Velocity, variety, veracityData grows by 20%/ year and each year businesses analyze less data meaning they’re increasingly naïve over time. Currently 1.6 zettabytes of data worldwide 47 YEARS of HD TV can’t sample must analyze on the fly.60% of businesses need more analytic skills – movement toward using managers to create reports on the fly rather than sending everything through IT
Conversion - $, % close, AOS, who closing?KPIs- reduced costs, ie. fewer calls to CS, improved efficiency, ie responses within 12 hours, repeat calls, more visitors, longer stay, etc.Sales funnel - Velocity, %, fewer shopping carts abandoned, Engagement – comments, shares, posts, etc.
But, 80% of data is unstructured. And, this MIGHT be the most important data out there in terms of it’s impact on your brand. Unmet needsUncover design flawsInsights for advertising effectivenessWho is important in their livesHow they live their livesExample - HOGs
How messages spread, which message components, what time, etc.
Let’s say you want to retain your current customers – 30. You decide to spend 30 $250/ customer to retain them ($7500). Despite your efforts 5 customers churn (leave the company). You now spend $1500 to bring your total customers back up to 30. Outcome: Spent $9000.Scenario 2. Now, let’s take a look at this with predictive analytics to help predict WHICH customers are most likely to leave. I mean face it – some customers won’t leave for a variety of reasons. Maybe their firm pays for the service. Maybe they’re locked in by high switching costs …. Why send these folks offers worth $250, when they’re going to stay anyway.Scenario 3. Now, you segment customers based on their likelihood of churning into high, medium, and low risk. You now spend $250 only for those 10 customers with a high or moderate risk of churning – for a total of only $2500. Even though you still lose 5 customers, you’ve saved $5000 just by not wasting resources to send an offer to customers who would never leave. You still incur the $1500 cost to replace your lost customers, so the total cost isYou can afford to sweeten the pot a little. Let’s say instead of spending $250 you decided to send a really killer offer costing $400 to the 5 customers with a high risk of leaving and a $300 offer to those with a moderate list of churning. You’ve increased your expense to $3500, but now only 2 churn (instead of the original 5). It now only costs $600 to recover from this loss of customers. Now you’ve saved $4,600 over not having the predictive information.Where is funnel breaking down? How fix?
The outcome of optimizing your processes: best possible plans, provides alternatives and tradeoffs for various solutions, and can respond to changes in your strategy and/or environment to determine the effect of these changes on your returns.Example – set standards, ie respond to comments within 6 hours. # of comments, # hours needed for response, = # employees to dedicate and when also handle if there are constraints such as some employees can only handle certain comments.
How to Use Social Media Analytics to Boost ROI
Use Descriptive and
June 19, 2013
Angela Hausman, owner of Hausman and
Associates, is an Associate Professor of
Marketing at Howard University. She is
the author of several books and numerous
publications on social and internet
marketing. In additional to writing for
Hausman Marketing Letter, she is a
popular writer on Business 2 Community,
Social Media Today, Technorati, and Social
Media Mags, Follow her on Twitter
@MarketingLetter or on Facebook!
The Problem by the Numbers
• 2.2 X better ROI
• 80% unstructured and 3Vs
• 20% growth
• 1.6X 1021
• 60% MORE analytics skills
Y= ƒ (Xi, ßi)
Behavior= Attitudes, Social Norms
Tech Acceptance = Perceived Usefulness, Perceived Ease of Use
Events = Community Engagement, Performer,Venue, Location
Allocate scarce resources under conditions of uncertainty.
Optimize returns with limited risk.
Which products and how much
Who and how
Example – manage engagement in social networks