Social Media Success                                                        Metrics                                       ...
American Marketing Association                        @marketing_power                          James Clark, Room 214     ...
WOM and Social Media                                    WOM Marketing                                    encourages, facil...
Measurement FrameworkAction        Who                 How                    What           Where        Result         R...
Program Measurement   Program                               …defined as…                                         Measure  ...
Program Measurement   Program                         …defined as…                                          Measure       ...
Program Measurement   Program                          …defined as…                                           Measure     ...
AdvocacyIs an act “The act or process of advocating or support a cause or proposal” Approaches to Advocacy Measurement The...
Advocacy Methodologies Scored by Aberdeen Group 1. The Net Promoter Score (NPS), - defined as the likelihood to recommend,...
Conversation Volume and Share of VoiceVolume = Total Number of Post   Share = Total Number of Post Compared to Competitor ...
Conversation Volume and Share of Voice Online Monitoring Tools 1. Radian6, - http://www.Radian6.com 2. Filtrbox – http://w...
Cost Deflections Removal of hard or soft costs from the methods a business uses to support its customers Cost deflection o...
Cost Deflections                                                 Brand                                              Engage...
Cost Deflection Case Studies 1. Microsoft Office Live Cast Study: http://comblu.com/forums/t/1.aspx 2. Cisco’s Human Effec...
Cost Per Conversion Cost to get one person to take a desired action and ultimately become a customer Definition of cost co...
Influence Current Definition – Online Influencers are those who drive opinions (and traffic) around the web are identified...
Marketing Mix Modeling MMM – a mathematical technique of calculating the relative marketplace impact of all various levers...
Ratings and Reviews A Nielsen Online Study, from Dec. 08 found that 81% of online holiday shoppers read customer reviews b...
Ratings and Reviews Tips and Best Practices:      1. Look at as many products as possible      2. Consider the same time p...
Reach Reach represents the degree of “marketing penetration” within a given target audience Why Measure Reach?     1. Unde...
Reach Methods for Quantifying Online Word of Mouth Reach     1. URL analytics tracking of website visitors     2. Email an...
Sentiment & Opinion Analysis Assessment of an author’s tone – whether or not they express a positive or negative opinion a...
Sentiment & Opinion Analysis Sentiment Analysis Metrics and Indicators 1.Sentiment Volume: The number of positive/negative...
Sentiment & Opinion Analysis                                                             Key Points                       ...
Sentiment & Opinion Analysis Room 214’s Recommended Sentiment and Opinion Analysis Tools Sysomos, http://www.sysomos.com C...
ROI in Social Media Return – Investment = ROI Methodologies for calculating ROI will vary depending: • Scope • Available R...
ROI Techniques Techniques for INCREASING REVENUE EARNED include increasing a program’s: • Frequency – increasing the numbe...
ROI Resources ReadWriteWeb Dell’s $3m on Twitter and Four Better Examples http://bit.ly/6Lb8HX Social Media Today 6 Must R...
Breaking the Golden RuleRoom 214’s Competitors – Doing Cool StuffConversation ImpactOgilvy 360 Digital Influencehttp://bit...
Thank You!                             James Clark                             Co-Founder, Room 214                       ...
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Social Media ROI

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Social Media ROI presentation for AMA ReadyTalk Webinar Series - delivered by James Clark, Co-Founder, Room 214

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Social Media ROI

  1. 1. Social Media Success Metrics December 10, 2009 Presented by: James Clark, Co-Founder Room 214room214.com } info@room214.com } 303.444.9214
  2. 2. American Marketing Association @marketing_power James Clark, Room 214 @jamesoclark @room_214 #AMAReadyTalkroom214.com } info@room214.com } 303.444.9214
  3. 3. WOM and Social Media WOM Marketing encourages, facilitates, and amplifies marketing-relevant communications amongst consumers Social Media is a subset of WOM 1. Online WOM activity 2. Digital venues in WOM occurs 3. Engine and set of tools to achieve marketing goalsroom214.com } info@room214.com } 303.444.9214
  4. 4. Measurement FrameworkAction Who How What Where Result ROI Participants Action WOMUnit Venue OutcomeObject Propensity Velocity Topicality Consumptions Demographic Distribution Timeliness Population InquiriesQualities Psychographic spread Polarity Audience Conversions Credibility Source Clarity Rules Relays Reach diversity Depth Re-Creations Conversation Conversation Conversions Cost Common volume volume (ct, trials, deflections segmentation Conversation Conversation purchases) Cost perTracking or for other share share Reach/ Advocacy conversionAggregate metrics, e.g., Rating/Revie Rating/Revie Awareness (NPS, OP) Cost perMetrics by influence w score w score Market share conversation factor, demo, Sentiment Sentiment Shifts in Value of etc. awareness Conversation Source: WOMMA Best Practices Guidebook room214.com } info@room214.com } 303.444.9214
  5. 5. Program Measurement Program …defined as… Measure Using high-profile entertainment or news to get people Conversation volumes, SOV, MMM,Buzz Marketing to talk about your brand Reach, ROI, Sentiment Creating entertaining/informative messages designed Conversation volumes, SOV, MMM,Viral Marketing to be passed along in exponential fashion Reach, ROI, SentimentCommunity Forming or supporting niche communities that are Advocacy, Cost Deflection, Cost perMarketing likely to share interests about a brand; providing tools, Conversion, Conversation Volume content and information to support those communities and Share, Influence, MMM, Reach, ROI, Sentiment Analysis, Value of ConversationGrassroots Organizing and motivating volunteers to engage in Advocacy, Cost per Conversion,Marketing personal or local outreach Conversation Volume and Share, Influence, MMM, Reach, ROI, Sentiment Analysis, Value of ConversationEvangelist Cultivating evangelists, advocates, or volunteers who Advocacy, Cost per Conversion,Marketing are encouraged to take a leadership role in actively Conversation Volume and Share, spreading the word on your behalf Influence, MMM, Reach, ROI, Sentiment Analysis, Value of Conversation Source: WOMMA Best Practices Guidebook room214.com } info@room214.com } 303.444.9214
  6. 6. Program Measurement Program …defined as… Measure Advocacy, Cost per Conversion, Placing the right product into the right hands at the Conversation Volume and Share,Product Seeding right time, providing information or samples to Influence, MMM, Reach, ROI, influential Sentiment Analysis, Value of Conversation Advocacy, Cost per Conversion, Conversation Volume and Share, Identifying key communities and opinion leaders whoInfluencer Influence, MMM, Reach, ROI, are likely to talk about products and have the ability toMarketing Sentiment Analysis, social Media influence the opinions of others Success Metrics Value of ConversationCause Marketing Supporting social causes to earn respect and support Advocacy, Cost per Conversion, from people who feel strongly about the cause Conversation Volume and Share, Influence, MMM, Reach, ROI, Sentiment Analysis, Value of ConversationConversation Interesting or fun advertising, emails, catch phrases, Conversation Volume and Share,Creation entertainment, or promotions designed to start word of MMM, Reach, ROI, Sentiment mouth activity Analysis, Social Media Success Metrics room214.com } info@room214.com } 303.444.9214
  7. 7. Program Measurement Program …defined as… Measure Creating blogs and participating in the blogosphere, in Conversation Volume and Share, the spirit of open, transparent communications; Cost Deflection, MMM, Reach, ROI,Brand Blogging sharing information of value that the blog community Sentiment Analysis, Social Media may talk about Success Metrics Advocacy, Cost per Conversion, Conversation Volume and Share, Creating tools that enable satisfied customers to referReferral Programs Influence, MMM, Rating and their friends Reviews, Reach, ROI, Sentiment Analysis, Value of a Conversation Source: WOMMA Best Practices Guidebook room214.com } info@room214.com } 303.444.9214
  8. 8. AdvocacyIs an act “The act or process of advocating or support a cause or proposal” Approaches to Advocacy Measurement The key to measuring advocacy is to: 1. Identify all the different ways people verbalize their advocacy 2. Isolate advocacy from general positive sentiment 3. Explore who is doing the advocacy and analyze the level of advocacy from that individual for brand/topic vs other brands/topics Styles of Measurement: 1. Asking people to recall if they would recommend (survey question) 2. Measuring people’s actual recommendations to each other (survey) 3. Measuring people’s actual recommendation to each other (online monitoring) Source: David Rabjohns, MotiveQuestroom214.com } info@room214.com } 303.444.9214
  9. 9. Advocacy Methodologies Scored by Aberdeen Group 1. The Net Promoter Score (NPS), - defined as the likelihood to recommend, http://www.statmetrix.com 2. The Brand Advocacy Quotient (BAQ), relates to satisfaction and importance, http://www.nielsen-online.com 3. MotiveQuest Online Promoter Score, (OPS), correlation between online advocacy and sales, http://www.motivequest.com/brandadvocacy Resources: 1. Groundswell, Chapter 5, Advocacy Measurement, http://www.forrester.com/Groundswell/book.html 2. What Brand Advocacy Matters: http://www.clickz.com/3629611room214.com } info@room214.com } 303.444.9214
  10. 10. Conversation Volume and Share of VoiceVolume = Total Number of Post Share = Total Number of Post Compared to Competitor The total number of posts on a given Analyze by traffic source (blogs, brand, product, campaign or topic mainstream media, forums, Twitter, tracked over a set time period. Start social media, comments, YouTube) to when a campaign launches, or look at the media distribution platforms service starts or product is introduced. where your message is being carriedroom214.com } info@room214.com } 303.444.9214
  11. 11. Conversation Volume and Share of Voice Online Monitoring Tools 1. Radian6, - http://www.Radian6.com 2. Filtrbox – http://www.Filtrbox 3. Techrigy SM2, http://techrigy.com 4. Google Alerts, http://google.com/alerts Resources: 1. Social Media Monitoring, http://www.socialmediamonitoring.ca/index.html 2. Monitoring Tool Directory: http://bit.ly/5LCyTfroom214.com } info@room214.com } 303.444.9214
  12. 12. Cost Deflections Removal of hard or soft costs from the methods a business uses to support its customers Cost deflection occurs when an online or social marketing tool, such as support community, removes expenses from various processes that the business would otherwise incur. Key metrics associated with cost deflection include: 1.Decreased product or service defects 2.Decreased customer service and support costs 3.Decreased R&D expense 4.Decreased time to market Source: Jennifer Voisard, ComBluroom214.com } info@room214.com } 303.444.9214
  13. 13. Cost Deflections Brand Engagement Advocacy Feedback SupportAdvocacy: Engagement intended to influence transactional behaviorFeedback: Formal Channel between the end user or employee and the brandintended to have a direct influence on the product or serviceSupport: Content or conversations intended to solve problems and also provideanswers to specific questions/needs Source: Jennifer Voisard, ComBluroom214.com } info@room214.com } 303.444.9214
  14. 14. Cost Deflection Case Studies 1. Microsoft Office Live Cast Study: http://comblu.com/forums/t/1.aspx 2. Cisco’s Human Effect Network: http://bit.ly/8O3AT2room214.com } info@room214.com } 303.444.9214
  15. 15. Cost Per Conversion Cost to get one person to take a desired action and ultimately become a customer Definition of cost conversion varies by business and situation, and commonly refers to a purchase or lead but can also refer to other types of actions such as visiting a page on a website, registering for a newsletter or downloading a white paper. Cost per conversion: cost per conversion = cost/conversions Campaign Cost: $250,000 Conversion Generated: 20,000 Cost Per Conversion: $12.50 Resources: Google Analytics – free analytic package that will allow you to track conversions based on source, campaign, keyword, links, etc. Source: Steve McLaughlin, BzzAgentroom214.com } info@room214.com } 303.444.9214
  16. 16. Influence Current Definition – Online Influencers are those who drive opinions (and traffic) around the web are identified by three attributes: 1. Can impact a brand that produces content that guides perceptions and opinions 2. Have growing audiences opting to follow and often respond to current topics 3. Maintain relatively high levels of engagement through natural group affinities and other influencers both online and off Monitor and Filter Influencers as a Subset 1. Track total number of times that influencer mentions your product, brand 2. Track sentiment of posts from the influencer as it relates to your product or brand 3. Track influencer group as a whole and look at the topical maps of discussion the influencers are engaging in – then define what your brand’s share of voice is in those discussionsroom214.com } info@room214.com } 303.444.9214
  17. 17. Marketing Mix Modeling MMM – a mathematical technique of calculating the relative marketplace impact of all various levers a marketer can pull. Looks at what’s in the marketer’s control: • Pricing • PR • Media Spend …and what’s not: • what the competition is doing • seasonality • current events This is the BIG BUCKS Methodology, for CPG, entertainment and auto category brand companies with large media buy and marketing budgets that can afford to conduct MMM analysis. Resource: iMedia Connection Series on Marketing Mix Modeling http://www.imediaconnection.com/content/5412.imc Source: Walter Carl, ChatThreadsroom214.com } info@room214.com } 303.444.9214
  18. 18. Ratings and Reviews A Nielsen Online Study, from Dec. 08 found that 81% of online holiday shoppers read customer reviews before making purchase Key reasons brands should pay close attention to customer reviews: 1. Uncover what customers think about the brand 2. Achieve impacts beyond sales 3. Understand review evolution over time to see the overall impactroom214.com } info@room214.com } 303.444.9214
  19. 19. Ratings and Reviews Tips and Best Practices: 1. Look at as many products as possible 2. Consider the same time periods over multiple years 3. Use products present in all time periods 4. Define conversation rates for products prior to launch, when they had no reviews and compare to post-launch review metrics 5. Look for positive trends associated with increased content [i.e. Do 20 reviews lead to higher conversion rates than to 10 reviews?] Answer these questions specific to each review site: 1. How many reviews per product does it take to affect a product’s success metric? 2. What percent of products have customer reviews? 3. When do people submit reviews? 4. When do people consume reviews? Google Sidewiki – anyone can now place comments and reviews on any web page Source: Melissa Douglas, Bazarrvoiceroom214.com } info@room214.com } 303.444.9214
  20. 20. Reach Reach represents the degree of “marketing penetration” within a given target audience Why Measure Reach? 1. Understand how far a given marketing message spread 2. Extrapolate other outcome-based metrics [e.g. sales, awareness, purchase intent] to a wider population, which in turn affords a more accurate valuing of marketing expenditures Reach and Word of Mouth The number of individuals who have been exposed to a WOMunit through an action of peer-to-peer connectedness. Word of Mouth Generations The “ripples” of WOM Generation 0 = the first senders of information e.g. James (G0) tells Jennifer (G2) about the great trip he had Genreation 1 = the recievers of Generation 0’s information, some of whom may resend Generation 2 = the receivers of G1’s information, some of whom may resendroom214.com } info@room214.com } 303.444.9214
  21. 21. Reach Methods for Quantifying Online Word of Mouth Reach 1. URL analytics tracking of website visitors 2. Email analytics of shares and forwards 3. Refer-a-friend/Send-to-a-friend tracking 4. Generational conversation validation and tracking platform Tools Meteor Solutions, word of mouth analytics and optimization, http://www.meteorsolutions.com Twitter Tweetreach, How far did your tweet travel? http://www.tweetreach.com Source: Matthew Stradiotto, Matchstickroom214.com } info@room214.com } 303.444.9214
  22. 22. Sentiment & Opinion Analysis Assessment of an author’s tone – whether or not they express a positive or negative opinion about something – within a specific textroom214.com } info@room214.com } 303.444.9214
  23. 23. Sentiment & Opinion Analysis Sentiment Analysis Metrics and Indicators 1.Sentiment Volume: The number of positive/negative/neutral consumer opinions expressed about a brand, company or product 2.Sentiment Ratio: number of +/- opinions expressed divided by the total number of consumer opinions or similar formula 3.Polarity/Intensity: beyond +/- exp: District 9 was f***ing amazin!, District 9 was a decent Sat night date flick 4.Qualitative Factors: what do they cite as their reasons? E.g. Comcast is terrible my internet is crawling 5.Specific Customer Feedback: I wish Netflix had subtitles, Blockbuster is better than Netflix, I wish Netflix would come to Canada Natural Language Processing BEWARE – claim to have 80% accuracy – don’t believe the hype Human Reviewed Limit the number of posts to review and assign each to a category Source: Margaret Francis, Scout Labsroom214.com } info@room214.com } 303.444.9214
  24. 24. Sentiment & Opinion Analysis Key Points • Conversation about ACME as an innovativeKey Topics of Conversation about ACME Company “green” company appears in the Exciting New Technology and Socially Responsible Other categories, which make up more than one 11% Exciting New third of content. Technology Outages & 25% • Conversation portraying ACME as an Evil Emergencies Corporate Giant focuses the xxxx indictment. 9% • AMCE’s attempt to impose a surcharge on customers with solar panels fuels Anti-Green conversation • XXXXX conversation contains someComplaintsabout Rate Socially discussion of ACME’s attempt to include Hikes Responsible executive perks in a rate hike, as well as 20% 13% more neutral discussion about routine rate increases Anti-Green Evil Corporate Giant • The greatest proportional of user-generated 11% 10% content, much of it from Twitter, appears inAnalysis Dates8/15 – 9/17 Outages and Emergencies. room214.com } info@room214.com } 303.444.9214
  25. 25. Sentiment & Opinion Analysis Room 214’s Recommended Sentiment and Opinion Analysis Tools Sysomos, http://www.sysomos.com Crimson Hexagon, http://www.crimsonhexagon.comroom214.com } info@room214.com } 303.444.9214
  26. 26. ROI in Social Media Return – Investment = ROI Methodologies for calculating ROI will vary depending: • Scope • Available Resources • Technologies Utilized • Industry PROCESS CAN BE PAINSTAKING AT BEST – INCONCLUSIVE AT WORST Project vs Utility Project – most common way to organize expenditures and map results back to a project or initiative -Tech and hosting fees, Advertising, Program investment costs, Creative and build costs, hard product costs, fulfillment, Loyalty programs, Staff costs Utility – effort and expense necessary to increase something by a single unit - Independent variable is the resources and expenses - Dependent variable is the incremental improvement of objective (increase conversation volume from 50 to 100 blogs)room214.com } info@room214.com } 303.444.9214
  27. 27. ROI Techniques Techniques for INCREASING REVENUE EARNED include increasing a program’s: • Frequency – increasing the number of purchase transactions • Acquisition- increase the number of net new customers • Yield – increasing the value of individual purchases w/o sacrificing freq • Acceleration – shortening the time it takes to acquire a customer Techniques for REDUCING COSTS include: •Customer Acquisition – shifting cost of sales to lower cost channels without sacrificing the customer experience • R&D – expediting R&D time and surfacing new product and feature needs •Institutional Learning and Insights – removing organizational friction and creating synergies between otherwise disparate groups •Customer Service and Support – shifting cost to serve to lower cost channelsroom214.com } info@room214.com } 303.444.9214
  28. 28. ROI Resources ReadWriteWeb Dell’s $3m on Twitter and Four Better Examples http://bit.ly/6Lb8HX Social Media Today 6 Must Read Posts about the ROI of Social Media http://bit.ly/4E0WqA Mashable How To: Measure Social Media ROI http://mashable.com/2009/10/27/social-media-roi/ SocialSteve Measuring the Value of Social Media http://bit.ly/7jhOfKroom214.com } info@room214.com } 303.444.9214
  29. 29. Breaking the Golden RuleRoom 214’s Competitors – Doing Cool StuffConversation ImpactOgilvy 360 Digital Influencehttp://bit.ly/5DWGQcSocial Influence MarketingRazorfishFluent Report: http://bit.ly/7MnurProom214.com } info@room214.com } 303.444.9214
  30. 30. Thank You! James Clark Co-Founder, Room 214 www.Room214.com jclark@room214.com Twitter: @jamesoclark Phone: 303-444-9214 x100room214.com } info@room214.com } 303.444.9214
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