Setting up a Social Media Measurement Program - Dispelling #SMROI Myths & Case Studies by @DrNatalie

By Dr. Natalie Petouhoff @drnatalie

www.drnatalienews.com/blog

Real Social Media Monitoring Case Studies

Demystifying the ROI of Social Media

This presenta,on is about how to set-‐up a measurement programs

to calculate the value ROI of Social Media And get more business value

out of social media….

If you’d like help…

Contact Dr. Natalie Petouhoff

www.DrNatalieNews.com

@drnatalie

3

Agenda •  Look at ROI Myths

•  Set-up a social media measurement program

•  Calculate business impact & ROI

@drnatalie

•  Learning is the desire to discover new things We are amazed by new things…

@drnatalie

• 

@drnatalie

It’s the new shiny

object

And Social Media?

@drnatalie

But the amount of information

– can feel like an insurmountable blur

@drnatalie

It can generally be useless

@drnatalie

Today’s goal is to… Provide…

•  Marketers

•  Brand Managers

•  Product Managers

•  Consumer Insights Teams &

•  Market Research Professionals w

An understanding of the benefits of:

•  Having deep, real-time insights

•  Using insights to make business decisions &

•  Being able to be an invaluable resource to CEO- suite @drnatalie

ssss

To TAKE THE

CHAOS TO

ORDER

Using context

@drnatalie

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Business As Usual

Executives want to know what the business value

of social media is

@drnatalie

WHERE ARE WE WITH RESPECT TO BEING ABLE

TO CALCULATE ROI OF SOCIAL MEDIA?

Most marketers indicate social media measurement is a high priority & 48% feel pressure to report qualified outcomes of social media.

Less than 20% of marketers can calculate the ROI of Social Media

MARKETERS ARE UNSURE HOW TO CALCULATE SOCIAL MEDIA ROI

Some brands forge new ground by ac,vely making social media part of their cultural DNA.

SOCIAL IS JUST IN SOME BRANDS’ BLOOD

OTHERS WANT PROOF BEFORE THEY TAKE THE LEAP

SOCIAL MEDIA ADOPTION HAPPENED QUICKLY

Companies jumped into social media without extensive ROI calculaRons

There wasn’t any real business analysis.

It happened because the boss said so, or because a social media PR disaster could cost much more.

Examples:

ARE YOUR SOCIAL MEDIA EFFORTS WORTH THE MONEY?

Jus,fying the business case for listening & engaging on social media is a BIG ques,on.

BUT IS CALCULATING SOCIAL MEDIA ROI EVEN POSSIBLE?

Skep,cs think social media is too “fluffy” to adequately measure return on investment (ROI)

Misconceptions of ROI

•  That’s funny

•  But ROI is not obvious to everyone

•  And your boss would like a number

@drnatalie

You may have heard… “Would you calculate the ROI of your mom or your pants? Then why would you calculate the ROI of social media? It’s obvious!”

http://www.flowtown.com/blog/what-is-the-roi-of-your-mom

@drnatalie

Social Media Myth #1

“Social media ROI cannot be calculated because there are

too many unknowns…”

Social business is s,ll business…

…and the business of business is increasing shareholder value.

TRUTH IS…

WHAT IS ROI? A NUMERICAL VIEW OF STRATEGY

And high ROI means execu,ve approval for your ini,a,ve.

Enhanced Brand

protec,on…

BeXer Consumer Insights…

Faster lead genera,on/

increased lead conversion rates

Reaching PR objec,ves

faster, beXer, cheaper…

Increased awareness,

reach, relevance, engagement…

Reduc,on in call center costs/ increase in

customer revenue

Decrease in customer churn/ inc customer life,me value

DOES YOUR STRATEGY INCLUDE BUSINESS FUNDAMENTALS LIKE COST SAVINGS & REVENUE GENERATION…

If your strategy includes…

Social media ROI predicts if you’ll reach the goal…


“Would you calculate the ROI of pu^ng phones on every desk in your company? smROI doesn’t have to

calculated! ”

Except businesses do… Evaluate produc,vity benefits vs. costs. And also the systems needed to support the business ac,vi,es.

HMMM….

TRUTH IS…

There was a day when… Secretaries answered the phones and typed EVERYTHING for workers. Along came phone switches and desktop computers… Someone did ROI calcula,ons for: Ge^ng a company-‐wide phone switch and phones on every desk top. (Ask Nortel and Avaya…) And a computer on every desk. And apps to get your work done -‐-‐ like email, word processing programs.


Metrics = ROI

KNOW WHAT ROI IS AND ISN’T

Many people mistake social media data, metrics and Key Performance Indicators (KPIs) for ROI Metrics are used to measure: Reach, Relevance, Shares, Likes, Engagement, Purchases But that’s NOT ROI

COLLECT SOCIAL MEDIA DATA, METRICS & KPIS Website analy,cs and marke,ng automa,on data help provide insight into what you’re doing right & how you can improve.

TRUTH IS… Metrics are the like ingredients in a good recipe. They go into the ROI calcula,on, but they aren’t the finished dish.

Misconceptions of ROI…

There’s a change in metrics!!

•  We have 500 more “Likes” •  10X click-thru rate on “Buy Now” button

•  $5M in annual support savings & sales advocacy •  Viral videos increased company sales +700%

•  Social microsites secured 1,000,000 fans and a 10% increase in same-store sales

E

I have an ROI!! e

Note to self: Metrics are necessary…

But they are not ROI

@drnatalie

ROI VS. METRICS

Ac,vity Metrics # of: News Releases Media Interviews Analyst Briefings Blogger Engagements Blog Posts Video Posts Podcasts Web Site Page Edits

Reach Metrics # of: Earned Media Placements Earned Media Impressions Paid Media Impressions News Release Downloads Analyst Report Men,ons

Relevance Metrics # of: Key Message Penetra,on Earned Media Share Share of Conversa,on Word of Mouth Volume Click-‐Through Volume / Rate

Return on Investment •  Earned Media Value vs. Marke,ng Spend •  Lead Value vs. Marke,ng Spend •  Brand Equity Growth vs. PR Spend •  Focus group vs. Social Media Monitoring or Community

ROI IS LIKE LOOKING AT AN ESCHER DRAWING

It’s a complexity issue •  Tradi,onal business goals & metrics •  Social media business goals and metrics •  How social media affects tradi,onal business

Myth #4

“ROI is too difficult because I’m not

a “math” person.”

@drnatalie

Real-world Examples

@drnatalie

Analyzed online conversations: •  Their brand •  Key competitor

Ran nat’l ad campaigns & wants to understand: •  Effectiveness of messages and •  Drivers of consumer purchase intent

Case Study: Major Insurer

Advertising Effectiveness & Competitor Evaluation

@drnatalie

Insurer Ad Effectiveness •  Insurer’s ad campaign is liked

•  Didn’t generate conversation about buying or switching insurers

@drnatalie



•  Competitor ad campaign is more divisive

@drnatalie



•  But spurs a conversation trend related to purchasing

•  Competitor ad campaign is more divisive

@drnatalie

Conclusion of social media monitoring •  Both campaigns generate healthy “buzz”

•  But positive sentiment doesn’t reflect intent to purchase •  Using context avoids misinterpreting positive sentiment for a social buying gesture- intent to purchase

@drnatalie

ROI of social media monitoring ROI = Benefits - Costs x 100 = Percentage Return on the Investment

Costs

What is the cost? •  People- to do the analysis

•  Process- process to compile the information

•  Technology- social media monitoring tool

What is the benefit? •  If the commercial drove sales?

•  Number of leads?

•  What is a lead worth?

•  Number of lead conversions?

•  What’s a sale worth?

@drnatalie

Case Study: Craft Company

Product Development & Marketing

Wants to understand: •  What topics dominate craft-related conversations? •  Is marketing having the desired effect? •  What’s lacking in the product line and accessories?

@drnatalie

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Identified New Product Opportunities

Discovered opportunity to develop more male-centric product line & accessories

Consumers’ expressed strong desire for:

•  More & better supplies & accessories

•  Improved access to purchase those accessories

@drnatalie

•  In-house Research • Quickly and cost effectively

identifies new product & market opportunities

•  Prompts development of new product accessories

•  Enables additional sales •  Expands market share

•  Marketing • Gained increased confidence

leveraging social-media • Confirmed effectiveness of current

messaging and promotional approach

Conclusions of social media monitoring

@drnatalie

ROI of social media monitoring ROI = Benefits - Costs x 100 = Percentage Return on the Investment

Costs




What is the benefit? •  What does it cost the company to go to market

with a product that isn’t what customers really wanted?

•  What would this type of market research normally cost the company?

•  How long would it normally take to get that kind of feedback? What’s the general cost for product dev to launch a product?

•  What’s the value of finding a new product to provide their market?

•  What was the value in revenue of the new products/ accessories?

•  What’s the value of key messaging that works? Higher lead conversa,on rate?

@drnatalie

Case Study: Medical Device for Diabetes & Insulin

Product Launch Marketing

• What core messages will resonate most

with these consumers?

• How do patients discuss the complexities of treatment & control?

• What is the significance for the new product launches?

Wants to understand diabetes & insulin:

@drnatalie

Lifestyle

Consumers’ Concerns Top Conversations

Lifestyle

Treatment Success

Support

Device comments?

LOWER

@drnatalie

Opportunity for brand to:

•  Get more engaged •  Become trusted-partner •  Create a online Community for

•  Advice •  Recommendations •  Shared-support


@drnatalie

ROI of social media monitoring ROI = Benefits -‐ Costs x 100 = Percentage Return on the Investment

Costs

What is the benefit? •  What’s the value in knowing what to put the emphasis of

content online?

•  I.e.., to create an editorial calendar that has content that specifically addresses why people might not use their medicine

•  And which means that don’t feel as well and they don’t live as long or buy the medicine-‐ which affects sales

•  What is the value of becoming a trusted resource for pa,ent concerns? Enhanced brand trust?

•  Did the online community:

•  Deflect any calls to the call center?

•  Increase the efficiency or effec,veness of the calls?

•  Did the company use the content in the community to update their FAQs or knowledge base which helped self-‐service?




@drnatalie

Case Study: Healthy Snacking & Kids

Campaign Planning: Product Launch & Marketing

Wanted to know the nature of online conversations: •  Concerns parents have providing kids a healthy diet •  What factors drive purchase decisions and habits?

@drnatalie

“Healthy” in Kids Snack Foods: More Effectively Resonate

with Consumers

NutriRon Allergies Top

Conversations

Convenience Taste

Not as High

@drnatalie

Opportunities for Brand: •  Better launch messaging •  Product packaging • On-going campaign messaging


@drnatalie

ROI of social media ROI = Benefits -‐ Costs x 100 = Percentage Return on the Investment

Costs

What is the benefit? •  What’s the cost of market research?

•  Focus group of 12 people = 15K •  How many would you need to do to get the same volume of content?

•  12 x $15K = $180,000 •  What’s the value of targe,ng the message for a campaign?

•  What’s the value of being able to run an AB test of taste vs. allergies to see which one really gets the most responses?

ROI of social media monitoring ROI = Benefits -‐ Costs x 100 = Percentage Return on the Investment

Costs




@drnatalie

How to Set-up A Social Media Measurement Program

6. Hone the analysis / teach the system 7. Analyze the information 8. Create appealing presentation of data 9. Present information to stakeholders 10. Take action on the data & repeat!

@drnatalie

How to Mone,ze Facebook With Social Commerce

By Dr. Natalie

1.  Get executive buy-in & support 2.  Choose Staff 3.  Determine your business goals

•  Product Development •  Product Launch •  Product Marketing…

4.  Choose a social media monitoring system 5.  Start listening to online conversations

Wayne St. Amand Vice President, Marketing

SOCIAL MEDIA IS EVERYWHERE, AND EVERYONE IS USING IT.

WE ANSWER THE QUESTIONS.

1.75 BILLION POSTS PER WEEK

100+ BILLION POSTS TO DATE

250+ MILLION POSTS PER DAY

MASSIVE OPPORTUNITY NOT FULLY LEVERAGED BY MOST

•  Social media is the largest source of unfiltered information ever available about how consumers truly think and feel

•  The vast majority of companies have yet to take advantage of this intelligence to influence their business decisions

Achieving Social Intelligence

The management and analysis of customer data from social sources, used to activate and recalibrate marketing and business programs.

SOCIAL INTELLIGENCE CREATES ACTIONABLE INSIGHTS

True Social Intelligence Delivers

•  Consumer insights to drive business success –  Greater marketing effectiveness

–  On-target product planning

–  Deeper competitive insights

–  Understand purchase triggers

However, most of today’s tools do a terrible job of helping you achieve true Social Intelligence

MOST SOCIAL MEDIA MONITORING IS BROKEN

Keywords and semantics don’t work well in social media •  Traditional tools lack the ability to understand context

•  A computer cannot replace human judgment

•  Human analysts cannot scale or provide consistency •  Predefined rules cannot support the dynamic nature of the social media

conversation

•  Surface-level monitoring lacks accuracy and deep insight

NLP Semantic Search

Manual-coding Keyword

Sentiment Monitoring

59

THE CRIMSON HEXAGON FORSIGHT® PLATFORM

Scalable Accurate Replicable

A REVOLUTIONARY APPROACH

Context Nuance

Judgment

Posi,ve Nega,ve

23% 66%

Major Automo@ve Brand

SENTIMENT ALONE IS INCOMPELTE

102,784 men,ons

11%

Neutral

11%

9%

18%

9%

11%

8%

11% 12%

11%

Love Chevy Legendary Want One Looks & Design

Performance Great Business Maintenance Prefers CompeRtor

Asking advice

ANALYTICS BEYOND SOCIAL

Customer Feedback Market Research

Social Web Facebook Pages

PROPRIETARY ONLINE

GLOBAL CONVERSATION

صباح اخلير

GrüßgoX

早上好

hej

bonjour

Γεια σου selamat pagi konbanwa

안녕하세요

zdravstvuyte

merhaba selam

boas

sawa dee-‐ka namaskar

ADDITIONAL RESOURCES:

Request an Online Demo: http://www.crimsonhexagon.com/products/request-a-live-demo

Customer Case Studies:

http://www.crimsonhexagon.com/customers/#casestudies

Overview Video: http://www.crimsonhexagon.com/products/overview-video/

Data Sheets & White Papers: http://www.crimsonhexagon.com/products/whitepapers/

For more informa,on on how to calculate the ROI of Social Media

Or get more business value out of social media….

Contact Dr. Natalie Petouhoff

www.DrNatalieNews.com [email protected]

@drnatalie

Setting up a Social Media Measurement Program - Dispelling #SMROI Myths & Case Studies by @DrNatalie

Business

Transcript of Setting up a Social Media Measurement Program - Dispelling #SMROI Myths & Case Studies by @DrNatalie