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Social Media Lecture, Venice, Nov. 2010


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Social Media Lecture, Master's in Marketing Communications, University of Venice, Italy, Nov. 2010

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Social Media Lecture, Venice, Nov. 2010

  1. 1. ENERGISE2-0.COM ‘Creating the Buzz’ Social Media For Sustained Business Growth Dr. Jim Hamill Alan Stevenson November, 2010
  2. 2. ENERGISE2-0.COM Sports Marketing 2.0 • Marketing opportunities and threats from the rapid growth of Web 2.0/social media – Web 2.0/social media – what is it? how big is it? – Business benefits – Web 2.0 in action – examples (general and sports marketing) – What progress is being made? – What do the fans think? – Social media strategy development and implementation – Performance measurement/ social media monitoring tools
  3. 3. ENERGISE2-0.COM Agenda • Day 1 –Morning: Presentations –Afternoon: Presentation/Group work • Day 2 –Morning: Presentations –Afternoon: Group work/Student Presentations
  4. 4. ENERGISE2-0.COM Group Work Groups of 4 or 5 students 1. Taking an organisation of your own choice, evaluate the progress made in adopting Web 2.0/social media and make strategic recommendations for improvement. Your evaluation should cover use of Web 2.0/social media on their own web site and the extent of their involvement in external Web 2.0/social media sites 2. Report briefly on the usefulness of Social Media Monitoring Tools for your chosen organisation
  5. 5. ENERGISE2-0.COM Continue the conversation on
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  8. 8. ENERGISE2-0.COM Web 2.0/ Social Media Overview An Overview
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  10. 10. ENERGISE2-0.COM Web 2.0/Social Media An Overview »Applications »Features and Characteristics »Implications
  11. 11. Applications Social Network Sites Social Content Social Bookmarks Blogs Wikis Virtual Realities RSS Feeds Podcasts Social Applications Twitter Mash Ups Mobile Web; Internet Telephony
  12. 12. ENERGISE2-0.COM Social Media in Plain English
  13. 13. ENERGISE2-0.COM Internal and External Use These applications can be used on an organisation’s own web site and/or by participating in ‘external 2.0’ sites 2.0 redefines the concept of a web site (see
  14. 14. Characteristics Communities and Networks Interactivity Social Element Openness Peering Hosted Services Global Sharing Empowerment Mass Collaboration The Internet as the platform
  15. 15. Impact Business Intelligence Customer Interaction Sales & Marketing Customer Experience Customer Insight Processes and HRM Mindset Product Development Reputation Management Rich Internet Applications IT Infrastructure
  16. 16. Business/Marketing 2.0 Web 2.0 Applications Open source Online Applications/ Web Services Social Network Sites Social Content – Social Bookmarking Blogs or Weblogs Wikis Podcasts/ Vodcasts Virtual Realities Mash Ups RSS Feeds Mobile Web; Internet Telephony Twitter Characteristics Communities and Networks Openness Sharing Peering Hosted Services – online applications; the Internet as the platform Interactivity Social Element Mass Collaboration Empowerment Global Impact – Wikibusiness Mindset Business Intelligence Customer Insight and Understanding Customer Interaction Enhanced Customer Experience – Rich Internet Applications Reputation Management Sales and Marketing Product Development and R&D e.g. engage and co-create IT/Software/Applications Operations, Internal Processes and HRM
  17. 17. ENERGISE2-0.COM Potential Business Benefits of Social Media
  18. 18. ENERGISE2-0.COM Business Benefits • Market Knowledge • Customer Insight and Understanding • Customer Interaction • Enhanced Customer Experience • Business Intelligence • Reputation Management
  19. 19. ENERGISE2-0.COM Business Benefits • Improved Sales and Marketing • Identify and network with high value, high growth prospects • Product Development and R&D e.g. engage and co-create • Internal cost savings • Improved Operations and Internal Processes • Increased ROI
  20. 20. ENERGISE2-0.COM Potential Business Benefits Wide ranging: • Market/Customer Knowledge & Insight • Engagement & Reputation Management • Enhanced Customer Experience and Loyalty • Sales/Marketing Effectiveness, Efficiency and ROI • Operations/ Internal Processes (open source and hosted apps)
  21. 21. ENERGISE2-0.COM Potential Business Benefits
  22. 22. ENERGISE2-0.COM Things to Remember about Social Media
  23. 23. ENERGISE2-0.COM Key Things to Remember • It’s social – A key feature is online democracy – with content being provided by the network for the network – represents a fundamental and revolutionary change in online behaviour, expectations and the online customer experience. The end of the ‘read only’ internet • Power shift – Social media empowers customers, empowers the network. Recognizing this shift is the cornerstone of future success • Declining effectiveness of traditional approaches – Does anyone listen to sales/brand messages anymore?
  24. 24. ENERGISE2-0.COM Source: The Future of Advertising, APA, 17/02/09 as published on Slideshare (
  25. 25. ENERGISE2-0.COM
  26. 26. ENERGISE2-0.COM Key Things to Remember • Pull v push – Consumers/users decide what information they wish to access • New ‘mindsets’ are required – Marketing as a conversation with your customers/network– dialogue not broadcasting – But this is something that most of us are not very good at doing. We prefer ‘telling’ people • SM ‘winners’ and ‘losers’ – ‘Winners’ will be those organisations who fully utilise the interactive power of Web 2.0 technology for engaging with and energising customer and network relationships
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  29. 29. ENERGISE2-0.COM Key Things to Remember • New performance measures – Requires new performance measures • Quality of your network • Relationship strength • Ability to leverage • Social media monitoring tools • Redefines the concept of a web site • The need for new business/marketing models
  30. 30. ENERGISE2-0.COM Performance Measurement Involvement – network/community numbers/quality, time spent, frequency, geography Interaction – actions they take – read, post, comment, reviews, recommendations Intimacy – affection or aversion to the brand ; community sentiments, opinions expressed etc Influence – advocacy, viral forwards, referrals and recommendations, social bookmarking Social Media Monitoring Tools –Audit, Assess, Impact
  31. 31. ENERGISE2-0.COM Monitoring the Conversations • Use Social Media Monitoring Tools to monitor online conversations relevant to your brand • No or low cost tools such as Google Alerts, Yahoo Pipes, Social Mention, IceRocket, Blogscope, Blogpulse and ViralHeat • More expensive and sophisticated tools such as Radian6, Alterian SM2, Sysomos Heartbeat and Infegy SocialRadar
  32. 32. ENERGISE2-0.COM Key Things to Remember The need for new business/marketing models – Traditional approach: • Product development – Differentiate – Market and Promote - Sell – New model based on: • Communities, networks, openness, peering, sharing, collaboration, customer empowerment, ‘think and act’ globally • Engage and energise • ‘Create the Buzz’
  33. 33. ENERGISE2-0.COM Built using wordpress
  34. 34. ENERGISE2-0.COM Embeds content from social media
  35. 35. ENERGISE2-0.COM Embeds content from social media
  36. 36. ENERGISE2-0.COM Embeds content from social media
  37. 37. ENERGISE2-0.COM How big is it?
  38. 38. ENERGISE2-0.COM Social Media Revolution 2
  39. 39. ENERGISE2-0.COM How Big Is It?
  40. 40. ENERGISE2-0.COM Social Media in Action Quick Examples
  41. 41. ENERGISE2-0.COM In a Web 2.0 Era, the Brand Becomes the Customer Experience of the Brand A quick ‘personal experience’ Dubai Hotel
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  47. 47. ENERGISE2-0.COM From the web site • This 5-star hotel and residence offers European hospitality with an unmistakable French touch. The hotel consists of 318 beautifully appointed guest rooms/suites, while the residence offers 112 fully furnished and equipped deluxe Studios and 1-3 bedroom apartments. • The ultimate in comfort, we offer 318 luxuriously elegant rooms and suites. • Take a trip. Escape. Go and visit somewhere new and see if we are there… Give in to that irresistible wanderlust. Discovering and staying in the most exceptional hotels in the world has become the modern-day Graal, a game, a quest…
  48. 48. ENERGISE2-0.COM The Customer Experience of the Brand Tripadvisor
  49. 49. ENERGISE2-0.COM From Tripadvisor • It's getting old, the rooms are unappealing and it will never be more than a business hotel • Being a Sofitel hotel we expected something quite 'flashy' unfortunately we were let down. The rooms, although comfortable and clean, were not of the standard we expected and were definately not what we expected after looking at the photos on the hotel's website. • Booking my stay via the Sofitel website after a pleasant experience at several other Sofitel locations over the past 2 years with my new job I was looking forward to a 5 star luxury stay after a stressful business trip. My expectations were reasonable, however certainly not met by this hotel.
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  52. 52. ENERGISE2-0.COM Will It Blend? - iPad
  53. 53. ENERGISE2-0.COM 5.7 Million Views
  54. 54. ENERGISE2-0.COM United Breaks Guitars
  55. 55. ENERGISE2-0.COM 9 Million Views
  56. 56. ENERGISE2-0.COM The Italian Man Who Went To Malta
  57. 57. ENERGISE2-0.COM 14.6 million views
  58. 58. ENERGISE2-0.COM Cafe Gandolfi
  59. 59. ENERGISE2-0.COM Brand Engagement
  60. 60. ENERGISE2-0.COM Brand Engagement
  61. 61. ENERGISE2-0.COM Fashion brands v the new ‘kid on the block’
  62. 62. ENERGISE2-0.COM Buy Our Stuff
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  64. 64. ENERGISE2-0.COM Customer Engagement
  65. 65. ENERGISE2-0.COM Reverses the Business Model
  66. 66. ENERGISE2-0.COM Threadless on Facebook
  67. 67. ENERGISE2-0.COM 170,784 'likers'
  68. 68. ENERGISE2-0.COM 1,556,929 Twitter Followers 1.5 Million Twitter Followers1,556,929
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  71. 71. ENERGISE2-0.COM A few references.........
  72. 72. ENERGISE2-0.COM Wikinomics Tapscott and Williams (2006) • Web 2.0 represents a major paradigm shift and requires new corporate mindsets and new approaches to business strategy development, implementation and online branding. • O’Reilly (2006)........Web 2.0 as ‘a set of economic, social, and technology trends that collectively form the basis for the next generation of the Internet—a more mature, distinctive medium characterised by user participation, openness, and network effect.’
  73. 73. ENERGISE2-0.COM The Groundswell Li and Bernoff (2008) • A spontaneous movement of people using online tools to connect, take charge of their own experiences and get what they need from each other (information, support, ideas, products, bargaining power etc) • The ‘groundswell’ is unstoppable – it’s a social revolution. It’s a permanent, revolutionary shift in the way the world works • You can try to fight it or join it – energise the groundswell
  74. 74. ENERGISE2-0.COM Marketing to the Social Web Larry Weber (2009) • Marketers must look for new ways to communicate with customers. New mindsets and a radical rethinking of past practice is required • Rather than broadcasting sales messages to an audience who no longer listen, innovative marketers should become ‘aggregators of customer communities’. They should participate in, organise and encourage social networks that people what to belong to • Rather than talking at customers they should talk with them
  75. 75. ENERGISE2-0.COM Grown Up Digital – Don Tapscott (2009)   • $4m research project covering 10,000 people in the age group 11 to 30 • The Net Generation – the first generation to have grown digital • Revolutionary impact on all aspects of life including the world of work, education, family relationships, political engagement and the global environment • YouTube Videos
  76. 76. ENERGISE2-0.COM Does It Work?
  77. 77. ENERGISE2-0.COM • Aberdeen Research Group – study of the social media practices of 250 organisations – ‘Best in class’ (50) – ‘Industry average (125) – ‘Laggards’ (75) • ‘Best in class’ outperformed others in many key areas – Customer satisfaction – Actionable insights delivered – Reduced time to market – Customer insight Source: Weber, 2009 Does It Work?
  78. 78. ENERGISE2-0.COM Worlds Top 100 brands
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  80. 80. ENERGISE2-0.COM Does it work? • Financial performance correlates with engagement • Companies that are both deeply and widely engaged in social media surpass their peers in terms of both revenue and profit performance by a significant difference
  81. 81. ENERGISE2-0.COM Does It Work? • The Top =10 Brands Using Web 2.0 / Social Media
  82. 82. ENERGISE2-0.COM Sports Marketing 2.0 Progress Being Made
  83. 83. ENERGISE2-0.COM Sports Marketing 2.0 • Business benefits for Sports Marketing Organisations (SMO) • What’s happening out there? What has the response been? • How well are sports marketing organisations utilising the power of Web 2.0 for building community and network relationships with their tribe? • Research covering the top 20 European football clubs • Emerging ‘best practice’ examples
  84. 84. ENERGISE2-0.COM ‘Football is nothing without the fans’ Jock Stein
  85. 85. ENERGISE2-0.COM A Marriage Made in Heaven Web 2.0 Sports Fans • Information ‘pull’ rather than ‘push’ • User generated content • Openness • Sharing • Collaboration • Interaction • Communities • Networking • The ‘Tribe’ • Passion • Loyalty • Commitment • Desire • Involvement • Community • Belonging • Family
  86. 86. ENERGISE2-0.COM Business Benefits • Enhanced marketing effectiveness • Marketing efficiency • Improved ROI • Relationships and networking effects – engage and energise – increased fan loyalty and commitment
  87. 87. ENERGISE2-0.COM Internal Web 2.0 • Increased visits to the official site • Increase ‘stickiness’ (length) of site visits • Divert traffic from unofficial fanzine sites • Increased advertising revenue • Increased e-commerce sales for the official site • Actionable customer insight, knowledge and understanding • A channel for responding to customer comments and feedback • Enhanced online customer experience • Build community and leverage network effects - engage, energise
  88. 88. ENERGISE2-0.COM External Web 2.0 • Social Networking Sites: Sports Marketing Organisation becomes a ‘community aggregator’ - ‘Talk with rather than at fans’ - actionable customer insights • Multimedia Sharing Sites - a very powerful marcoms channel leveraging networking and ‘word of mouth’ effects • Podcast Sites: Provides the SMO with a rich media channel for maintain on-going dialogue with customers/fans • Virtual Reality: ‘virtual stadium’ allowing fans to interact with each other in a virtual space • Mapping Tools: - satellite images of the Stadium etc. Can enhance the online customer experience leading to increased site visits, advertising revenue and e-commerce sales
  89. 89. ENERGISE2-0.COM Progress Made • Evaluation of the Web 2.0 progress made by the top 20 football teams in Europe (2008)
  90. 90. ENERGISE2-0.COM Internal Use (own web site) • UGC (User Generated Content) – text, images, video, wiki • User FOD (Feedback, Opinion, Discussion) – blog, forum, ratings, favourites, online chat • RIA (Rich Internet Applications) – widgets, mash-ups, podcasts/vodcasts • Folksonomies – social tagging, social bookmarking, tag cloud • Feeds – content feeds in and out • Community – site community • External Links – to other 2.0 sites
  91. 91. ENERGISE2-0.COM External 2.0 • Social Network Sites – facebook • Multimedia Sharing Sites – Youtube, flickr • Podcast Sites – Itunes • Twitter • Linkedin
  92. 92. ENERGISE2-0.COM Results
  93. 93. ENERGISE2-0.COM Results
  94. 94. ENERGISE2-0.COM 2010 Update
  95. 95. ENERGISE2-0.COM 2010 Update
  96. 96. ENERGISE2-0.COM 2010 Update
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  98. 98. ENERGISE2-0.COM Results
  99. 99. ENERGISE2-0.COM Emerging ‘Best Practice’ Examples in Sports Marketing
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  102. 102. ENERGISE2-0.COM • Could a community takeover happen at a bigger club?
  103. 103. ENERGISE2-0.COM Examples Chelsea –
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  117. 117. ENERGISE2-0.COM What do the fans think? Online survey of Celtic fans (2008)
  118. 118. ENERGISE2-0.COM Celtic Survey • There are over 50 ‘Celtic Minded’ fanzine sites. These provide alternative information channels for the fans, competing with the official Celtic web site • The top 5 fanzine sites have more than 51,000 registered users. Over 13 million messages have been posted highlighting the vibrancy of the groups • Content analysis reveals that fans are discussing a wide range of issues, many of which are relevant to the business/marketing aspect of the Club
  119. 119. ENERGISE2-0.COM Celtic Survey • The online survey, completed by 356 respondents within the first 48 hours of going live, showed that 50 per cent of fanzine members were ‘professional’ people, students (11%), skilled manual (21%), self employed (6%), unemployed (4%) or others (7%). This is substantially different from the demographic profile of fanzine members normally reported in the mass media (‘the great unwashed’) • The survey revealed a high level of demand among fans for greater Web 2.0 functionality on the official Celtic club site – RSS feeds (58%), discussion forums (66%), blogs (70%), Club podcasts (71%) and User Generated Content (41%)  
  120. 120. ENERGISE2-0.COM Celtic Survey • Major changes taking place in the way in which fans accessed information about the Club – 85 per cent stated that fanzine sites were an ‘Important’ or ‘Very Important’ source of information, TV (57%), the official Club web site (50%), general sports web sites e.g. Sky (42%), printed newspapers (29%), newspaper web sites (23%) • 84 per cent stated that they were reading fewer newspapers and using more online information sources; 77 per cent stated that they were accessing the official Club web site less and the fanzine sites more often
  121. 121. ENERGISE2-0.COM Name of Website Number of Registered Users Total Posts Number of Threads 16,954 8,344,813 650,660 6,998 2,413,850 65792 23,533 1,523,512 86,316 3,124 474,253 52,899 839 131,407 9,714 10,610 123,863 16,542 2,995 56,799 4,866 n/a 49096 7390 753 37,480 1,020 52,778 25,221 2,581 6795 430 88 406 83 27 287 8 23 n/a n/a n/a 1335 24,429 2968 n/a n/a n/a  
  122. 122. ENERGISE2-0.COM • Survey covered fanzine site users – might not be representative of all Celtic fans
  123. 123. ENERGISE2-0.COM Web 2.0 Strategy Development
  124. 124. ENERGISE2-0.COM ‘Getting There’
  125. 125. ENERGISE2-0.COM Next Steps • Get Involved – Google Alerts, Linkedin, Social Media Monitoring • Learn more • Develop a strategy • Implement • Monitor
  126. 126. ENERGISE2-0.COM Social Media Development Cycle
  127. 127. ENERGISE2-0.COM SM Development Cycle
  128. 128. ENERGISE2-0.COM Each Step is being covered in detail on our blog at
  129. 129. ENERGISE2-0.COM Five Key Areas • External Analysis: Evaluate Your Social Media Landscape • Internal Analysis: Evaluate Your ‘Readiness to Engage’ • Develop Your Social Media Strategy and Action Plans for ‘Getting There’ • Evaluate Your Social Media Performance and ROI • Organization, People and Resource Issues
  130. 130. ENERGISE2-0.COM ‘Be Customer Led’ Three key questions: • Who are our customers, who do we wish to engage with? • Where do we find them ‘hanging out’ on social media? • How can we best engage and energise them?
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  132. 132. ENERGISE2-0.COM Develop Your Social Media Strategy and Action Plans for ‘Getting There’
  133. 133. ENERGISE2-0.COM Use a Simplified Balanced Scorecard • Will ensure that the social media actions and initiatives you take are fully aligned with and supportive of your overall business goals and objectives; that KPIs are agreed for monitoring and evaluating social media performance, business impact and ROI; and all key success factors are considered, especially the organization, people and resource aspects critical to successful strategy implementation • A Scorecard approach can also be very useful for internal and external communications – a simple framework to present social media goals, objectives, key actions and initiatives to colleagues, partners and other stakeholders
  134. 134. ENERGISE2-0.COM Social Media Balanced Scorecard • Not ‘paralysis by analysis’. By providing an agreed framework to follow, the Balanced Scorecard considerably speeds up strategy development and implementation • The steps involved can be captured in a Social Media Strategy Map • Five key questions to address……
  135. 135. ENERGISE2-0.COM Social Media Balanced Scorecard • What is the overall social media vision for your organization? • What are the key objectives and targets to be achieved? • Who are your customers? • Key Actions and Initiatives • Organisation, Resource and People Issues
  136. 136. ENERGISE2-0.COM Social Media Strategy Map Brief statement of your overall 2.0/Social Media Vision and Mission Strategic Objectives Customer Perspective Internal Management Perspective Organisation Perspective   Strategic Objectives  KPIs / Targets  KPIs / Targets  KPIs / Targets  KPIs / Targets  Customer Group 1  Customer Group 2  Customer Group 3  Customer Group 4  2.0/Social Media Initiative 1 - Objectives - KPIs - Targets - Actions  2.0/Social Media Initiative 2 - Objectives - KPIs - Targets - Actions  2.0/Social Media Initiative 3 - Objectives - KPIs - Targets - Actions  2.0/Social Media Initiative 4 - Objectives - KPIs - Targets - Actions  Organisation  People Resource 
  137. 137. ENERGISE2-0.COM Organization, Resource and People Issues
  138. 138. ENERGISE2-0.COM Organization, Resource and People • Organisation, resource and people issues sit at the bottom of your SM Balanced Scorecard NOT because they are the least important issues to address. In fact, the exact opposite is true
  139. 139. ENERGISE2-0.COM Monitor and Measure
  140. 140. ENERGISE2-0.COM Monitoring the Conversations • Use Social Media Monitoring Tools to monitor online conversations relevant to your brand • No or low cost tools such as Google Alerts, Yahoo Pipes, Social Mention, IceRocket, Blogscope, Blogpulse and ViralHeat • More expensive and sophisticated tools such as Radian6, Alterian SM2, Sysomos Heartbeat and Infegy SocialRadar
  141. 141. ENERGISE2-0.COM Monitor and Measure • To ensure that your SM strategy delivers a return on investment, it is important to monitor and evaluate on- going performance benchmarked against agreed objectives, KPIs and targets • Performance evaluation should be undertaken at three main levels using the ‘4Is’ approach….  
  142. 142. ENERGISE2-0.COM Performance Measures - The ‘4Is’  Involvement – network/community numbers/quality,  time  spent, frequency, geography  Interaction – actions they take – read, post, comment, reviews,   recommendations  Intimacy – affection or aversion to the brand ; community  sentiments, opinions expressed etc   Influence – advocacy, viral forwards, referrals and  recommendations, social bookmarking  Social Media Monitoring Tools – Audit, Assess, Impact
  143. 143. ENERGISE2-0.COM Monitor and Measure • Individual Channel Performance – the effectiveness/success of each channel benchmarked  against agreed targets for the ‘4Is’ i.e. Involvement,  Interaction, Intimacy and Influence – most channels provide easy to access statistics for  measuring each ‘I’ to a very high degree of accuracy  
  144. 144. ENERGISE2-0.COM Facebook Insights
  145. 145. ENERGISE2-0.COM Facebook Insights
  146. 146. ENERGISE2-0.COM Monitor and Measure   • Wider Social Media Performance – monthly or quarterly reporting of the overall ‘buzz’  created by your SM activities using appropriate Social  Media Monitoring tools – this will show the impact of your SM activities on others  and other channels – it measures the volume of mentions, trends over time,  which channels are driving your buzz, who is taking your  message further, through which channels, and what  affection or affinity they are showing, and so on    
  147. 147. ENERGISE2-0.COM Monitor and Measure • Underlying Business Performance – the performance of each social media channel and the  overall ‘buzz’ created are ‘lead’ rather than ‘lag’ measures – in a social media era, they are the main ‘drivers’ of future  business performance – the final level of performance monitoring, therefore, is  linking your social media activity to overall business goals  and objectives e.g. enquiries, sales or customer loyalty.  Is  social media achieving your ultimate business objectives  i.e. ‘lag’ measures? 
  148. 148. ENERGISE2-0.COM Who is talking about you, where online, what are they saying?
  149. 149. ENERGISE2-0.COM
  150. 150. ENERGISE2-0.COM Visit “Edinburgh Castle” Visit “Kelvingrove” Visit “Falkirk Wheel”
  151. 151. ENERGISE2-0.COM Visit “Edinburg h Castle”
  152. 152. ENERGISE2-0.COM Visit “Edinburgh Castle” Visit “Kelvingrov e”
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  155. 155. ENERGISE2-0.COM Bob Dylan Come gather 'round people Wherever you roam And don’t criticise What you can't understand Your sons and your daughters Are beyond your command Your old road is Rapidly agin‘ Then you better start swimmin’ Or you'll sink like a stone For the times they are a-changin’
  156. 156. ENERGISE2-0.COM Continue the discussion at
  157. 157. ENERGISE2-0.COM Thank You Questions