Social Media Measurement and ROI

Lauren McCadney

@lmccadney

laurenmccadney@sbcglobal.net

• Director, Digital Engagement and Social Media - CDW

• Background: Advertising, Brand Management, Analytics, CRM and Sales

• Industry Recognitions: Women to Watch in BtoB Marketing: FierceCMO; Top 25 Digital Marketers BtoB Magazine; 10 Hottest Digital Marketers 2013- iMedia

• Passion: Volunteering and Photography

• Name

• What do you do?

• Why are you here?

Tell me about you

Social Media is easy. Doing it well is hard.

Social Media Percent of Marketing Budget

8.4% in 2013

11.5% next 12 months

21.5% next 5 years

Source: The CMO Survey March 2013

If you could only learn one thing….

4 Key Takeaways:

1. C-Suite View of Social Media

2. The 6 Value Areas of Social Media.

3. How to think about measuring the impact of Social Media.

4. Tools and Platforms for Measureable Social Media Programs

C-Suite view of social media is evolving

Then vs. Now

“It’s a fad.”

“Give it to the intern.”

“I think we are doing something.”

“It’s a necessary part of customer care.”

“It’s changing how customers buy.”

“Are we doing enough?”

“Help me understand.” CEO, Every Company

• Why do our customers care about and engage in social media?

• What are we doing? And why?

• How do make money with social media?

• How much are we making?

Define “Social Media”

Social Media

• Covers a lot of territory

• Includes the site and activities

• Big Story is changes in consumer behavior fueling it’s growth

Forms of electronic communication (as Web sites for social networking and microblogging) through which users create online communities to share information, ideas, personal messages, and other content (as videos)

Webster

Impact. It’s relative.

Fight fire with fire. Be strategic.

Exercise #1

Marketing Objectives

1. ____________________________

2. ____________________________

3. ____________________________

4. ____________________________

5. ____________________________

Marketing Objective #1

Marketing Objective #2

Marketing Objective #3

Marketing Objective #4

Exercise #2 Map your Social Media Programs/Initiatives to

your Marketing Objectives

Every tactic does not deliver immediate revenue; but it should put us on the path.

6 Social Media Value Driver

Areas

Insight

Awareness

Perception

Revenue

Advocacy

Operational Efficiency

1. Insight

Insight = Voice of the Customer

Demonstrate relevant and actionable information that was gleaned exclusively via social media.

Insight = Voice of the Customer

Demonstrate relevant and actionable information that was gleaned exclusively via social media.

Definition: Social Media Listening

Social media listening, also known as social media monitoring, is the process of identifying and assessing what is being said about a company, individual, product or brand.

Common Monitoring Metrics and Learnings

Metrics So What?

Followers Monitor social interest in the brand

Engagement • Strength and Appeal of posts/conversations • Differences by platform

Content Engagement Trends Content creation input

Daypart Engagement Trends Improve engagement rates and increase program efficiency

Mentions Volume of WOM (along with reach) Share of Voice relative to the competition

Influencers Who’s talking? Who’s voice carries? Should we find ways to engage them?

Topic Trends Volume of conversation about a topic. What is being said.

Listening for Solution Insights

Content Analysis Of Reviews

1,165 Reviews analyzed

1,135 Positive reviews

AM

668

Account Team

249

Price/Cost

239

Delivery

222

Customer Relations

205

Company Image

185

58 Negative reviews

Price/Cost

21

AM

12

Delivery

11

Customer Relations

9

• Overall “reviews” are predominantly positive.

• Despite being mostly positive, some areas are polarizing

» AM, Price, Delivery, Customer Relations

Content Analysis of Reviews. So What?

• Sales Implication: – Rethink Account Manager Productivity Metrics

• Training Implication: – Examples of what the customer values

– Service delivery prioritization

• Creative Implication: – Quotes and verbatims for copy support

• Paid Social Implication: – Authentic posts as creative

2. Awareness

Awareness

Show that brand/product awareness and consideration is higher among social media users in general or our social media followers in particular.

Brand Awareness Study

• Include social media related questions in your Brand Awareness Tracking Survey such as: – Do you use social media for _________?

– Do you engage with [brand/product] via social media on at least one platform?

– Which platforms do you engage with [brand/product] on?

– How frequently do you engage with [brand/product]

– What actions do you take after engaging with [brand/product] on social media?

Exercise #4

Total Social Media Users Non-Social Media Users

Awareness 85% 94% 78%

Consideration 63% 74% 50%

Confidence 95% +/- 4ppt

Key Findings:

Total Universe: Brand Awareness and Consideration

Exercise #5

Total Brand Social Media

Engagers

TV Email Print

Consideration 63% 75% 78% 62% 55%

Confidence 95% +/- 4ppt

Key Findings:

Those aware of brand

Brand Consideration By Marketing Vehicle

Exercise #6

Q4 2013 Q2 2013 Q4 2012

No Action Taken 31% 35% 40%

Visit company website for more info

30% 20% 25%

Purchase from company website

6% 8% 5%

Download information 13% 5% 10%

Search web for more information on product/brand

12% 29% 16%

Purchase from store 8% 3% 4% Confidence 95% +/- 4ppt

Key Findings:

Actions Taken After Engaging w/Brand on Social Media

3. Perception

Perception

Show that social media engagers have a more positive perception of the brand than non-social media engagers. Explore the difference in perception compared to other tactics.

All Respondents

Social Media Engagers

Non-Social Media

Engagers

TV Display

Product Provider

Solution Provider

Services Provider

Exercise 7

• List three attributes or perceptions that are important to your brand.

– ______________________

– ______________________

– ______________________

4. Revenue

Revenue

Quantify the sales achieved as a result of social media. Then calculate ROI:

Return on Investment

ROI = ((Incremental Revenue – Cost)/ Cost)

x 100

Hypothesis

• Social Media engagers (people that clicked on a post link) have a higher likelihood of purchasing

– Aware of the brand by virtue of Followers or noticing the brand in their newsfeed

– Consideration by virtue of trusting messages and content from our brand

SharegraphTM - PATENTED AUDIENCE AMPLIFICATION

• ShareGraphTM is proprietary software that:

• Utilizes a variety of algorithms to analyze user behaviors and interactions

• Maps user behaviors to identify users who are closely connected to your audience

• Amplifies these segments to create a unique and large scale enhanced audience

• Improves ad targeting and content personalization

SEED AUDIENCE

SOCIAL CONNECTIONS/SIGNALS OF INTENT

ANONYMOUS DIGITAL PERSONAS

SCALED RELEVANT AUDIENCE

ShareGraphTM expands a small seed audience into a large, relevant, targetable new audience.

New audiences through modeling

Social Engager Lift

Social Media Revenue Metrics

Measure traffic to product/landing pages

• Coremetrics or Omniture

Coupons/Promotional Codes

• Redemption

Content Lead Generation

• # of Leads

• Cost Per Lead

• Conversion Rate

• Conversion Revenue

Social Media Revenue Metrics

On-Domain Product Review

• Incremental cart conversion when viewing a page with a review

• Incremental Revenue

On-Domain Video

• Page Conversion Lift

• Incremental Revenue

Community Value

• Overlap Analysis

• Single Sign-on

• Average Customer Value Comparison

• Customer Growth Rate Comparison

5. Advocacy

Word of Mouth/Advocacy

Demonstrate the value of customers speaking on your behalf.

Categories:

Advocates Influencers

Bloggers Super Fans

Why digital word of mouth matters

Don’t trust advertising. Trust their peers

Forrester Research 2012

Advocate Word of Mouth

Brand sends message to Lauren

“Lauren, refer your friends”

Share this $50 off coupon with your friends. You’ll get $50 off your next purchase for each friend who purchases.

Lauren sends message and offer to friends

“Check this out”

You’ll love this. Plus, you’ll get $50 if you buy this by June 1. Use my personal referral code: A123

Link to brand’s online store or other “buy page”

Friends click through to brand’s online store or other “buy page”

Enter referral code:

“Order this product now”

Brand gives credit to Lauren once referred friend has purchased product

A123

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Notes about Case Studies

• Each Advocate was given unique personal referral code

– This allows us to track referrals and sales back to individual Advocate

• # impressions is calculated as follows:

– # Advocates x 150 people reached

– Source for # people reached by Advocates: Forrester Research

• Incentives were provided to encourage referrals

50

Consumer Electronics Mfr Item Amount

# Customers invited to refer friends 500,000

# Advocates “Advocate” is a customer who referred at least one friend. About 11% customers served as Advocates.

53,494

Total # prospects referred # prospects who visited web site or landing page directly from Advocate referral

76,693

Ave. # prospects referred per Advocate 1.4

# Units Sold # units sold as result of Advocate referral

766

Conversion rate 766 units sold divided by 76,693 prospects referred

1%

Sales Value: Revenues Ave. revenue per unit sold $500

$383,000

Media Value: Impressions Value per impression: 25 cents x 8 million impressions

$2,006,025

Total Campaign Value $2,389,025

Total Campaign investment Includes fees paid to Advocate marketing company; referral incentives; promotional costs

$100,000

ROI 23X

Notes: 60-day campaign; Advocates were entered into a $10,000 drawing 51

Business Software Company Item Amount

# Customers invited to refer friends 1,000,000

# Advocates “Advocate” is customer who referred at least one friend. About 7% served as Advocates.

70,253

Total # prospects referred # prospects who visited web site or landing page directly from Advocate referral

132,681

Ave. # prospects referred per Advocate 1.9

# Units Sold # software units sold as result of Advocate referral

1,552

Conversion rate 1,552 units sold divided by 132,681 prospects referred

1.1%

Sales Value: Revenues Ave. revenue per unit sold $300

$465,600

Media Value: Impressions Value per impression: 50 cents x 10.5 million impressions

$5,250,000

Total Campaign Value $5,715,600

Total Campaign investment Includes fees paid to Advocate marketing company; referral incentives; promotional costs

$125,000

ROI 45X

Notes: 90-day campaign; Advocates were entered into a drawing for Hawaii trip, valued at $10,000 52

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1. Compelling incentives

2. Rewards for Advocates and referred friends

3. Meaningful offers

4. Make it easy for Advocates to refer

5. Pro-active promotion

6. Track and optimize program

Six Referral Marketing Best Practices

www.zuberance.com

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Learn More

Subscribe www.zuberance.com

Employee Advocacy

Amplify the “voice” of your employee advocates helping them increase their personal brand while distributing relevant content on social media

Employee Advocacy

Increase the reach of brand related content

Quantify Earned Media

Quantify Offer Conversion

Increase traffic to your site

Higher Engagement Rates

6. Operational Efficiency

Operational Efficiency

Demonstrate that costs are lower, service is quicker or

communication is more efficient with social media. This is due to the efficient flow of information between information seekers and sharers.

This is true inside the company: employee to employee. And outside of the company: -employees to customers -brand to customers

Impact Examples

Cost to Serve

Customer Service

Time Savings

Internal Social

Networks i.e. Chatter or Yammer

Media Efficiency

Value of Earned

Impressions

Lower Cost Per Click,

Per Engagement or Per Lead

Social Media is easy. Doing it well is hard.

5 Social Media Measurement Tips for Success

1. Align programs to your business objective

2. Identify key metrics before you start

3. Set goals whenever possible

4. Know why something worked or didn’t work. It’s the key to improving.

5. Don’t keep social media in the “Marketing Silo”. Identify ways your efforts can impact other parts of the business.

4 Key Takeaways:

1. C-Suite View of Social Media

2. The 6 Value Areas of Social Media.

3. How to think about measuring the impact of Social Media.

4. Tools and Platforms for Measureable Social Media Programs

Questions?

Stay In Touch! @lmccadney

laurenmccadney@sbcglobal linkedin.com/in/laurenmccadney

Appendix Scorecards and Dashboard