Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Measuring the Value of    Social Media     April 10th, 2012       #smwomen    @socialmediawomn
•   Does social media have a value?•   Can you measure it?•   What tools are there to measure Social?•   The future of Soc...
Measuring value starts with definingyour social media objectives• Why am I using social media?  – Awareness/brand building...
Can you really measure the value ofsocial media?• Some people argue you can’t measure the value  of social media• But:  y...
There’s lots of numbers... But whatmatters?• Is there value in measuring “vanity metrics”:  – # of fans  – # of followers ...
What to measure?                 • # of fans/followersAudience/Reach   • Amplification (sharing etc)                 • Int...
Is there a ‘standard’ value for a SocialMedia fan/follower?                                             Some companies can...
Measuring value from a Facebookcompetition• Shoes of Prey case study• Objectives:    – Increase fan base    – Increase ema...
Measuring value by customerretention & sentiment• UBank case study• Objectives:  – Innovation  – Customer Service  – Educa...
Value of Social Mediafor Customer Service• Customers can find  their own answers,  and solve each  other’s problems• Large...
Measuring cost per acquisition &lifetime value StyleTread know two key things about their social media acquired customers:...
Social Media Value Maturity Model
How large companies measure ‘value’• Conversions (purchases on eCommerce  site)  – Direct result of Social Media  – Multip...
But you don’t need a complexmeasurement approachBefore Social Media:Sold 2x dayAfter Social Media:Sell 10 x sandwich aday
Tools that can help                          Social Media                            Mgmt eg                           Hoo...
Look at what you can measure withyour existing toolset• Conversions  – sign up or  – purchase• For our business that is ‘v...
What else can inform our decisions onSocial Media• We also know what channel brings us the  most value, so we know which s...
Analytics: traffic sources forconversions• Can compare sources of conversions eg direct,  search, social media
Analytics: multi-channel funnelsshowing multiple interactions• Using multi-channel funnels, track conversion  across chann...
Other useful measurement• Simple insights: Facebook insights can help  you understand what your audience respond  to
Other useful tools  Crowdbooster is useful for showing which tweets had most impact,  the best times to tweet and influent...
Other measurements          Social Mention does quite simple          sentiment measurement          Sentiment measurement...
Other measurements Social Influence measures are increasingly being used in business Some companies already prioritise cus...
What next?• New Google Analytics:  – Social Reporting being enhanced
Future predictions• Increased pressure to show measurable return• Smarter and more integrated reporting  toolsets• More fo...
Now what?• Know how much social media costs:   – Tools   – Time• Know what your objectives are• Know the value of achievin...
Useful resourcesSmart Insights – Tips on Social Measurement with Google   Analyticshttp://www.smartinsights.com/google-ana...
Keep in touchWeb: www.eMarketingConnected.com.auEmail: tracey.brown@emarketingconnected.com.auPhone: 0448822369           ...
Upcoming SlideShare
Loading in …5
×

Measuring the value of social media

1,295 views

Published on

Recent presentation given to the social media woman business network by Tracey Brown.

Published in: Business, Education
  • Be the first to comment

Measuring the value of social media

  1. 1. Measuring the Value of Social Media April 10th, 2012 #smwomen @socialmediawomn
  2. 2. • Does social media have a value?• Can you measure it?• What tools are there to measure Social?• The future of Social Media Measurement
  3. 3. Measuring value starts with definingyour social media objectives• Why am I using social media? – Awareness/brand building – Drive traffic • To site • In store – Increase leads – Increase sales
  4. 4. Can you really measure the value ofsocial media?• Some people argue you can’t measure the value of social media• But:  you’re investing money & time in it OR  you’re asking your client or your company to invest in it you are making financial & strategic decisions
  5. 5. There’s lots of numbers... But whatmatters?• Is there value in measuring “vanity metrics”: – # of fans – # of followers – # of retweets, reach etc• Does it really matter if you’re not sure how much value they contribute to your business?
  6. 6. What to measure? • # of fans/followersAudience/Reach • Amplification (sharing etc) • Interactions with social content Engagement • Sentiment • Conversion to sale (purchases – online & offline) Value • Cost savings (customer service self service etc) • Lifetime Customer Value
  7. 7. Is there a ‘standard’ value for a SocialMedia fan/follower? Some companies can find Think about: that a social media fan/follower is more - Your average customer value (in lifetime valuable - Your average cost to acquire than a non-social value) a customer customer. - What you spend on other value in creating a Little lead generation activity eg standard value unless you advertising, SEO, SEMbaseresults from your and that on real data, own results. Source: DigitalBuzzBlog.com
  8. 8. Measuring value from a Facebookcompetition• Shoes of Prey case study• Objectives: – Increase fan base – Increase email subscriber base – Increase sales• Cost: $6800• 17500 new likes (.38c each)• 4000 new email subscribers ($1.70 each)• $3250 of sales attributed to campaign Source: 22Michaels.com
  9. 9. Measuring value by customerretention & sentiment• UBank case study• Objectives: – Innovation – Customer Service – Education• Measuring: – Sentiment (Net Promoter Score) – Impact on sales – Customer service: • Time to resolve • # of compliments/complaints Source: eMarketingConnected
  10. 10. Value of Social Mediafor Customer Service• Customers can find their own answers, and solve each other’s problems• Large companies doing Customer Service using Social measure cost savings
  11. 11. Measuring cost per acquisition &lifetime value StyleTread know two key things about their social media acquired customers: - Lower cost to acquire customer - Higher lifetime value (more likely to spend more) Source: eMarketingConnected.com.au
  12. 12. Social Media Value Maturity Model
  13. 13. How large companies measure ‘value’• Conversions (purchases on eCommerce site) – Direct result of Social Media – Multiple channels including Social Media (attribution)• Average lifetime value of a Social Media acquired customer compared to non-SM• Leads acquired through Social channels• Reduced cost of customer service channels
  14. 14. But you don’t need a complexmeasurement approachBefore Social Media:Sold 2x dayAfter Social Media:Sell 10 x sandwich aday
  15. 15. Tools that can help Social Media Mgmt eg HootSuite, Radian 6 Core Website Facebook Insights, CRM Analytics LinkedIn page stats eg Google Analytics, Omniture Sentiment: eg Manual Social tracking Mention, Buzz Numbers
  16. 16. Look at what you can measure withyour existing toolset• Conversions – sign up or – purchase• For our business that is ‘value’ because: – We can reduce our spend on Search Engine Marketing – We can reduce our spend on traditional PR
  17. 17. What else can inform our decisions onSocial Media• We also know what channel brings us the most value, so we know which social media is more likely to convert• That lets us focus our efforts on the most successful channels for us• We still continue with the other channels, but put less time into these
  18. 18. Analytics: traffic sources forconversions• Can compare sources of conversions eg direct, search, social media
  19. 19. Analytics: multi-channel funnelsshowing multiple interactions• Using multi-channel funnels, track conversion across channels, shows a number of interactions before conversion Multiple interactions before conversion Some direct through social media, some include social Learn which social media channels are the most effective
  20. 20. Other useful measurement• Simple insights: Facebook insights can help you understand what your audience respond to
  21. 21. Other useful tools Crowdbooster is useful for showing which tweets had most impact, the best times to tweet and influential followers.
  22. 22. Other measurements Social Mention does quite simple sentiment measurement Sentiment measurement isn’t foolproof Worth benchmarking now and as you do more social activity
  23. 23. Other measurements Social Influence measures are increasingly being used in business Some companies already prioritise customer service queries by looking at Klout scores of customers
  24. 24. What next?• New Google Analytics: – Social Reporting being enhanced
  25. 25. Future predictions• Increased pressure to show measurable return• Smarter and more integrated reporting toolsets• More focused use of social media channels as companies understand what is returning value and stop using what isn’t• Social influence scores increasingly used in business decision making
  26. 26. Now what?• Know how much social media costs: – Tools – Time• Know what your objectives are• Know the value of achieving those objectives: – Value of a lead – Value of a sale – Value of a customer• Benchmark (today): – How many visits/leads/sales do I get – How many from SM and from what channels• Keep tweaking• Keep measuring
  27. 27. Useful resourcesSmart Insights – Tips on Social Measurement with Google Analyticshttp://www.smartinsights.com/google-analytics/google- analytics-setup/google-social-analytics-review/Occam’s Razor Blog:http://www.kaushik.net/avinash/best-social-media-metrics- conversation-amplification-applause-economic-value/Google Analytics Conversion Room Blog:http://conversionroom-japac.blogspot.com.au/
  28. 28. Keep in touchWeb: www.eMarketingConnected.com.auEmail: tracey.brown@emarketingconnected.com.auPhone: 0448822369 http://au.linkedin.com/in/traceylbrown @traceybrown74 www.facebook.com/pages/EMarketingConnectedAU

×