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Social Media Measurement

Download to read offline

How online metrics can predict offline sales

Social Media Measurement

  1. 1. BRAND ADVOCACY The relationship between advocacy and sales. Contact: Tom O’Brien MotiveQuest LLC [email_address]
  2. 2. The rapid fade in the influence of traditional media channels is pushing Advocacy to the fore as a measure of brand health Influence
  3. 3. Increase online engagement in a year with no new metal and measure the effect on sales Brand Challenge
  4. 4. We found that Community drivers were particularly important in creating advocacy for the MINI brand Source: All sources, all dates Competitive Set Net Sentiment Index Comparison Note : The Warranty rows are in gray because all 5 brands expressed negative net sentiment on the topic, with MINI expressing the lowest negative net sentiment Ranked by Total Buzz Note : - = <100 Mentions Note: The drivers PDA, Trade Value, Community/Communal and Manners/Etiquette were not added to this index list because of insufficient sample size within all brands but MINI Car Driver Leader Community Driver Leader
  5. 5. BRAND DNA: The reason for this was creative customization culture that drove sharing “ I have never been involved in another car culture. Friends who are tell me when they meet MINI owners that our culture is in some ways very familiar - complete obsession with the MINIS -- and in some ways very different -- it seems to transcend the car. We get to know each other on a much more personal level .” CREATIVITY PARTICIPATION FUN/PLAY SELF EXPRESSION COLLABORATION DISCOVERY “ Mini's are meant to be individual so yeah, go ahead and mod her how you please!” “ I got my mini on Sunday here are some pics…Suggestions what to do next on the mod list?” “ I think that MINI owners probably encompasses a lot of people (like me) who would never have dreamed of joining a car club, or naming their car, or getting personalized plates, etc..” “ The car company and the culture have a deep respect for the car itself, but it has an even bigger respect for having verve in life and having fun in all aspects in life.”
  6. 6. MINI: A Blank Canvass for Self Expression <ul><li>Subject: MINI Lost Its edge? </li></ul><ul><li>Date: August 12 2005 1. There is something more exclusive about a cooper. The fact that only 1 in 100000 are alike, and you build it exactly how you want it, have a lot to do with it. My Vw is black on tan leather and I must see 4 or 5 just like it eveyday. </li></ul><ul><li>Source : </li></ul><ul><li>Subject: Mini modding </li></ul><ul><li>Date: November 11 2005 </li></ul><ul><li>2. Mini's are meant to be individual so yeah, go ahead and mod her how you please! If you then wanted to trade her in, just take the bits off and stick them on EBay (you'll get more money that way anyway ) </li></ul><ul><li>Source: </li></ul>“ Mini’s are meant to be individual so yeah, go ahead and mod her how you please!.”
  7. 7. CAMPAIGN DEVELOPMENT : These insights drove campaign development to activate their community, measured through Online Promoter Score TM . Source: All Data 5/1/05 – 9/30/06 Online Promoter Index Covert Campaign - Mailing Mini Takes the states - Events Motorby- Ads
  8. 8. SALES: Overlaying monthly sales to the Online Promoter Score ™, a strong correlation between online promoters and sales emerges. <ul><li>Online Promoter Score TM seems to lead sales by a month(1). </li></ul><ul><li>Comparing the change in online promoter score to the change in sales(2) shows that OPS correctly predicted sales 7 out of 7 times. </li></ul><ul><li>1. The R^2 is 54% and the p value of the coefficient is 3.7%, so we can be 96% certain that the positive relationship is not spurious. </li></ul><ul><li>2.The bars are calculated by looking at the average magnitude of the monthly changes. The shortest bars are changes in the middle 50% of changes, the tallest bars represent the middle 80% of changes and the tallest bars (not visible in this date range are the top or bottom 10% of changes. </li></ul>      
  9. 9. For the MINI brand, sales will increase (decrease) by 53% of the increase (decrease) in online promoters for the previous month <ul><li>High degree of confidence with a p-value = .2% (statistically significant p-value = 5%) </li></ul><ul><li>Did not include the month pairs featuring release ofR56 preview pics and the release of the R56 as outliers / exogenous events that one can naturally assume would throw off the relationship </li></ul>change in online promoters change in sales
  10. 10. Summary <ul><li>The decline in traditional media / messaging tactics make brand advocacy a critical metric </li></ul><ul><li>Understanding the drivers of brand advocacy can inform the creation of new marketing campaigns and even product strategy </li></ul><ul><li>Understanding a campaign’s impacts on advocacy through the Online Promoter Score TM can then be tied directly to tangible business results and ROI </li></ul>
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How online metrics can predict offline sales


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