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Demystifying the
ROI of Social Media



                               Real Social Media
                             Monitoring Case Studies


 By Dr. Natalie Petouhoff
        @drnatalie
www.drnatalienews.com/blog
Agenda
 •
     Look at real case studies
       •
           Calculate business impact & ROI




                 Set-up a social media
                 •


                 measurement program
                                  2
                                      @drnatalie
Learning• is the desire to discover new things
We are amazed by new things…




                                       @drnatalie
•
And Social
 Media?




                           It’s the
                          new shiny
                            object
             @drnatalie               @drnatalie
But the amount of
    information
  – can feel like an
insurmountable blur




                       @drnatalie
@drnatalie




It can generally be useless
Today’s goal is to…
                    Provide…
                      •
                          Marketers
                      •
                          Brand Managers
                      •
                          Product Managers
                      •
                          Consumer Insights Teams &
                      •
                          Market Research Professionals
                      w


                    An understanding of the
                     benefits of:
                      •
                          Having deep, real-time insights
                      •
                          Using insights to make business
                          decisions &
                      •
                          Being able to be an invaluable
                          resource to CEO- suite

       @drnatalie
Using context

To TAKE
  THE
CHAOS
   TO
 ORDER
                     ssss




        @drnatalie
Business As Usual


  Executives want to know
  what the business value
     of social media is




                 9


                @drnatalie
Misconception                              http://www.flowtown.com/blog/what-is-the-roi-of-your-mom




       s of ROI
You may have heard…
    “Would you calculate the ROI of
    your mom or your pants?

    Then why would you calculate
    the ROI of social media?
    It’s obvious!”

•
    That’s funny
•
    But ROI is not obvious to everyone
•
    And your boss would like a number

               @drnatalie                @drnatalie
Misconception
  s of ROI

“ROI is too difficult
     because
     I’m not
 a “math” person.”




                  @drnatalie
Misconception
       s change in metrics!!
There’s a of ROI…
            •
                 We have 500 more “Likes”
    •
        10X click-thru rate on “Buy Now” button
  •
    $5M in annual support savings & sales advocacy
     •
       Viral videos increased company sales +700%
•
  Social microsites secured 1,000,000 fans and a 10%
                increase in same-store sales
                         E


            I have an ROI!!
                         e




        Note to self:
    Metrics are necessary…
     But they are not ROI
                                        @drnatalie
Real-world
Examples




             @drnatalie
Case Study:            @drnatalie

                        Major Insurer
    Advertising Effectiveness & Competitor Evaluation




Ran nat’l ad campaigns & wants to understand:
•
  Effectiveness of messages and
•
  Drivers of consumer purchase intent

                    Analyzed online conversations:
                    •
                      Their brand
                    •
                      Key competitor
Insurer Ad Effectiveness
•
    Insurer’s ad campaign is liked
•
 Didn’t generate conversation about
buying or switching insurers




                                           @drnatalie
Insurer Ad Effectiveness
                                      •
                                          Competitor ad campaign is more divisive
•
    Insurer’s ad campaign is liked
•
 Didn’t generate conversation about
buying or switching insurers




                                                                     @drnatalie
Insurer Ad Effectiveness
                                          •
                                              Competitor ad campaign is more divisive
•
    Insurer’s ad campaign is liked
•
 Didn’t generate conversation about
buying or switching insurers




                                      •
                                       But spurs a conversation trend related to
                                      purchasing
                                                                         @drnatalie
@drnatalie
    Conclusion of social media monitoring
•
 Both campaigns generate
healthy “buzz”
     •
          But positive sentiment doesn’t
         reflect intent to purchase
     •
          Using context avoids
         misinterpreting positive
         sentiment for a social buying
         gesture- intent to purchase
ROI of social media monitoring
        ROI = Benefits - Costs x 100 = Percentage Return on the Investment
                   Costs

What is the benefit?                     What is the cost?
•
    If the commercial drove sales?       • People- to do the analysis
•
    Number of leads?                     • Process- process to compile the
•
    What is a lead worth?                  information
•
    Number of lead conversions?          • Technology- social media
•
    What’s a sale worth?                   monitoring tool




                                                                      @drnatalie
Case Study:                           @drnatalie


            Craft Company
  Product Development & Marketing
Wants to understand:
•
  What topics dominate craft-related conversations?
•
  Is marketing having the desired effect?
•
  What’s lacking in the product line and accessories?




                                                            cccccccccc
Identified New Product Opportunities



                              Consumers’ expressed strong
                              desire for:
                              •
                               More & better supplies &
                              accessories
                              •
                               Improved access to purchase
                              those accessories



                          Discovered opportunity to
                          develop more male-centric
                          product line & accessories



                                                 @drnatalie
Conclusions of social media
•
    In-house Research
                      monitoring
     •
         Quickly and cost effectively
         identifies new product & market
         opportunities
     •
          Prompts development of new
         product accessories
     •
          Enables additional sales
     •
          Expands market share

•
    Marketing
     •
         Gained increased confidence
         leveraging social-media
     •
         Confirmed effectiveness of current
         messaging and promotional
         approach

                                              @drnatalie
ROI of social media monitoring
        ROI = Benefits - Costs x 100 = Percentage Return on the Investment
                   Costs

What is the benefit?                                   What is the cost?
•
    What does it cost the company to go to market      • People- to do the analysis
    with a product that isn’t what customers really
    wanted?                                            • Process- process to compile the
•
    What would this type of market research              information
    normally cost the company?
•
    How long would it normally take to get that kind
                                                       • Technology- social media
    of feedback? What’s the general cost for             monitoring tool
    product dev to launch a product?
•
    What’s the value of fnding a new product to
    provide their market?
•
    What was the value in revenue of the new
    products/ accessories?
•
    What’s the value of key messaging that works?
    Higher lead conversation rate?

                                                                                @drnatalie
Case Study:
Medical Device for Diabetes & Insulin
    Product Launch Marketing

                   Wants to understand
                   diabetes & insulin:
        •
            What core messages will resonate most
            with these consumers?
        •
            How do patients discuss the complexities
            of treatment & control?
        •
            What is the significance for the new
            product launches?                   @drnatalie
Consumers’ Concerns

                   Top Conversations
                    Lifestyle



                    Treatment
       Lifestyle     Success
                    Support




                                Device comments?
                                    LOWER

                                        @drnatalie
Conclusions of social media
               monitoring
Opportunity for brand to:
 •
   Get more engaged
 •
   Become trusted-partner
 •
   Create a online Community for
   •
       Advice
   •
       Recommendations
   •
       Shared-support




                           @drnatalie
ROI of social media monitoring
              ROI = Benefits - Costs x 100 = Percentage Return on the Investment
                         Costs

What is the benefit?                                              What is the cost?
    What’s the value in knowing what to put the emphasis of
                                                                  • People- to do the analysis
•


    content online?
       •
            I.e.., to create an editorial calendar that has
           content that specifcally addresses why people
                                                                  • Process- process to compile the
           might not use their medicine                             information
       •
           And which means that don’t feel as well and they
           don’t live as long or buy the medicine- which          • Technology- social media
           affects sales
                                                                    monitoring tool
•
    What is the value of becoming a trusted resource for
    patient concerns? Enhanced brand trust?
•
    Did the online community:
       •
           Deflect any calls to the call center?
       •
           Increase the efciency or effectiveness of the calls?
       •
           Did the company use the content in the
           community to update their FAQs or knowledge
           base which helped self-service?
                                                                                            @drnatalie
Case Study:
           Healthy Snacking & Kids
Campaign Planning: Product Launch & Marketing

Wanted to know the nature of online conversations:
•
    Concerns parents have providing kids a healthy diet
•
    What factors drive purchase decisions and habits?




                                                          @drnatalie
“Healthy” in Kids Snack Foods:
  More Effectively Resonate
       with Consumers


                                Top
             Allergies
                            Conversations
             Nutrition

              Convenience
                              Not as High
              Taste



                              @drnatalie
Conclusions of social media
               monitoring

Opportunities for Brand:
•
    Better launch messaging
•
    Product packaging
•
    On-going campaign messaging




               @drnatalie
ROI ofROI of social media
              social media monitoring
   ROI =ROI = Benefits - Costs x= Percentage Return on the Investment
        Benefits - Costs x 100 100 = Percentage Return on the Investment
                    Costs
         Costs

What is the benefit?                    What is the cost?
• What’s the cost of market research?      • People- to do the analysis
• Focus group of 12 people = 15K
                                           • Process- process to compile the
• How many would you need to do to get
  the same volume of content?
                                             information
• 12 x $15K = $180,000                     • Technology- social media
• What’s the value of targeting the          monitoring tool
  message for a campaign?
• What’s the value of being able to run an
  AB test of taste vs. allergies to see
  which one really gets the most
  responses?

                                                                     @drnatalie
How to Set-up A Social
                        Media Measurement
1.   Get executive buy-in & support Program
2.   Choose Staff
3.   Determine your business goals
       •
           Product Development
       •
           Product Launch
       •
           Product Marketing…
4.   Choose a social media monitoring system
5.   Start listening to online conversations

                  6. Hone the analysis / teach the system
                  7. Analyze the information
                  8. Create appealing presentation of data
                  9. Present information to stakeholders     How to Monetize Facebook
                  10. Take action on the data & repeat!        With Social Commerce
                                                                   By Dr. Natalie

                                                                          @drnatalie
Wayne St. Amand
Vice President, Marketing
SOCIAL MEDIA IS EVERYWHERE,
AND EVERYONE IS USING IT.


WE ANSWER THE QUESTIONS.
250+ MILLION
POSTS PER DAY


                1.75 BILLION
                  POSTS PER
                       WEEK

                         100+ BILLION
                        POSTS TO DATE
MASSIVE OPPORTUNITY
NOT FULLY LEVERAGED BY MOST

•
    Social media is the largest source of unfiltered
    information ever available about how

    consumers truly think and feel
•
    The vast majority of companies have yet to
    take advantage ofSocial Intelligence
                        Achieving this intelligence to

    influence their business decisionsprograms.
     The management and analysis of customer data from social sources,
      used to activate and recalibrate marketing and business
SOCIAL INTELLIGENCE CREATES ACTIONABLE
INSIGHTS

True Social Intelligence
Delivers
•
      Consumer insights to
      drive business success
        –
            Greater marketing
            effectiveness
        –
            On-target product
            planning
    However, most of today’s tools do a terrible job
        –
           Deeper competitive
    of helping you achieve true Social Intelligence
            insights
MOST SOCIAL MEDIA MONITORING IS
BROKEN

                                     Keyword                      NLP
     Manual-coding                  Sentiment                   Semantic
                                    Monitoring                   Search


Keywords and semantics don’t work well in social media
•
     Traditional tools lack the ability to understand context
•
     A computer cannot replace human judgment
•
     Human analysts cannot scale or provide consistency
•
     Predefined rules cannot support the dynamic nature of the social media
     conversation
•
     Surface-level monitoring lacks accuracy and deep insight
9




    THE CRIMSON HEXAGON FORSIGHT® PLATFORM
A REVOLUTIONARY APPROACH


Scalable               Context
Accurate               Nuance
Replicable           Judgment
SENTIMENT ALONE IS INCOMPELTE
          Major Automotive Brand
                             m
                             ti
                             o
                             n
                             n
                             4
                             8
                             7
                             2
                             0
                             1
                             e
                             s
                             ,

                                   Neutral
                                    11%

      Posit



               66%
      ive
ANALYTICS BEYOND SOCIAL

PROPRIETARY            ONLINE




       Customer        Social Web
      Feedback         Facebook
Market Research        Pages
GLOBAL CONVERSATION
boas                        ‫صباح الخير‬
        早上好         zdravstvuyte

bonjour        namaskar     sawa dee-ka

selamat pagi      Grüßgot
                              konbanwa
                   Γεια σου
안녕하세요          hej        merhaba selam
ADDITIONAL RESOURCES:

Request an Online Demo:
 http://www.crimsonhexagon.com/products/request-a-live-demo
Customer Case Studies:
 http://www.crimsonhexagon.com/customers/#casestudies
Overview Video:
 http://www.crimsonhexagon.com/products/overview-video/
Data Sheets & White Papers:
 http://www.crimsonhexagon.com/products/whitepapers/
Approval TODAY

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Approval TODAY

  • 1. Demystifying the ROI of Social Media Real Social Media Monitoring Case Studies By Dr. Natalie Petouhoff @drnatalie www.drnatalienews.com/blog
  • 2. Agenda • Look at real case studies • Calculate business impact & ROI Set-up a social media • measurement program 2 @drnatalie
  • 3. Learning• is the desire to discover new things We are amazed by new things… @drnatalie
  • 4. • And Social Media? It’s the new shiny object @drnatalie @drnatalie
  • 5. But the amount of information – can feel like an insurmountable blur @drnatalie
  • 7. Today’s goal is to… Provide… • Marketers • Brand Managers • Product Managers • Consumer Insights Teams & • Market Research Professionals w An understanding of the benefits of: • Having deep, real-time insights • Using insights to make business decisions & • Being able to be an invaluable resource to CEO- suite @drnatalie
  • 8. Using context To TAKE THE CHAOS TO ORDER ssss @drnatalie
  • 9. Business As Usual Executives want to know what the business value of social media is 9 @drnatalie
  • 10. Misconception http://www.flowtown.com/blog/what-is-the-roi-of-your-mom s of ROI You may have heard… “Would you calculate the ROI of your mom or your pants? Then why would you calculate the ROI of social media? It’s obvious!” • That’s funny • But ROI is not obvious to everyone • And your boss would like a number @drnatalie @drnatalie
  • 11. Misconception s of ROI “ROI is too difficult because I’m not a “math” person.” @drnatalie
  • 12. Misconception s change in metrics!! There’s a of ROI… • We have 500 more “Likes” • 10X click-thru rate on “Buy Now” button • $5M in annual support savings & sales advocacy • Viral videos increased company sales +700% • Social microsites secured 1,000,000 fans and a 10% increase in same-store sales E I have an ROI!! e Note to self: Metrics are necessary… But they are not ROI @drnatalie
  • 13. Real-world Examples @drnatalie
  • 14. Case Study: @drnatalie Major Insurer Advertising Effectiveness & Competitor Evaluation Ran nat’l ad campaigns & wants to understand: • Effectiveness of messages and • Drivers of consumer purchase intent Analyzed online conversations: • Their brand • Key competitor
  • 15. Insurer Ad Effectiveness • Insurer’s ad campaign is liked • Didn’t generate conversation about buying or switching insurers @drnatalie
  • 16. Insurer Ad Effectiveness • Competitor ad campaign is more divisive • Insurer’s ad campaign is liked • Didn’t generate conversation about buying or switching insurers @drnatalie
  • 17. Insurer Ad Effectiveness • Competitor ad campaign is more divisive • Insurer’s ad campaign is liked • Didn’t generate conversation about buying or switching insurers • But spurs a conversation trend related to purchasing @drnatalie
  • 18. @drnatalie Conclusion of social media monitoring • Both campaigns generate healthy “buzz” • But positive sentiment doesn’t reflect intent to purchase • Using context avoids misinterpreting positive sentiment for a social buying gesture- intent to purchase
  • 19. ROI of social media monitoring ROI = Benefits - Costs x 100 = Percentage Return on the Investment Costs What is the benefit? What is the cost? • If the commercial drove sales? • People- to do the analysis • Number of leads? • Process- process to compile the • What is a lead worth? information • Number of lead conversions? • Technology- social media • What’s a sale worth? monitoring tool @drnatalie
  • 20. Case Study: @drnatalie Craft Company Product Development & Marketing Wants to understand: • What topics dominate craft-related conversations? • Is marketing having the desired effect? • What’s lacking in the product line and accessories? cccccccccc
  • 21. Identified New Product Opportunities Consumers’ expressed strong desire for: • More & better supplies & accessories • Improved access to purchase those accessories Discovered opportunity to develop more male-centric product line & accessories @drnatalie
  • 22. Conclusions of social media • In-house Research monitoring • Quickly and cost effectively identifies new product & market opportunities • Prompts development of new product accessories • Enables additional sales • Expands market share • Marketing • Gained increased confidence leveraging social-media • Confirmed effectiveness of current messaging and promotional approach @drnatalie
  • 23. ROI of social media monitoring ROI = Benefits - Costs x 100 = Percentage Return on the Investment Costs What is the benefit? What is the cost? • What does it cost the company to go to market • People- to do the analysis with a product that isn’t what customers really wanted? • Process- process to compile the • What would this type of market research information normally cost the company? • How long would it normally take to get that kind • Technology- social media of feedback? What’s the general cost for monitoring tool product dev to launch a product? • What’s the value of fnding a new product to provide their market? • What was the value in revenue of the new products/ accessories? • What’s the value of key messaging that works? Higher lead conversation rate? @drnatalie
  • 24. Case Study: Medical Device for Diabetes & Insulin Product Launch Marketing Wants to understand diabetes & insulin: • What core messages will resonate most with these consumers? • How do patients discuss the complexities of treatment & control? • What is the significance for the new product launches? @drnatalie
  • 25. Consumers’ Concerns Top Conversations Lifestyle Treatment Lifestyle Success Support Device comments? LOWER @drnatalie
  • 26. Conclusions of social media monitoring Opportunity for brand to: • Get more engaged • Become trusted-partner • Create a online Community for • Advice • Recommendations • Shared-support @drnatalie
  • 27. ROI of social media monitoring ROI = Benefits - Costs x 100 = Percentage Return on the Investment Costs What is the benefit? What is the cost? What’s the value in knowing what to put the emphasis of • People- to do the analysis • content online? • I.e.., to create an editorial calendar that has content that specifcally addresses why people • Process- process to compile the might not use their medicine information • And which means that don’t feel as well and they don’t live as long or buy the medicine- which • Technology- social media affects sales monitoring tool • What is the value of becoming a trusted resource for patient concerns? Enhanced brand trust? • Did the online community: • Deflect any calls to the call center? • Increase the efciency or effectiveness of the calls? • Did the company use the content in the community to update their FAQs or knowledge base which helped self-service? @drnatalie
  • 28. Case Study: Healthy Snacking & Kids Campaign Planning: Product Launch & Marketing Wanted to know the nature of online conversations: • Concerns parents have providing kids a healthy diet • What factors drive purchase decisions and habits? @drnatalie
  • 29. “Healthy” in Kids Snack Foods: More Effectively Resonate with Consumers Top Allergies Conversations Nutrition Convenience Not as High Taste @drnatalie
  • 30. Conclusions of social media monitoring Opportunities for Brand: • Better launch messaging • Product packaging • On-going campaign messaging @drnatalie
  • 31. ROI ofROI of social media social media monitoring ROI =ROI = Benefits - Costs x= Percentage Return on the Investment Benefits - Costs x 100 100 = Percentage Return on the Investment Costs Costs What is the benefit? What is the cost? • What’s the cost of market research? • People- to do the analysis • Focus group of 12 people = 15K • Process- process to compile the • How many would you need to do to get the same volume of content? information • 12 x $15K = $180,000 • Technology- social media • What’s the value of targeting the monitoring tool message for a campaign? • What’s the value of being able to run an AB test of taste vs. allergies to see which one really gets the most responses? @drnatalie
  • 32. How to Set-up A Social Media Measurement 1. Get executive buy-in & support Program 2. Choose Staff 3. Determine your business goals • Product Development • Product Launch • Product Marketing… 4. Choose a social media monitoring system 5. Start listening to online conversations 6. Hone the analysis / teach the system 7. Analyze the information 8. Create appealing presentation of data 9. Present information to stakeholders How to Monetize Facebook 10. Take action on the data & repeat! With Social Commerce By Dr. Natalie @drnatalie
  • 33. Wayne St. Amand Vice President, Marketing
  • 34. SOCIAL MEDIA IS EVERYWHERE, AND EVERYONE IS USING IT. WE ANSWER THE QUESTIONS.
  • 35. 250+ MILLION POSTS PER DAY 1.75 BILLION POSTS PER WEEK 100+ BILLION POSTS TO DATE
  • 36. MASSIVE OPPORTUNITY NOT FULLY LEVERAGED BY MOST • Social media is the largest source of unfiltered information ever available about how consumers truly think and feel • The vast majority of companies have yet to take advantage ofSocial Intelligence Achieving this intelligence to influence their business decisionsprograms. The management and analysis of customer data from social sources, used to activate and recalibrate marketing and business
  • 37. SOCIAL INTELLIGENCE CREATES ACTIONABLE INSIGHTS True Social Intelligence Delivers • Consumer insights to drive business success – Greater marketing effectiveness – On-target product planning However, most of today’s tools do a terrible job – Deeper competitive of helping you achieve true Social Intelligence insights
  • 38. MOST SOCIAL MEDIA MONITORING IS BROKEN Keyword NLP Manual-coding Sentiment Semantic Monitoring Search Keywords and semantics don’t work well in social media • Traditional tools lack the ability to understand context • A computer cannot replace human judgment • Human analysts cannot scale or provide consistency • Predefined rules cannot support the dynamic nature of the social media conversation • Surface-level monitoring lacks accuracy and deep insight
  • 39. 9 THE CRIMSON HEXAGON FORSIGHT® PLATFORM
  • 40. A REVOLUTIONARY APPROACH Scalable Context Accurate Nuance Replicable Judgment
  • 41. SENTIMENT ALONE IS INCOMPELTE Major Automotive Brand m ti o n n 4 8 7 2 0 1 e s , Neutral 11% Posit 66% ive
  • 42.
  • 43. ANALYTICS BEYOND SOCIAL PROPRIETARY ONLINE Customer Social Web Feedback Facebook Market Research Pages
  • 44. GLOBAL CONVERSATION boas ‫صباح الخير‬ 早上好 zdravstvuyte bonjour namaskar sawa dee-ka selamat pagi Grüßgot konbanwa Γεια σου 안녕하세요 hej merhaba selam
  • 45.
  • 46. ADDITIONAL RESOURCES: Request an Online Demo: http://www.crimsonhexagon.com/products/request-a-live-demo Customer Case Studies: http://www.crimsonhexagon.com/customers/#casestudies Overview Video: http://www.crimsonhexagon.com/products/overview-video/ Data Sheets & White Papers: http://www.crimsonhexagon.com/products/whitepapers/