SOCIAL MEASUREMENT
BEST PRACTICES FRAMEWORK
FOR A SOCIAL MEASUREMENT STRATEGY
A practical, proven approach to integrating ...
SOCIAL MEASUREMENT
BEST PRACTICES FRAMEWORK
FOR A SOCIAL MEASUREMENT STRATEGY
A practical, proven approach to integrating ...
SOCIAL MEDIA AS A BUSINESS DRIVER
It’s fair to say that social media is no longer new – Facebook,
Twitter and YouTube have...
2.	 DIFFICULTY IN RECOGNIZING RELATIONSHIPS BETWEEN
SOCIAL PLATFORMS AND OTHER DIGITAL CHANNELS.
While social media may of...
5.	 BELIEF THAT YOU DON’T OWN SOCIAL PROPERTIES,
SO YOU CAN’T MEASURE THEM.
This is a false perception; however, it remain...
It’s important to select a primary use case, as goals, objectives, and
measurement requirements flow down-stream from this...
3.	 ENSURE METRICS HAVE MEANING AND ALIGN TO
BUSINESS PRIORITIES.
This is critical, because without context, metrics are j...
4.	 DECIDE WHICH DATA MATTERS.
Before setting up a data collection process, it’s worth
considering four key dimensions of ...
5.	 CHOOSE THE RIGHT TECHNOLOGY.
There is a spectrum of available technology solutions that enable
social media programs. ...
7.	 VISUALIZE THE DATA.
Once a measurement framework is established, and the right
tools, people and processes are in plac...
SUSTAINING SOCIAL MEASUREMENT EFFORTS
The first seven steps will help any company develop a social
measurement framework. ...
SOCIAL USE CASE APPLICATIONS
SOCIAL LISTENING. Algorithm searches allow companies to scour
digital channels for mentions o...
SOCIAL MEASUREMENT CASE STUDY:
MOTORCYCLE SUPERSTORE
CRT
ten-fold
increase
+0.50%
Motorcycle Superstore (Motorcycle-Supers...
“We began testing various strategies,” says Graham Hetland, social
media community manager for Motorcycle Superstore, “foc...
WEBTRENDS ALIGNS TO DIGITAL
ECOSYSTEM
Webtrends understands that it takes more than technology to
ensure that measurement ...
CALL OR EMAIL US WITH YOUR QUESTIONS
North America
1.888.932.8736
sales@Webtrends.com
Europe, Middle East, Africa
+44 (0) ...
Upcoming SlideShare
Loading in …5
×

Measuring Social Return on Investment

1,324 views

Published on

90% of brands measure social engagement, yet only 15% say they can quantify social ROI.

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,324
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
25
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Measuring Social Return on Investment

  1. 1. SOCIAL MEASUREMENT BEST PRACTICES FRAMEWORK FOR A SOCIAL MEASUREMENT STRATEGY A practical, proven approach to integrating social media with other digital channels and determining its value to the bottom line. DIGITAL MEASUREMENT WHITE PAPER 2013 © 2013 WEBTRENDS, INC. WWW.WEBTRENDS.COM.
  2. 2. SOCIAL MEASUREMENT BEST PRACTICES FRAMEWORK FOR A SOCIAL MEASUREMENT STRATEGY A practical, proven approach to integrating social media with other digital channels and determining its value to the bottom line. Mind the Social Gap Altimeter Group reports that 48% of corporations made social media ROI a primary focus in 2011, yet just 56% of companies who identified as advanced users of social media had standard measurement frameworks in place to help benchmark ROI. +20% riseinsocial mediainthe next5years $1.2BILLIONSPENTON SOCIALMEDIAINTHEUSIN2011 Merlyn Gordon, Director, Solutions Marketing Merlyn has spent his career helping leading global brands succeed with digital marketing, social CRM, and multi-channel measurement solutions. As Director of Solutions Marketing at Webtrends, Merlyn is currently responsible for product marketing activities related to Webtrends’ portfolio of measurement and optimization solutions. AUTHOR BIO EXECUTIVE SUMMARY TREND As spending increases in social media, marketing departments are under greater pressure to prove the value of social channels and tie efforts to business outcomes and revenue. PROBLEM However, most companies who include social media in their digital marketing efforts do not have a measurement strategy in place to prove success or return on investment. SOLUTION By developing a framework grounded in best practices — objectives, technology and expertise — companies can clearly measure the impact of social on engagement, conversion and revenue, and in context of other digital marketing efforts. WEBTRENDS® WHITE PAPER. © 2013 Webtrends, Inc. 2
  3. 3. SOCIAL MEDIA AS A BUSINESS DRIVER It’s fair to say that social media is no longer new – Facebook, Twitter and YouTube have been around for more than six years, and internal collaboration solutions, such as Jive and SharePoint, have been in use even longer. But the volatility, fragmentation and unique characteristics of social data continue to challenge many brands. Companies are still looking for ways to quantify the success of social media initiatives. As social media ramps up and dollars shift from traditional marketing channels, there’s a corresponding shift in technology ownership taking place within many organizations. In fact, Gartner recently predicted that CMOs will surpass CIOs in technology spend by 2017. This adds to the pressure marketing leaders are feeling to justify investments in people and tools, and to tie social initiatives back to business performance. Proving social ROI is the primary challenge most organizations face as they adopt social business programs. CHALLENGES OF MANAGING SOCIAL MEDIA MARKETING In addition to the challenge of tying social initiatives to business performance, brands face other major pain points in managing their social business. 1. LACK OF FAMILIARITY APPLYING TRADITIONAL DIGITAL MEASUREMENT PRACTICES TO SOCIAL MEDIA CAMPAIGNS. It’s not uncommon to find social practitioners with public relations or communication backgrounds thrust into the position of deciphering how to deal with changes to social platform APIs, or trying to make sense of which media, audience and content attributes should be collected and how. The skills required to design, deploy and manage social media initiatives really require a unique set of skills and thinking. This presents a people and process opportunity as brands organize for social business and look to interact with rapidly evolving mediums. Forrester reported $1.2 billion was spent on social media in the U.S. in 2011. The CMO Survey on Marketing and Social Spend (August 2012) shows social media spending will rise nearly 20% in the next five years. Gartner recently predicted that CMOs will surpass CIOs in technology spend by 2017. Social Media by the Numbers* Facebook - 618 million daily active users - 680 million monthly active users who use Facebook mobile products. Twitter - 140 million active users - 84 million active users who accessed content through mobile. * As of December, 2012 WEBTRENDS® WHITE PAPER. © 2013 Webtrends, Inc. 3
  4. 4. 2. DIFFICULTY IN RECOGNIZING RELATIONSHIPS BETWEEN SOCIAL PLATFORMS AND OTHER DIGITAL CHANNELS. While social media may often create awareness, or serve as a first touch in the conversion funnel, it is less successful at closing the final sale. That’s why it can no longer be viewed as a stand-alone, isolated channel. Social has to be placed in context alongside, and integrated with, other digital channels, especially mobile, where adoption is faster than any other technology in history. As of 2012, 45% of American adults have a smartphone, and 31% of current users say they access online content using their cell phone. 3. INEFFICIENCIES ASSOCIATED WITH COLLECTING AND ASSIMILATING HIGHLY COMPLEX AND DISPARATE DATA SOURCES. Social data is unlike other digital data, and it presents significant challenges to measurement professionals. The volume, variety and velocity of social information can overwhelm even the most experienced marketing expert. Collecting, reporting and analyzing data such as unstructured text, images, geolocation, device information – all coming at you in streams and in real time – is beyond the management capacity of a typical spreadsheet. 4. CHALLENGES OF SCALE, WITH DATA COLLECTION CONSTRAINTS AND LIMITED ACCESS TO HISTORIC INSIGHTS. This is particularly difficult when using third party platforms that may inhibit access, be slow to upgrade technologies, or make it impossible to get the reporting or business story you need to make informed decisions. “Entire conversations about your brand occur without anyone visiting your website. And your social audience on YouTube, Facebook and Twitter can be far greater than the sum of visitors coming to your site. That’s why foundational measures for social marketing analytics can act as a performance benchmark to evaluate success across channels and competitors.” – John Lovett | Author, Social Media Metrics Secrets EXPERTS WEBTRENDS® WHITE PAPER. © 2013 Webtrends, Inc. 4
  5. 5. 5. BELIEF THAT YOU DON’T OWN SOCIAL PROPERTIES, SO YOU CAN’T MEASURE THEM. This is a false perception; however, it remains commonly held. The good news is there is an explosion in the use and availability of APIs, which allow data from one site to move to an app or to a mashup with an online service. With data available through open APIs, it’s now possible to bring measurement practices to properties outside of the corporate domain. NINE STEPS FOR DEVELOPING A SOCIAL MEASUREMENT STRATEGY Despite these challenges, marketers do have a path for gaining social marketing intelligence. In order to move beyond experimentation and prove business performance with social media, it’s crucial to develop a framework for social measurement. It’s also crucial to structure social media initiatives to include metrics that are important to the C-suite as well other teams, and include multiple layers of measurement to assess, explain and manage social media operations. The following nine steps offer a framework for a social measurement culture. 1. SELECT YOUR USE CASE. Based on the social media measurement compass published by the Altimeter Group, a use case is a way to peg a path toward the goals and objectives of social business programs. There are six main use cases for social analytics: innovation, brand health, marketing optimization, revenue generation, operational efficiency and customer experience. They all present a set of tools for meeting social media goals. BRAND HEALTH A MEASURE OF ATTITUDES, CONVERSATION AND BEHAVIOR TOWARDS A BRAND REVENUE GENERATION WHERE AND HOW A COMPANY GENERATES REVENUE OPERATIONAL EFFICIENCY WHERE AND HOW A COMPANY REDUCES EXPENSES CUSTOMER EXPERIENCE IMPROVING RELATIONSHIPS WITH CUSTOMERS, AND THEIR EXPERIENCE WITH THE BRAND INNOVATION COLLABORATING WITH CUSTOMERS TO DRIVE FUTURE PRODUCTS AND SERVICES MARKETING OPTIMIZATION IMPROVING THE EFFECTIVENESS OF MARKETING PROGRAMS BUSINESS GOAL Source: A Framework for Social Analytics, Altimeter Group, August 2011 WEBTRENDS® WHITE PAPER. © 2013 Webtrends, Inc. 5
  6. 6. It’s important to select a primary use case, as goals, objectives, and measurement requirements flow down-stream from this decision. For example, improving operational efficiency by increasing employee productivity or reducing costs would be measured and managed differently than a marketing optimization program focused on customer acquisition or loyalty priorities. (See examples of use case applications on pg. 12.) Once the use case is determined, the next step is: 2. DEFINE SUCCESS MEASURES AND KPIS. The key to this step is to select outcome metrics-based objectives and align them to corporate goals, and then define KPIs and success measures. For a Marketing Optimization use case that is intended to improve the effectiveness of marketing programs, success measures and KPIs might look like this, with KPIs that roll up to Objectives and align to corporate goals: BUSINESS GOAL ACQUISITION LOYALTY CORPORATE GOALS Gain Exposure Reach Velocity Share of Voice Foster Dialogue Unique contributors Conversation volume Engagement Generate Interactions Conversion rate Interaction rate Offer take rate Promote Advocacy Active advocates Advocate Influence Advocacy impact Objectives Measures KPIs MARKETING OPTIMIZATION IMPROVING THE EFFECTIVENESS OF MARKETING PROGRAMS WEBTRENDS® WHITE PAPER. © 2013 Webtrends, Inc. 6
  7. 7. 3. ENSURE METRICS HAVE MEANING AND ALIGN TO BUSINESS PRIORITIES. This is critical, because without context, metrics are just numbers. John Lovett, author of Social Media Metrics Secrets, frames metrics in four layers: • Foundational measures are the building blocks of social analytics and include elements such as interaction, engagement, influence, advocacy, and impact. They persist across channels and apply almost universally to measuring all sorts of social activities. Many business and outcome metrics are calculated based upon foundational measures. • Business value measures are specific to roles, such as executives, legal, HR, sales or marketing, and are the basis for communicating success and failure to stakeholders across the organization. These measures can include Customer or Employee satisfaction, revenue, market share, etc. • Outcome metrics help quantify the effectiveness of social media programs, and align operational programs to corporate goals. These are the key performance indicators (KPIs) of social media, and include metrics such as reach, conversion rate, velocity, etc. • Counting metrics are the most basic and readily available (number of Likes, reTweets, Views, etc.) and are generally used to show tactical performance. Unfortunately, these metrics are often used to communicate business performance, when in reality, they show program performance. The key takeaway of metrics with meaning is that when communicating results, it’s important that the metrics used are consistent and repeatable, and that they are placed in the appropriate context of the measurement layer cake. WEBTRENDS® WHITE PAPER. © 2013 Webtrends, Inc. 7
  8. 8. 4. DECIDE WHICH DATA MATTERS. Before setting up a data collection process, it’s worth considering four key dimensions of social data to be collected. • Recency: How current is the data from the time of the event, and how important is it to know what is happening immediately? • Richness: How much information about the visitor profile is available, how much should you collect, and how does it help drive your business? This an important consideration for measures such as influence and advocacy. • Retention: How long is the data available? What is its useful life? Not only is it important to understand the life of a tweet, but also your long-term trend analysis requirements. Can you go back through 12 months of Facebook data to find the info you need? • Realization: How will the data be used or consumed? Will it be used to develop reports, populate dashboards or drive marketing programs or other action systems? Answers to these questions will likely feed back into your success measures and KPIs as you iterate and fine-tune your measurement mix. They will also help inform technology choices. ALIGNING SOCIAL MEASUREMENT STRATEGY TO BUSINESS PRIORITIES. Most companies treat social as checking off a box and then saying “we’re doing social” instead of stepping back and asking how it aligns with overall business priorities and marketing objectives. Yet, according to the August, 2012 CMO Survey conducted by CMO Insights, less than 7% of companies consider their social media efforts “very integrated.” However, once marketing objectives are established, then you can develop the associated measurement in social. This involves asking questions, such as “do the number of reTweets prove ROI?” or “do Facebook Likes and Pinterest Pins improve our customer satisfaction score?” This alignment step helps address the challenge of meeting business goals, and justifying and defending investments in social initiatives. WEBTRENDS® WHITE PAPER. © 2013 Webtrends, Inc. 8
  9. 9. 5. CHOOSE THE RIGHT TECHNOLOGY. There is a spectrum of available technology solutions that enable social media programs. Which technology, or set of technologies, you choose depends on your use case, measurement framework, and people and processes to support the tools. For instance, a use case that is customer focusing, such as Marketing Optimization, might include initiatives that are external (listening, content, engagement, advertising) and internal (workflow and automation, measurement). Several vendors have solutions that span more than one category. For instance, HootSuite has strengths within listening and engagement, while Webtrends has measurement expertise plus solutions that support the entire spectrum of external and internal initiatives. Along with looking into how a solution will support your measurement framework, it’s important to also consider ease of setup, training, and availability of strategic consulting and customer service. The best solutions combine great technology with individuals laser- focused on your success with the solution. These are the experts who want to ensure you get the most out of your investment. 6. COLLECT THE DATA. There are many approaches for collecting data; however, links and tagging, and integrated measurement are extremely effective. With links and tagging, Java script tags are the industry standard for conversion attribution and tracking. Webtrends developed an asynchronous tag optimized for all devices, including mobile, and is built to allow extensibility. Through a series of plug-ins to the tag, measurement programs can mature without requiring significant re- work of the tag. And by combining tag, API and link data, it’s possible to arrive at a granular level of insight. Integrated measurement refers to applying metrics into social applications and social platforms, such as social apps, Facebook apps and collaboration widgets. As social and mobile experiences become harder and harder to tease apart, apps in mobile marketplaces must be considered for social measurement as well. WEBTRENDS® WHITE PAPER. © 2013 Webtrends, Inc. 9
  10. 10. 7. VISUALIZE THE DATA. Once a measurement framework is established, and the right tools, people and processes are in place to collect social data, then it’s time to become a storyteller and deliver analysis and recommendations — not reports. With social initiatives gaining greater visibility within organizations, more and more individuals not directly involved in social operations are asking questions about its effectiveness and results. Data visualization can clearly communicate results to a wide range of stakeholders, translating the scientific reality of numbers into a more accessible format and social business story that can be processed and understood by people in an instant. There’s a reason for the explosion of infographs and other data images, even in traditional publications like the New York Times, The Economist and Harvard Business Review. It’s easier to process information presented as an image rather than as words or numbers. “Keep in mind the ROI on social media is rarely straight math. Social activities won’t always translate directly to dollars. You need to factor in intangibles like exposure, interaction and advocacy.” – John Lovett | Author, Social Media Metrics Secrets EXPERTS Webtrends offers data visualization, including story views, which automatically transform data from a tabular presentation to a visual narrative. Webtrends Streams® lets you see live data instantly and act on it when it matters most — while customers are engaged with your social, mobile or online property. WEBTRENDS® WHITE PAPER. © 2013 Webtrends, Inc. 10
  11. 11. SUSTAINING SOCIAL MEASUREMENT EFFORTS The first seven steps will help any company develop a social measurement framework. However, a social strategy should never end, but rather be sustained for the long haul. There are two ways to do that: 8. OPTIMIZE YOUR SOCIAL MEASUREMENT STRATEGY. It’s essential that teams and sponsors responsible for social media initiatives establish a process for continuous optimization. A social strategy must constantly be tested, challenged, tweaked, and fine-tuned in order to ensure that it’s meeting the requirements of the business. 9. NURTURE A CULTURE OF MEASUREMENT. Work to ensure that everyone within the organization has a firm grasp of the medium, and are comfortable using it. Gain the support of at least one senior champion for your social media strategy. Benchmark successes and failures over time in order to allow you to differentiate between trends and anomalies. Standardize on terms and tactics, so you’re not lost in a potential quagmire of repetitive explanation. And bake measurement into every aspect of social media endeavors. It’s the only way to know if your initiatives are having an impact on your business. Visual data tells a data analysis story better than a report filled with numbers. WEBTRENDS® WHITE PAPER. © 2013 Webtrends, Inc. 11
  12. 12. SOCIAL USE CASE APPLICATIONS SOCIAL LISTENING. Algorithm searches allow companies to scour digital channels for mentions of both brand and competition, and attach a sentiment value to these mentions (positive or negative). Public relations professionals use social listening to understand how a brand is perceived in the marketplace. Use cases: Brand Health, Customer Experiences SOCIAL SUPPORT. Connects customer contact records within a CRM program into a Twitter or Facebook account. This gives marketers the ability to take action not only on what is uncovered, but also to respond based on deep history. Use cases: Customer Experience, Operational Efficiency SOCIAL INNOVATION. Product managers use social networks to understand what customers want in the next product release. There are framework tools available with which to co-develop products with key accounts. Use cases: Innovation, Customer Experience SOCIAL ENGAGEMENT. If someone gives you a great mention on Facebook, you can use tools that allow response and posting, or set up an automated workflow that sends an alert to the team or person best equipped to respond. Use cases: Brand Health, Customer Experience, Operational Efficiency, Marketing Optimization SOCIAL SELF-SERVICE. There are thousands of forums, communities or organizations where peers answer questions, such as groups on Yahoo. Although brands don’t take an active part in the conversation, it is a valuable tool for finding out what is being said about a brand. Use case: Brand Health SOCIAL COMMERCE. This offers a shared experience for consumer activity, with recommendations, shopping, shopping near you. Use cases: Revenue Generation, Customer Experience SOCIAL MARKETING. Brands can increase awareness, inspire engagement and lift conversions by running social campaigns across multiple properties, including YouTube, Twitter, Facebook, etc. Use cases: Marketing Optimization, Revenue Generation, Customer Experience WEBTRENDS® WHITE PAPER. © 2013 Webtrends, Inc. 12
  13. 13. SOCIAL MEASUREMENT CASE STUDY: MOTORCYCLE SUPERSTORE CRT ten-fold increase +0.50% Motorcycle Superstore (Motorcycle-Superstore.com) is the leading retailer of motorcycle gear, parts, accessories and clothing in the U.S. Operating through the Internet for over a decade, the site receives about a million visitors per month. To increase brand engagement, create a sense of community and drive traffic to the website, the company launched a Facebook page in the summer of 2009. To measure the impact of various ads and promotions, Motorcycle Superstore deployed Webtrends Analytics, already in use on the website, for its social media analyses. Initially, the Facebook page was promoted by a single ad of general interest on the website, and the click-through rate (CTR) was 0.05%, which is the industry average. Sports Bike persona Facebook ad 0.50% click- through rate - 10X increase Original Facebook promotion ad 0.05% click-through rate SUCCESS 13
  14. 14. “We began testing various strategies,” says Graham Hetland, social media community manager for Motorcycle Superstore, “focusing on specifically targeting different segments of the motorcycling community such as cruisers, street bikes, and scooters.” “Most of the Facebook visitors are younger as compared to website visitors,” comments Hetland. “Analyzing this information lets us choose certain promotions for Facebook — for example, casual apparel, which appeals to this persona.” Because users generally give permission for Motorcycle Superstore to access their demographic information, analysis by age, gender, and other factors is possible, enabling the company to create personas of targeted groups. By monitoring response to the more targeted ad, Hetland discovered that the CTR had increased to 0.50%, a ten-fold increase. Reach: 138,332 CTR: 1.7% CPC: $0.04 Reach: 212,835 CTR: .453% CPC: $0.17 Using Webtrends, Motorcycle Superstore can also track how much traffic is driven to the website from Facebook and other social channels, and track CTR, costs per click (CPC), conversions and referred sales, helping the company understand the success and ROI of their social marketing efforts. The results? Through segmented social ads, Motorcycle Superstore was able to increase click-through rates by an average of 10X, while increasing revenue from Facebook by 75% year- over-year – without increasing ad spend. These results were all possible because Motorcycle Superstore has developed a culture of measurement. Everything they do on Facebook and other digital channels is measured, analyzed, tested and made actionable. WEBTRENDS® WHITE PAPER. © 2013 Webtrends, Inc. 14
  15. 15. WEBTRENDS ALIGNS TO DIGITAL ECOSYSTEM Webtrends understands that it takes more than technology to ensure that measurement is a valuable component to the success of market leading companies. For social media and other digital marketing to show value to the business, a holistic solution must be adopted that will address key challenges and foster a culture of measurement. CURRENT STATE DESIRED STATE 3 key challenges Includes people, process and technology Measurement strategy to inform metrics and standards The appropriate operating model and analytics team structure to manage the requirements Governance process to manage the reliability of data across the business Well-designed structure to manage the standards and processes put in place Necessary insight to enable business to implement a marketing strategy Robust technical solution that allows visit and visitor level data to be collected and easily integrated into other marketing systems. Any social measurement strategy, or social use case, should be iterative and ongoing, and align to business objectives. As marketing invests more heavily in technology and digital channels, Webtrends can help bridge the gap between business and technology, providing the roadmap, data intelligence and ROI needed to ensure success. WEBTRENDS® WHITE PAPER. © 2013 Webtrends, Inc. 15
  16. 16. CALL OR EMAIL US WITH YOUR QUESTIONS North America 1.888.932.8736 sales@Webtrends.com Europe, Middle East, Africa +44 (0) 1784 415 700 emea@Webtrends.com Australia, Asia +61 (0) 3 9935 2939 australasia@Webtrends.com For offices worldwide, visit: www.Webtrends.com CONTACT ABOUT WEBTRENDS INC. Inspiration drives us. Digital intelligence guides us. Innovation remains our goal as we help brands re- imagine digital marketing. Webtrends dramatically improves digital marketing results for many of the world’s most admired and innovative companies. Our solutions have set a gold standard for innovation, performance and value since we helped establish the web analytics industry in 1993. Our diverse portfolio includes customer intelligence and behavioral segmentation, targeting + scoring, optimization + testing, mobile and social apps creation and Facebook Page management, professional consulting services, real-time web analytics, unified digital analytics across mobile, social and web and general digital marketing wizardry. Webtrends® WHITE PAPER. © 2013 Webtrends, Inc. 2013 WEBTRENDS® WHITE PAPER. © 2013 Webtrends, Inc.

×