Social Media Intro For Business Intelligence People

Mark R. Madsenwww.ThirdNature.net

Social Media Intro for Business Intelligence Professionals

Social Media Intro for Business Intelligence ProfessionalsMay, 2009Mark R. Madsenwww.ThirdNature.net

Social Media

Wikipedia on social media (naturally):

“…activities that integrate technology, telecommunications and social interaction , and the construction of words, pictures, videos and audio.”

How about “people conversing online” instead?


Mixed Up Terminology

Social software – software designed for collaboration & sharing, i.e. the umbrella termSocial networks – social platforms, not “about” anything other than the social networkSocial sites / applications –the primary interaction is around a topic, function or object; it’s “about” something, unlike social networksSocial media – a subtype of social site / application built around published media of some type; blogs, video, music, games, virtual worlds


Many Social Features and ToolsBlogsWikisMicrobloggingSMSChatWidgetsSocial networksSocial bookmarksCollective taggingMessage BoardsPodcastsVideo sharingPhoto sharingCommentsRatingsRSS


Online Community Types

Lightweight social processes• Very low barrier to social involvement

Digg, Last.fm, Amazon, Twitter

Collaborative information structures• The core product is generated or enhanced by

social componentsFlickr, YouTube, Threadless, Etsy

High end collaboration• Extensive involvement and collaboration required

Wikipedia, any-other-pedia, CouchSurfing, open source projects


Lightweight Example: Twitter


Collaborative Example: Threadless


High End Example: Lostpedia


Social Networks


Social Network Evolution

Source: FaberNovel Consulting


Social Network Participants

Creators

Synthesizers

Consumers

Inactives

Why should you care?


Follow the money


Follow the Eyeballs


There are 1.4 billion internet users


45% have blogged


80% have watched online video

>100 millionvideos viewed (per day)


60% joined a social network


…Where They Are Talking About You

“In the age of social media, what people say about your company or its products can and will become very public, very quickly. My job is about engaging in a constructive dialogue with customers, in creating active conversation streams.” – Lionel Menchaca, chief blogger, Dell

0 5 10 15 20 25 30 35 40 45 50

Post a video clip featuring a product/service

Create product wish/ favs list on ecommerce/retail site

Write a review of a product/service on yr blog/weblog

Post opinion on social network personal profile

Comment on product/ service review onecommerce/retail site

Write review of product/service on ecommerce/retailsite

Recommend a product/ service on blog/ weblog

Write a review of a seller on an auction site

Comment on a product/service review on a blog/weblog

Tell someone about a product/service by email

Tell someone about a product/service by messenger

Monthly Reach


They Don’t Listen to You

>90% of people who can ad-skip do ad-skip


They Don’t Trust You


They Trust Each Other, Even Strangers

Business Implications


Social Software Affects Buying Behavior


Marketing and Sales Are Most Affected


Some Unpleasant Marketing FactsMarketers don’t have confidence in their ability to manage their budget to meet objectives:

• Only 25% of marketers said senior management is confident or very confident in forecasts of marketing impact on sales

• Only 15% of marketers agreed or agreed completely that they could forecast the impact of a 10% budget cut


Bad News if You Want to Buy Advertising

Number of prime-time 60 second TV commercials required to reach 80% of 18-49 year-olds

• In 1965: 3• In 2002: 117

People with DVRs watch 12% more TV ☺Yet 90% of them skip the ads

The obvious solution hasn’t worked very well.

One-to-One marketing concepts fared little better.


TV vs. Net, the Net is Winning


Marketing Spend is Shifting in Response


It’s a Multi-Channel World Now

Each of these new channels has measurement data coming from different sources, often external and out of your control.


Marketing Has Relatively Few Outcome Metrics

1. Input: measures the upfront part of a process like cost• how much you spent on a TV spot during the super bowl

2. Delivery: measures the process but not the effect• reach of that super bowl ad

3. Outcome: measures the results• lift from the super bowl ad

Harder things to measure: consumer sentiment, brand awareness, brand strength, brand equity

?1 2 3


Multichannel Challenges

You can calculate the same core metrics for the online channel as for direct marketing or advertising.The hard part is knowing what to do with which channel.e.g. same cost, same reach:

• Which is more effective?• For which customer segments?• Do they reinforce?

?12 3

?


Metric Development

Developing online marketing metrics is beyond the scope of this class. A few pointers:

• You will need input and delivery metrics for comparison, but should focus on outcome.

• Develop delivery and outcome metrics that allow you to test and refine campaigns while they occur.

• Try to attribute activity wherever possible• Link metrics to both objectives and tasks/functions


Forrester Metrics Example


Sample Online Marketing MetricsSales development:cost per unqualified lead, qualified lead, sales opportunity, revenue, margin, new customers

Effectiveness / efficiency:Reach, Frequency, GRP (just like the old models) on a per channel basis# of unique visitors, Visit frequencyTime on site, Registrationsopen rate, click rate, bounce rate

Loyalty:time on site relative to benchmarks other sitesrepeat business / visits, % returningcustomer loyalty survey data

If you have widgets or applications::Downloads, InstallationsActivations, EmbedsFrequency of use

BehaviorDesired actions, Response to offersInteractions, FeedbackTransactions,

Sentiment Sentiment and trendsSimilar PR metrics, e.g. favorable/unfavorable mentions

InfluenceInbound links related to a profile or userRatio of links/clicks vs. all usersTiming of links/clicks, Connections

Engagementan activity measure of users / total usersVirality - % growth of message or advert


Online Marketing Case: Will It Blend?

Measurements:• >2M views on YouTube• Google page 1 for “blend”• pagerank raised to 6• 55,000 inbound links• 83,000 channel

subscribers• > 500 Facebook groups• 5 Digg front page stories• TV news mentions• Newspaper mentions


The Online Channel Has Advantages

The online channel can provide realtime feedback where old channels sometimes have a data lag of months.

Messages and offers can be tested while a campaign is running, rather than between campaigns.This requires that you collect the data to manage the process.

About the PresenterMark Madsen is president of Third Nature, a technology research and consulting firm focused on business intelligence, data integration and data management. Mark is an award-winning author, architect and CTO whose work has been featured in numerous industry publications. Over the past ten years Mark received awards for his work from the American Productivity & Quality Center, TDWI, and the Smithsonian Institute. He is an international speaker, a contributing editor at Intelligent Enterprise, and manages the open source channel at the Business Intelligence Network. For more information or to contact Mark, visit http://ThirdNature.net.

http://thirdnature.net/

About Third Nature

Third Nature is a research and consulting firm focused on new and emerging technology and practices in business intelligence, data integration and information management. If your question is related to BI, open source, web 2.0 or data integration then you‘re at the right place.

Our goal is to help companies take advantage of information-driven management practices and applications. We offer education, consulting and research services to support business and IT organizations as well as technology vendors.

We fill the gap between what the industry analyst firms cover and what IT needs. We specialize in product and technology analysis, so we look at emerging technologies and markets, evaluating the products rather than vendor market positions.


Creative Commons Image AttributionsThanks to the people who supplied the creative commons licensed images used in this presentation:

kid gives finger.jpg - http://flickr.com/photos/kevinclark/9826288/

riot police line small.jpg - http://flickr.com/photos/73594239@N00/25719098/

anne hathaway.jpg - http://flickr.com/photos/barbaradoduk/177959197/

baby birthday.jpg - http://flickr.com/photos/yoshimov/19513076/

teapot.jpg - http://flickr.com/photos/joi/411403/

darasuram temple.jpg - http://flickr.com/photos/ravages/129783888/

us capitol building.jpg - http://flickr.com/photos/jcolman/542294684/

hamadan people mosaic.jpg - http://flickr.com/photos/hamed/225868856/

well town hall.jpg - http://flickr.com/photos/tuinkabouter/1135560976/

watchmaker.jpg - http://flickr.com/photos/dashananda/310662720/

highway storm.jpg - http://flickr.com/photos/areyoumyrik/235230688

web1-0 corporate logo sheet web 2-0ized.jpg - http://flickr.com/photos/stabilo-boss/93136022/

web 2-0 logos part1.jpg - http://flickr.com/photos/stabilo-boss/93136022/

meerkat.jpg - http://flickr.com/photos/peasap/1089208526/

Gare do Oriente Lisbon.jpg - http://flickr.com/photos/higaara/228673603/

motionless in crowd2.jpg - http://flickr.com/photos/laburbuja/149566116/

snail1.jpg - http://flickr.com/photos/7147684@N03/1037533775/

social_architecture.jpg - http://flickr.com/photos/karen-ward/268612548/

baby_with_lemon 55381094_10694660e5.jpg - http://flickr.com/photos/pichichi/55381094/

laptop face.jpg - http://flickr.com/photos/sd/7746599/


Creative CommonsThanks to the people who made their images available via creative commons:

book of hours manuscript2.jpg - http://flickr.com/photos/jeffrey/89461374/

card catalog4.jpg - http://flickr.com/photos/deborahfitchett/2372385317/

royal library san lorenzo.jpg - http://flickr.com/photos/cuellar/370663920/

outdated gumshoe.jpg - http://flickr.com/photos/olivander/372385317/

book of hours manuscript1.jpg - http://flickr.com/photos/jeffrey/89461261/

semantic network visualization.jpg - http://flickr.com/photos/toby_maloy/102413554/

subway dc metro.jpg - http://flickr.com/photos/musaeum/509899161/

Gare do Oriente Lisbon airport.jpg - http://flickr.com/photos/higaara/228673603/

toolbox.jpg - http://www.flickr.com/photos/booleansplit/2376359338/

crowd_melbourne.jpg - http://www.flickr.com/photos/akc77/3370167184/

social_net_mosaic.jpg - http://www.flickr.com/photos/luc/1824234195/

befriend.jpg - http://flickr.com/photos/ehrgeizier/114385285/

martini.jpg - http://www.flickr.com/photos/tapps/2204393655/

four cupcake guys (frogs).jpg - http://www.flickr.com/photos/abielskas/114946978/

old man union square selling.jpg - http://flickr.com/photos/ktb/4683842/

highway storm.jpg - http://flickr.com/photos/areyoumyrik/235230688

Surfer - http://www.flickr.com/photos/millzero/2093324718

http://flickr.com/photos/jeffrey/89461374/

http://flickr.com/photos/deborahfitchett/2372385317/

http://flickr.com/photos/cuellar/370663920/

http://flickr.com/photos/olivander/372385317/

http://flickr.com/photos/jeffrey/89461261/

http://flickr.com/photos/toby_maloy/102413554/

http://flickr.com/photos/musaeum/509899161/

http://flickr.com/photos/higaara/228673603/

http://www.flickr.com/photos/booleansplit/2376359338/

http://www.flickr.com/photos/akc77/3370167184/

http://www.flickr.com/photos/luc/1824234195/

http://flickr.com/photos/ehrgeizier/114385285/

http://www.flickr.com/photos/tapps/2204393655/

http://www.flickr.com/photos/abielskas/114946978/

http://flickr.com/photos/ktb/4683842/

http://flickr.com/photos/areyoumyrik/235230688

http://www.flickr.com/photos/millzero/2093324718


Creative CommonsThanks to the suppliers of the following images:Market – http://flickr.com/photos/baboon/309793875/Spider – http://flickr.com/photos/gyuvallos/72283771/Orange wall – http://flickr.com/photos/satosugar/50776976/Weaver in Peru – http://flickr.com/photos/slack12/442373910/Apples and oranges – http://flickr.com/photos/thedepartment/131206032/Envelope – http://flickr.com/photos/psd/1428129861/Web services – http://flickr.com/photos/psd/479994769/Two choices – http://flickr.com/photos/cayusa/1441194460/Forest bluebells – http://flickr.com/photos/good_day/149239579/Baobab - http://flickr.com/photos/dmontesi/66753950/Writing code – http://flickr.com/photos/cdm/72250667/Woodworking – http://flickr.com/photos/rigoletto/126367565/Febo – http://flickr.com/photos/jshyun/1573065713/cliff divers – http://flickr.com/photos/raveller/Thai market – http://flickr.com/photos/tuey/55106754/spider – http://flickr.com/photos/gyuvallos/72283771/dehydrated water – http://flickr.com/photos/dcreeves2000/139184796/Meerkat – http://flickr.com/photos/nicklawes/90796755Subway – http://flickr.com/photos/neilsphotoalbum/504517855/Robot Bastard – © 2001 Rob Schrab, http://robotbastard.robschrab.com/index.html

http://flickr.com/photos/baboon/309793875/

http://flickr.com/photos/gyuvallos/72283771/

http://flickr.com/photos/gyuvallos/72283771/

http://flickr.com/photos/dcreeves2000/139184796/

http://flickr.com/photos/nicklawes/90796755

http://robotbastard.robschrab.com/index.html

Social Media Intro For Business Intelligence People

Business

Transcript of Social Media Intro For Business Intelligence People