagem Sales ent leads Marketin g Mix Modeling People talk, We Listen 10
  • 11. Listen, learn, change Tone of Conversation over time 60 50 30 40 2 30 16 Positive Mentions 17 Neutral Negative 20 5 27 12 4 24 2 1 2 20 10 3 9 16 15 8 8 5 9 9 10 4 2 6 5 4 4 4 4 2 2 2 2 2 2 2 0 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2007 2008 People talk, We Listen
  • 12. Negative coverage over time 25 1 3 1 20 2 2 4 15 1 Entries 14 21 15 18 10 10 14 5 1 10 2 12 10 2 9 5 3 4 2 4 2 7 6 5 1 4 4 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr 2006 2007 2008 People talk, We Listen
  • 13. Correlation exists between traffic to the ASPCA web site and the organization’s overall media exposure 350,000,000 700,000 300,000,000 600,000 250,000,000 500,000 Web Site Visitors 200,000,000 400,000 Exposure 150,000,000 300,000 Overall Exposure Web Traffic 100,000,000 200,000 50,000,000 100,000 0 - People talk, We Listen
  • 14. Tying activity to development/marketing goals 350,000,000 $1,800,000 $1,600,000 300,000,000 $1,400,000 250,000,000 $1,200,000 Donations Exposure 200,000,000 $1,000,000 Overall exposure $800,000 Online donations 150,000,000 $600,000 100,000,000 $400,000 50,000,000 $200,000 0 $0 em e r M ry ne br ry ch S Aug ly r M l c r D em r te st ay i be O be ov e pr Ju ec b ua Fe ua ep u N to b Ju ar A m n Ja People talk, We Listen 14
  • 15. What do you need to measure? Impact ROI (Outputs/Outt (Outcomes) akes) People talk, We Listen
  • 16. Goals, Actions and Metrics Goal Action Output Metric Outtake Outcome Metric Metric Recruitme Twitter Number of % inclined to % increase in online nt campaign tweets support requests for % information improvement % increase traffic to in perception recruitment site of organization Increase in Flickr photo Number of % likely to Improvement in support contest entrants support the relationship scores cause Message Blogger/Spe% % hearing % consistency in consisten aker training postings/ar message messaging cy ticles % believing between external containing message and internal one or communications more key Market share messages Ratio of on- People talk, We Listen 16 Share of message to off-
  • 17. The 7 steps to Social Media ROI 1. Define the ―R‖ – Define the expected results? 2. Define the ―I‖ -- What’s the investment? 3. Understand your audiences and what motivates them 4. Define the metrics (what you want to become) 5. Determine what you are benchmarking against People talk, We Listen
  • 18. Step 1: Define the ―R‖ What return is expected? What will be different when the program has launched? What were you hired to do? If you are celebrating complete 100% success a year from now, what is different about the organization? If your department was eliminated, what would be different? 18 People talk, We Listen
  • 19. Step 2: Define the ―I‖ What is the investment? Personnel Agency compensation Senior Staff time Opportunity cost People talk, We Listen 19
  • 20. Step 3: Define your audiences and how you impact them There is no ―audience.‖ There are multiple constituencies List every stakeholder Where do they go for information? Don’t ask me, ask your customers. What’s important to them? What is the benefit of having a good relationship with that stakeholder group? Understand your role in getting the audience to do what you want it to do Raise awareness Increase preference Increase engagement 20 People talk, We Listen
  • 21. Step 4: Define your Key Performance Indicators (KPIs) carefully because you become what you measure Cost savings Trust: Efficiency Improvement in relationship Cost per message /reputation scores with communicated customers and Cost per new lead/customer communities acquired (Loyalty/Retention) Productivity: Thought leadership: Increase in employee Share of quotes engagement/morale Share of opportunities Lower turnover/recruitment Message penetration costs Positioning on key issues Engagement: Improvement in Ratio of posts to comments favorable/unfavorable ratio % of repeat visitors Improvement in Optimal 21 % of 5+min visitors People talk, We Listen Score (OCS) Content
  • 22. What makes a perfect communications KPI? Gets you where you want to go (achieves corporate goals) Is actionable by individuals as well as departments Continuously improves your processes Is there when you need it People talk, We Listen
  • 23. Why an Optimal Content Score? You decide what’s important: Benchmark against peers and/or competitors Track activities against OCS over time Positive: Negative Mentions of the brandOmitted Key messages Negative tone Positioning No key message Visibility People talk, We Listen 23
  • 24. How to calculate Optimal Content Optimal Content Score Quality score +1 0 -1 Score Score Score Tonality Positive 3 Neutral 0 Negative -3 Positions the competition favorably or positions Sargento Positioning Contains 2 Doesn't contain 0 negatively -2 Does not contain or miscommunicates key Messaging Contains 3 partially contains 0 message (neg mess) -1 Quotes Contains 1 Does not contain -1 Competitive Does not mention Competition mentioned mention Competition 1 prominently -3 Total Score 10 0 -10 Visibility Score +1 0 -1 Score Score Score Contains competitive Brand Photo Contains 3 Doesn't contain 0 photo -5 Dominance Focal point 3 Not a focal point -1 Visibility Headline mention 2 Top -20 % of story 0 Minor mention -2 Target publication Top Tier 2 2nd tier 0 Not on target list -2 Total Score 10 0 -10 People talk, We Listen
  • 25. Standard classifications of discussion • Acknowledging receipt of • Responding to criticism information • Giving a shout-out • Advertising something • Making a joke • Answering a question • Making a suggestion • Asking a question • Making an observation • Augmenting a previous post • Offering a greeting • Calling for action • Offering an opinion • Disclosing personal • Putting out a wanted ad information • Rallying support • Distributing media • Recruiting people • Expressing agreement • Showing dismay • Expressing criticism • Soliciting comments • Expressing support • Soliciting help • Expressing surprise • Starting a poll • Giving a heads up • Validating a position People talk, We Listen
  • 26. For all institutions, most postings were simply making an observation or distributing media. Share of Conversation Types Share of Engagement by Conversation Type - Institutional Blogs Showing dismay 1 Showing dismay 100.0% Recruiting people 3 1 Recruiting people Rallying support 1 Rallying support Playing a game 16 1 Playing a game Offering an opinion 2 11 2 4 1 Offering an opinion 49.5% 10.8% 39.7% Making an observation 14 46 6 18 9 Making an observation 30.9% 23.1% 10.9% 35.1% Making a suggestion 15 12 3 6 8 Making a suggestion 72.7% 27.3% Giving a shout-out 5 12 2 2 Giving a shout-out Giving a heads-up 29 203 4 13 17 Arizona State Giving a heads-up 6.5% 26.9% 66.6% Arizona State Expressing surprise 1 Michigan State Expressing surprise Michigan State Expressing support 1 2 2 3 Penn State Expressing support Penn State Expressing criticism 3 1 Purdue UniversityExpressing criticism 100.0% Purdue University cx University of Michigan Distributing media 36 787 235 Distributing media University of Michigan 53.9% 46.1% Disclosing personal information 7 24 4 13 5 Disclosing personal information 44.2% 1.6% 38.7% 15.5% Calling for action 1 2 Calling for action Augmenting a previous post 6 1 Augmenting a previous post 100.0% Asking a question 1 2 Asking a question 100.0% Answering a question 6 7 1 Answering a question Advertising Something 3 12 2 1 1 Advertising Something Acknowledging receipt of information 2 Acknowledging receipt of information 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% People talk, We Listen Page 26
  • 27. Step 5: Define your benchmarks Past Performance Think 3 Peer Underdog nipping at your heels Stretch goal Whatever keeps the C-suite up at night People talk, We Listen 27
  • 28. Internet dominated in 5 out of 6 months People talk, We Listen Page 28
  • 29. Stanford dominates in broadcast coverage People talk, We Listen Page 29
  • 30. Benchmarks put numbers in perspective Shel Israel U of Penn Carnegie Mellon 398 Twitter rank 93718 43395 15291 Followers 622 1295 99.99 Twitter grade 96.4 98.3 People talk, We Listen Page 30
  • 31. MIT Berkeley see highest visibility in Social Media People talk, We Listen Page 31
  • 32. Overview of Key Metrics Peer 1 was the competitive leader in all but YouTube, where Peer 4 and Peer 3 led. Actions attributed to individuals were responsible for most content, except on YouTube. Ext. Bookm Faceb Inst. YouTub MSM ark. ook Blogs Blogs e SOV 2% — 8% 9% 11% 7% Populari 230 500/m 150k — 20 links — ty bkmks o. views Engage 13 2-12 59 cmts 1 day 2 cmts — ment cmts cmts % 20% 32% 54% 50% 15% 15% Positive % †Negativ size. Findings are directionaltalk, We Listen Small base 0% 0% People only. 4% 0% 1% 2%
  • 33. Step 6: Conduct research (if necessary) First: find out what already exists Web analytics Customer Satisfaction data Customer loyalty data Second: Decide what research is needed to give you the information you need: Message content analysis Relationship surveys People talk, We Listen 33
  • 34. Step5: Selecting a measurement tool based on your KPIs Objective Metric Tool Increase inquiries, web % increase in traffic Google Analytics, traffic, recruitment #s of clickthrus or Omniture downloads Increase % of audience preferring Survey Monkey, awareness/preference your brand to the Zoomerang, PollDaddy, competition Vizu Engage marketplace Conversation index Type pad, Technorati , greater than .8 Xinureturns Rankings Communicate messages % of articles containing Media content analysis – key messages Dashboards Total opportunities to see key messages Cost per opportunity to see key messages % aware of or believing Survey Monkey, in key message Zoomerang,Vizu, PollDaddy 34 People talk, We Listen
  • 35. Your tool box needs: 1. A content source: Google News/Google Blogs Technorati, Social Media Mention, Twazzup, Cyberalert, CustomScoop, e-Watch Radian 6, Techrigy, Visible Technologies RSS feeds Survey Monkey/ZoomerangWe Listen People talk, 35
  • 36. Your tool box also needs to include: 2. A way to analyze that content Tools: Automated vs. •Woopra Manual •Net promoter Census vs random score sample •Hubspot Grader The 80/20 rule – •Xinureturns Measure what •Twinfluence matters because •SPSS •Excel 20% of the content •Crimson influences 80% of theWe Listen Hexagon People talk, 36
  • 37. Diversity dominates C-M discussions in Social Media People talk, We Listen Page 37
  • 38. Your tool box also needs to include: 3. A way to measure engagement The conversation index= • Ratio of posts to comments Relationship studies The engagement index People talk, We Listen 38
  • 39. Managing engagement on your own property % increase or decrease in unique visits In the past month, what % of all sessions represent more than 5 page views % of sessions that are greater than 5 minutes in duration % of visitors that come back for more than 5 sessions % of sessions that arrive at your site from a Google search, or a direct link from your web site or other site that is related to your brand % of visitors that become a subscriber % of visitors that download something from the site Courtesy of Eric Peterson People talk, We Listen
  • 40. Share of conversation vs share of engagement Share of Subject Share of Engagement by Subject - ,External Blogs Students 23.6% 33.2% 22.1% 21.1% Research, Social Sciences 1 4 1 Staff 100.0% Campus Life 1 Research, Social Sciences 4.4% 95.6% Institution, Overall 2 1 3 Research, Physical Sciences 38.3% 2.3% 31.0% 28.4% Policies Research, Other 2 Research, Life Sciences 13.0% 20.8% 13.0% 53.2% Research, Agriculture 4 Research, Earth Sciences 86.8% 13.2% Other 1 Research, Agriculture 100.0% Legal News 1 2 Projects, Non -Research 28.6% 28.6% 28.6% 14.2% Policies 100.0% Admissions 1 1 Peer 1 Peer 1 Partnerships Staff 1 Michigan State Michigan State Other Research, Life Sciences Peer 2 Peer 2 1 1 2 1 3 Legal News 43.3% 56.7% Peer 3 Peer 3 Alumni Topics 1 1 Inventions Peer 4 Institution, Overall Peer 4 5.8% 94.2% Financials 2 1 2 Financials 68.7% 12.5% 18.8% Projects, Non -Research 1 1 1 2 Faculty 15.3% 34.9% 6.3% 43.5% Research, Earth Sciences 1 2 2 Events Courses 1 2 Courses 28.6% 71.4% Community Relations Research, Physical Sciences 3 2 4 6 Campus Life Students 5 2 1 7 Alumni Topics 96.8% 3.2% Faculty 2 6 2 2 6 Admissions 33.3% 66.7% 0 2 4 6 8 10 12 14 16 18 20 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% People talk, We Listen Page 40
  • 41. The vast majority of discussion in external blogs is neutral. Share of Tone Share of Engagement by Tone - External Blogs 30 100% 29 94% 90% 25 80% 83% 70% 71% 20 20 60% 58% 58% Negative Negative 15 50% Neutral Neutral 14 Positive Positive 40% 42% 42% 12 10 30% 29% 8 20% 5 5 4 4 10% 14% 3 2 6% 1 3% 0 0% University of Michigan Purdue University Penn State Michigan State Arizona State Arizona State Michigan State Penn State Purdue University University of Michigan People talk, We Listen Page 41
  • 42. Aspects of relationships Control mutuality Trust Satisfaction Commitment Exchange relationship Communal relationship People talk, We Listen 42
  • 43. Components of a Relationship Index Control mutuality In dealing with people like me, this organization has a tendency to throw its weight around. (Reversed) This organization really listens to what people like me have to say. Trust This organization can be relied on to keep its promises. This organization has the ability to accomplish what it says it will do. Satisfaction Generally speaking, I am pleased with the relationship this organization has established with people like me. Most people enjoy dealing with this organization. Commitment There is a long-lasting bond between this organization and people like me. Compared to other organizations, I value my relationship with this organization more Exchange relationship Even though people like me have had a relationship with this organization for a long time; it still expects something in return whenever it offers us a favor. This organization will compromise with people like me when it knows that it will gain something. This organization takes care of people who are likely to reward the organization. People talk, We Listen 43
  • 44. How to implement relationship metrics Step 1: Conduct a benchmark relationship study Step 2: Implement PR program Step 3: Conduct a follow up relationship study Step 4: Look at what’s changed People talk, We Listen
  • 45. Step 7: Analysis - -Research without insight is just trivia Look for failures first Check to see what the competition is doing Then look for exceptional success Compare to last month, last quarter, 13- month average Figure out what worked and what didn’t work Move resources from what isn’t working to 45 what is People talk, We Listen
  • 46. Thank You! For more information on measurement, read my blog: http://kdpaine.blogs.com or subscribe to The Measurement Standard: www.themeasurementstandard.com Follow me on Twitter: KDPaine Find me on Facebook: Katie Paine Reach me on Skype: KDPaine Or call me at 1-603-868-1550 Check out our website www.kdpaine.com talk, We Listen People