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Sports Marketing 2.0‘The times they are a changing’

Dr. Jim Hamill jim.hamill@energise2-0.com

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Sports Marketing 2.0

• Opportunities and threats for sports marketing organisations from the rapid growth of Web 2.0/social media

• Content– Social media – an overview– Social media in action – examples (non-sports marketing)– Key things to remember about social media– Social media and sports marketing– Sports Marketing 2.0: Euroleague Case Example– Sports Marketing 2.0: Strategy development, implementation

and performance measurement

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Social MediaA Quick Overview

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Web 2.0/Social Media

An Overview

»Applications»Features and Characteristics»Implications

Business/Marketing 2.0Web 2.0 Applications

Open sourceOnline Applications/ Web ServicesSocial/ Prof Network SitesSocial Content – Social BookmarkingBlogs or WeblogsWikisPodcasts/ VodcastsVirtual RealitiesMash UpsRSS FeedsMobile Web; Internet TelephonyTwitter

Characteristics

Communities and NetworksOpennessSharingPeeringHosted Services – online applications; the Internet as the platformInteractivitySocial ElementMass CollaborationEmpowermentGlobal

Impact – Wikibusiness

MindsetBusiness IntelligenceCustomer Insight and UnderstandingCustomer InteractionEnhanced Customer Experience – Rich

Internet ApplicationsReputation ManagementSales and Marketing Product Development and R&D e.g.

engage and co-createIT/Software/ApplicationsOperations, Internal Processes and HRM

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Social Media in Plain English

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How important has it become?

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The Social Media Revolution

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Potential Business Benefits of Social Media

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Business Benefits

• Market Knowledge

• Customer Insight and Understanding

• Customer Interaction

• Enhanced Customer Experience

• Business Intelligence

• Reputation Management

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Business Benefits

• Improved Sales and Marketing

• Identify and network with high value, high growth prospects

• Product Development and R&D e.g. engage and co-create

• Internal cost savings

• Improved Operations and Internal Processes

• Increased ROI

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Potential Business Benefits

5 main areas:

• Market/Customer Knowledge & Insight• Engagement & Reputation Management• Enhanced Customer Experience and Loyalty• Sales/Marketing Effectiveness, Efficiency and ROI• Operations/ Internal Processes (open source and hosted

apps)

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Map Applications to Business Benefits

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Social Media in Action

Quick Examples

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In a Web 2.0 Era, the Brand Becomes the Customer Experience of the Brand

A quick ‘personal experience’

Dubai Hotel

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From the web site

• This 5-star hotel and residence offers European hospitality with an unmistakable French touch. The hotel consists of 318 beautifully appointed guest rooms/suites, while the residence offers 112 fully furnished and equipped deluxe Studios and 1-3 bedroom apartments.

• The ultimate in comfort, we offer 318 luxuriously elegant rooms and suites.

• Take a trip. Escape. Go and visit somewhere new and see if we are there… Give in to that irresistible wanderlust. Discovering and staying in the most exceptional hotels in the world has become the modern-day Graal, a game, a quest…

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The Customer Experience of the Brand

Tripadvisor

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From Tripadvisor

• It's getting old, the rooms are unappealing and it will never be more than a business hotel

• Being a Sofitel hotel we expected something quite 'flashy' unfortunately we were let down. The rooms, although comfortable and clean, were not of the standard we expected and were definately not what we expected after looking at the photos on the hotel's website.

• Booking my stay via the Sofitel website after a pleasant experience at several other Sofitel locations over the past 2 years with my new job I was looking forward to a 5 star luxury stay after a stressful business trip. My expectations were reasonable, however certainly not met by this hotel.

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11 Million Views

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United Breaks Guitars

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10.2 Million Views

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Crowdsourced NPD

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266,555 on Facebook

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1.6 Million Twitter Followers

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www.skittles.com

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Things to Rememberabout Social Media

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Key Things to Remember

• It’s social– A key feature is online democracy – with content being provided

by the network for the network – represents a fundamental and revolutionary change in online behaviour, expectations and the online customer experience. The end of the ‘read only’ internet

• Power shift– Social media empowers customers, empowers the network.

Recognizing this shift is the cornerstone of future success • Declining effectiveness of traditional approaches

– Does anyone listen to sales/brand messages anymore?

ENERGISE2-0.COMSource: The Future of Advertising, APA, 17/02/09 as published on Slideshare (www.slideshare.com)

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Key Things to Remember

• Pull v push– Consumers/users decide what information they wish to access

• New ‘mindsets’ are required– Marketing as a conversation with your customers/network–

dialogue not broadcasting– But this is something that most of us are not very good at doing.

We prefer ‘telling’ people• SM ‘winners’ and ‘losers’

– ‘Winners’ will be those organisations who fully utilise the interactive power of Web 2.0 technology for engaging with and energising customer and network relationships

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Key Things to Remember

• New performance measures– Requires new performance measures

• Quality of your network• Relationship strength• Ability to leverage

• Social media monitoring tools

• Redefines the concept of a web site

• The need for new business/marketing models

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Performance Measurement

Involvement – network/community numbers/quality, time spent, frequency, geography

Interaction – actions they take – read, post, comment, reviews, recommendations

Intimacy – affection or aversion to the brand ; community sentiments, opinions expressed etc

Influence – advocacy, viral forwards, referrals and recommendations, social bookmarking

Insight – customer insight Impact – business impact

Social Media Monitoring Tools –Audit, Assess, Impact

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The ‘6Is’

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Bob Dylan

Come gather 'round peopleWherever you roamAnd don’t criticise

What you can't understandYour sons and your daughters

Are beyond your commandYour old road is

Rapidly agin‘Then you better start swimmin’

Or you'll sink like a stoneFor the times they are a-changin’

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Social Media and Sports Marketing

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Sports Marketing 2.0

• Business benefits for Sports Marketing Organisations (SMO)

• What progress has been made? How well are sports marketing organisations utilising the power of Web 2.0 for building community and network relationships with their tribe?

• Emerging ‘best practice’ examples

• Euroleague case evaluation

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‘Football is nothing without the fans’

Jock SteinManager of Celtic FC

1965 to 1978

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A Marriage Made in Heaven

Social Media Sports Fans

Information ‘pull’ rather than ‘push’

User generated content Openness Sharing Collaboration Interaction Communities Networking

The ‘Tribe’ Passion Loyalty Commitment Desire Involvement Community Belonging Family

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Business Benefits to SMO

• Enhanced marketing effectiveness

• Marketing efficiency

• Improved ROI

• Relationships and networking effects – engage and energise – increased fan loyalty and commitment

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'Internal' Use of Social Media*

• Increased visits to the official site• Increase ‘stickiness’ (length) of site visits• Divert traffic from unofficial fanzine sites • Increased advertising revenue• Increased e-commerce sales for the official site• Actionable customer insight, knowledge and understanding • A channel for responding to customer comments and feedback • Enhanced online customer experience• Build community and leverage network effects - engage, energise

* Use of social media on the SMO’s own web site

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Use of ‘External’ Social Media

• Social Networking Sites: Sports Marketing Organisation becomes a ‘community aggregator’ - ‘Talk with rather than at fans’ - actionable customer insights

• Multimedia Sharing Sites - a very powerful marcoms channel leveraging networking and ‘word of mouth’ effects

• Podcast Sites: Provides the SMO with a rich media channel for maintain on-going dialogue with customers/fans

• Virtual Reality: ‘virtual stadium’ allowing fans to interact with each other in a virtual space

• Mapping Tools: - satellite images of the Stadium etc. Can enhance the online customer experience leading to increased site visits, advertising revenue and e-commerce sales

• Mobile apps

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Progress Made

• Evaluation of the Web 2.0 progress made by the top 20 football teams in Europe (2008 study)

• Updated 2010

• Top European Football Clubs – Facebook League Table, 2011

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Internal Use (own web site)

• UGC (User Generated Content)– text, images, video, wiki

• User FOD (Feedback, Opinion, Discussion)– blog, forum, ratings, favourites, online chat

• RIA (Rich Internet Applications)– widgets, mash-ups, podcasts/vodcasts

• Folksonomies– social tagging, social bookmarking, tag cloud

• Feeds– content feeds in and out

• Community– site community

• External Links– to other 2.0 sites

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External 2.0

• Social Network Sites– facebook

• Multimedia Sharing Sites– Youtube, flickr

• Podcast Sites– Itunes

• Twitter• Linkedin

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2008 Results – very limited progress

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2008 Results – very limited progress

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2010 Update – more progressive adopters

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2010 Update – more progressive adopters

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2010 Update – more progressive adopters

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2011 Update

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Top 3 over 35m ‘likers’

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Some still not using it

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Emerging ‘Best Practice’ Examples in Sports Marketing

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Community ownership and management

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Examples

Chelsea – www.chelseafc.com

Old version of the site – check out the new one

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Celtic FC on Facebookwww.facebook.com/celticfc

Small domestic league with limited global TV coverage but with a global fan base

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75,000 plus ‘likers’ in a few months

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High Engagement

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Useful page Stats from http://export.ly

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Page Stats from http://export.ly

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Page Stats from http://export.ly

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Euroleague Case Evaluation

How effective are Euroleague using social media – internally and externally?

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www.euroleague.net

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Limited use of SM on the web site

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Youtube Channel

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High channel views/comments (some unprintable)

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8,000 plus subscribers

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Facebook Page

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84,076 facebook ‘likers’

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40 comments per post

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94,160 Twitter Followers

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But one-way broadcasting?

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Klout Score

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Overall Influence - 62

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True Reach

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Amplification

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Network Influence Level

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Klout Classification

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For comparison

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For comparison

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We can also estimate the overall ‘buzz’ being created online

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www.topsy.com

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16.3m views

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Useful channel stats

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32,000 plus comments

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www.socialmention.com

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Strength

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Sentiment

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Passion

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Reach

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What do the fans think?

Online survey of Celtic fans (2008)Dated but still interesting

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Celtic Survey

• There are over 50 ‘Celtic Minded’ fanzine sites. These provide alternative information channels for the fans, competing with the official Celtic web site

• The top 5 fanzine sites have more than 51,000 registered

users. Over 13 million messages have been posted highlighting the vibrancy of the groups

• Content analysis reveals that fans are discussing a wide range

of issues, many of which are relevant to the business/marketing aspect of the Club

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Celtic Survey

• The online survey, completed by 356 respondents within the first 48 hours of going live, showed that 50 per cent of fanzine members were ‘professional’ people, students (11%), skilled manual (21%), self employed (6%), unemployed (4%) or others (7%). This is substantially different from the demographic profile of fanzine members normally reported in the mass media (‘the great unwashed’)

• The survey revealed a high level of demand among fans for greater Web 2.0 functionality on the official Celtic club site – RSS feeds (58%), discussion forums (66%), blogs (70%), Club podcasts (71%) and User Generated Content (41%)

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Celtic Survey

• Major changes taking place in the way in which fans accessed information about the Club

– 85 per cent stated that fanzine sites were an ‘Important’ or ‘Very Important’ source of information, TV (57%), the official Club web site (50%), general sports web sites e.g. Sky (42%), printed newspapers (29%), newspaper web sites (23%)

• 84 per cent stated that they were reading fewer newspapers and using more online information sources; 77 per cent stated that they were accessing the official Club web site less and the fanzine sites more often

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Fanzine Sites

Name of Website

Number of Registered

Users Total Posts

Number of Threads

www.celticminded.com 16,954 8,344,813 650,660 www.kerrydalestreet.co.uk 6,998 2,413,850 65792

www.talkceltic.net 23,533 1,523,512 86,316 www.celticoverall.com 3,124 474,253 52,899 http://www.cybertimscsc.com 839 131,407 9,714 www.monthehoops.co.uk 10,610 123,863 16,542 www.celticforum.net 2,995 56,799 4,866 www.talfanzine.com n/a 49096 7390 www.keep-the-faith.net 753 37,480 1,020 www.celtic.vitalfootball.co.uk 52,778 25,221 2,581 http://www.planet-celtic.co.uk/ 6795 430 88

http://www.celticsupporterassoc.co.uk 406 83 27

http://wigandpen.proboards18.com/index.cgi#general 287 8 23 www.thejunglebhoys.net n/a n/a n/a www.etims.net 1335 24,429 2968 www.thehuddleboard.com n/a n/a n/a

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• Survey covered fanzine site users – might not be representative of all Celtic fans

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Social Media Strategy Development

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‘Getting There’

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Next Steps

• Get Involved– Google Alerts, Linkedin, Social Media Monitoring

• Learn more• Develop a strategy• Implement• Monitor

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Social Media Development Cycle

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SM Development Cycle

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Each Step is being covered in detail on our blog at www.energise2-0.com

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Five Key Areas

• External Analysis: Evaluate Your Social Media Landscape• Internal Analysis: Evaluate Your ‘Readiness to Engage’• Develop Your Social Media Strategy and Action Plans for

‘Getting There’• Evaluate Your Social Media Performance and ROI• Organization, People and Resource Issues

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‘Be Customer Led’

Three key questions:

• Who are our customers, who do we wish to engage with?

• Where do we find them ‘hanging out’ on social media?

• How can we best engage and energise them?

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www.mashable.com

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Develop Your Social Media Strategy and Action Plans for ‘Getting There’

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Use a Simplified Balanced Scorecard

• Will ensure that the social media actions and initiatives you take are fully aligned with and supportive of your overall business goals and objectives; that KPIs are agreed for monitoring and evaluating social media performance, business impact and ROI; and all key success factors are considered, especially the organization, people and resource aspects critical to successful strategy implementation

• A Scorecard approach can also be very useful for internal and external communications – a simple framework to present social media goals, objectives, key actions and initiatives to colleagues, partners and other stakeholders

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Social Media Balanced Scorecard

• Not ‘paralysis by analysis’. By providing an agreed framework to follow, the Balanced Scorecard considerably speeds up strategy development and implementation

• The steps involved can be captured in a Social Media Strategy Map

• Five key questions to address……

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Social Media Balanced Scorecard

• What is the overall social media vision for your organization?

• What are the key objectives and targets to be achieved?

• Who are your customers?

• Key Actions and Initiatives

• Organisation, Resource and People Issues

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Social Media Strategy Map

Brief statement of your overall 2.0/Social Media Vision and Mission Strategic Objectives Customer Perspective Internal Management Perspective Organisation Perspective

Strategic Objectives KPIs / Targets

KPIs / Targets KPIs / Targets

KPIs / Targets

Customer Group 1

Customer Group 2

Customer Group 3

Customer Group 4

2.0/Social Media Initiative 1 - Objectives - KPIs - Targets - Actions

2.0/Social Media Initiative 2 - Objectives - KPIs - Targets - Actions

2.0/Social Media Initiative 3 - Objectives - KPIs - Targets - Actions

2.0/Social Media Initiative 4 - Objectives - KPIs - Targets - Actions

Organisation People Resource

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Organization, Resource and People Issues

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Organization, Resource and People

• Organisation, resource and people issues sit at the bottom of your SM Balanced Scorecard NOT because they are the least important issues to address. In fact, the exact opposite is true

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Monitor and Measure

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Monitoring the Conversations

• Use Social Media Monitoring Tools to monitor online conversations relevant to your brand

• No or low cost tools such as Google Alerts, Yahoo Pipes, Social Mention, IceRocket, Blogscope, Blogpulse and ViralHeat

• More expensive and sophisticated tools such as Radian6, Alterian SM2, Sysomos Heartbeat and Infegy SocialRadar

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Monitor and Measure

• To ensure that your SM strategy delivers a return on investment, it is important to monitor and evaluate on-going performance benchmarked against agreed objectives, KPIs and targets

• Performance evaluation should be undertaken at three main levels using the ‘4Is’ approach….

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Performance Measures - The ‘6Is’

Involvement – network/community numbers/quality, time spent, frequency, geography

Interaction – actions they take – read, post, comment, reviews, recommendations

Intimacy – affection or aversion to the brand ; community sentiments, opinions expressed etc

Influence – advocacy, viral forwards, referrals and recommendations, social bookmarking

Insight Impact

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Monitor and Measure

• Individual Channel Performance– the effectiveness/success of each channel benchmarked

against agreed targets for the ‘4Is’ i.e. Involvement, Interaction, Intimacy and Influence

– most channels provide easy to access statistics for measuring each ‘I’ to a very high degree of accuracy

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Facebook Insights

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Facebook Insights

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Monitor and Measure

• Wider Social Media Performance

– monthly or quarterly reporting of the overall ‘buzz’ created by your SM activities using appropriate Social Media Monitoring tools

– this will show the impact of your SM activities on others and other channels

– it measures the volume of mentions, trends over time, which channels are driving your buzz, who is taking your message further, through which channels, and what affection or affinity they are showing, and so on

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Monitor and Measure

• Underlying Business Performance (Insight and Impact)– the performance of each social media channel and the

overall ‘buzz’ created are ‘lead’ rather than ‘lag’ measures– in a social media era, they are the main ‘drivers’ of future

business performance– the final level of performance monitoring, therefore, is

linking your social media activity to overall business goals and objectives e.g. enquiries, sales or customer loyalty. Is social media achieving your ultimate business objectives i.e. ‘lag’ measures?

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Thank You

Questions

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Continue the discussion at www.energise2-0.com

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