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Determining the Impact of Customer Relationships: Social Media Measurement & Analysis
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Transcript of Determining the Impact of Customer Relationships: Social Media Measurement & Analysis
www.crimson-consulting.com © CRIMSON CONSULTING 2009
Determining the Impact of Customer RelationshipsSocial Media Measurement & Analysis
Karen O’Brien, Partner
Chris Terschluse, Analyst
Crimson Interactive Services
September 2009
www.crimson-consulting.com © CRIMSON CONSULTING 20092
If Organizations Aren’t Saying Something About Their Company or Brand…. Someone Else Is!
The Internet has become a vibrant social space where individuals communicate, collaborate, and share
While many consumers remain skeptical of traditional advertising techniques, many embrace the transparency and authenticity of the social web
Source: http://www.emarketer.com/Article.aspx?R=1007252
“Total US Social Network Users will Grow 44% by 2013”
- eMarketer
www.crimson-consulting.com © CRIMSON CONSULTING 20093
Effective Measurement is Necessary as Social Media Marketing Continues to Grow in Importance and Use
In a recent poll by MarketingProfs, 70% of marketers do not believe they adequately measure their own social media campaigns
Creating highly measurable campaigns will provide value both strategically and financially
Social media marketing requires listening and learning, engaging with customers and building relationships, while measuring the marketing effectiveness of our efforts
Source: MarketingProfs, ROI Success Stories August 2009
www.crimson-consulting.com © CRIMSON CONSULTING 20094
Strategy Development is Critical while Standard Social Media Measurement Practices Remain in their Infancy
Understanding what we want to accomplish & who we want to target, defines the strategic objectives of the marketing
strategy & determines the relevant metrics used to measure success
The Customer
Who is the target audience?
What is their online behavior?
What motivates them to buy?
The Business (Product/Service)
What are we trying to accomplish?
How do we position ourselves?
What actions do we want them to
take?Strategic Business Objective
s
Relevant Success Metrics (KPI’s)
Soci
al M
edia
Str
ate
gy
www.crimson-consulting.com © CRIMSON CONSULTING 20095
Establishing Impactful Relationships via the Social Web Requires a Social Media Marketing Cycle….
Listen
Discover real-time insights from
relevant, impactful conversations
occurring online
Measure
Create measurable objectives based on
web analytics & social media metrics
to analyze online conversation
Engage
Create an active dialogue with
customers and establish impactful
long-term relationships
Optimize
Organizations should consider starting with one or more of the following strategies :
www.crimson-consulting.com © CRIMSON CONSULTING 20096
There are a Number of Reasons Organizations Listen to the Online Audience
Source:http://www.radian6.com/blog/80/top-10-reasons-brands-should-listen-to-social-media/
The Complaint
The Complime
ntThe Crisis
The Expressed
Need
The Competitor
The Audit The Thread
The Influencer
The ROI
The Crowd
Listen
www.crimson-consulting.com © CRIMSON CONSULTING 20097
Listening to the Internet as a Real-time Online Focus Group Can Reveal:
Insight into satisfaction through online sentiment
Customer demographics and segmentation
Share of conversation and brand health
Customer needs, desires, brand associations, and brand loyalty
Competitors actions and consumer response
Opportunities such as product ideas, product improvements, and market opportunities
Listen
Source: Nielsen Global Online Survey 2009
www.crimson-consulting.com © CRIMSON CONSULTING 20098
Communication Platforms Blogs
Micro-Blogs
Social Networks
Social Network Aggregation
Event Networks
Collaboration Tools Wikis
Social Bookmarking Sites
Social News Sites
Opinion Sites
Multimedia Photo Sharing Sites
Video Sharing Sites
LiveCasting Sites
Audio & Music Sharing Sites
Reviews/Opinions Product Reviews
Q & A
Employer Reviews
Entertainment Media & Entertainment platforms
Virtual Worlds
Game Sharing Sites
Begin Listening by Identifying Relevant Conversations Across Multiple Components of the Social Web
Listen
www.crimson-consulting.com © CRIMSON CONSULTING 20099
Marketers Should Measure Both Conversational Data as well as Traditional Web Analytic Data
Web Analytics:
Social Media Analytics:
Traffic, unique visitors, click rate, bounce rate, inbound links, click through path, time spent on site, & number of
subscribers
Satisfaction, product reviews, motivation, brand positioning, consumer opinions, unmet needs, customer demographics
& segmentation
Source: http://www.visibletechnologies.com/solutions/trucast.php
Measure
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Traditional Web Analytics ProvideAnswers to Questions About the Media
How many visitors came to the site? How long did they stay? Where did they go? Where did they come from?
Measurement Goals • Reach & Frequency
Key Metrics
• Traffic • Unique Visitors• % Return Visitors• Bounce Rate• Inbound Links • Click Through Path• Time Spent on Site
Information Source
Web Analytics Tools:
• Google Analytics• Omniture• Alexa • Quantcast
Measure
www.crimson-consulting.com © CRIMSON CONSULTING 200911
Traditional Web Analytic Tools Collect DataAbout Use of Individual Web Pages
Measure
Source: http://www.webtrends.com
www.crimson-consulting.com © CRIMSON CONSULTING 200912
Social Media Analytics Provide Answers to Questions About the Audience
Who are they? What are they talking about? Why is it important to them? Where did they hear the message? How did they share the message? How engaged are they?
Measurement Goals • Influence & Engagement
Key Metrics
• Sentiment • Brand Associations• Trending Topics • Consumer Opinions • Product Ratings/Reviews• Download/Uploads• Embeds• Bookmarks/Tags • Viral Forwards• Time Spent on Page• Comments/Posts
Information Source
Social Media Analysis Tools:
• Radian6• Google Alerts • Visible Technologies • Teligent• BuzzMetrics
Measure
www.crimson-consulting.com © CRIMSON CONSULTING 200913
Social Media Analytic Tools Collect Conversational Information Across the Social Web
Source: http://www.radian6.com
Measure
www.crimson-consulting.com © CRIMSON CONSULTING 200914
Analyzing the Rich Data Set Provides Valuable Insight into the Target Audience
Sources: http://www.visibletechnologies.com & http://www.radian6.com
Number of Posts & Online Sentiment by Topic or Product
Time series charts measuring online conversational activity and buzz
Tag clouds identify brand associations, related topics/trends & discussions
Share of voice online among competitors
Measure
www.crimson-consulting.com © CRIMSON CONSULTING 200915
“Companies that are both deeply and widely engaged in social media
surpass their peers in both revenue and profit performance by a significant
difference” - Wetpaint/Altimeter Group ENGAGEMENT db Study 2009
Gaining a Deeper Understanding of the Online Audience Leads to Effective Relationship Building
Engage
www.crimson-consulting.com © CRIMSON CONSULTING 200916
Identify and Target Connections with Online Influencers to Begin Engaging the Market
Source: http://blogs.forrester.com/groundswell/2009/08/social-technology-growth-marches-on-in-2009-led-by-social-network-sites.html
Consumer technographics reveal segments or touch points among the online community
Find the sources of influence in your market: forums, blogs, videos, social networks, Twitter etc.
Determine online influencers to utilize word-of-mouth marketing and engage the target audience
Provide influencers with relevant content and allow them to spread messages into the online community
24%
37%
21%
51%
73%
18%
Engage
www.crimson-consulting.com © CRIMSON CONSULTING 200917
Benchmark Against Previous Tactics to Develop More Effective & Impactful Engagement Strategies
Tracking changes in the level of content engagement & syndication over time, allows marketers to optimize social media marketing
Marketers can work to adjust their content strategy to increase interaction on their website
Marketers can discover optimal methods and locations for seeding content by measuring spread of shared or viral information
Optimize
www.crimson-consulting.com © CRIMSON CONSULTING 200918
Track interaction through actionable items such as RSS subscriptions, social bookmarks, tags, diggs, downloads, uploads, newsletter subscriptions etc.
The Conversational Index (ratio of blog posts to comments and track backs) offers valuable insight into the effectiveness of a content strategy by subject or a topic of conversation.
Metrics for word-of-mouth spread of shared content:■ Social Velocity – (Distance/Time) Rate a message travels over a given time
■ Direction – Where the message is heard/discussed and who’s listening
■ Amplitude – The size of the conversation around the brand/product
■ Period – The duration of the conversation around the brand/product
Source: YouTube Analytics
Tracking Metrics of Interaction & Syndication Provides Direction for Social Media Optimization
Optimize
www.crimson-consulting.com © CRIMSON CONSULTING 200919
The Sales ROI of Social Media Marketing May Be Determined by Understanding the Effect of the Web’s Quantitative & Qualitative Impacts on Key Business Outcomes and Objectives
Measurement Goals • Actions Taken, Insight to Sales
Key Metrics
• Direct Sales from SM• Sales Leads from SM• Satisfaction • Brand Loyalty • Product Positioning• Market Share• New Customers • Customer Yield • Purchase Frequency• Risk Reduction • Time to Market• Number of Ideas • Efficiency
Information Source
Analysis Tools:
• Surveys • Market Mix Modeling• Trend Modeling• Cost Analysis
Have sales increased over Q1? What is the change in online sentiment?
What are people saying about your products?
What kind of customer evidence exists?
What web content has led to sales conversions?
What was the response for viral efforts?
How many Facebook fans or Twitter followers have made a purchase online?
How has an increase in online voice impacted sales?
What are the conversational trends that are impacting sales?
What engagement efforts were used to cause change?
www.crimson-consulting.com © CRIMSON CONSULTING 200920
Through Careful Benchmarking, Sales Trend Analysis, & Cost Analysis, Marketers Can Assess the Bottom–Line Impact of Relationships
Financi
al Im
pact
s of
Soci
al M
edia
M
ark
eti
ng
Cost Reduction – improved efficiency for research & development, service & support teams, problem solving, or internal communications
Reach (Breadth) - Increasing sales revenue by increasing net new customer count
Reach (Depth) - Increasing sales revenue by helping customers buy deeper into the product line
Frequency - Increasing sales revenue by shortening the time interval between transactions
Yield - Increasing sales revenue by driving customers to increase their average per transaction spending
ROI can be determined by layering data sets together, linking changes in web and social media measurements to their impacts on sales metrics
Establishing KPI’s around reach, engagement, and influence metrics, will provide quantitative & qualitative insight into key business outcomes such as sales, market share etc.
www.crimson-consulting.com © CRIMSON CONSULTING 200921
Organizations Can Leverage IndividualComponents of Social Media Marketing
Listen
Discover real-time insights from
relevant, impactful conversations
occurring online
Measure
Set objectives based on web
analytics & social media metrics to
monitor, analyze and track those
conversations
Engage
Create an active dialogue with
customers and establish impactful
long-term relationships
Optimize
www.crimson-consulting.com © CRIMSON CONSULTING 200922
Mini® Listens & Uses Consumer Insight to Position It’s Marketing Efforts
CHALLENGES
BMW’s Mini Cooper faced increased competition in 2006 when competitors Volkswagon and Honda entered the small-car segment with new models
Mini needed to keep the brand relevant without the release of a new model or addition of new features
SOLUTIONS
Monitored online conversation around the Mini brand to gain insight into consumer attitudes and behavior
The Mini marketing team discovered that owners of the car considered themselves a an exclusive club
Marketing efforts were shifted towards Mini owners rather than prospective buyers in hopes to spread word-of-mouth by energizing their influential car owners.
RESULTS
Between February and August 2006 a pattern emerged: when online promoter activity increased, sales increased
Mini sales only declined 4% - which was a considerably good for the tough year
Listen
www.crimson-consulting.com © CRIMSON CONSULTING 200923
Salesforce.com Taps Consumer Insight to Improve Product Development
CHALLENGES
Salesforce.com’s on-demand services must constantly be updated to evolve to meet rapidly changing customer expectations
Developers and marketers within the company generally disagreed on new features, slowing product development
SOLUTIONS
Created IdeaExchange, an online community platform which allows customers to submit ideas
IdeaExchange functions as a social news site, in which members can submit and then vote on ideas, allowing the best ideas rise to the top
RESULTS
The IdeaExchange has generated over 10,000+ ideas
Salesforce.com was able to release 4 new updates in 2007 which include over 300 new features, compared two releases in 2006 with half as many features
Listen
www.crimson-consulting.com © CRIMSON CONSULTING 200924
Linksys Support CommunitiesDeliver Significant Savings
CHALLENGES
Linksys needed to develop an innovative approach to contain support costs while still offering responsive customer service
SOLUTIONS
Linksys introduced a unique online customer support community that includes a self-support knowledge base “Ask Linksys” and other various support channels
Dedicated a staff to closely monitor the community and answer any questions that community peers could not solve
RESULTS
Four million users visit Linksys’ support community each month to exchange ideas, tips and information
3,000 new threads are generated each month, 1,000 of which moderators are able to answer
An estimated 120,000 cases a month are answered through peers and Ask Linksys
Email support was discontinued entirely, with no negative reaction from consumers
Linksys has been able to save millions of dollars in support costs
Measure
www.crimson-consulting.com © CRIMSON CONSULTING 200925
Dell Turns to Blogger Outreach and Twitter to Create a Dialogue
CHALLENGES
In June 2005, Dell faced a negative blog storm around the company from thousands of consumers dissatisfied with their computer products and customer service
Initial online sentiment was at an all-time high of 49% negative
SOLUTIONS
Dell closely monitored conversation around their products and service
Technicians were dispatched to reach out to complaining bloggers to solve their problems
Created Direct2Dell, an extensive community and blog portal, to establish a direct dialogue with customers
Established over 80 branded Twitter accounts
Utilized URL tracking in order to tailor and optimize offerings and products sold via Twitter
OUTCOMES
Negative online sentiment dropped to only 22%
Direct2Dell is ranked by Technorati in the top 700 amongst corporate blogs
Direct2Dell receives over 5 million unique visitors a month
The Dell Outlet Twitter account has reached 1 million+ followers and generated over $3 million in revenue
Engage
www.crimson-consulting.com © CRIMSON CONSULTING 200926
Microsoft Uses Social Media to Generate Awareness for a Product Launch
Source: MarketingProfs, Social Media ROI Success Stories
CHALLENGES
In preparation for the launch of Microsoft’s new product Windows 7, Microsoft wanted to establish a direct dialogue with IT professionals and those who were unsure of the new technology. Crimson worked closely with Microsoft to identify and engage the target audience with a dedicated team of social media marketers.
SOLUTIONS
The team began social media monitoring, identifying relevant conversations and influencers among the online community
The @MSSpingboard Twitter account was created, supporting multiple languages
Used Twitter to actively engage IT pros, answering questions and providing links to a number of Windows 7 related websites and a TechNet community portal
Twitter feedback is utilized to optimize content creation and distribution
OUTCOMES
After only a few months the number of engagements per week have reached between 1,000-1,200 (a significant increase from an initial 40-60)
@MSSpringboard has reached over 6,000+ followers
Web traffic to related Windows 7 sites has significantly increased
Engage
www.crimson-consulting.com © CRIMSON CONSULTING 2009
Questions? Please contact:
Crimson Consulting4970 El Camino Real, Los Altos, CA 94022650.960.3600 www.crimson-consulting.com
Karen O’BrienPartner, Interactive Services [email protected]: @bondjanebond