The Naked Truth of Social Media ROI

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WOMMA School of WOM session from BzzAgent and SymphonyIRI on the ROI of Social Marketing.

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  • Show CPG companiesBusiness objective: drive salesCompanies: that are doing itActivities they can measureArrive at set-up: these methods are best for measuring sales in offline sales channel: grocery, drug and mass
  • Actual sales dataAble to isolate campaign impact Able to measure “incremental” salesStatistically valid Representative / projectable (if market/sample based)3rd party analytic expertise / validation
  • IRI to list / talk about a broad list of sales & ROI measurement methods brands can / are usingIncluding Matched Market Testing and Marketing Mix Modeling – since we are focusing / diving deeper into these 2 with examples On subsequent slides include examples of MMT and MMM (BzzAgent related), and consider one or 2 other examples if IRI has them or just stick with those 2)
  • This case will probably run multiple slides.
  • How it works for a social marketing campaignWhat data you need to measure & how…. BzzAgent campaign dataset example
  • The Naked Truth of Social Media ROI

    1. 1. The Naked TruthAbout Social Media ROI<br />
    2. 2. JP Beauchamp<br />SVP Consumer & Shopper Marketing<br />Malcolm Faulds<br />SVP Marketing<br />Steve McLaughlin<br />VP Analytics<br />Your Instructors<br />
    3. 3. Social marketing company that accelerates word of mouth to drive sales<br /><ul><li>Established in 2001
    4. 4. Powered by 800,000 volunteer consumers
    5. 5. Focusedon intersection of product innovation and social media
    6. 6. DeepCPGexperience
    7. 7. Heavily invested in WOM analytics</li></ul>3<br />3<br />
    8. 8. Leading global provider of CPG intelligenceinnovative solutions and services, and integrated empirical information on markets, consumers and shoppers<br />Enabler of CPG, healthcare and retail companiesto dramatically increase revenue, build brands and improve productivity <br />Our Mission to help our clients get to a higher level of performance in leveraging insights and analytics to drive superior outcomes<br />As a global leader and indispensable partner in helping our clients grow their businesses through insight, innovation and impact.<br /> <br />4<br />4<br />
    9. 9. The Social Landscape is Vast<br />
    10. 10. Community Development<br />Cause Marketing<br />Cultivate UGC<br />Product Planning<br />Boost Online SOV<br />Deepen Brand Relationships<br />Increase Purchase Intent<br />Market Research<br />Build Awareness<br />Generate Sales<br />Reputation Management<br />Reduce Cost of Customer Engagement<br />Circulate Offers<br />Consumer Insights<br />Employee Recruitment<br />Increase Brand Trust<br />Improve Customer Service<br />Launch New Products<br />Employee Monitoring<br />Promote Local Events<br />Brand Positioning<br />Copy Testing<br />And So Are the Opportunities<br />
    11. 11. VALUE ≠ ROI<br />
    12. 12. Community Development<br />Cause Marketing<br />Cultivate UGC<br />Product Planning<br />Boost Online SOV<br />Deepen Brand Relationships<br />Increase Purchase Intent<br />Market Research<br />Build Awareness<br />Generate Sales<br />Reputation Management<br />Reduce Cost of Customer Engagement<br />Circulate Offers<br />Consumer Insights<br />Employee Recruitment<br />Increase Brand Trust<br />Improve Customer Service<br />Launch New Products<br />Employee Monitoring<br />Promote Local Events<br />Brand Positioning<br />Copy Testing<br />Social Media Opportunities<br />
    13. 13. Increasingly CPG Companiesare Using Social Media to Measurably Drive Sales<br />
    14. 14. <ul><li>Actual offline sales data – not just purchase intent
    15. 15. Ability to measure sales lift/incremental sales
    16. 16. Able to isolate campaign impact through statistically valid and industry proven methodologies</li></ul>What CPG brands look forin credible sales & ROI measurement<br /><ul><li>Projectable to a larger campaign or roll-out universe
    17. 17. 3rd party validation</li></li></ul><li>1. Matched Market Analysisthe impact on sales of a marketing or social media campaign; performs more granular analytics; at smaller, contained geographies<br />2. Marketing Mix Analysisthe effect of sales due to social media in the context of the overall marketing program; read at national level<br />Methodologies brands are usingto measure social marketing sales/ROI<br />
    18. 18. Matched Market Analysis<br /><ul><li>Measures market level activities
    19. 19. Markets, DMAs, regions
    20. 20. Uses “test” and “control” cells that are statistically matched to ensure same sales behavior of the product in the markets
    21. 21. Adjustments made using POS data to account for any differences between cells so true effect of marketing activity is isolated
    22. 22. Proven methodology used for 3+ decades</li></li></ul><li>Matched Market Analysis – Why it can work for WOM / Social Media<br />Offline & Facebook conversations are sufficiently geo concentrated<br />OFFLINE<br />FACEBOOK<br />
    23. 23. <ul><li>2 cell design, matched-market analysis including 1 test cell with media and 1 control cell without media
    24. 24. Measured across a standard campaign period, plus lag effect to capture sales post campaign
    25. 25. Measured impact in change in Volume Sales
    26. 26. ROI provided with appropriate inputs</li></ul>Matched Market Analysis –Design Example<br />
    27. 27. BzzAgent Campaign<br />Results<br /><ul><li>A premium coffee brand
    28. 28. Target = male/female ages 25-54, purchase coffee at Grocery
    29. 29. 10k BzzAgents received product samples and pass along coupons
    30. 30. BzzAgents buzzed about the product for 8+ weeks
    31. 31. 3 test and control markets
    32. 32. 6.7% sales lift of promoted sub-brand due to campaign!
    33. 33. $.80 ROI </li></ul>Matched Market Analysis –Case Study<br />
    34. 34. Marketing Mix Modeling<br />Quantifies the effect on sales of each component of the marketing mix of a product<br />Used to look at social media in the “big picture” with the rest of a product’s marketing elements<br /><ul><li>Not typically used to analyze individual, smaller campaigns</li></li></ul><li>Marketing Mix Modeling – ROI Output Example<br />Generic example, not based on actual results<br />
    35. 35. Marketing Mix Modeling - Data Input Example<br />Why does this data work? <br />Weekly data<br />1<br />Granularity <br />2<br />Variability<br />3<br />Impression Effectiveness<br />4<br />
    36. 36. Analytic Partners <br />Media Effectiveness<br />Weekly Impression Data<br />By Channel<br />IncrementalSales<br />ROI<br />TV<br />PRINT<br />DIGITAL<br />Other 3rd Party Analytic Partners<br />WORD OF<br />MOUTH<br />Marketing Mix Modeling – Process<br />
    37. 37. # Campaigns<br /># Brands<br /># Products<br /># of Analytic <br />Companies<br />25<br />10<br />17<br />6<br />WOM ROI on average performs favorably<br />Marketing Mix Modeling – BzzAgentMMM Results To Date<br />
    38. 38. Large marketers, like CPGs, are increasingly demanding that social marketing spend is accountable<br />ROI is a financial metric<br />Deliver ROI by approaching social marketing with a direct response mindset<br />Key Takeaways<br />Track volume, time, and location of campaign impressions, then correlate with actual transaction data<br />Work with 3rd party analytics providers, internal analytics teams, & industry experts to use methods like matched market analysis, marketing mix modeling, <br />
    39. 39. Your Questions<br />22<br />22<br />
    40. 40. Thank You<br />JP Beauchamp<br />jon.beauchamp@symphonyiri.com<br />Malcolm Faulds<br />mfaulds@bzzagent.com<br />Steve McLaughlin<br />smclaughlin@bzzagent.com<br />www.symphonyiri.com<br />about.bzzagent.com <br />@bzzagent<br />

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