The Naked TruthAbout Social Media ROI

Malcolm FauldsSVP Marketing

Steve McLaughlinVP Analytics

JP BeauchampSVP Consumer & Shopper Marketing

Your Instructors

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• Established in 2001

• Powered by 800,000 volunteer consumers

• Focused on intersection of product innovation and social media

• Deep CPG experience

• Heavily invested in WOM analytics

Social marketing company that accelerates word of mouth to drive sales

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Leading global provider of CPG intelligenceinnovative solutions and services, and integrated empirical information on markets, consumers and shoppers

Enabler of CPG, healthcare and retail companiesto dramatically increase revenue, build brands and improve productivity

Our Mission to help our clients get to a higher level of performance in leveraging insights and analytics to drive superior outcomes

As a global leader and indispensable partner in helping our clients grow their businesses through insight, innovation and impact. 

The Social Landscape is Vast

Improve Customer Service

Reputation Management

Increase Purchase Intent

Build Awareness

Employee Recruitment

Employee Monitoring

Boost Online SOVDeepen Brand Relationships

Reduce Cost of Customer Engagement

Market Research

Increase Brand Trust

Launch New Products

Cultivate UGCProduct Planning

Generate Sales

Promote Local EventsBrand PositioningCopy Testing

Cause MarketingCommunity Development

Consumer InsightsCirculate Offers

And So Are the Opportunities

VALUE ≠ ROI

Improve Customer Service

Reputation Management

Increase Purchase Intent

Build Awareness

Employee Recruitment

Employee Monitoring

Boost Online SOVDeepen Brand Relationships

Reduce Cost of Customer Engagement

Market Research

Increase Brand Trust

Launch New Products

Cultivate UGCProduct Planning

Generate Sales

Promote Local EventsBrand PositioningCopy Testing

Cause MarketingCommunity Development

Consumer InsightsCirculate Offers

Social Media Opportunities

Increasingly CPG Companiesare Using Social Media to Measurably Drive Sales

• Actual offline sales data – not just purchase intent

• Ability to measure sales lift/incremental sales

• Able to isolate campaign impact through statistically valid and industry proven methodologies

What CPG brands look forin credible sales & ROI measurement

• Projectable to a larger campaign or roll-out universe

• 3rd party validation

1. Matched Market Analysisthe impact on sales of a marketing or social media campaign; performs more granular analytics; at smaller, contained geographies

2. Marketing Mix Analysisthe effect of sales due to social media in the context of the overall marketing program; read at national level

Methodologies brands are usingto measure social marketing sales/ROI

Matched Market Analysis

• Measures market level activities

—Markets, DMAs, regions

• Uses “test” and “control” cells that are statistically matched to ensure same sales behavior of the product in the markets

• Adjustments made using POS data to account for any differences between cells so true effect of marketing activity is isolated

• Proven methodology used for 3+ decades

FACEBOOKOFFLINE

Offline & Facebook conversations are sufficiently geo concentrated

Matched Market Analysis – Why it can work for WOM / Social Media

• 2 cell design, matched-market analysis including 1 test cell with media and 1 control cell without media

• Measured across a standard campaign period, plus lag effect to capture sales post campaign

• Measured impact in change in Volume Sales

• ROI provided with appropriate inputs

Matched Market Analysis –Design Example

BzzAgent Campaign Results

• A premium coffee brand

• Target = male/female ages 25-54, purchase coffee at Grocery

• 10k BzzAgents received product samples and pass along coupons

• BzzAgents buzzed about the product for 8+ weeks

• 3 test and control markets

• 6.7% sales lift of promoted sub-brand due to campaign!

• $.80 ROI

Matched Market Analysis –Case Study

Quantifies the effect on sales of each component of the marketing mix of a product

Used to look at social media in the “big picture” with the rest of a product’s marketing elements— Not typically used to analyze individual, smaller campaigns

Marketing Mix Modeling

Marketing Mix Modeling – ROI Output Example

Generic example, not based on actual results

Offline - Reach (Face to Face, Phone Reported Reach)

DMA 7/25-7/31 8/1- 8/7 8/8-8/14 8/15-8/21Atlanta 561 1,336 3,902 3,187 Bakersfield 13 28 120 145 Baltimore 113 253 1,140 1,264 Birmingham 53 140 574 155 Bluefield-Beckley-Oak Hill 9 28 120 33

Online - Reach (Facebook Potential Reach)

City / State 7/25-7/31 8/1- 8/7 8/8-8/14 8/15-8/21Webb City, Missouri 220 2,000 1,124 288 Laguna Hills, California 418 546 899 220 Beverly Hills, California 3,876 2,346 2,267 443 Grand Rapids, Michigan 2,314 3,456 1,259 334 Saint Cloud, Florida 1,298 456 129 55

Campaign Week

Campaign Week

Marketing Mix Modeling - Data Input Example

Granularity

Variability

Impression Effectiveness

Why does this data work?

Weekly data

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Analytic Partners

By Channel

IncrementalSales

ROI

Media EffectivenessWeekly Impression Data

TV

PRINT

WORD OFMOUTH

DIGITALOther 3rd Party

Analytic Partners

Marketing Mix Modeling – Process

# Campaigns

25

# Brands

10

# Products

17

# of Analytic Companies

6

WOM ROI on average performs favorably

Marketing Mix Modeling – BzzAgent MMM Results To Date

1. Large marketers, like CPGs, are increasingly demanding that social marketing spend is accountable

2. ROI is a financial metric

3. Deliver ROI by approaching social marketing with a direct response mindset

Key Takeaways

4. Track volume, time, and location of campaign impressions, then correlate with actual transaction data

5. Work with 3rd party analytics providers, internal analytics teams, & industry experts to use methods like matched market analysis, marketing mix modeling,

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Your Questions

Malcolm Fauldsmfaulds@bzzagent.com

Steve McLaughlinsmclaughlin@bzzagent.com

JP Beauchampjon.beauchamp@symphonyiri.com

Thank You

about.bzzagent.com@bzzagent

www.symphonyiri.com