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June 2013: Social Analytics - How to measure and monetize Social Media
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June 2013: Social Analytics - How to measure and monetize Social Media

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See the full report at http://www.uniqloud.com ...

See the full report at http://www.uniqloud.com

The emerging usage of Social Media is a global trend of unprecedented scale; the top 5 social networks alone count more than 3 billion users. Social Media Analytics and Social CRM have emerged as important means for businesses to measure, manage and monetize these powerful channels. This market overview gives a comprehensive overview of Social Media structures, marketing sizing, analytics and CRM approaches, key tool vendors and case studies. - See more at: http://www.uniqloud.com/read_reports/social-analytics/#sthash.36xY7RNL.dpuf

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June 2013: Social Analytics - How to measure and monetize Social Media June 2013: Social Analytics - How to measure and monetize Social Media Presentation Transcript

  • SocialAnalyticsHow to measureand monetizeSocial MediaJune 2013
  • 1.  Definition Social Media, Social Analytics, Social CRM2.  Structure andMarket Sizing3.  Metrics4.  Key Players5.  Case Studies6.  Introductory FrameworkApplication across six industriesincluding outcomesSocial media user segmentation, disrupting trends,Western world vs. China, Social Media marketsizing, Facebook growth, Social CRM marketsizing, Social Analytics market sizingSix key metrics to measure Socialmedia: Description and examplesEight vendor profiles for Facebook analytics,Twitter analytics, Social media monitoring, SocialCRM analyticsEight business goals in order to introduce socialanalyticsTable of ContentsSocial Analytics7. Benefits and Challenges Perceived benefits and underlyingchallenges
  • 1. CRM has evolved from one-to-one communication to customer-focused collaborative interactionsTimelines of Social CRMPre-Web Era1990 2006¤  Collection and analysis ofinternet data allows to optimiseweb channels and increase sales¤  Log files and embedded scripts(mostly JavaScript) on web pagesare the main forms of data collection¤  Measure and analyze interactionsbetween brands and consumers orbusinesses across digital channels¤  Use Web 2.0-based platforms such associal networks, photo and video sharing,forums, blogs, etc. as information sources¤  Customer interaction isone-to-one and on atransactional basis¤  Telephone interview, paper-based questionnaire, face-to-face focus group, lettersand service centersSources: University of Twente, CRM Search, Pininterest¤  Social media provide tools and servicesto create and exchange user-generatedcontent¤  High consumer engagement with richmedia and and novel forms ofcommunication¤  Internet as a global networkconnects users and enables newforms of interactions¤  Two-way communication with theadoption of web technologies¤  Non-web channels: Radio,TV and newspaper ads¤  One-way communication topromote products and servicesInternet Era Social Media EraTraditional Analytics Web Analytics Social Media Analytics
  • 2. 28% of US Social Media Users actively participate and share information.Social Media User SegmentationSources: Aimia IncSix social media types represent the entire spectrum of socialmedia usage within the United States, according to a 2011 surveyby Aimia. The following types describe the main behaviouralpatterns and their distribution across the Social Media population:1.  Sparks (3%): The most active and deeply engaged users ofsocial media. They use social media as a means of self-expression in creative and engaging ways. They engage withbrands frequently and will serve as enthusiastic ambassadorsfor their favourites.2.  Mix-n-Minglers (19%): They actively participate on multiplesocial networking platforms, understand the importance of dataprivacy and are influential within their networks of friends.3.  Cliquers (6%): Active, single-network users who congregateprimarily on Facebook, most likely to be influential women whoshare photos, status updates and comments within the smallnetwork of close friends and family4.  On Lookers (16%): Lurk on several social media networks butpost infrequently to control their online information, whoprimarily keep up on the online lives of others but reluctant toshare details about themselves5.  New Comers (15%): Passive users of a single social medianetwork who primarily use social media to enhance offlinerelationships6.  No Shows (41%): Not logged on to a social network in the last30 days, most likely a 65-plus male that shows low degrees oftrust and has no interest in broadcasting activities or interestsHighExposureLowExposureActiveParticipationPassiveParticipation2. Mix-n-Minglers(19%)3. Cliquers(6%)4. On Lookers(16%)5. NewComers(15%)6. NoShows(41%)1. Sparks(3%)
  • 00.511.522.532007 2008 2009 2010 2011 2012 2013 2014 2015 2016Number ofUsers,billionNumber of Internet and Social Media UsersWorldwide from 2007 to 2016Total InternetSocial Media2. By the end of 2016, 3 out of 10 people worldwide will actively engage inSocial Media – replacing traditional online communication.Social Media Market Sizing: Number of UsersSources: Areppim, Comscore, The Radicati Group¤  In 2011, Social Media sites reached 82% of the world’sonline population - that is 1.2 billion users worldwide¤  The number of worldwide Social Media users will riseto 2.3 billion by the end of 2016, nearly 32% of the totalpopulation¤  The adoption of Social Media is likely to growproportionately at a CAGR of 20.8% from 2007 to 2016¤  The time people spent on Social Networkingtripled in the last five years from 6% in 2007 tonearly 19% in 2011¤  Time spent on social networking sites gainedground by taking share predominantly fromonline communications, as another primarycommunication channel for users13.51826.544.9Search/NavigationRetail051015202530352007 2008 2009 2010 2011Hours perMonthTime Spent on Social Networking and otherInternet activities from 2007 to 2011CAGR 9.08%CAGR 20.8%CommunicationForecastSocial MediaOther Content
  • 2. Social analytics and CRM may reach to a sizable of 30% share of thetotal CRM marketMarket Size of Social CRMCRM Software Growth¤  Worldwide CRM software sales enjoy a steady riseand will reach $18.5 billion in 2016, up from $9.5billion in 2009. at a CAGR of approximately 10%¤  Sales and Marketing Automation represent the keyareas of growth as technological advances introducegame-changing effects.90%70%9%20%1%10%2000 2013CRM Applications: Analyticsgrows in Application MixTraditional CRMSocial CRMAnalytics2.5 2.8 3.1 3.5 4 4.2 4.73.8 3.7 4.2 4.5 5 5.6 5.85 5.5 5.7 66.57.28051015202009 2010 2011 2012 2013 2014 2015 2016Revenue inUSD,billionsWorldwide CRM Software Revenue ForecastsSalesCustomer Service and SupportMarketing AutomationSources: GartnerCAGR 10%Social CRM and Analytics¤  Social CRM technologies are expected to growa market share of 10% in 2013, up from 4% in2010.¤  Spending on analytics and social CRM isexpected to rise, up to a point where social CRMalone accounts for 20% of the total CRM market
  • 3. Customer experience perfection leads to multiple additional benefitsSix Metrics: Customer Experience (5/6)Sources: Altimeter Group, Social Media ExplorerMetric Purpose Action ExampleCustomerExperience¤  Immediate impacts on customerexperiences, which lead to multipleadditional benefits such as brandhealth, cost savings and increasedrevenue¤  Insights:−  How people talk about a brandand product−  Momentum of a topic or issue−  Sentiment and emotion drivers−  Blind spots identification andsatisfaction scores¤  Service improvement bysetting service levels andindentifying issues¤  Align content and servicefocus to top issues in socialchannels¤  Directly engage with andaddress both positive andnegative service issues¤  Management of issues andcrisis intelligentlyDell evolves a set ofservice levels foracknowledgement ofissues online. Thisensures accountabilityacross the organizationfor how customer issuesare handled.Doughnuts for how people feel Bar Charts for People’s Attitude[Visible Technologies] [Spiral16]
  • Key Players: Social Media Monitoring (5/8)Sources: SalesforceRadian6¤  Integration: Software platform for web-based data listening analytics¤  Tracked Media: Cross-platform¤  Functions: Comprehensive reporting, textanalytics, engagement workflow¤  Key Customers: Volvo, Cisco, WileyPublishing, Pizza Hut, Frontier AirlinesFeatures¤  Social brand monitors and measuresbuzz around the brand, competitors andindustry; analyzes trends and evaluatereactions¤  Expand social reach by buildingconnections between employees andcustomers¤  Create customer experiences toacquire and qualify social leads throughpurchase signals and point-of-needconversations¤  Discover and drive sales opportunitiesthrough social channels4. Social media monitoring tracked all sorts of social media to extendsocial reach and maximize efficiencies mainly for large enterprises
  • Brand Name Description Results      TELUS (Canada)¤  Situation: TELUS saw an increased number ofcustomers using new channels to obtaincustomer service, voice opinions and connectwith other customers to share ideas andsolutions¤  Action: TELUS trained a group of care agentsusing Salesforce Marketing Cloud to monitorsocial media and launch @TELUSsupport onTwitter to monitor conversations that matter tothem and connect with customers who havequestions or concerns¤  @TELUSsupport became thefirst account in Canada verifiedby Twitter solely for customersupport¤  TELUS achieved a hugemilestone with 30+ speciallytrained agents and 20,000+followers to resolve 13,000+client care issues and sent32,000+ tweets5. Telcos use social media as a new channel to take care of theircustomersCase Study: Social Analytics in Telecom (1/6)Sources: Salesforce
  • The complete market overview contains a 41 page Powerpointpresentation and a comprehensive Excel research sheet¤  41 page Powerpoint/ PDF presentation¤  Social Media market segmentations andtrends¤  6 Social Core Metrics, 8 Key Vendorprofiles, 6 Case studies¤  Fully reusable¤  Source URLs are embedded on each slide¤  Embedded charts & figures are easilyaccessiblePresentation¤  Excel sheets for market segmentation,sizing & growth figures,¤  42 Vendor Profiles, 26 Case studiesacross all major industries¤  Links URLs to 100+ sources:Whitepapers, Studies, Presentations,News releases, Blogs, Twitter, AcademicpapersResearch sheetBuy the full market overview with flexible license modelsfor individuals, small teams and corporate customersSocialAnalyticsHow to measureand monetizeSocial MediaJune 2013
  • Preview – Full presentation (1/5)!"#$%#&$!(!(SocialAnalyticsHow to measureand monetizeSocial MediaJune 20131.  Definition Social Media, Social Analytics, Social CRM2.  Structure andMarket Sizing3.  Metrics4.  Key Players5.  Case Studies6.  Introductory FrameworkApplication across six industriesincluding outcomesSocial media user segmentation, disrupting trends,Western world vs. China, Social Media marketsizing, Facebook growth, Social CRM marketsizing, Social Analytics market sizingSix key metrics to measure Socialmedia: Description and examplesEight vendor profiles for Facebook analytics,Twitter analytics, Social media monitoring, SocialCRM analyticsEight business goals in order to introduce socialanalyticsTable of ContentsSocial Analytics7. Benefits and Challenges Perceived benefits and underlyingchallenges1. Social Media nourish communities with user-generated content thatdrives stickiness and communicationDefinitions and CategoriesSources: University of Applied Sciences Utrecht, Out: think GroupSocial Media are Internet-based applications that allow the creation and exchange of user-generated content. It can bedefined as a supply chain indicating the low barriers to participation, where users can be both media producer andmedia consumer.Six types of Social Media!  Social Networks connect people of similar interest and background. Personal profiles,groups and messaging allow users to interact and establish structures.!  Social News post news items or links to 3rd party articles. Voting mechanisms on itemsdetermine the prominence of items.!  Bookmarking Sites: Users save, organize and manage links to any web resource. Taggingmakes links easy to search and share!  Media Sharing: Users upload and share media such as pictures and video with additionalsocial features like profiles and comments etc!  Microblogging focuses on short news or updates that are pushed out to subscribers!  Blog Comments and Forums facilitate conversations and contributions from readers!  Media (Text,Music, Photos,Movies)!  Relations!  Links!  Video/ music/photo sharing!  Wiki, Blogs!  SocialNetworks!  Internet!  Mobileplatforms!  Classic WebBrowser!  Mobile Web &ApplicationsAggregationCreation Distribution Consumption1. Social media triggers a new form of business analysis insights to managecustomer relationshipSources: Awareness NetworksDefinition andPurposeofSocial Analytics!  Social Analytics measure the impact of Social Media onbusiness!  Identify and understand relevant conversations in onlinecommunities!  Influence business performance and driveconversations with experts, competitors, prospects,customers, social marketing teams.1. Extract Data fromSocial Media2. Segment Data3. Mix Internal andExternal Data4. Identify BusinessMetrics5. Create NewBusiness Insights6. Inform FutureBusiness StrategiesSocial Analytics: From Social Data to Business Strategy InsightsGoals andSample MetricsofSocial AnalyticsImprove Marketing and Sales by measuring andinfluencing:!  Brand Awareness and Reputation!  Marketing Program Effectiveness!  Lead Generation Effectiveness!  Increased Sales and Shorter Sales Cycles!  Customer Satisfaction and Reduced ChurnShare of Voice = # of brand conversations / # of industry conversationsSocial Reach = # of followers, Engagement LevelLead Generation Effectiveness = # of new leads / # of total leadsEffectiveness = # of sales from social channels / # total salesComplaint Visibility and Feedback, Sentimental AnalysisSocial AnalyticsDecision making processwith Social Analytics(1. CRM has evolved from one-to-one communication to customer-focused collaborative interactionsTimelines of Social CRMPre-Web Era1990 2006!  Collection and analysis ofinternet data allows to optimiseweb channels and increase sales!  Log files and embedded scripts(mostly JavaScript) on web pagesare the main forms of data collection!  Measure and analyze interactionsbetween brands and consumers orbusinesses across digital channels!  Use Web 2.0-based platforms such associal networks, photo and video sharing,forums, blogs, etc. as information sources!  Customer interaction isone-to-one and on atransactional basis!  Telephone interview, paper-based questionnaire, face-to-face focus group, lettersand service centersSources: University of Twente, CRM Search, Pininterest!  Social media provide tools and servicesto create and exchange user-generatedcontent!  High consumer engagement with richmedia and and novel forms ofcommunication!  Internet as a global networkconnects users and enables newforms of interactions!  Two-way communication with theadoption of web technologies!  Non-web channels: Radio,TV and newspaper ads!  One-way communication topromote products and servicesInternet Era Social Media EraTraditional Analytics Web Analytics Social Media AnalyticsCRM: A strategic approachto manage customerrelationships to createbusiness valueSocial Media: Internet-based applications, toolsand services that facilitatetwo-way interactionsSocial CRM: A business strategyto manage customer relationshipsthrough social media with the goalof improving business valueSources: University of Twente, Booz1. Social CRM extends traditional CRM. It requires both proactive andreactive approachesSocial Customer Relationship Management (Social CRM)!  Social CRM is an extension for traditional CRM processes and tools. There are real costs involved from the enterprise ingenerating required capabilities and the return on investment should be clearly understood and measured!  Social CRM involves both proactive marketing, sales, service (lead generation and social sales, social marketing andpromotions, brand and product awareness, loyalty and VIP customer treatment) and reactive preemption andmitigation (market and product insights, social support, complaints management, public relationship crisis reaction) frommonitoring and analyzing social media data!  The key to a successful social CRM effort lies in extending traditional CRM strategies and processes to a company’sentire extended social network – a dynamic, constantly evolving organism that encompasses customers and suppliers2. 28% of US Social Media Users actively participate and share information.Social Media User SegmentationSources: Aimia IncSix social media types represent the entire spectrum of socialmedia usage within the United States, according to a 2011 surveyby Aimia. The following types describe the main behaviouralpatterns and their distribution across the Social Media population:1.  Sparks (3%): The most active and deeply engaged users ofsocial media. They use social media as a means of self-expression in creative and engaging ways. They engage withbrands frequently and will serve as enthusiastic ambassadorsfor their favourites.2.  Mix-n-Minglers (19%): They actively participate on multiplesocial networking platforms, understand the importance of dataprivacy and are influential within their networks of friends.3.  Cliquers (6%): Active, single-network users who congregateprimarily on Facebook, most likely to be influential women whoshare photos, status updates and comments within the smallnetwork of close friends and family4.  On Lookers (16%): Lurk on several social media networks butpost infrequently to control their online information, whoprimarily keep up on the online lives of others but reluctant toshare details about themselves5.  New Comers (15%): Passive users of a single social medianetwork who primarily use social media to enhance offlinerelationships6.  No Shows (41%): Not logged on to a social network in the last30 days, most likely a 65-plus male that shows low degrees oftrust and has no interest in broadcasting activities or interestsHighExposureLowExposureActiveParticipationPassiveParticipation2. Mix-n-Minglers(19%)3. Cliquers(6%)4. On Lookers(16%)5. NewComers(15%)6. NoShows(41%)1. Sparks(3%)1. Microblogging is a disruptive force in Social Media, affecting society andcommerce. Social Media usage is accelerated by mobile devices.Disrupting Trends (1/2)Sources: BBC, comScoreMicroblogging as a way to communicate through short-form content has emerged as a disruptive new force in social media.Twitter saw the eruption of its audience in the spring of 2009 and showed an impressive growth rate of 59% over2012. In 2013, Twitter reaches 1 in10 Internet users worldwide. Taking Arab Spring activists as an example, Twitteritself offers a platform to connect and share information - effectively bypassing government restrictions.Sina Weibo is the leading Chinese microblogging site that ranks as the 10th largest social network globally andenjoyed an increase of 181% in 2012. Weibo is considered a mainstream media for people to express and amplifytheir opinions such as sensitive political issues, environmental problems and daily emergencies.Tumblr (acquired by Yahoo in May 2013) is ranked as the 12th largest social network globally and exhibits a strongannual growth rate of 172% in 2012. Specifically in Southeast Asia, Tumblr has become one of the top blogshopsfor mass participation in online retailing as a unique way to do socially-oriented approach to e-commerce.“Mobile accounts for 40% of time spent on socialmedia.” -- BI Intelligence!  Mobile devices are fueling the social as theyallow to connect on-the-go and facilitate real-timeinteraction amongst users.!  Most mobile social networkers using their mobilephones to post a status update and read posts.13%19%48%50%70%99%0% 20% 40% 60% 80% 100%TumblrLinkedInPinterestFacebookTwitterInstagramU.S. Share of time spent on Social Media bydevice (Nov 2012)Mobile PC1. Social networks are no longer for kids. The fastest growing usersegment is people over at the age 55 or older.Disrupting Trends (2/2)Sources: comScoreEveryone is using social networks, not just young people. In fact, users 55 and older represent the fastest growingsegment in social networking usage, especially in North and Latin American where the penetration rate reach more than90%.79%75%72%75%71% 72%79%84% 83%80%83%80% 81%84%60%65%70%75%80%85%90%Age 15-24 Age 25-34 Age 35-44 Age 45-54 Age 55+ Males FemalesSocial Networking Penetration Among Worldwide Demographic GroupsJul-10Oct-11+5.0% +8.0% +8.4% +8.4% +9.4% +9.3% +5.3%94.7%93.0%86.0%59.8%79.9%North AmericaLatin AmericaEuropeAsia PacificWorldwideSocial Networking Penetration AmongUsers Age 55+8.65.85.66.44.97.54.93.93.92.7Age 15-24Age 25-34Age 35-44Age 45-54Age 55+Social Networking Engagement (AverageHours Per Visitor Per Week)MalesFemales
  • Preview – Full presentation (2/5)!"#$%#&$!(&(2. The Western world and China have developed two complementaryecosystems of influential Social Media networksSocial Media: Western world vs. ChinaSources: TweetSmarter, TechInAsiaTOP 5 Popular Social Networking Sites Worldwide (May 2013)TOP 5 Popular Social Networking Sites in China (March 2013)1,110M users40% Male60% FemaleFacebook343M users63% Male37% FemaleGoogle+48.7M users32% Male68% FemalePinterest555M users43% Male57% FemaleTwitter225M users55% Male45% FemaleLinkedIn(712M usersQZone500M usersSina Weibo172M usersRenRen507M usersTencentWeibo300M usersWeChat1.  QZone, a social networking website forblogging, photo & media sharing andmore2.  Tencent Weibo, a Chinesemicroblogging site3.  Sina Weibo, a Chinese microbloggingsite with hybrid functionality of Twitterand Facebook4.  WeChat, mobile messaging app5.  RenRen, Facebook of China1.  Facebook, a social network to sharephotos, interests, check-ins and postswith friends.2.  Twitter, a microblogging service toshare posts and stay updated on newsand comments3.  LinkedIn, a social network used forfinding jobs, people and businessopportunities4.  Google+, a social network thatintegrates Facebook and Twitter- likefeatures5.  Pinterest, a social photo sharing site tokeep an online pinboard with photocollections00.511.522.532007 2008 2009 2010 2011 2012 2013 2014 2015 2016Number ofUsers,billionNumber of Internet and Social Media UsersWorldwide from 2007 to 2016Total InternetSocial Media2. By the end of 2016, 3 out of 10 people worldwide will actively engage inSocial Media – replacing traditional online communication.Social Media Market Sizing: Number of UsersSources: Areppim, Comscore, The Radicati Group!  In 2011, Social Media sites reached 82% of the world’sonline population - that is 1.2 billion users worldwide!  The number of worldwide Social Media users will riseto 2.3 billion by the end of 2016, nearly 32% of the totalpopulation!  The adoption of Social Media is likely to growproportionately at a CAGR of 20.8% from 2007 to 2016!  The time people spent on Social Networkingtripled in the last five years from 6% in 2007 tonearly 19% in 2011!  Time spent on social networking sites gainedground by taking share predominantly fromonline communications, as another primarycommunication channel for users13.51826.544.9Search/NavigationRetail051015202530352007 2008 2009 2010 2011Hours perMonthTime Spent on Social Networking and otherInternet activities from 2007 to 2011CAGR 9.08%CAGR 20.8%CommunicationForecastSocial MediaOther Content2. Social Media is about to grow into a $34 billion industry by 2016.Advertising revenues will contribute more than 50%.Social Media Market Sizing: FinancialsSources: Gartner, Mashable, Brandastic11.816.9342011 2012 2016billion,USDTotal Global Social Media RevenueGrowth and Revenue drivers!  Advertising is the biggest contributor, accounting for52.1% of the total revenue. In 2012, social media adrevenue is $8.8 billion, a YOY growth rate of 60%.!  Social Gaming is the other major source of revenue. Byselling virtual goods, it grossed $6.2 billion in 2012 or36.7% of total Social Media revenues.!  Subscriptions from monthly or annual service accessfees generated $278 million in 2013!  Others include traffic diversion to affiliated sites andpremium services fee. With $1.6 billion, others accountedfor 9.6% of total revenue in 2012Year Social Media Revenues($US, billions)US Europe other2011 5.26 2.88 3.662012 6.97 3.97 5.96CAGR 23.5%ForecastSocial Media Market growth!  Gartner forecasts that global social media revenues willincrease by 43% from $11.8 billion in 2011 to $16.9 billionin 2012.!  By 2016, total social media revenues worldwide is likely toreach $34 billion.!  In terms of market share, the rest of the world is catchingup while Europe and the US are growing at comparablepace2.80.23.15.71.60.36.28.80.0 2.0 4.0 6.0 8.0 10.0OthersSubscriptionsSocial GamingAdvertisingbillion, USDGlobal Social Media Revenue by segments2012 201100.20.40.60.811.21.41.62007200820092010201120122013201420152016201720182019Number ofpeople,billionFacebook Users vs.Population of China/ India2. Facebook overtook U.S as the third largest “country” in 2010 and maybe the largest “country” on earth by 2016Focus on FacebookSocial Advertising Revenue!  Social network advertising includes paidadvertising on social site, applications and games!  As social advertising grew ~50% in 2012, it isexpected to become a $11.87 billion worldwidemarket by 2014.!  Facebook owns roughly two thirds of the totalsocial network advertisement market!  Facebook may increase its market share andachieve $7.64 billion in ad revenues by 2014Sources: Pingdom, eMarketer, World Bank3.25.16.77.65.27.710.211.90.02.04.06.08.010.012.014.02011 2012 2013 2014USD,billionFacebook andSocial Network Ad RevenueFacebook Social NetworkFacebook key growth figures!  1.11 billion users in May 2013, up from 58 million usersin Dec 2007!  42% of all Internet users worldwide (2.4bn) are alsoFacebook users!  Facebook as a “country” may become larger thanChina & India by 2016/ 2018 (at 10%/ 6% YoY growth)!  Facebook is still blocked in China. If this changes inthe future, the world’s largest online market will furtherstimulate its penetration rate.6%YoY10%YoYChinaIndia2. Social analytics and CRM may reach to a sizable of 30% share of thetotal CRM marketMarket Size of Social CRMCRM Software Growth!  Worldwide CRM software sales enjoy a steady riseand will reach $18.5 billion in 2016, up from $9.5billion in 2009. at a CAGR of approximately 10%!  Sales and Marketing Automation represent the keyareas of growth as technological advances introducegame-changing effects.90%70%9%20%1%10%2000 2013CRM Applications: Analyticsgrows in Application MixTraditional CRMSocial CRMAnalytics2.5 2.8 3.1 3.5 4 4.2 4.73.8 3.7 4.2 4.5 5 5.6 5.85 5.5 5.7 66.57.28051015202009 2010 2011 2012 2013 2014 2015 2016Revenue inUSD,billionsWorldwide CRM Software Revenue ForecastsSalesCustomer Service and SupportMarketing AutomationSources: GartnerCAGR 10%Social CRM and Analytics!  Social CRM technologies are expected to growa market share of 10% in 2013, up from 4% in2010.!  Spending on analytics and social CRM isexpected to rise, up to a point where social CRMalone accounts for 20% of the total CRM marketSources: Forbes, Information Week, Report Linker2. The total revenue of social analytics is likely to reach $2 billion by theend of 2013, doubled from 2011Market Size of Social Analytics!  Uniqloud estimates the total market size for Social Analytics at $2.2 billion. Its main components areSocial CRM and Social Media Analytics and Monitoring.!  In Social Analytics and Monitoring, the relative market share has expanded since 2011 from 35% to 54% in2013.!  Social CRM also enjoys considerable growth compared to the total CRM market, contributing 20% of the totalCRM revenue.00.511.522011 2012 2013Revenues in USD,billionsEstimated Global Market Size of Social Analytics1.01.3(20% of totalCRM)0.70.40.60.9(54% of TextAnalytics)Social MediaAnalytics andMonitoringSocial CRMSocialAnalytics+$2.2 billion$1.6 billion$1.1 billion=3. Social media measurement compass specifies the direction of thebusiness journey to realize the final objectiveSix MetricsSources: Altimeter GroupBusinessGoalBrand HealthA measure of attitudes, conversation andbehavior toward your brandMarket OptimizationImprove the effectiveness ofmarketing programsRevenue GenerationWhere and how your companygenerates revenueOperational EfficiencyWhere and how your companyreduces expensesInnovationCollaborating with customers to drivefuture products and servicesCustomer ExperiencesImprove your relationship withcustomers and their experiencewith your brand“Brand building today is so different than what it was 50 years ago. 50 years ago you could get a few marketingpeople in a small room and decide, ‘this is what our brand will be,’ and then spend a lot of money on TVadvertising and that was your brand. Today, whether it is an employee or a customer, if they have a good or badexperience with your company they can blog about it or Twitter about it and it can be seen by millions of people.It’s what they say now that is your brand.”- Tony Hsieh, CEO and Founder of Zappos3. Brand health examination can discover opportunities and mitigate crisisSix Metrics: Brand Health (1/6)Sources: Altimeter Group, Dashboard SpyMetric Purpose Action ExampleBrandHealth!  Add richness to market researchefforts, prevent or mitigate crisisand uncover threats andopportunities!  Insights!  How people feel about the brand!  Sentiment variation by channels!  Advocate or detract influencers!  Competitive position in industry!  Emerging issues!  Conduct real-time marketresearch and scenarioplanning!  Use as a support forbusiness decisions!  Identify and developrelationship with advocatesand detractorsAmerican Express trackssocial media metrics as apart of the overall brandhealth data, viewingsentiment metrics as acomplement part to NPS(Net Promoter Score).Bar Charts for Brand Awareness Line Charts for Brand Commitment Radar Charts for Brand Attributes[Xcelsius]3. Market optimization facilitates learning and improvement processSix Metrics: Market Optimization (2/6)Sources: Altimeter Group, Capture the ConversationMetric Purpose Action ExampleMarketOptimization!  Facilitate learning, accountabilityand continuous improvement!  Insights:!  Compare with traditionaladvertising campaigns!  How many people viewed,shared and liked the content!  Channel and timingeffectiveness!  Focus on highest potentialmarkets or groups!  Develop future campaignsbased on insights!  Plan social channelinvestment, timing toengage and strategiesAmerican Expresspartnered with YouTubeand VEVO to live-streama concert andincorporated with Googlechat to better understandhow people thoughtabout the concert inorder to influencepurchase intent andbrand perception.Data Statistics of howmany people clicked‘Like’, viewed andshared the contentacross a certaintimeframe[StatsMix]
  • Preview – Full presentation (3/5)!"#$%#&$!((3. Revenue generation is directly linked to conversion rate and socialreferralSix Metrics: Revenue Generation (3/6)Sources: Altimeter Group, MarketoMetric Purpose Action ExampleRevenueGeneration!  Have demonstrable impact on leadgeneration and conversion in arelationship manner!  Insights:!  Whether social experienceinfluences purchase behaviour!  Impact on search results!  Manage customer loyalty!  Focus on highest-impactproducts and services!  Develop programs forhighest-value customers!  Make investment decisionsbased on social channelperformancePETCO takes a holisticapproach to socialmedia. Its Facebook andTwitter pages have littleproduct information, butmore conversation withcustomers, which drivesconversion sales.Line Charts for Social ReferralPie Charts for Social Conversion[Google Analytics]3. Operational efficiency can be greatly improved through media monitoringSix Metrics: Operational Efficiency (4/6)Sources: Altimeter Group, CirruslabsMetric Purpose Action ExampleOperationalEfficiency!  Deliver both hard and soft costcontainment benefits toorganizations over time throughpublic brand advocacy and one-to-one interactions!  Insights:!  Potential cost saving fromcontained calls!  Identification of advocates andsuper fans!  Best answered services issues!  Identify efficiencies byaligning web content tocustomer questions andissues and moving intoknowledge based!  Extend advocate reach bydeveloping advocacynetwork to accelerate theimpactBest Buy created a videoin Spanish todemonstrate the orderingprocess on the landingpage of its Spanish-language website toinstruct their customers,which effectivelydecreased calls on thistopic to a toll-free numberby half.Bubble Charts for followers’ activeness Bubble Charts for Tweeting Efficiency[Crowdbooster] [TweetStats]3. Customer experience perfection leads to multiple additional benefitsSix Metrics: Customer Experience (5/6)Sources: Altimeter Group, Social Media ExplorerMetric Purpose Action ExampleCustomerExperience!  Immediate impacts on customerexperiences, which lead to multipleadditional benefits such as brandhealth, cost savings and increasedrevenue!  Insights:!  How people talk about a brandand product!  Momentum of a topic or issue!  Sentiment and emotion drivers!  Blind spots identification andsatisfaction scores!  Service improvement bysetting service levels andindentifying issues!  Align content and servicefocus to top issues in socialchannels!  Directly engage with andaddress both positive andnegative service issues!  Management of issues andcrisis intelligentlyDell evolves a set ofservice levels foracknowledgement ofissues online. Thisensures accountabilityacross the organizationfor how customer issuesare handled.Doughnuts for how people feel Bar Charts for People’s Attitude[Visible Technologies] [Spiral16]3. Innovation process is motivated and improved by customers’ feedbackSix Metrics: Innovation (6/6)Sources: Altimeter Group, CorasworksMetric Purpose Action ExampleInnovation!  Listen and respond to productfeedback and incorporate productinnovation!  Insights:!  Products and servicesopportunities and threats!  Customer requests in context!  Perspective on the popularity ofideas!  Idea impacts over time!  Add products and serviceinnovation from customerrequirements to roadmaps!  Trend spotting andevaluation against corporatecriteria!  Monitor competitors’innovation and communityresponseStarbucks has pioneeredthe idea of crowd-sourced innovation onsites such asMyStarbucksIdeas.com.This site serves as apurpose-built innovationplatform.Pie Charts for Product Ideas[Corasworks]4. Twitter analytics targets potential customers to improve the level ofengagement and monitor competitors’ behaviorKey Players: Twitter Analytics (1/8)Sources: Social BroSocial Bro!  Functions: Twitter dashboard,Comprehensive reporting, Text analysis!  Tracked Media: Twitter only!  Integration: Add-on for Chrome or adesktop application (the mostcomprehensive tool for analyzing Twitterdata)!  Key Customers: MasterCard, HP,Walmart, Cisco, Google, Mercedes BenzKey Features!  Targeting potential customers andinfluencers using filter and search tools,analyzing competitors, monitoringkeywords!  Helps to find optimal times andcontent to engage with contacts!  Analytics dashboard shows basicstatistics about what is happening in thecommunity!  Manages presence and interactionswith contactsKey Players: Twitter Analytics (2/8)Sources: Topsy,Topsy!  Functions: Twitter dashboard,Comprehensive reporting, Text analysisand web URL analysis!  Tracked Media: Twitter only!  Integration: Web-based data enrichmentsystem with real-time count and metrics!  Key Customers: Yahoo, The New YorkTimes, NFL, Nielson, IDGKey Features!  Comprehensive counts on the numbersof any term, phrase, username, link orhashtag!  Relevance ranking surfaces the mostimportant content on the social web!  Geo-Inference to landmarks or events!  Sentiment analysis is tailored toinformation and abbreviated language!  Related terms discovery helps todiscover new terms related to own topic4. Twitter analytics mainly target potential customers to improve the levelof engagement and monitor competitors’ behavior4. Facebook analytics focuses on in-depth analysis to determine the nextmove through trend predictionsKey Players: Facebook Analytics (3/8)Sources: Simply MeasuredSimply Measured!  Integration: Web-based analytics overa dozen data sources!  Tracked Media: Facebook, Twitter,Instagram, Google+, YouTube,Pinterest, LinkedIn!  Functions: Analytics insights forFacebook with excel-based reportsand web views!  Key Customers: American Express,Microsoft, Samsung, IPG, AolFeatures!  Cross-channel profile analysis fromone central location!  Competitive analysis andbenchmarking performance to reportwith context!  In-depth analysis and insights toinform the next move by monitoringand researchKey Players: Facebook Analytics (4/8)Sources: SEOmozSEOmoz!  Integration: Open site explorer or webbrowser toolbar to access unparalleledlink data!  Tracked Media: Facebook!  Functions: Offer comprehensive webcrawl and data-services API withvaluable link and site intelligence data!  Customers: Over 15,000 PRO membersand 250,000 free membersFeatures!  Weekly crawls and rank tracking tonotify about issues that might impactyour performance and monitor rankingsfor all keywords!  On-Page recommendations givesinstructions on what to fix in order to seeimmediate improvement results!  Competitive analysis monitorscompetitors’ rankings and link metrics soas to gain an edge on search results4. Facebook analytics focuses on in-depth analysis to determine the nextmove through trend predictionsKey Players: Social Media Monitoring (5/8)Sources: SalesforceRadian6!  Integration: Software platform for web-based data listening analytics!  Tracked Media: Cross-platform!  Functions: Comprehensive reporting, textanalytics, engagement workflow!  Key Customers: Volvo, Cisco, WileyPublishing, Pizza Hut, Frontier AirlinesFeatures!  Social brand monitors and measuresbuzz around the brand, competitors andindustry; analyzes trends and evaluatereactions!  Expand social reach by buildingconnections between employees andcustomers!  Create customer experiences toacquire and qualify social leads throughpurchase signals and point-of-needconversations!  Discover and drive sales opportunitiesthrough social channels4. Social media monitoring tracked all sorts of social media to extendsocial reach and maximize efficiencies mainly for large enterprises
  • Preview – Full presentation (4/5)!"#$%#&$!()(Key Players: Social CRM (6/8)Sources:Spredfast!  Integration: Social media managementsoftware system as a platform!  Tracked Media: Cross-Platform!  Functions: Comprehensive reporting, textanalytics, engagement workflow, searchand translate content!  Key Customers: Weight Watchers,Warner Bros, WCG, T.Rowe Price GroupFeatures!  Scalable social media managementsystems integrates engagement andreporting across all major social platforms!  Multichannel publishing allows tomanage day-to-day social engagement!  Shared enterprise content library forcontent and audit trails!  Integrated analytics and reporting frombrand to message level, integratingcommon analytics tools, customer careand content effectiveness analysis4. Social media monitoring tracked all sorts of social media to extendsocial reach and maximize efficiencies mainly for large enterprisesKey Players: Social CRM (7/8)Sources: Bazaar VoiceBazaar Voice!  Integration: Plug into existing systemsand workflow, website plugins andapplication software!  Tracked Media: Cross-Platform!  Functions: Comprehensive reporting,text analytics, engagement workflow,search and translation!  Key Customers: Lenovo, HP, Lexus,Toshiba, The North Face, P&G, ArgosFeatures!  Conversations are the core ofBazaarvoice. Collect and leverageratings /reviews, generate sales etc.!  Connections with retail sites to drivesales and loyalty and bring crediblebrand voices to shoppers!  Intelligence system analysesconversations and yields a visualdashboard!  Media networks target shoppers onretail sites with relevant brand mediaand advertising4. Social CRM maintains the relationship between customers andcompanies and explore targeted potential marketsKey Players: Social CRM (8/8)Sources: Visible TechnologiesVisible Technologies!  Integration: Software platform to doweb-based data analytics!  Tracked Media: Cross-Plattform!  Functions: Comprehensive reporting,text analytics, engagement workflow,search and translation!  Key Customers: Xerox, Microsoft,FedEx, American ExpressFeatures!  Establish the online-offlinerelationship to lift the potential valueof the market and social dataintegration to ensure an effectiveoutcome!  For enterprises: corporate brandmonitoring, product analysis, trackingand performance evaluation!  For agencies: trending data toclients, internal research support4. Social CRM maintains the relationship between customers andcompanies and explore targeted potential markets5. Case Studies: Social analytics are not constrained within nichemarkets but span across multiple industriesCase Studies: OverviewSources:SocialAnalyticsIndustries Case StudiesTelecomTELUS (Canada)EnterpriseMicrosoft (USA)Health CareUniversity of Texas M.D. Anderson CancerCenter (USA)EntertainmentYahoo! Music(USA)RetailBest Buy(USA)Financial Sector American Automobile Association (USA)”If only HP knew what HP knows, we would be three times more productive.”- Former Hewlett-Packard CEO Lew Platt Brand Name Description Results(((TELUS (Canada)!  Situation: TELUS saw an increased number ofcustomers using new channels to obtaincustomer service, voice opinions and connectwith other customers to share ideas andsolutions!  Action: TELUS trained a group of care agentsusing Salesforce Marketing Cloud to monitorsocial media and launch @TELUSsupport onTwitter to monitor conversations that matter tothem and connect with customers who havequestions or concerns!  @TELUSsupport became thefirst account in Canada verifiedby Twitter solely for customersupport!  TELUS achieved a hugemilestone with 30+ speciallytrained agents and 20,000+followers to resolve 13,000+client care issues and sent32,000+ tweets5. Telcos use social media as a new channel to take care of theircustomersCase Study: Social Analytics in Telecom (1/6)Sources: SalesforceBrand Name Description Results(((Microsoft (USA)!  Situation: To help drive adoption of Windows 7,Microsoft needed a solution to broadcast theimpact and focus on the most influential voicesand content!  Action: Microsoft turned to Visible Intelligence inorder to identify, filter and score a targeted list ofhighly relevant blog and forum posts, addressingthe needs to find and engage the most influentialvoices, respond rapidly and effectively toquestions and collect highly targeted contentwithin the community!  Scale community engagementsfrom dozens to hundreds eachweek!  Reduce the time needed toindentify and respond to highlyrelevant posts from hours tominutes!  Identify 250 influential subjectmatter experts in 29 countries5. Enterprises take advantage of social media to introduce and broadcastnew products and servicesCase Study: Social Analytics in Enterprise (2/6)Sources: Visible Technologies, IwickBrand Name Description Results((University of TexasM.D. AndersonCancer Center (USA)!  Situation: One of the largest cancer hospitals inUSA treats over 90,000 patients every years!  Action: Started using social media in 2007, itsinitial focus were Twitter, Facebook andblogosphere to monitor both the brand andcancer-related topics. Turned to Alterian SM2 inorder to set up a structured monitoring processand measuring the benefit of campaigns!  Sufficient visibility into messageboards allows to identify whichones should be watched orjoined!  Link ROI to social media efforts:the amount of registeredphysician in turn increases thenumber of patients referred tothe hospital!  Social activity was responsiblefor 9.5% increase in patientreferrals in a three month period5. Social analytics are used by healthcare institutions to drive ROICase Study: Social Analytics in Healthcare (3/6)Sources: AlterianBrand Name Description Results((Yahoo! Music(USA)!  Situation: Yahoo! Music is one of Yahoo’scontent-driven business units and providessubscription-based premium and softwareproduct releases!  Action: Yahoo! Music began working withOverton to collect and analyse customerfeedback. Goal was to improve overall productsand services by uncovering hidden themes andsentiment among online conversations!  Given access to a multi-channel,multi-dimensional and multi-faceted view of customerexperiences!  Early warning system allowed toidentify a critical product issuethrough analysis of customercomments and fix bugs fromsoftware in near real time5. The entertainment industry uses social media to react fast to customerfeedback and fix product issuesCase Study: Social Analytics in Entertainment (4/6)Sources: CMS WireBrand Name Description Results((Best Buy(USA)!  Situation: Best Buy was an Americanmultinational consumer electronics corporationoffering both online and in-store services!  Action: Worked with Barn Raisers to buildcompany’s reputation and benefit customerexperiences with social media. They examinedcomments from both Twitter and websites andresponded quickly to requirements!  Employee communities grew to2,200 employees within 3months and responded to over13,000 customers!  @twelpforce counts over 29,000followers, the number ofquestions averages 100-125 perday and is considered a keyvalue-add by customers5. Retailers use social media to build 1-on-1 relationships with customersCase Study: Social Analytics in Retail (5/6)Sources: Barn Raisers
  • Preview – Full presentation (5/5)!"#$%#&$!()(Brand Name Description Results((American AutomobileAssociation (USA)!  Situation: AAA is a non-profit insurancecompany providing emergency roadside service,maps and other travel services. AAA wanted tolearn about customer issues via social mediaand be as responsive as possible to avoid publicrelations disasters!  Action: Using Radian6’s listening platform, AAAbegan monitoring what is being said aboutbrand, industry and competitors online!  An average of about 8,500 AAAmentions per month using socialmedia!  Daily alerts for certain keywordsallows the company to see whatpeople were saying and deviseappropriate response!  AAA responds to 100 to 200 ofthe total mentions generated5. Social analytics help financial institutions with finding potentialcustomer and monitoring issuesCase Study: Social Analytics in Financial Sectors (6/6)Sources: CMS WireGOALS WHY HOWGauge the Brand Health!  Complement existing brand metrics (NPS)!  Be aware and responsive to issues!  Search for terms related to business!  Develop a stack of keywords and phrasesFlag Service Opportunities!  Find customers’ complaints on social mediaand catch emergence issues!  Pay attention to responsiveness!  Determine who is the customer!  Crosscheck with CRM data!  Observe feedback and earn trustHandle Next Crisis!  Respond quickly to the right issue!  Preserve and improve brand’s reputation ina crisis!  Early warning system before issue erupts!  Adjust priorities!  Create awareness and fix unsolved issuesGenerate Leads!  Do the sales pitch, connection or outreachat the point of need!  Find chances without sales pressure!  Think about the wording used in inquiries!  Monitor recommendation keywords!  Collect and reflectKeep Tabs on Competition!  Uncover market insights!  Gain competitive intelligence from newdimensions (social media)!  Save marketing efforts!  Enhance products!  Keep customer interactionsCollect Product Feedback!  Supply voluntary feedback and productreviews without cost of focus groups!  Figure out how to satisfy customers!  Monitor keywords implying room forimprovement!  Establish comments managementTrack Industry Trends!  Listen to the level above and understandthe share of conversation!  Learn about emerging trends and issues!  Listen what the larger community is sayingabout your company!  Identify and locate conversations thataren’t about your companyIdentify Advocates!  Foster strong connections with advocates!  Know detractors as well!  Listen to conversations along the salesfunnel and rank a list6. What, why, when and how can social analytics be introduced in atargeted, intelligent and effective mannerProposed Framework: 8 Business Goals to apply Social AnalyticsSources: Salesforce7. 79% of enterprises use social media, mostly in order to createawareness and to drive more traffic to their websiteImpact survey about social media benefitsSources: Harvard Business Review, IBM“Conventional marketing wisdom long held that a dissatisfied customer tells ten people. But!in the new ageof social media, he or she has the tools to tell ten million.”- Paul Gillin, author of “The New Influencers”According to an HBR survey, 79% of businesses are using social media channels.Respondents mentioned the following as key benefits of social media (% reflectsthe # of mentions):Top 10 perceived benefits of Social Media engagement50% Increased awareness of the organization30% Increased traffic to website26% Greater favorable perceptions of the brand23% Able to monitor conversations about the organization21% Able to develop targeted marketing activities20% Better understanding of customers perceptions of their brand19% Improved insights about targeted markets18% Identification of positive and negative comments11% Increase in new business11% Identification of new product or service opportunitiesSocial analytics market overview covers definitions, market sizing,metrics, key players, use cases, frameworks and impactsAbstractSocial Media Definitions, Type of Users, PotentialTrends, and Social Analytics Definitions!  Social media are Internet-based applications thatallow the creation and exchange of user-generatedcontent!  Microblogging, mobile devices and older peoplefurther stimulate the growth of social media!  Social media analytics is triggered by social mediaas a new form of business analysis insights tomanage customer relationshipMarket sizing Social Media, Social CRM, SocialAnalytics and Key Metrics!  There will be 3 out of 10 people actively engaging insocial media and total revenue may reach to $34 billionworldwide by the end of 2016!  Social analytics and social CRM may reach a sizable of30% share of the total CRM market!  Brand health, market optimization, revenue generation,operational efficiency, customer experiences andinnovation are the six core metricsKey Players and Case Studies across variousindustries!  Key players across four main disciplines: Twitteranalytics, Facebook analytics, social mediamonitoring and social CRM!  Social analytics has been widely used in Telecom,Enterprise, Health, Entertainment, Retail andFinancial sectors.Proposed Framework, Benefits and Challenges!  8 Business goals help to apply social analytics in atargeted, intelligent and effective manner!  Increasing the organization’s awareness is regarded asthe top benefit of using social media analytics!  Social media analytics should be used with care in orderto deal with underlying challenges at different timesEnterprise vs. Consumer Social MediaAppendix. Enterprise Social Media usage grows at similar rates asConsumer Social MediaSources: The Radicati Group35 374043 45010203040502012 2013 2014 2015 2016MinutesPer DayEnterprise Social Media Usage ForecastEnterprise Social Media!  Create internal and external networks for organizations!  Create and support user collaboration through private orpublic communities!  Key Vendors: Atlassian, Broadvision, IBM, Jive, Microsoft,Salesforce, Social Text, Telligent, Yammer404346505501020304050602012 2013 2014 2015 2016MinutesPer DayConsumer Social Media Usage ForecastConsumer Social Media!  Collaborative space to network and form communities forconsumers with broad or specialized interests!  Key features include user profiles, blogs, forums, messageboards, instant messaging, private messaging, photo andvideo sharing, status updates etc!  Key Vendors: Facebook, Googe+, LinkedIn, Twitter etc
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