Measuring Social Media for Customer Retention

04
Measuring
Social Media for
Customer Retention

By: Nichole Kelly - Social Media Measurement Coach
In Partnership with HootSuite - Social Media Dashboard

www.hootsuite.com www.fullfrontalroi.com

04 Measuring
Social Media for
Customer Retention

Introduction
Increasingly, we’re seeing case studies of brands who use social
media to help develop better relationships with their customers. Social
media pioneers recognized early on that social media has the ability to
provide answers to customers in real-time to mitigate problems and
discontent. The challenge is in measuring what impact social media
has on customer relationships. From a measurement perspective,
customer service has a long-standing history of metrics that are
used to evaluate performance based on operational objectives. Now,
social media marketers with increased social media budgets1 need
to provide accountability for social media dollars and show how
social media performs against the bottom line. Recently Bazaarvoice

hard ROI this year.

1
Marketing Sherpa released a report that
showed that 53% of marketers said their
budgets in social media increased for 2011.


1

Introduction

For marketers, this signals a need to change the social media
measurement dialogue from fans and followers to true business
metrics which show our impact on customer retention. This White
Paper will show how to leverage existing metrics and build a
strategy for a more robust customer service report that includes
social media tactics.

HootSuite released Custom Social Analytics Reports within the
dashboard to help marketers and businesses understand the metrics,
of their social media campaigns. This platform provides a streamlined
view of social media performance for your business. Beyond the

Analytics from HootSuite can be tailored to provide a granular analysis
of campaign elements, regional and demographic diagnostics, or an
overview of all social channels. These metrics combined with basic
executive measurement philosophies result in a powerful indication of
what is and isn’t working in your social media strategy, giving you the
ability to adjust and increase value for your organization.


2

04 Measuring
Social Media for
Customer Retention

Review of Core
Measurement
Philosophies
Executives want to understand how social media delivers value to the
bottom line. Unfortunately, the new language of social media metrics

compare with traditional marketing channels. To translate social media
into commonly used metrics, you need to convert social metrics to
sales, revenue and cost.

measurement for ROI. We will focus on showing how your strategy
of customer retention is delivering more than your executive team or
clients realize.

Papers, An Introduction to Social Media Measurement with HootSuite,
Applying Social Media to the Sales Funnel and Measuring Social
Media for Brand Awareness
the conversation with your executive team.


3

04 Measuring
Social Media for
Customer Retention

Understanding
Where Customer
Retention Fits
The business case for great customer service is consistent across
most organizations; it is less expensive to keep your existing
customers than it is to cultivate new ones. The cost to acquire new
customers is high and the value in keeping them is even higher.
Social media provides us with a valuable forum for connecting and
responding to customers in real-time, extending the customer service
experience and providing us with the opportunity to immediately
address customer complaints or misconceptions posted online, as
these may not necessarily make it to your company through traditional
channels. This allows your company to participate in conversations
about your brand, products or services, giving you the opportunity to
address negative perceptions and illuminate positive ones.

As you can see in the graphic above, customer retention is a result
of follow-up marketing efforts after a sale is completed, thus cycling
customers back into the top of the sales funnel. It is what we do to
attract our customers and keep them coming back.
4

04 Measuring
Social Media for
Customer Retention

Measuring Customer
Revenue
There is a tremendous
While new customers are often the focus of marketing efforts, existing revenue growth
customers offer a great opportunity to increase revenue for your opportunity with your
organization. There are two ways companies can increase revenue existing customers. Often
from existing customers each year: we try to locate “new”
sources for revenue and fail
to see that most revenue
1. Increase the amount customers spend at each transaction growth goals could be
2. Increase the frequency of purchases made by each customer met if we maximized the
potential of getting our
existing customers to spend
more with us.
These two methods are straightforward for companies who sell
tangible products. For service providers they can be viewed as the
— Nichole Kelly
number of hours contracted and the rate billed for those hours.
For those providing a recurring service for a monthly fee we would
look at upgrade or add-on options and renewal rates. This thinking
spearheaded marketing innovations like loyalty programs and
customer-based email marketing programs and can easily transition
into social media.

customers spend more — is it your social media customers or those
from traditional channels?

In order to show how social media contributes, you’ll need to
compare social media customers against a control group who haven’t
interacted with your social channels.

5

Measuring Customer Revenue

These metrics will provide insight into the buying habits of social
media customers:

Average revenue per Average transactions
customer per customer

Average cost per sale

However, the conversation is not only about increased revenue, it is also

The next section, Measuring Customer Loyalty, will go into further detail
on this subject.


6

04 Measuring
Social Media for
Customer Retention

Measuring Customer
Loyalty
How can you tell if social media customers are more loyal than other
customers? Utilizing customer satisfaction surveys to measure loyalty
is one option. While customer surveys may provide some insight,
you learn only what the customer wants to tell you about his or her
purchase, which may not indicate that customer’s loyalty to your
brand. It’s ideal to use surveys as directional data and rely on hard
numbers for decision making data.

It is actually fairly easy to measure customer loyalty based on behavior
after the sale. The revenue metrics shown in the previous section are
also measures of loyalty. If the customer continues to spend money
with your organization, it is clear that they are showing loyalty and
choosing you time and time again over your competition.

These begin with the frequency of customer engagement online and

Average number of
website visits Average time on site

Average number of
Customer
website referrals per
retention rate
customer

Average number of
online mentions per Lifetime value of a
customer social media customer

7

Measuring Customer Loyalty

Being able to show that customers who interact with you through
social media have higher retention, greater lifetime value and more
referrals will give you the business case you need to increase social
marketing outreach and encourage customers to use social media for
their service related questions.

TIP: It is critical
to set up a control
group of non-social
media users and
compare them to
your social media
users so you can
accurately determine
incremental gains that
can be isolated against
all other customer
service factors


8

04 Measuring
Social Media for
Customer Retention

Measuring
Organizational Impact
The methods of providing customer service vary drastically from one
organization to the next, but there are a few commonalities we can
review in order to discuss the impact of social media.

Many organizations operate a call center to manage customer service
requests. In order to show social media’s role in assisting a call center,
here are a few measurements that social media has an impact on:

Cost per customer Percentage of issues
serviced Cost per resolution resolved online versus

Rate of complaints Cancellation rate Rate of online
self-service

Average number of Average time to
reported issues per resolution
customer

Again, the key to understanding these metrics is in the comparison
of customers who have interacted with the social media team against
those who haven’t. Essentially, we want to take core operational
metrics that are used to gauge the effectiveness of your call center
and compare them to social media. Regardless of your customer
service set up these metrics can be used to illustrate everything from
phone support to chat support and most types of support in between.

9

Measuring Organizational Impact

The purpose of this measurement is to determine if customer service
via social media channels reduces cost and leads to faster resolution
than traditional customer service methods; you want to show how
social media helps the organization decrease overall operational
support costs.


10

04 Measuring
Social Media for
Customer Retention

Summary
Measuring social media’s impact on customer retention is a long-
term strategy — it requires measurement over time to properly
HootSuite Social
demonstrate its impact. Building a framework now will set the
Analytics provide a
process in motion so soon you will be able to monitor your progress
new level of insight
and deliver a business case for how social media contributes to
on the impact of
the bottom-line. Social media can be a great channel to expand social media on your
customer service touch points and lower customer service costs. business, providing
The challenge for marketers is to make it a core function of the deep decision-making
customer service team rather than a task to be managed by a select metrics beyond fans
group of individuals in order to scale with demand. We’ve seen that and followers to help
social media customers are more likely to be loyal, evangelize more you evaluate your
strategies.

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&)"*+()&)#$G9''$."&:IJ

This white paper is the fourth in a series dedicated to understanding
social media measurement. An Introduction to Social Media
Measurement with HootSuite, Applying Social Media to the Sales
Funnel and Measuring Social Media for Brand Awareness began the

Media for Lead Generation. The entire series includes tutorials for how www.hootsuite.com www.fullfrontalroi.com

you can use HootSuite to accomplish these measurement strategies.
11

About HootSuite

K'A%K''$=+,$)%0"#%K)4:%

HootSuite’s new social analytics dashboard can help you get there.
Check out these How-To guides so you can start gathering the
metrics you need to apply these measurement strategies.

01. How-To Integrate Google Analytics and HootSuite
02. How-To Add Google Analytics to your web site
03. How-To Add Goal Tracking and Campaigns to Google Analytics
04. How-To Shorten URLs in HootSuite and Append Campaigns
05. Creating a Custom Social Analytics Overview Report
Free! 30 Day trial of
HootSuite Pro
L9'+$%K''$=+,$)
Try HootSuite Pro free for 30

HootSuite helps consumer brands, global enterprises, SMBs and days and get unlimited Social

agencies spread messages, monitor conversations and track results Analytics reports. Visit:
http://hootsuite.com/Pro to
across multiple networks from one centralized dashboard.
sign up today.

Using HootSuite’s business focused tool set, teams can Or, book a demo of HootSuite
collaboratively schedule updates to Twitter, Facebook, LinkedIn, Enterprise, visit http://
WordPress and other social networks securely via web, desktop hootsuite.com/enterprise to
or mobile platforms. HootSuite clients track campaign results and ﬁll out a request.
industry trends to rapidly adjust engagement tactics and increase
social media ROI.


12

About Nichole Kelly

L9'+$%M,.1'4)%N)44E

Nichole Kelly is a social media measurement coach and the publisher
of FullFrontalROI.com. After 12 years in corporate marketing creating
accountable marketing teams, she used her talents to create a
systematic way to measure social media and put it into the context of
where it is delivering value to your organization and show bottom-line
ROI. She has found that most marketers have the measurement tools
they need and with the right language and the right strategy to put the
pieces together, they can deliver results.

Nichole Kelly - Social Media Measurement Coach


13

01 HOW-
TO

Overview of
Social Reporting
with HootSuite


01
HOW-TO
Overview of
Social Reporting
with HootSuite

Overview of Social Reporting with HootSuite Social Analytics
HootSuite
It’s important for marketers to show how social media activities are HootSuite’s Social Analytics
capabilities allow businesses and
impacting corporate goals. To answer this need HootSuite launched
organizations to customize social
Custom Social Analytics to track and measure activities across various
media reports and measure all
social networks against website conversions. The reporting suite aspects of social initiatives – from
combines the power of Ow.ly statistics with Google Analytics and granular campaign elements to
an overview of entire campaigns.
Facebook Insights to provide information on almost all social activities
without leaving the HootSuite dashboard. This level of insight provides Social Analytics includes over
marketers with the overviews they need to truly understand the value 30 report metrics – including
of their online efforts. Google Analytics and Facebook
Insights – each of which can be
plugged into dynamic reports to
This How-To guide is one of many that demonstrate the enhanced share with team members, clients
reporting and measurement tools in the HootSuite dashboard. and colleagues on a daily, weekly
or monthly basis.

identifying revenue sources.
To learn more about using
Within HootSuite’s native Social Analytics Reports you can select the HootSuite Social Analytics,
including how to access the
pre-made Google Analytics Report Template or plug individual Google
reports from the dashboard, visit
Analytics modules into a custom report. Both give you the statistics http://hootsuite.com/social-
you need to accurately analyze social media engagement against analytics

The following Google Analytics features are built into HootSuite for
organizations to measure and share results without leaving
the dashboard: www.hootsuite.com www.fullfrontalroi.com

1

01
HOW-TO
Overview of
Social Reporting
with HootSuite

Twitter to Web Conversion - Measure the
effectiveness of tactics on the front-line and To ﬁnd out more about
see immediately which messages resonate integrating Google Analytics
with your campaigns, you can
read our next How -To document
approach accordingly.
entitled How -To Integrate
Google Analytics and HootSuite.
Spark Lines: A statistical overview to
quickly see how campaign elements are

areas that need the most attention.

Learn which areas
produce campaign results so you can geo-
target your outreach. In addition to the Google
Analytics Reports, HootSuite also
provides Ow.ly stats, to show
summary and individual click
statistics from URLs shortened in
Top Content: Measure page view
HootSuite, and Facebook Insights
statistics – including absolute and relative which monitor activity on your
percentages – to determine which content Facebook Page including daily
best attracts audience. “Likes”, posts, demographics and
more. Together, these reports
give you an end-to-end picture of
your social e orts.
Determine which channels

efforts using the Top Referrer report in
Google Analytics.


2

01
HOW-TO
Overview of
Social Reporting
with HootSuite

About HootSuite
Learn More

There are additional articles available to help your team utilize the HootSuite helps consumer
enhanced features in the HootSuite dashboard: brands, global enterprises, SMBs
and agencies spread messages,
monitor conversations and
Overview of Social Reporting with HootSuite track results across multiple
How-To Add Google Analytics to your Web Site networks from a centralized web
or mobile dashboard.
How-To Add Goal Tracking and Campaigns to Google Analytics
How-To Shorten URLs in HootSuite and Append Campaigns Using the native business-
Creating a Custom Social Analytics Overview Report focused tool set, HootSuite
clients track campaign results

Getting Started and industry trends to rapidly
adjust engagement tactics and
increase social media ROI.
HootSuite has two business-level plans available for teams engaging
in social media campaigns and tactics to improve their business – Pro
More Resources
and Enterprise.

There are a number of ways to
use the advanced, business-
savvy tools in the HootSuite
a demo from an Account Executive. dashboard to translate social
initiatives into results for your
business. Visit the HootSuite
Library to ﬁnd Case Studies, Info
Sheets and White Papers which
explore ways these features can
be applied in the workplace.


3

02 HOW-
TO

Integrate
Google Analytics
and HootSuite


02
HOW-TO
Integrate
Google Analytics
and HootSuite

The Value of Integrating Google HootSuite Social Analytics
Analytics
Marketers want to understand whether or not social media activities HootSuite’s Social Analytics
and conversion activities. By integrating Google Analytics into a site’s
aspects of social initiatives – from
managers can truly understand how outreach translates into results. granular campaign elements to
an overview of all activities.

This document will demonstrate how you can add Google Analytics to Social Analytics includes over
your website. 30 report metrics – including
Google Analytics and Facebook
How to Add Google Analytics to Your plugged into dynamic reports to
Website share with team members, clients
and colleagues on a daily, weekly
or monthly basis.
By adding Google Analytics to your website and HootSuite

account using your website’s URL(s) at http://google.com/analytics.

additional resources:

How does campaign tracking work?
How do I tag my links?

1.

02
HOW-TO
Integrate
Google Analytics
and HootSuite

2. To learn more about using
requesting permission to access your Google account.” Select HootSuite Social Analytics,
reports from the dashboard,
an active Google Analytics account. When you’ve selected the visit http://hootsuite.com/
social-analytics

3.

Now you can access Google Analytics without leaving the HootSuite
dashboard. The next step is to add goal tracking and campaigns.
Overview
of Social Reporting with HootSuite


02
HOW-TO
Integrate
Google Analytics
and HootSuite

About HootSuite
Learn More

enhanced features in HootSuite dashboard: brands, global enterprises, SMBs
networks from a centralized web

Using the native business-
focused tool set, HootSuite


More Resources
and Enterprise.

There are a number of ways to


03 HOW-
TO

Add Goal Tracking
and Campaigns to
Google Analytics


03
HOW-TO
Add Goal Tracking
and Campaigns to
Google Analytics

Goal Tracking for End to End HootSuite Social Analytics
Reporting Capability
Show how social activities contribute to corporate goals. By utilizing HootSuite’s Social Analytics
the combination of Ow.ly URLs, campaign tracking, Facebook
Insights, and Google Analytics you can accurately report on the
results of your efforts. To enhance Google Analytics reporting, add aspects of social initiatives – from
granular campaign elements to
an overview of entire campaigns.
converting, giving you an end-to-end view of what is happening to

Social Analytics includes over
30 report metrics – including

How to Add Goal Tracking and Google Analytics and Facebook
Campaigns to Google Analytics plugged into dynamic reports to
share with team members, clients
Adding Goal tracking to your Google Analytics campaign will provide and colleagues on a daily, weekly
or monthly basis.
accurate conversion numbers from the links you create in HootSuite.
You can track visitors from the source, such as a Tweet or Facebook
Page link, to sign-ups or transactions on your site.

To begin, sign in to your Google Analytics account at http://www.
google.com/analytics/
Remember to enter goal names so you can easily identify each one
in your reports. For more detailed information, visit these Google To learn more about using
Analytics pages: HootSuite Social Analytics,
How do I set up goals and funnels? http://hootsuite.com/social-
How does campaign tracking work? analytics

Here are some recommendations for getting started with Goal Tracking:

1. Decide one of the three types of goals you want: URL Destination,
Time on Site, or Pages/Visit, and add the conversion code to the www.hootsuite.com www.fullfrontalroi.com

pages you’ll be tracking conversions from. 1

03
HOW-TO
Add Goal Tracking
and Campaigns to
Google Analytics

2. For tracking Lead Forms, it’s best to select the thank you page
that follows once customers enter information. This provides
clear conversion numbers because visitors will only land on this
page if they clicked submit. This thank you page will need the
code provided in Google when you set up the goal.

3. To report on drop off, set the goal and put the code on the
landing page as well as the thank you page. This will show you
your funnel, and where you’re losing customers, allowing you to
pinpoint areas and hopefully draw more of your audience further
down the funnel.

Be sure to tag Tweets and status updates with campaign URLs to

Social Analytics.

These are the three levels of variables recommended for social media

Once you’ve completed these steps, add your campaign to your
shortened Ow.ly links using custom parameters for Google Analytics.
To learn more about this step, view our How-To document entitled
How-To Shorten URLs in HootSuite and Append Campaigns.


2

03
HOW-TO
Add Goal Tracking
and Campaigns to
Google Analytics

About HootSuite
Learn More

How-To Shorten URLs in HootSuite and Append Campaigns Using the native business-

More Resources
and Enterprise.

Visit HootSuite.com/pro to get started with a 30 day free trial. Or, for There are a number of ways to
Enterprises or larger teams, visit HootSuite.com/Enterprise to request
dashboard to translate social


3

04 HOW-
TO

Shorten URLs in
HootSuite and Append
Campaign Parameters


04
HOW-TO
Shorten URLS in
HootSuite and
Append Campaign
Parameters

Why Campaign Tracking is Critical to HootSuite Social Analytics
Social Reporting
It’s important to understand how social media campaigns impact HootSuite’s Social Analytics
capabilities allow businesses
company goals. Utilizing the Google Analytics integration with
and organizations to customize
HootSuite will give insight and data on campaign success, from Tweet
social media reports and
to sale. Marketers can add Google Analytics campaign parameters measure all aspects of social
to each custom shortened Ow.ly URL within HootSuite in order to initiatives – from granular
campaign elements to an
determine which social activities are driving web conversions.
overview of all activities.

This How-To guide will demonstrate how to add campaign tracking to The Social Analytic reports
Ow.ly URLs. include over 30 individual
report modules for tracking and
measuring success, including
Shortening URLs in HootSuite free Ow.ly summary stats and
Ow.ly individual click-stats so
you can also see the success of
Short URLs help you share your links within space-constrained
your campaigns using Ow.ly
mediums like Twitter or even email. Plus, by shrinking web addresses, links — HootSuite’s built-in
you can track clicks as well as referral sources and more. URL shortener.

HootSuite has a number of options for shortening URLs which create
a trackable link to learn which follower clicks result in conversions on
your website.

“Ow.ly” is HootSuite’s custom URL shortener and is built into
the dashboard. This means a long web address like: !""#$%%
&'()"!*+,&-#)./'+,01'(%('.)!2&!'3).!).)4can turn into
!""#$%%'50/6%2718.

Along with the easy sharing by any channel, you can learn exactly
how your link was shared, and what results it produced.


1

04
HOW-TO
Shorten URLS in
HootSuite and
Append Campaign
Parameters

Appending URL Parameters

After connecting Google Analytics to HootSuite, you can compare site To learn more about using
HootSuite Social Analytics,
analytics to HootSuite’s social reports at a very granular level using
provide you with three levels of tracking for each URL you shorten. http://hootsuite.com/social-
analytics

Here’s how to add custom URL parameters in HootSuite:

1.
window called, “Add custom URL parameters.”

2. Within this new window, choose to “Select a preset” of which
Google Analytics is already included. Enter in the value for each
unique parameter, including:

utm_source = referral source (i.e. Facebook, Twitter, Linkedin etc.)
utm_medium = the delivery method or social media account(Tweet,
blog post, email, banner ad, or @HootSuite, @HootSuite_Help etc)
utm_campaign = the campaign you’re tracking (e.g. Spring
promotion, new customer discount, or general campaigns like
promotion of others or promotion of self etc.)

3.
very long) URL will shrink to a manageable size, ready for sharing.

Setting up your campaign names is something that should be done
strategically. Ideally you should create a standard methodology for
campaign naming and have a master list that all of your HootSuite
users have access to.

2

04
HOW-TO
Shorten URLS in
HootSuite and
Append Campaign
Parameters

This will prevent different users creating different campaigns for the
same activities and diluting results.

simple A/B testing.

Viewing Reports

Once your parameters are set, the Ow.ly link information will be
tracked in Google Analytics reports as a single line-item for each
custom link. This saves time from manually adding data, and
eliminates guesswork about campaign performance. With this

medium worked best for each campaign. This is a powerful way to
improve your tactics based on your audience’s tendencies.

document


3

04
HOW-TO
Shorten URLS in
HootSuite and
Append Campaign
Parameters

About HootSuite
Learn More


focused tool set, HootSuite

More Resources
and Enterprise.



4

05 HOW-
TO

Create A Custom
Social Analytics
Overview Report


05
HOW-TO
Create A Custom
Social Analytics
Overview Report

The Power of Social Analytics HootSuite Social Analytics

Marketers want to understand how social media efforts impact
HootSuite’s Social Analytics
corporate goals. HootSuite’s Social Analytics provide the data to track capabilities allow businesses
and organizations to customize
resource for the most important metrics by creating a custom report that social media reports and
measure all aspects of social
combines Ow.ly click stats, Facebook Insights, and Google Analytics.
initiatives – from granular
campaign elements to an
This How-To guide is one of many dedicated to teaching you how to overview of all activities.
get the most out of HootSuite.
The Social Analytic reports
include over 30 individual

Creating a Resource for Your Most report modules for tracking and
measuring success, including
Important Metrics free Ow.ly summary stats and
Ow.ly individual click-stats so
Social Analytics includes over 30 report metrics – including Google you can also see the success of
your campaigns using Ow.ly
Analytics and Facebook Insights – each of which can be plugged into
links — HootSuite’s built-in
dynamic reports to share with team members, clients and colleagues URL shortener.
on a daily, weekly or monthly basis.

The greatest advantage of the Social Analytics reporting tools is the
ability to facilitate and streamline reporting actions. By setting up a
custom overview report, you will have a starting point to view all of

changes. Then, by utilizing the deeper report modules, you can dive

when you want to track your campaign results.


1

05
HOW-TO
Create A Custom
Social Analytics
Overview Report

To learn more about using
!"#$%&&'()*+,-./+(0*"1+.&/2(Start with a HootSuite Social Analytics,
summary of Facebook Page activity during a including how to access the
http://hootsuite.com/social-
users and increase/decrease increments. analytics

!&33&4$5(0/"/+2( Track Twitter follower

64738(93,#'(0/"/+2 Measure the total clicks
from all shortened links sent from a Twitter

01"5'(:,*$+2 View vital stats including
page views, visitors, bounce rate etc. for an

;4,//$5(/&(<$%(9&*=$5+,&*+2(See how your

data overlaid on Google Analytics charts.

;&1(9&*/$*/2(Statistics for the most


2

05
HOW-TO
Create A Custom
Social Analytics
Overview Report

About HootSuite
Learn More

brands, global enterprises, SMBs


More Resources
and Enterprise.

HootSuite Coupon! Sheets and White Papers which
Value:
$25 credit towards Analytics Points
Redeem code: HOOTROI
Restrictions:
One coupon per user
Must be redeemed before October 31, 2011

You will be charged a pro-rated amount on your next billing date if you decide not
to remove your analytics points. Your billing date can be found here
https://hootsuite.com/billing-history.

3

Measuring Social Media for Customer Retention

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