Social marketing analytics

SOCIAL MARKETING
ANALYTICS:
A New Framework for Measuring
Results in Social Media

#SocialAnalytics
@johnlovett @jowyang

Thursday, June 10, 2010

ABOUT THIS RESEARCH

• A Collaborative Effort

• Our Methodology

• A Nod To Open Research

2


SPECIAL THANKS TO...

• Our co-authors
– Charlene Li, Eric T. Peterson, Christine Tran

• Our Ecosystem Contributors
– Lisa Barone, Connie Benson, David Berkowitz, Blake Cahill, Adam Coomes,
Monica Cordina, Bill Gassman, Jascha Kaykas-Wolff, Rob Key, Justin Kistner,
Scott Lake, Matt Langie, Alex Mann, Louis Marascio, John McCory, Aaron
Neumann, Katie Delahaye Paine, Sean Power, Chris Ramsey, Boaz Ronkin, Shiv
Singh, R “Ray” Wang, Alan Webber, Jennifer Zeszut

– Alterian SM2, Biz360, Cymfony, Lithium, Omniture, Radian6, Scout Labs, Social
Radar StatsIT, SWIX, Trackur, Trendrr, LugIron, Visible Technologies, Webtrends

3


THE CONVERSATION HAS SHIFTED OFF
DOMAIN

Source: Pew Resource Center’s Internet and American Life Project , October 8, 2009

4


FACEBOOK IS THE SECOND BIGGEST
SITE IN US

Source: : Compete.com , January 2010

5


50 MILLION TWEETS A DAY ON
TWITTER

Source: TwiGer, February 22, 2010

6


COMPANIES ARE CONFUSED

Source: hGp://www.engagementdb.com

7


THE BIG SOCIAL EXPERIMENT

• Many companies are stumbling blindly into
social media marketing without a
measurement strategy
in place

8


THE NUMBERS ARE TELLING...

• “While 2009 may have been a “trial” run for many
brands and social media, in 2010, CMOs expect
social initiatives to directly impact their bottom
lines, without exception.”

• “CMOs reported that 64% of them would increase
their social media budgets within the next year.”

• In 2009, 89% of CMOs tracked social media's impact
by using standard metrics such as site traffic,
pageviews, and number of fans.
Source: BazaarVoice “CMOs Plan for Higher Social Media Measurability in 2010”
December 8, 2009

9


...STILL MARKETERS ARE PERPLEXED

• Social media vendors and platforms are
proliferating at an astounding rate

• Solutions exist for every channel

• A multitude of choice creates confusion

10


THE BIG PAYOFF IS ELUSIVE

13


THE MARKETING FUNNEL
SOCIAL
NETWORKS

Prospects interact in
social networks

Customers interact
on company sites

Advocates may have a
dedicated community

COMPANY
SITE

14


The vast majority of businesses tracking
social media today are using the wrong
metrics!

It’s time for a new Social Media Measurement
standard.

15


INTRODUCING...

Social Marketing Analytics is the discipline
that helps companies measure, assess and
explain the performance of social media
initiatives in the context of specific
business objectives.

16


THE DISCIPLINE INCLUDES A
FRAMEWORK

KPI!

KPI! KPI!

Business
KPI! KPI!
Objective!

Social !
Business Marketing! Business
KPI! KPI!
Objective! Goals! Objective!

KPI! Business KPI!
Objective!

KPI! KPI!
KPI!

17


BEGIN WITH AN INSIDE-OUT STRATEGY

18


THE SMA STRATEGY IN PRACTICE

Corporate Goals
Business Objectives
Measures of Success
Operational Tactics
19


THE SMA STRATEGY: GOALS

• Corporate Goals = Vision

• Understand, embrace & support
• Socialize goals widely
• Leverage motivating factors

20


THE SMA STRATEGY: OBJECTIVES

• Business Objectives = Strategy

• Foster Dialog
• Promote Advocacy
• Facilitate Support
• Spur Innovation

21


THE SMA STRATEGY: MEASURES

•Measures of Success = Management

• Key Performance Indicators…
• Provide context
• Set expectations
• Mandate actions

22


THE SMA STRATEGY: TACTICS

•Operational Tactics = Execution

• Specific campaigns
• Channel preferences
• Closed loop feedback

23


USE A MEASUREMENT FRAMEWORK

24


MARKETERS NEED A FRAMEWORK

• A pragmatic approach using metrics derived
from sound business objectives

• Minimizes confusion about the value of
social marketing efforts

• And delivers tangible results

25


THE FRAMEWORK BEGINS WITH GOALS

Social !
Marketing!
Goals!

26


...FROM GOALS STEM OBJECTIVES

Business
Objective!

Social !

Business
Objective!

27


...THEN MEASURES OF SUCCESS

KPI!

KPI! KPI!

Business
KPI! KPI!
Objective!

Social !
KPI! KPI!

KPI! Business KPI!
Objective!

KPI! KPI!
KPI!

28


AND FINALLY EXECUTION

KPI!

KPI! KPI!

Business
KPI! KPI!
Objective!

Social !
KPI! KPI!

KPI! Business KPI!
Objective!

KPI! KPI!
KPI!

29


A SOCIAL MARKETING EXAMPLE...

• Goal Driving Consideration

• Objective Foster
Dialog!

• Measures Share
of Voice! Audience
Engage-
ment!
Conversa-
tion Reach!

• Tactics
30


DIALOG TRUMPS SPONSORSHIP

31


DIALOG REQUIRES…

• Building awareness by initiating the conversation

• Engaging with individuals to determine their
response to ideas, thoughts, products and
activities generated by the organization

• Responding to individuals on behalf of the brand
through genuine interactions

32


Granular Metrics

Audience
Engage-
ment

Ex
Share of Conversa-

ec
Voice tion Reach

u tio
n
M
an
Foster

ag
em
Dialog

en
t
St
r
at
eg
y


DIALOG KPIS IN ACTION
• Share of Voice:
!"#$%&'(& "#$%&!'(%)*+%, ! 8 !9:$#(!+;!<+*=(
)'*+%& -+)$.!'(%)*+%,!/"#$%&! 0 !1+23()*)+#!45!"5!1666%7
!!

• Audience Engagement: !

!"#$%&'%( "#$$%&'(! ) !*+,-%(! ) !.-,/01,/0( = !6784%&/%!9&:,:%$%&'
)&*+*%,%&-( !! .#',2!34%5(

• Conversation Reach:
!

– !"#$%&!'(#)&(!'%*$+,+)%$+-.! = !5#-6(*4%$+#-!7(%,8
!"#$%&'()"#*
+%(,-* !! "#$%&!/01+(-,(!23)#40*(

!
34


IF I WERE AT NIKE...

Share of Audience Conversation
Voice Engagement Reach

35


ADVOCACY IN A SOCIAL WORLD

36


ADVOCACY REQUIRES…

• Encouraging word of mouth activity by
promoting and endorsing conversations
shared by individuals

• Developing relationships with individuals
who have an affinity towards the brand

• Nurturing existing relationships with
customers as a proven method of
building advocacy within an
easily identified segment
37


Active

Granular Metrics
Advocates

Promote Advocate
Advocacy Inﬂuence

e gy
t Advocacy
Stra Impact

e nt
em
ag
an
M
n
tio
e cu
Ex


ADVOCACY KPIS IN ACTION
• Active Advocates:
!"#$%& !"!#$!%&'()*!%+)#&,'*-!./0(1!2,-'!34!+,5-6! = !%&'()*!%+)#&,'*-
!'$(")*%+& !! 7#',8!%+)#&,'*-

• Advocate Influence:
!

!"#$%&'() !"#$%&'!()*+,-.'/0!1#23&'#,'!! = !()*+,-.'!1#23&'#,'
*+,-(+%() !! 4+.-3!()*+,-.'!1#23&'#,'

• Advocacy Impact: !

–
!"#$%&%'( !"#$%&'!()!*+,(-.-/!0'1,&2!3(2,&'41(24!! = !*+,(-.-/!9$:.-6
)*+&%,( !! 5(6.7!8(7#$&!()!*+,(-.-/!5'.))1-

! 39


IF I WERE AT THE NATIONAL BREAST
CANCER AWARENESS FOUNDATION...

Active Advocate Advocacy
Advocates Influence Impact

40


SUPPORT GOES SOCIAL


SUPPORT REQUIRES…

• Resolving service issues through social
media channels via direct company response
and crowd-sourcing alternatives

• Expediting issue resolution with quality and
integrity

• Elevate satisfaction through flexible support
options
42


St
ra
te
g
y
M
an
ag

Facilitate
em
en

Support
t
Ex
ec
ut

Resolution Satisfaction
io
n

Rate Score
Resolution
Time

Granular Metrics


SUPPORT KPIS IN ACTION
• Social Media Issue Resolution Rate:
!""#$%
!"#$%&!'!())*+)!,+)#&-+.!/%$0)1%2$#30&4! = !())*+!,+)#&*$0#5!,%$+
&$"'(#)'*% "#$%&!'!/+3-02+!())*+)!
!!
&+,$%

• Resolution Time:
!

!"#$%&'$() !"#$%&!'()*+,-!./01#(0/!"+2/! = !./0#&*$+#(!"+2/
*+,") !! "#$%&!3!4/,5+6/!'()*+,+/0!

• Customer Satisfaction Score:
!

–
!"#$%"&#'() !"#$%&'()!*((+,-./!0123#%!45!65!"77728! = !:-%1$;-.%1&2!:.&)(
!&'*+) !! 499!"#$%&'()!*((+,-./!

!
44


IF I WERE AT BEST BUY...

Issue
Resolution Satisfaction
Resolution
Time Score
Rate

45


CROWDSOURCING INNOVATION

46


INNOVATION REQUIRES…

• Gathering customer insights via social media
channels with a clear mission of identifying
market needs and service opportunities

• Processing ideas and community feedback as a
means to drive products and services requires
receptive product managers

• Delivering new products and services to the
market with credit and acknowledgement to
customers

47


Topic
Trends
Granular Metrics

Sentiment Spur
Ratio Innovation

St
ra
te
gy
Idea Impact

M
an
ag
em
en
t
Ex
ec
ut
io
n


INNOVATION KPIS IN ACTION
• Topic Trends:
!"#$%& !"!#$!%&'()$)(!*#&)(!+',-)#,.! = !*#&)(!*1',2.
!'()*+& !! /00!*#&)(!+',-)#,.!

• Sentiment Ratio: !

!"#$%"#&' !"#$%&%'(! ) !*(+&,-.! ) !*(/-&%'(!0,-12!3(1&%#1$!
= !5(1&%6(1&!7-&%#
()$*' !! 4..!0,-12!3(1&%#1$!

• Idea Impact: !

–
!"#$%% !"!#$!%#&'(')*!+#,)*-&.('#,&/!01.-*&/!2*,('#,&! = !56*.!578.9(
!&'$()% !! 3#(.4!56*.!+#,)*-&.('#,&/!01.-*&/!2*,('#,&!

!
49


IF I WERE AT DELL...

Topic Sentiment Idea
Trends Rate Impact

50


THE FRAMEWORK IS A PROCESS

KPI!

KPI! KPI!

Business
KPI! KPI!
Objective!

Social !
KPI! KPI!

KPI! Business KPI!
Objective!

KPI! KPI!
KPI!

51


WHAT ABOUT THE VENDORS???

52


Business Objective Key Performance Indicator Vendors to Watch
Alterian SM2, Radian6, Scout Labs, Statsit, Trendrr,
Share of Voice Visible Technologies
Coremetrics, Webtrends, Radian6, Scout Labs,

Foster Dialog Audience Engagement Converseon, Filtrbox (Jive), Visible Technologies

Alterian SM2, Radian6, Scout Labs, Social Radar,
Conversation Reach Statsit, SWIX, Trendrr, Visible Technologies

Biz360, Filtrbox (Jive), Radian6
Active Advocates
Cymfony, Filtrbox (Jive), Radian6, Razorﬁsh (SIM
Promote Advocacy Advocate Inﬂuence Score), Telligent, Twitalyzer, Visible Technologies

Coremetrics, Omniture, Webtrends, SWIX, Telligent
Advocacy Impact
Filtrbox (Jive), RightNow Technologies,
Resolution Rate Salesforce.com, Telligent
Filtrbox (Jive), RightNow Technologies,
Facilitate Support Resolution Time Salesforce.com, Telligent
ForeSee Results, iPerceptions, Kampyle, OpinionLab
Satisfaction Score
Alterian SM2, Cymfony, Filtrbox (Jive), Radian6, Scout
Topic Trends Labs, Social Mention, Social Radar, Trendrr, Visible
Technologies
Alterian SM2, Converseon, Cymfony, Filtrbox (Jive),
Spur Innovation Sentiment Ratio Radian6, Scout Labs, Social Radar, Trendrr, Visible
Technologies
Biz360, Cymfony, Filtrbox (Jive), LugIron, Radian6,
Idea Impact Scout Labs, Visible Technologies


VENDORS ARE A MANDATORY
COMPONENT
• The perfect social media measurement vendor
does not exist

• Existing vendors shine at listening, sentiment and
trending conversations

• Technologies can facilitate data
collection in diverse social media,
but there are no silver bullets

54


WHAT ABOUT THE CHANNELS???

55


SPECIFIC CHANNELS ARE SECONDARY
TO STRATEGY
• Find your audience, wherever they may be

• Recognize influence above the noise

• Promote advocacy and leverage your people

56


A NEW SOCIAL MEDIA MEASUREMENT
PLAYBOOK IS MANDATORY
• Measure based on specific business objectives

• Use Key Performance Indicators to Become a
Measurement Hero

• Adopt the Social
Marketing Analytics
Framework and
make it your own

57


YOUR PRESCRIPTION FOR MEASUREMENT

1. Follow the process:
Vision>Objectives>Measurement>Tactics
2. Know that not all channels are equal
3. Define requirements first; then select vendors
4. Develop your social media measurement
playbook
5. Make our measurement framework your own

58


DON’T BE THIS
GUY, OKAY?


WANT TO LEARN MORE?

61


QUESTIONS?

John Lovett, CWA Jeremiah Owyang
Senior Partner, Web Analytics Demystified Partner, Altimeter Group
john.lovett@webanalyticsdemystified.com jeremiah@altimetergroup.com
http://john.webanalyticsdemystified.com web-strategist.com/blog
@johnlovett @jowyang


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