Measuring the value of social media
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Transcript of Measuring the value of social media
Measuring the Value of Social Media
April 10th, 2012#smwomen
@socialmediawomn
• Does social media have a value?• Can you measure it?• What tools are there to measure Social?• The future of Social Media Measurement
Measuring value starts with defining your social media objectives
• Why am I using social media?– Awareness/brand building– Drive traffic• To site• In store
– Increase leads– Increase sales
Can you really measure the value of social media?
• Some people argue you can’t measure the value of social media
• But: you’re investing money & time in it OR you’re asking your client or your company to
invest in it you are making financial & strategic decisions
There’s lots of numbers... But what matters?
• Is there value in measuring “vanity metrics”:– # of fans– # of followers– # of retweets, reach etc
• Does it really matter if you’re not sure how much value they contribute to your business?
What to measure?
•# of fans/followers
•Amplification (sharing etc)
Audience/Reach•Interacti
ons with social content
•Sentiment
Engagement
•Conversion to sale (purchases – online & offline)
•Cost savings (customer service self service etc)
•Lifetime Customer Value
Value
Is there a ‘standard’ value for a Social Media fan/follower?
Some companies can find that a social media fan/follower is more valuable (in lifetime value) than a non-social customer.
Little value in creating a standard value unless you base that on real data, and results from your own results.
Source: DigitalBuzzBlog.com
Think about: - Your average customer value- Your average cost to acquire
a customer- What you spend on other lead generation activity eg
advertising, SEO, SEM
Measuring value from a Facebook competition
• Shoes of Prey case study• Objectives:– Increase fan base– Increase email subscriber base– Increase sales
• Cost: $6800• 17500 new likes (.38c each)• 4000 new email subscribers ($1.70 each)• $3250 of sales attributed to campaign
Source: 22Michaels.com
Measuring value by customer retention & sentiment• UBank case study• Objectives:
– Innovation– Customer Service– Education
• Measuring:– Sentiment (Net Promoter Score)– Impact on sales– Customer service:
• Time to resolve• # of compliments/complaints
Source: eMarketingConnected
Value of Social Media for Customer Service
• Customers can find their own answers, and solve each other’s problems
• Large companies doing Customer Service using Social measure cost savings
Measuring cost per acquisition & lifetime value
StyleTread know two key things about their social media acquired customers: - Lower cost to acquire customer- Higher lifetime value (more likely to spend more)
Source: eMarketingConnected.com.au
Social Media Value Maturity Model
How large companies measure ‘value’
• Conversions (purchases on eCommerce site)– Direct result of Social Media– Multiple channels including Social Media
(attribution)• Average lifetime value of a Social Media
acquired customer compared to non-SM• Leads acquired through Social channels• Reduced cost of customer service channels
But you don’t need a complex measurement approach
Before Social Media:Sold 2 x day
After Social Media:Sell 10 x sandwich aday
Tools that can help
Core Website Analytics eg Google Analytics,
Omniture
Social Media Mgmt eg HootSuite,
Radian 6
Facebook Insights, LinkedIn page stats
Sentiment: eg Social Mention, Buzz
NumbersManual tracking
CRM
Look at what you can measure with your existing toolset
• Conversions – sign up or– purchase
• For our business that is ‘value’ because:– We can reduce our spend on Search Engine
Marketing– We can reduce our spend on traditional PR
What else can inform our decisions on Social Media
• We also know what channel brings us the most value, so we know which social media is more likely to convert
• That lets us focus our efforts on the most successful channels for us
• We still continue with the other channels, but put less time into these
Analytics: traffic sources for conversions
• Can compare sources of conversions eg direct, search, social media
Analytics: multi-channel funnels showing multiple interactions• Using multi-channel funnels, track conversion
across channels, shows a number of interactions before conversion
Multiple interactions before conversionSome direct through social media, some include social
Learn which social media channels are the most effective
Other useful measurement
• Simple insights: Facebook insights can help you understand what your audience respond to
Other useful tools
Crowdbooster is useful for showing which tweets had most impact, the best times to tweet and influential followers.
Other measurementsSocial Mention does quite simple sentiment measurement
Sentiment measurement isn’t foolproof
Worth benchmarking now and as you do more social activity
Other measurements
Social Influence measures are increasingly being used in business
Some companies already prioritise customer service queries by looking at Klout scores of customers
What next?
• New Google Analytics: – Social Reporting being enhanced
Future predictions
• Increased pressure to show measurable return• Smarter and more integrated reporting
toolsets• More focused use of social media channels as
companies understand what is returning value and stop using what isn’t
• Social influence scores increasingly used in business decision making
Now what?• Know how much social media costs:
– Tools– Time
• Know what your objectives are• Know the value of achieving those objectives:
– Value of a lead– Value of a sale– Value of a customer
• Benchmark (today):– How many visits/leads/sales do I get– How many from SM and from what channels
• Keep tweaking• Keep measuring
Useful resources
Smart Insights – Tips on Social Measurement with Google Analytics
http://www.smartinsights.com/google-analytics/google-analytics-setup/google-social-analytics-review/
Occam’s Razor Blog:http://www.kaushik.net/avinash/best-social-media-metrics-conversation-amplification-applause-economic-value/
Google Analytics Conversion Room Blog:http://conversionroom-japac.blogspot.com.au/
Keep in touchWeb: www.eMarketingConnected.com.au Email: [email protected]: 0448822369
http://au.linkedin.com/in/traceylbrown
@traceybrown74
www.facebook.com/pages/EMarketingConnectedAU