SOCIAL MEDIA MEASUREMENTFOR BUSINESS

How to Measure Social Media Effectiveness and Demonstrate ROI

AGENDA

2. Relevant statistics

1. The ROI Challenge

3. Measurement Infrastructure

4. The Cisco Model

6. Auditing

5. Tools

THE ROI CHALLENGE

• “The puzzle that can’t be solved”• The C-Suite remains skeptical• Measuring best practices still

evolving• Goal best approaches are easiest

to measure

THE ROI CHALLENGE

Many social media activities can't be effectively measured using a transactional formula. SMM is often best measured in terms of audience reach, engagement and sentiment.

STATISTICALLY SPEAKING – CMO SURVEY

of marketers say their boards and CEOs are tightening pressure to measure ROI.66%

STATISTICALLY SPEAKING – CMO SURVEY

of marketers said they aren’t able to quantify whether social media has made a difference for their companies.49%

STATISTICALLY SPEAKING – CMO SURVEY

of marketers said they had a good sense of qualitative – though not quantitative – results. 36%

STATISTICALLY SPEAKING – CMO SURVEY

of marketers said they’ve seen a proven quantitative impact.15%

STATISTICALLY SPEAKING – CMO SURVEY

of marketers were using traditional ROI metrics in 2013, down from 17%. 9%

STATISTICALLY SPEAKING

Marketers are expected to increase their share of social media spending from 6.6% to 15.8% of their budgets by 2018.

MEASUREMENT INFRASTRUCTURE

TRADITIONAL / COMMON METRICS

Hits, Visits & Page Views

Revenue Per

Customer

Buzz Indicators /

Web Mentions

Repeat Visits

Customer Acquisition

Costs

Sales Levels

Profits per Customer

Conversion Rates

Followers and

Friends

Online product/servi

ce ratings

Customer Retention

Costs

Net Promoter

Score

Abandoned Shopping

Carts

MEASUREMENT INFRASTRUCTURE

AUDIENCE REACH

ENGAGEMENT SENTIMENT

The core of social media measurement…

IDENTIFY GOALS

• Increase awareness• Generate leads• Convert leads to

sales• Retain existing

customers• Reduce costs

ALIGN OBJECTIVES WITH METRICS

Drucker’s “SMART” Methodology

• Specific• Measurable • Actionable• Realistic• Timed

DEFINE THE RETURN

What does success for your brand look like?

CREATE A DASHBOARD

• Create a central hub for data• Use external tools or Excel• Convert leads to sales• Retain existing customers• Reduce costs

AUDIENCE REACH

• Number of fans• Number of followers• Number of influencers• Audience profiling

ENGAGEMENT

• Number of likes• Number of mentions• Number of shares, retweets, etc.• Other meaningful interactions • Response rate• Conversions

ENGAGEMENT RATING SYSTEM

What is engagement worth to your organization?

ENGAGEMENT POINTS

LIKE 1

COMMENT 5

SHARE 10

SENTIMENT

SOCIAL LISTENING

• Monitoring• Systems for

quantifying results

• Charting findings• Reporting• Evaluating

growth

THE CISCO MODEL

Community Health

Market Perception

Quantitative

“The Cisco Model”

COMMUNITY HEALTH

Engagement

Customer Satisfaction

Social Content Mobility

Community membership

s

Positive third-party

reviews

Ratio of posts to

comments

Channel/Content

Subscriptions

Content views/downl

oads

Customer retention

Positive sentiment

overall

Sentiment compared to satisfaction

Customer loyalty

Customer satisfaction

Facebook Shares/Like

s

Content tagged, rated

or ranked

Blog Track-Backs

YouTube Likes/Embe

ds

Twitter Retweets

MARKET PERCEPTION

Thought Leadership

Message Resonance

Market Awareness

Share of Voice

Thought Leader Market

Perception

Ratio of posts to

comments

Topical Content

Coverage

Thought Leaders Quoted

Conversations containing one or

more key messages

Market Position

Key messages in social media conversations

Awareness and credibility of key

messages

# of times positioned favorably in convos versus competition

# of times mentioned in key blogs and communities versus

competition

Perceived positioning relative to the competition

Aided and unaided awareness versus

competition

Preference in specific markets versus the

competition

Positive sentiment versus the competition

QUANTITATIVE

Lead Sales / Market Share

Efficiency of Communication

Correlation between social media

conversations and number of qualified

leads

Desirable mentions or key sales

drivers

Cost per contact or customer

acquisition

Cost per qualified

lead

Cost per click thru

Messages communicated (budget

divided by message appearances)

Cost per engagement

TOOLS

HOOTSUITEFACEBOOK INSIGHTS

SPROUT SOCIAL

CROWD-BOOSTER

GOOGLE ANALYTICS

KEYHOLESOCIAL

MENTIONBUFFER

AUDITING

• Measurement best practices are still evolving

• Not every complex methodology will work for every brand

• Methodologies may change as marketing goals change

• Reevaluate often

QUESTIONS

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