Regression analysis: Simple Linear Regression Multiple Linear Regression
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Buzz 2010 presentation
1. Social Business Justification & R.O.I. olivieralainblanchard @thebrandbuilder Buzz 2010 Series Washington, DC 18 August2010 #buzz2010
2. What do I do? Training Social Media Program Integration for C-Suite executives, Managers and organizations. Consulting - Brand Mgmt. - Online Reputation Mgmt. - Social Web & New Media ā¦ and the blog. Advisory Board Shenanigans
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4. First Rule: The tools are the tools. The tools are not the thing.
10. Ways in which Social Media can help a business: Sales Net New Customers, Increased Frequency of Transactions, promo exposure Increased yield (average $ value per transaction), and product penetration Customer Support Immediate feedback and response, positive impact in public forum, cost reduction Human Resources More effective recruiting, online monitoring of employee behavior (risk management) Public Relations Online Reputation Management, improved brand image via Social Web Customer Loyalty Increased interactions, better quality of interactions, deeper relationship with brand, Increased trust in brand, increased mindshare of brand, greater values alignment Business Intelligence Know Everything. (No, really.)
11. Ways in which Social Media can help an association: Outcomes Net New Members, Increased Frequency of Donationsand Volunteerism, Increased yield (average $ value per donation), added exposure MemberSupport Immediate feedback and response, positive impact in public forum, cost reduction, Increased interactions, more varied interactions, portable resources (mobile) Human Resources More effective recruiting, online monitoring of employee behavior (risk management) Public Relations Online Reputation Management, improved brand image via Social Web, Clarification of purpose & value, Direct communication with public MemberLoyalty Increased interactions, better quality of interactions, deeper relationship with cause, Increased trust in organization, increased mindshare of cause, greater values alignment
12. Brand Management: Momentum Drivers Awareness Do enough people know about us? Do enough people think about us? Context Do people think of us in the right way? Value Do people understand our value? What we offer? Relevance Do people appreciate our value to them? Catalysts Do people have a reason to think about us? To engage with us? To buy into us?
13. Leveraging Social Communications Social media is there to drive, amplify and reinforce all of these things: Awareness Context Value Relevance Interactions Transactions
21. Facebook has over 500 MILLION users Twitter now has over 100 MILLIONregistered users. 55,000,000 tweets per day. 37% of users tweet from their phones. All talking to each other all day long.
24. What if this were your message? The principles are the same.
25. Brand Management: Momentum Drivers Awareness Do enough people know about us? Do enough people think about us? Context Do people think of us in the right way? Value Do people understand our value? What we offer? Relevance Do people appreciate our value to them? Catalysts Do people have a reason to think about us? To engage with us? To buy into us?
28. How can I leverage Social Media to impact x: Outcomes Net New Members, Increased Frequency of Donationsand Volunteerism, Increased yield (average $ value per donation), added exposure MemberSupport Immediate feedback and response, positive impact in public forum, cost reduction, Increased interactions, more varied interactions, portable resources (mobile) Human Resources More effective recruiting, online monitoring of employee behavior (risk management) Public Relations Online Reputation Management, improved brand image via Social Web, Clarification of purpose & value, Direct communication with public MemberLoyalty Increased interactions, better quality of interactions, deeper relationship with cause, Increased trust in organization, increased mindshare of cause, greater values alignment
29. But all of that is mostly talk. And talk doesnāt pay the bills or change much of anything.
30. Organizations need to raise money and/or get results. Talk needs to impact behavior.
36. These resources = 100% of your budget These resources generate 100% of your outcomes E-Marketing Head Count Advertising I.T. Inbound Call Center Marketing Sales Dept. Accounting Public Relations
37. Understand that a new marketing programās funding doesnāt appear out of thin air.: Which buckets do we empty to fill this new one?
38. Give me a good reason why I should assign resources to this thing. The dragonwants to know how this will help the org.
39. It all starts with one question: What are you trying to accomplish? Define the objective FIRST. THEN come up with the tactics.
40. Tactics donāt dictate the objective. You knowā¦ What this team really needs Is more WOM! NO
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42. Objectives dictate tactics. I need 3 more touchdowns before half-time. What are my options? (How does WOM fit in?) YES
43. Question #1: Will it save me money? Maybe in member support? You mentioned something about media costs and CPI? Question #2: Will it generate more revenue? I want more volunteers, more net new members, more exposure, etc. Fact: Ultimately, the P&L drives business decisions.
44. Objectives should be specific. F.R.Y. FREQUENCY, REACH, YIELD Increase how often customers buy from us each month Increase the net number of transacting customers Increase average spend per transaction Etc.
45. The Association version: F.R.Y. FREQUENCY, REACH, YIELD Increase how often members give us each month/year Increase the net number of active members Increase average āgiveā per ātransactionā Etc.
49. THE R.O.I. EQUATION (GAIN FROM INVESTMENT - COST OF INVESTMENT) ROI = COST OF INVESTMENT
50. The Truth About R.O.I. ROI is a business metric, not a media metric. ROI is 100% media-agnostic. Only measuring digital or social wonāt get you anywhere.
51. What if you arenāt āfor profit?ā You still depend on some kind of revenue to function: Grants, funding, donations, membership fees, etc. Same thing. Revenue is revenue. Budgets are budgets. Money is money.
52. Iām a Social Media guru. Love isnāt about ROI, baby. Forget your greedy ways. The Problem.
53. ROI is NOT: Return on Inspiration Return on Involvement Return on Innovation Return on Immersion Return on Imagination Return on Importance Return on Inbound Return on Imbecility Return on Ignorance Return on Incompetence ROI is: Return on Investment.
54. R.O.I. Confusion - A tale of operational silos Engagement R.O.I. Different Focus + Different perspective
55. Reason #1: COST REDUCTION (How can I do more with less?) Reason #2: REVENUE GENERATION (How can I make more of an impact?) So once again, to be clear. This is R.O.I.
56. Letās get people Talking about us. Dudes, we are ON THIS!!! Letās start engaginā!!! Iāll start crafting some wicked blog posts and online contests.
61. Types of non-financial impact Customer complaints Website Visitors Impressions Positive press Click-throughs YouTube views Retweets Coupons distributed Visitors to a brick & mortar store Positive WOM Delivered emails Negative press Negative WOM Employment applications Blog comments FaceBook friends Social mention Twitter followers
62. Yeah butā¦ What about the P&L? Monitoring to baseā¦ Monitoring to baseā¦ Our social mentions are wicked good! The YouTube videos are scaling well. Our blog even has comments! We have liftoff!
64. What kind of mood is The old man in today? Not good. He doesnāt care how many visitors the website gets, or how many eyeballs we estimate weāve reached. How is it all helping grow the Biz yo?
68. What a Social Media win looks like: 94,000 followers Velocity: 8K to 66K in only 2 days 706,000 fans/likes ā¦ sharing videos with friends on their wall 16,000,000 views Most response videos >200,000 views Facebook.com/oldspice
72. ROI = actualized potential. Social Media Activity - Vertical/Lateral Ultimately, Social Media activity has to positively impact customer behaviors and drive revenue in order to deliver R.O.I.
73. This is not the end of the line for you: In your case (and unlike For Profit businesses,)R.O.I. is not where the narrative ends. R.O.I. is a means to an end. Main non-financial objective(s) Plant 3,000,000 new trees in the US Reduce teen pregnancy in Chicago by 3% this year Preserve historic neighborhoods in Baltimore Increase local recycling by 300 tons per year Send 300 cleanup volunteers to the Gulf for one week Attract Google Fiber to your city
74. This is not the end of the line for you: In your case (and unlike For Profit businesses,)R.O.I. is not where the narrative ends. R.O.I. is a means to an end. Main non-financial objective(s) Plant 3,000,000 new trees in the US Reduce teen pregnancy in Chicago by 3% this year Preserve historic neighborhoods in Baltimore Increase local recycling by 300 tons per year Send 300 cleanup volunteers to the Gulf for one week Attract Google Fiber to your city Enablement
82. If you can, also look at # of transactions Sales? Donations? Other?
83. Also measure net new customers NNC is a measure of effective reach, not just media reach.
84. Also measure net new customers Net new members NNC is a measure of effective reach, not just media reach.
85. Transaction data should be specific F.R.Y. FREQUENCY, REACH, YIELD How often customers transact. (transactions per month) How many customers you are reaching. (net new customers) How much they spend. ($ per transaction)
86. The Association version: F.R.Y. FREQUENCY, REACH, YIELD Increase how often members give us each month/year Increase the net number of active members Increase average āgiveā per ātransactionā Etc.
89. Step 6: Overlay your data onto a timeline activities social data web data transactions loyalty metrics etc.
90. Step 7: Look for patterns Impact Uncertain Impact Impact Impact No Impact Before After
91. Step 8: Prove & disprove relationships How was this group Touched by SM or WOM? (And how was it not?) Before After
92. Finally, someone with some real metrics for me to sink my teeth into! Good job, Sparky! You done gewd! Make the case for Social Mediaās value.
93. R.O.I. Case Study Brief: Association Launch Problem:A new triathlon club with virtually no funding or resources wanted to grow large enough to start sponsoring and organizing events to promote the sport in its area. Advertising was too expensive and local media werenāt targeted enough. Solution: - Club officers leveraged personal networks to increase reach, and digital channels to share content. - Schedules, newsletters, photos, videos and other content was packaged to be sharable online. - Identified and exploited mid-level influencers, evangelists, volunteers and socially-motivated members. Result: Day 1 - 5 founding members Day 30 - 48 members Day 75 - 179 members Day 120 - 291 members
94. R.O.I. Case Study Brief: Association Launch Result: Starting budget ā $120. Membership $ - $25 apiece ļ 291 x $25 = $7,275 Corporate Sponsorships for first year: ļ 3 sponsors = $12,000 Within 4 months, the organization had generated almost $20,000 in revenue/funding. The club invested this funding into events/races, custom club/team uniforms, T-shirts, car decals and other swag. We upgraded the website. Phase 2: The club launched a series of youth triathlons to benefit various charities and research. Participation soared. (We raised A LOT of money.) A state Triathlon series was launched within the year.
95. R.O.I. Case Study Brief: Association Launch We did this without Facebook, Twitter, MySpace, SMS or blogs.
96. R.O.I. Case Study Brief: Association Launch Social Media tools didnāt exist yet but the principles behind āSocialā did.
97. R.O.I. Case Study Brief: Association Launch We leveraged our social networks, developed them with purpose, engaged, recruited, promoted and leveraged the ultimate app: ā¦?
98. R.O.I. Case Study Brief: Association Launch We leveraged our social networks, developed them with purpose, engaged, recruited, promoted and leveraged the ultimate app: People.
99. R.O.I. Case Study Brief: Association Launch We leveraged our social networks, developed them with purpose, engaged, recruited, promoted and leveraged the ultimate app: People. (They come fully loaded.)
100. R.O.I. Case Study Brief: Association Launch We were successful in great part due to this:
101. R.O.I. Case Study Brief: Association Launch We were successful in great part due to this: 1. We had clear objectives.
102. R.O.I. Case Study Brief: Association Launch We were successful in great part due to this: We had clear objectives. We understood this:
103. R.O.I. Case Study Brief: Association Launch We were successful in great part due to this: We had clear objectives. (We understood...) Our activities supported our objectives.
104. R.O.I. Case Study Brief: Association Launch We were successful in great part due to this: We had clear objectives. Some were not financial. Others were. Our activities supported our objectives. We measured success in terms of outcomes: - Financial - Non-financial
105. R.O.I. Case Study Brief: Association Launch We were successful in great part due to this: We had clear objectives. Some were not financial. Others were. Our activities drove to our objectives. We measured success in terms of outcomes: - Financial - Non-financial 5. Without revenue, we were cooked.
113. 3. ā¦ Again, express them in terms of a specific value: Members, birds rescued, etc.
114. 4. Now write down your 3 top financial objectives.
115. 5. Write down how each financial objective plugs into your three main overall objectives.
116. R.O.I. = maximizing enablement In your case (and unlike For Profit businesses,)R.O.I. is not where the narrative ends. R.O.I. is a means to an end. Main non-financial objective(s) Plant 3,000,000 new trees in the US Reduce teen pregnancy in Chicago by 3% this year Preserve historic neighborhoods in Baltimore Increase local recycling by 300 tons per year Send 300 cleanup volunteers to the Gulf for one week Attract Google Fiber to your city Enablement
117. How will you measure success every step of the way?
118. Measuring success: Defining metrics early A leads to B leads to C leads to D... ? ? ? ? ? Non-financial objective ?
119. Measuring success: Defining metrics early ? ? ? ? ? Non-financial objective Start here. ? Define Metric/value. What is my target? How much $ do I need to do this?
120. Measuring success: Defining metrics early Now move here. My $ target is $x. Where do I measure changes in $x? What behaviors leads to this? ? ? ? ? ? Non-financial objective ?
121. Measuring success: Defining metrics early Now move here. My targetsare X, Y and Z. My metrics are M, N and O. My channels are P, Q, R and S What behaviors drive these targets? ? ? ? ? ? Non-financial objective ?
122. Not here. Measure hereā¦ Plan first. Map out the route. Identify relevant metrics every step of the way.
123. Your metrics Now start from the beginning. 1. Baseline. 2. Timelineā¦ You planned from outcome to catalyst. Now measure from catalyst to outcome. R.O.I. = financial metrics within this process.
137. Note: Most Obama For America online supporters gave little, but they gave often. Frequency was a key factor in the O4A strategy.
138. Can we increase the frequency of contributions? YES. Increase frequency of interactions Ask more often Update swag more often Repeat message more often Engage more often SM is more cost effective than paid media
141. Second largest search engine in the world, only to Google ļ Millions of people are content publishers now. Facebook has over 500 MILLION users Twitter now has over 100 MILLIONregistered users. 55,000,000 tweets per day. 37% of users tweet from their phones. Donāt forgetā¦ All talking to each other all day long.
142. Can we increase our reach? YES. Seed and grow our channels Help our supporters share content Ask our fans to share content Arm our fans with tools Make our reach strategy clear Vertical + Lateral engagement
145. Can we increase our Yield? YEP! Foster depth of engagement Develop and build loyalty Increase involvement of fans Understand the value of timing Build clarity of purpose Ask when we need to ask
152. R.O.I. is a crucial link in the measurement chain.
153. Iām a Social Media guru. Behold my army of followers. My personal brand is golden. Only measure followers, fans, visitors, downloads, click-throughs, mentions and web stats. Thatās Social Media measurement, baby! Dig it. And please, no more of this.
