This document discusses how to measure the value and influence of social media. It recommends measuring customer satisfaction with social media experiences through on-site surveys on controlled, sponsored, and viral social media. A social influencer model can identify key customer personas. The value of social media should be calculated by linking social influences to future behaviors and revenue. Measuring the right metrics will determine business priorities and show what drives loyalty, conversion and word-of-mouth. Tracking social media across channels is important as consumers are cross-channel. Measurement provides insights to improve experiences and maximize return on investment from social media.

1. Managing Forward:
Measuring Social Media Value
and Influence
Larry Freed, President and CEO, ForeSee Results

2. Social Media Popularity
Facebook
500 3.5 50%
Facebook fans
5.3
Billion fans on
Million Billion content
Facebook pieces shared Log in daily purpose-built
users weekly Facebook pages
Source: Econsultancy.com January 29, 2010, comScore 2010

4. 3 Types of Social Media
1. Controlled
2. Sponsored
3. Viral

5. Making Sense of Social Media: The Social Media Map

6. What do consumers want from Facebook?

7. Where and why do consumers engage with social media
Source: ForeSee Results Top 40 Holiday Retail Satisfaction Index, February 2010

8. What are you
doing about it ?

9. 71%
Companies with a
social media plan are
setting up metrics &
tracking methods
Source: eMarketer July 24, 2010 from Digital Brand Expression report ,
Social Media Without a Parachure

10. Traditional Social
Metrics
count activity and
measure
impressions/buzz
Fans on social sites
Social mentions
Tweets
Blog entries

11. What is missing ?

12. Who is coming to your social networking site?
What are the social media tendencies of
your website visitors?

13. What influenced them to come
to your site?

14. Was their experience
successful?
Were they satisfied?

15. What are they going to do
as a result of the
experience?
What is the value of a
visitor from Social Media?

16. Measuring Success
Success is measured through the eyes of the customer/visitor
Success is customer/visitor satisfied, did the
experience meet their needs and exceed their
Success is defined by what the user does as a result of the experience:
return, recommend, purchase, etc.

17. Customer Satisfaction = Key Success Metric
Satisfaction
Satisfaction is a combination of what you get and what you expect
Consumers have freedom of choice and will go where they are satisfied
Satisfaction drives behaviors which drive value, loyalty and word-of-mouth
and cost-efficiency
visitors

18. How Do We Measure Satisfaction
Satisfaction: Measurement of Success
American Customer Satisfaction Index
#1 Measurement of Customer Satisfaction
Leading National Economic Indicator of Consumer Spending
45 industries, 200+ organizations

19. Scientific Customer Satisfaction Measurement
Accurate
Sensitive Reliable
Valid Precise

20. Scientific Customer Satisfaction Measurement
Accurate
Sensitive Reliable
Correct
Valid Precise

21. Scientific Customer Satisfaction Measurement
Accurate
Sensitive Reliable
Consistent
Valid Precise

22. Scientific Customer Satisfaction Measurement
Accurate
Sensitive Reliable
Exact
Valid Precise

23. Scientific Customer Satisfaction Measurement
Accurate
Sensitive Reliable
Measures
the right
things
Valid Precise

24. Scientific Customer Satisfaction Measurement
Accurate
Sensitive Reliable
Detects
change
Valid Precise

25. Scientific Customer Satisfaction Measurement
Accurate
Sensitive Reliable
Credible
Valid Precise

26. Scientific Customer Satisfaction Measurement
Accurate
Sensitive Reliable
American
Customer
Satisfaction
Index
Valid Precise

27. The American Customer Satisfaction Index:
Unparalleled Measurement Technology
15 years of Accurate Cause-and-effect
empirical evidence Precise methodology
45 industries Reliable provides actionable
200+ organizations insights
Published and
vetted by
academic research

28. Cause and Effect

29. Cause-and-Effect Methodology
Customer satisfaction is a means to achieving your end goals
ForeSee Results measures the drivers of satisfaction, overall
satisfaction and future behaviors

30. Identify and Prioritize Improvements
Priority Map shows you where to focus your improvement efforts based
on their impact on future behaviors
Low score,
high impact
elements are top
improvement
opportunities

31. Customer Satisfaction with Social Media
ACSI E-­‐Business Report
MySpace.com 63
Facebook.com 64
All Others 72
YouTube.com 73
Wikipedia.org 77
Aggregate 70
0 10 20 30 40 50 60 70 80 90
Satisfaction (100-point scale)
Source: ForeSee Results Report on ACSI E-Business Scores, July 2010

32. Satisfaction With Social Media Sites Trail Other Segments
Comparison of Online ACSI Scores by Industry
85 83
80
77 77
75
75 74
73
70
70
65
60
Source: ForeSee Results Report on ACSI E-Business Scores, July 2010

33. Social media impact on the cross-channel customer

34. You cannot manage what you do not measure
What you measure will determine what you do

35. Measuring Social Media
Understand Your Audience
Social Influencer Model Measure Personas of Site Visitors
Measuring Controlled Sponsored Viral Social
Social Media Social Media Social Media Media
Social Media
On-­‐site surveys Posted surveys Monitoring Tools
Value of Social Media
Social Media Value Calculation

36. Measuring Social Media Value and Influence
How engaged are my visitors with Social Media
What do they think of the social media experience on my
social networking sites
What do they think of my participation in social media
networking sites
What value does Social Media bring to my business

37. Social Influencer Model Measure Personas of Site Visitors
CS Persona
Customized persona survey is deployed on website in rotation with existing
satisfaction measure
those who are satisfied or dissatisfied
Info Seeking
Passive
Info Sharing

38. Social Influencer Model Measure Personas of Site Visitors
Computers & Electronics Food & Drug
Retailers Retailers
High
ForeSee Results Top 100 E-Retail Satisfaction Index

39. Measure Controlled Social Media: On-site Surveys
CS Site Manager: Satisfaction survey on website, microsite, blog, forum

40. Measure Sponsored Social Media: Posted Survey
CS Social Media
Post a shortened URL on your fan/follower page

41. Measure Sponsored Social Media: Posted Survey
Link to Satisfaction Survey
Based on the methodology of the
American Customer Satisfaction Index
Uncover Valuable Information
future behaviors

42. Analyzing The Effectiveness Across Social Media Efforts

43. Social Media Value Calculation

44. Link Social Media to Business Goals
Awareness (attract new customers)
Conversion (sign up for email, become member, etc.)
Engagement (fan sign up, word-of-mouth)
Revenue generation (e-commerce, offline sales)
Across channels

45. Social Media Value Calculation
Quantify social media influences for site visitors and link to intended and actual
purchase behaviors
Social media model included in a satisfaction survey on your website,
encompassing predictive modeling of future behaviors
Understand direct and influence impact
Answer key questions about social media initiatives:
What value does social media bring to my business?
Does social media drive site visits?
Does social media drive sales/conversions?
Link social media to satisfaction, intended future behaviors and actual purchase
behavior

46. Social Media Value Calculation
Works across multiple industries
Retail Example:
Social Media Influence
Revenue
Proprietary calculation: Future
ForeSee Results Satisfaction $
Social Media Influence Model Behaviors (Determined by
& actual spend or
Direct linkage from social media purchase intent)
Content Example:
Social Media Influence Revenue
Proprietary calculation: Future $
ForeSee Results Satisfaction (Determined by
Social Media Influence Model Behaviors average lifetime
& value of new
Direct linkage from social media site visitors)

47. Social Media Value Calculation:
One step further

48. Summary of Social Media Measurement Opportunities
How engaged are my visitors with Social Media
Social Influencer Model: CS Persona
What do they think of the social media experience on my
social networking sites
On-site surveys of Controlled Social Media: CS Site Manager
What do they think of my participation in social media
networking sites
Posted surveys of Sponsored Social Media: CS Social Media
What is being talked about in social media networking sites
Social Media Monitoring Tools
What value does Social Media bring to my business
Social Media Value Calculation

49. A bit of background on ForeSee Results
ForeSee Results is the market leader, thought leader, and
innovation leader in online customer satisfaction measurement,
continuously expanding in customer experience analytics.
We apply a proven, predictive methodology to measuring customer
needs and expectations online and their impact on customer behavior
Help companies measure effectiveness of online initiatives from
Prioritize investment based on ROI
Benchmark performance over time and against competitors and best-
in- class companies.

50. Leaders and the Best: Some of the Companies We Measure

51. Top Takeaways
measure
What you measure will determine what you do
Measure what matters most your customers
Satisfaction drives conversion, loyalty, retention,
and word-­‐of-­‐mouth
Turn data into information
Turn information into intelligence

52. Top Takeaways
The consumer is a cross-­‐channel consumer
Measure the success of your social media efforts
across Controlled, Sponsored and Viral social networks
Link social media to cross-­‐channel intent and
actual behavior for ROI
Measurement is
Satisfy your customers and be fiscally responsible
to survive and thrive in the years ahead

53. Questions?
Larry Freed
President and CEO
ForeSee Results
(734) 205-­‐2555
Larry.Freed@ForeSeeResults.com
Twitter: larryfreed
Blog: www.FreedYourMind.com
www.ForeSeeResults.com