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Measuring social media ROI in Afirca
This document discusses measuring return on investment (ROI) for social media marketing in Africa. It outlines different types of social media and challenges in measuring ROI. Companies that are highly engaged in social media see greater business impacts, with an average 3-5% rate of return. Case studies on Safaricom in Kenya and Old Spice show how social media can reduce call center inquiries and increase engagement. Metrics for measuring success include online performance, consumer buzz, database growth, and strengthened customer relationships.
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Measuring social media ROI in Afirca
- 1. Is your brandspeaking the right language? Measuring social media ROI in Africa Joe Otin
- 2. • A closerlook at social media • Global ROI reviews • Local ROI review • A way forward
- 3. In the year2012, social media became one of the most powerful sources for news updates through platforms like Twitter and Facebook
- 4. What’s the point? • If you can’t measure it, don’t do it • Commercial goals – profitability & growth • Investment decisions based on priorities • Deepening internet, social media use on the African continent
- 5. “It is thereforereasonable to say that Social Media represent a revolutionary new trend that should be of interest to companies operating in online space – or any other space for that matter” Kaplan & Haenlein
- 6. Social Media defined • Social media is a group of internet-based applications that build on the ideological and technological foundations of Web 2.0, and that allow the creation and exchange of User Generated Content.
- 7. 6 types ofSocial Media 1. Collaborative projects (e.g. Wikipedia) 2. Blogs and microblogs (e.g. Tumblr, Twitter) 3. Social networking sites (e.g. Facebook) 4. Content communities (e.g. Youtube, Pinterest) 5. Virtual game worlds (e.g. World of Warcraft) 6. Virtual social worlds (e.g. Second Life) The common factor: prosumers – users who create the goods that they collectively consume
- 8. “Trying to measuresocial media ROI is like trying to measure the ROI of my mother” Gary Vaynerchuk http://bit.ly/NlgL5Q
- 9. Social tools offer$1tr opportunity • $345 bn – Product development • $500 bn – consumer insights to social commerce and customer care • $230 bn – better internal collaboration and "matching talent to tasks“ – Social tools for internal communication could free up 7% to 8% of the working week Firms with lots of "knowledge workers", relying on strong reputation and recognition scores among consumers, distributing products using digital systems and providing "experiences" or "inspiration" stand to benefit most – McKinsey Global Institute
- 10. The Socially EngagedEnterprise • Gets 4 times greater business impact • 3-5% is the average rate of return on social engagement • Greatest impact top 2 – marketing & sales effectiveness – increased sales & market share • Define social media as – online listening – blogging – building relationships with online influencers • Benchmarks and key performance indicators will be top approaches for measurement
- 11. The Socially EngagedEnterprise Trail Blazers 2.7% Low Investments High Returns Creators 22.2% Limited Investments High Returns Thrivers 14.6% Well Architected Proven Returns Observers 18.5% Low Investments Low/No Returns Incrementalists 30.1% Limited Investments Low Returns Dreamers 11.9% High Investments Low Returns Exceptional Business Value Return Limited to No Business Returns Low Social Engagement Presence Limited Social Engagement Presence Extensive Social Engagement Presence
- 12. Commercial engagement focus • Developing new products based on listening • Empowering new employees • Building relationships with influencers • Responding to criticism quickly • Leadership champions social media • Using social media to drive demand and sales
- 13. Methods? • Socialmedia tracking • Internet usage data • F2F establishment surveys • Online surveys • Qualitative studies
- 14. Social media casestudy • Safaricom • CEO led • Major investments in CRM • Less queries to call center • Faster response on Twitter, slower on Facebook
- 15. The most “socially-devoted”companies, according to Social Bakers Brand No. of Fans Question Response Rate Number of Questions Answered Personal Argentina 309,968 89.13% 14,306 Claro 415,026 96.99% 10,266 Acer Indonesia 612,837 95.05% 4,992 LBC Express Inc. 58,176 91.75% 4,083 Comunidad Movistar Argentina 385,451 91.67% 3,301 Volaris 335,410 77.92% 3,297 Safaricom Kenya Official Page 130,201 88.52% 3,255 KLM 1,540,788 94.14% 2,843 Vodafone Nederland 82,926 92.27% 2,758 Claro El Salvador 133,270 96.74% 2,758
- 16. Metrics • Crowdsourcing • Online performance of various offerings and properties • Database development • Consumer buzz • Strengthening of market dominance • Enhancement of CRM experience • Engagement with other publishers and their social network influence • Cross media influence • Implementation of effective social marketing programs • ROI comparisons between earned and paid online media • Effective recruitment
- 17. Old Spice casestudy • http://www.youtube.com/watch?v=Kg0booW 1uOQ
- 18.
Editor's Notes
- #7 Within this general definition, there are various types of Social Media that need to be distinguished further. To create such a classification scheme, and to do so in a systematic manner, we rely on a set of theories in the field of media research (social presence, media richness) and social processes (self-presentation, self-disclosure), the two key elements of Social Media. Media richness theory (Daft & Lengel, 1986) is based on the assumption that the goal of any communication is the resolution of ambiguity and the reduction of uncertainty. It states that media differ in the degree of richness they possess–—that is, the amount of information they allow to be transmitted in a given time interval–—and that therefore some media are more effective than others in resolving ambiguity and uncertainty. With respect to the social dimension of Social Media, the concept of self-presentation states that in any type of social interaction people have the desire to control the impressions other people form of them (Goffman, 1959).
- #8 Prosumers Prosumer = producer/consumer Alvin Toffler (The Third Wave; 1980) predicted that consumers would become active to help personally improve or design the goods and services of the marketplace Don Tapscott & Anthony Williams use the term ‘prosumer’ to encompass product hackers, bedroom DJs and remix artists, SecondLife content creators, and user-generated media Prosumers: the producer/consumers of web 2-based user-generated social media
- #9 A survey released by the The Fournaise Marketing Group claims that 73% of CEO’s think that the marketers they work with lack credibility and 77% of CEO’s say that marketers talk to them in terms of brand values, brand equity, or other ambiguous topics that are not measurable. That’s one of the key findings The Fournaise Marketing Group, one of the global leaders in Marketing Performance Science to Generate More Customer Demand, identified through its 2011 Global Marketing Effectiveness Program in which it interviewed more than 600 Large corporation and SMB CEOs and decision-makers in the US, Europe, Asia and Australia. Research agencies admit that there is no global standard for measuring social media ROI, let alone digital media in general. Recent research by Facebook covering 63 ad campaigns found a majority yielded three times the original expenditure, whereas only a single case delivered a return below one times the initial outlay. A campaign run on behalf of Suave, the beauty range manufactured by fast-moving consumer goods group Unilever, generated $8.41 for every dollar spent, according to these figures. This return on investment is impressive and shows that the future of digital marketing is on the rise. But the Facebook journey is only just beginning. For example Coca-Cola has acquired 43 million likes on Facebook and Joe Tripodi the Chief Marketing Officer believes that it may be 2 years before the value of the fans is established, but that it is possibly a leading indicator of potential sales. That said, it also points to the fact that globally we are not at the stage of measuring the return down to the cost factor, and Tripodi believes that brands will have to take a leap of faith. Facebook has formed a Client Council seeking to work with advertisers on the issue of ROI. By bringing stakeholders together to brainstorm and explore various ways of measuring the return, they are most likely going to come up with a standard that can be used across multiple industries and countries.
- #10 Individual firms can gain even more. In general, the companies that stand to benefit most have one or more of the following characteristics: A high percentage of knowledge workers Heavy reliance on brand recognition and consumer perception A need to maintain a strong reputation to build credibility and consumer trust A digital distribution method for products or services An experiential (hotels) or inspirational (a popular sports drink) product or service offering And, it should be noted, simply shifting advertising and consumer insight budgets to social media will not suffice; in the past few years it has become clear that only well-planned and well-executed programs (often incorporating non-social components such as mass media) will capture the potential value of social technologies. In a McKinsey survey of executives at 4,200 companies around the world, 70 percent said that they were using social technology in some ways and 90 percent of those said they were seeing some degree of business benefits. Yet only 3 percent of companies could be identified as fully networked, meaning that they were achieving substantial benefits from use of these technologies across all parts of the organization and with customers and external partners.
- #11 Pulsepoint research shows three big reasons companies haven’t fully embraced social engagement. 33% have legal and regulatory concerns. 32% don’t have a plan for online engagement. And 45% aren’t sure there is economic value to social engagement. The research knocks out these concerns. There is real economic value. Pulsepoint conducted Wave 1 of this research together with The Economist Intelligence Unit, which is part of the group that produces the Economist magazine and one of the foremost research and analysis resources in the world. Data consists of 328 interviews conducted in February 2012. Each person answered a 20 question survey. We surveyed: 157 C-level and 159 executive level management 168 companies with <1,000 on staff and 147 with 1,000+ on staff People from a variety of industries and job functions People in North America
- #12 Dreamers These companies are investing in social engagement, but the investments have been somewhat disorganized and reactive, and are getting poor returns as a result. Observers Observers are using some social engagement, but can be limited by regulations and compliance (e.g., pharmaceutical and financial services companies). They need to see clear results so that executives will commit resources to new and established social engagement programs. Trail Blazer Trail Blazers have had at least one great success with engagement, but overall, the commitment to engagement is low. They are using engagement largely in support functions, and are largely using tools that tend to be low-return. Expanding their focus could bring in higher returns. The Csuite is not yet onboard. Creators Creators have gotten a lot right, but given how many and how much people advocate for engagement, the return should be higher than it is. Creators have good overall social engagement and good plans – they get nearly as much value from internal engagement as external. Incrementalists Incrementalists use social engagement throughout the company, but more than half aren’t sure of the economic value, and overall, social engagement lacks a champion. These companies use some forms of social engagement and earn some returns. Thrivers Thrivers get social engagement and are using it effectively they are the top performers. The goal for Thrivers is to continue to build on and sustain the success. Creating better metrics especially ones that go beyond marketing will help Thrivers.
- #14 Social media measurement or ‘social media monitoring’ refers to the tracking/crawling of various social media content such as blogs,wikis, news sites, micro-blogs such as Twitter, social networking sites, video/photo sharing websites, forums, message boards, blogs anduser-generated content in general as a way to determine the volume and sentiment of online conversation about a brand or topic. Social media monitoring – which is undertaken by a cross section of people including market researchers, PR staff, marketing teams, social engagement and community staff, agencies and sales teams – can allow users to find insights into a brand’s overall visibility on social media, measure the impact of campaigns, identify opportunities for engagement, assess competitor activity and share of voice, and be alerted to impending crises. It can also provide valuable information about emerging trends and what consumers and clients think about specific topics, brands or products. When we first started to speak about these surveys, we spoke of them to saftisfy the information needed by media buyers. But now it extends to the other areas that organizations can receive a return on as discussed earlier in this paper.