What is Northstar Why social currency – help business’ understand the impact and significance of social media conversations on business and brands. We also help drive product and marketing innovation through insights gleaned from social media. When I first came to NS, there wasn’t too many research firms active in social media, which was a puzzle to me. They spent all of their time talking and listening to consumers – which is essentially what we do now at SC – is listen. Market research is all about measurement and insight so it was a good fit. Personally, I wanted to bring clarity to an area where there seemed to be a lot of questions / ambiguity about how to measure social media – there were a lot of new tools out there, but I realized that companies would need some guidance and resources on how to use them Wanted to be a part of the growth of this medium, and the only way to legitimize it was to find a way to link the channel to key business metrics like sales and profit. Because we all know that money talks – need to convince boss Apprea peau, social media is all about people talking – so the challenge is how to transform conversations into capital?
Social media is not the first medium to be challenged in this way….with the exception of true direct marketing, few have been successful at extracting a true roi - most brands lack the stomach and resources Does that mean we should just throw in the towel and not try to quantify impact of SM? Not an option – for SM to continue to progress and earn its rightful place alongside other marketing tactics we need to make an attempt. We need to establish a measurement protocol that will help sm transcend the hype that dominates the discussion today. Something it is easy to understand and execute right now, the manner in which measurement is being performed is flawed, in that it is inaccurate, tactically driven and not broad enough in scope. What I plan to share today is my perspective on how to best measure SM.
If you can take three tings away from this presentation in the context of social media, these are them.
At Northstar, we tend to view and study social media in a broader context, often times combining social media metrics with other forms of consumer data. We find that looking at social media in a more holistic manner yields learnings and insights that are more actionable and interesting for brands, as we analyze the relationship between the meaning of what people are saying online, and other forms of consumer feedback and learning. When it comes to measuring the ROI on social media, I would argue that we need to look beyond the medium itself, and take into account indicators that are relevant to your busienss and the task at hand.
Gone are the days where brands jump into social media without a plan. Some best uses / practices have emerged. Social media has found its place in the marketing mix – so knowing what it can achieve makes it easier to figure out what to measure and now to measure it. Each objective will have its own set of KPIs – the KPIs that you look to are up to you – so choose wisely as they will provide context for your decisions, properly set expectation and give you direction what needs to change as part of refining program.
What is social media really good at? There are 3 areas where I think social media can make a meaningful contribution to the business – namely a,b,c You’ll note that I’ve noted a
1. TURNING CONVERSATIONS INTO CAPITAL Patrick Gladney social currency ™
2. THE ROI QUESTION IS STANDING IN SOCIAL MEDIA’S PATH
3. <ul><li>Return </li></ul><ul><li>Investment </li></ul>SOCIAL MEDIA IS NOT THE FIRST MEDIUM BEING CHALLENGED TO PROVE ITS WORTH
4. MEASURE AGAINST OBJECTIVES ADVOCACY HAS VALUE PEOPLE DRIVE THE PROCESS
5. Brand Monitoring Brand Health Online Word-of-Mouth Product Innovation Crisis Communications Consumer Segmentation Sentiment Analysis Customer Experience Tactical Strategic Low Value-Add High Value-Add Source: Adapted from Forrester Research THE VALUE OF SOCIAL MEDIA INCREASES WHEN EXAMINED IN A HOLISTIC MANNER
6. OBJECTIVE KPI KPI KPI HOW YOU MEASURE STEMS FROM WHAT YOU ARE TRYING TO ACHIEVE
7. SUPPORT SOCIAL MEDIA CAN MAKE A MEASUREABLE CONTRIBUTION TO CORE OBJECTIVES RELEVANT TO ANY BUSINESS INNOVATION ADVOCACY Increased Customer Satisfaction Reduced Call Centre Volume New revenue streams New product sales Improved marketing efficiency Share of voice / sentiment Online promoter score Influence potential Stated purchase intent
8. CROWDSERVICE CREATES VALUE FOR BOTH CUSTOMERS AND BRANDS SUPPORT Increased Customer Satisfaction Reduced Call Centre Volume New revenue streams
9. INNOVATIVE IDEAS CAN COME FROM LISTENING TO OPEN OR CLOSED COMMUNITIES OF BRAND ENTHUSIASTS INNOVATION New product sales Improved marketing efficiency Share of voice / sentiment OPEN CLOSED
10. Inauguration Somali Pirates Beer Summit Increase troop levels In Afghanistan THERE IS AN ESTABLISHED LINK BETWEEN ONLINE AND OFFLINE ADVOCACY ADVOCACY Online promoter score Influence potential Stated purchase intent
11. <ul><li>“ A 12% increase in Net Promoter Score correlates to a doubling of growth.” </li></ul><ul><li>“ An x% increase in Online Promoter Score correlates to an X of growth.” </li></ul>ADVOCACY Online promoter score Influence potential Stated purchase intent EACH INDUSTRY MUST ASCERTAIN THE DISCOUNT THAT APPLIES TO THE WEAK TIES THAT CHARACTERIZE SOCIAL MEDIA OFFLINE ONLINE
12. THERE IS NO SUBSTITUTE FOR HUMAN JUDGEMENT WHEN ANALYZING DATA – ESPECIALLY SOCIAL MEDIA
13. MEASURE AGAINST OBJECTIVES ADVOCACY HAS VALUE PEOPLE DRIVE THE PROCESS
14. THANK YOU social currency ™ [email_address] @pgladney