Social Media Week Presentation from Social2B - Metrics, Measurements and Scalability

Metrics, Measurements

and Social Media

Scalability A Social2B Presentation

February 8th, 2011

#SMWNYCNEW

#SMCNY

Agenda

• Social Media Marketing – what, why

and how

• The New Rules of Social Media

Engagement

• Social Media Enterprise Scalability

• Social2B Value Chain Strategy

• KPIs to ROI Path

• Q&A

2

Our qualifications

• Alex Romanovich, Founder – Social2B, CMO – EuroSpaClub International, Advisory Board Member – The CMO Club

• Unique blend of technology, marketing and

business development skills and

experience (IBM, SGI, Bertelsmann AG,

Unified Technologies, Global Advertising

Strategies, Social2B, EuroSpaClub Intl.)

• Frequent speaker and advisor on topics

of Social Media, International and

Multi-Cultural Mktg.

(CNBC, CNN International, Forbes,

Crains, Voice of America, etc.)

• Social Media Marketing, Social Value

Chain, and Social Media

Scalability Expertise

3

@Social2B

@alexromanovich

@eurospaclub

Our qualifications

• Ytzik Aranov, Partner & COO, Social2B, Inc.

• Strategy / Management Consulting

for A.T. Kearney, Inc. & Coopers & Lybrand

• Author/Co-Creator of Analytics,

Scorecard, Metrics, Co-Sourcing & Delivery

Methodologies

• Restructured the Value Chain,

Operations, Supply Chain and

Online Marketing for

Fortune 100 companies

• Serial Entrepreneur in Online,

Services, Health Care,

Real Estate & Technology

companies – 1 Company went

public then private

• Director, Corporate Finance, M&A and

Investment Banking

@Social2B

@YtzikSocial

4

Our qualifications

• George Smith, Manager,

Social Strategy/Execution

PepsiCo

• Social Activation Leader – R/GA

• Social Media Specialist – Crocs, Inc.

• Setting Strategic Direction for social media

influencer and advocacy programs

• Subject matter expert on Social Media

topics

• Setting targets and policies for

Social Media programs and initiatives

• Writer, Blogger, Speaker

5

@GeorgeGSmithJr

Why Social Media is ‘serious

business’ in 2011

• 4 out 5 US businesses over 100 people will use Social Media Marketing in 2011(eMarketer, 2011)

• Social Media Marketing spending is increasing and Social Media Advertising (Ad spending on social media destinations) will cross $2B in 2011(eMarketer, 2011)

• 85% of Marketers indicated that Social Media Marketing generated exposure for their business („Social Media Marketing Report, 2010”)

• There are over 4,700 Social Media Jobs available in NY market area alone (Source: www.indeed.com)

6

Why Social Media is ‘serious business’

in 2011 (and beyond)

• Social Gaming to surpass $1B (eMarketer)

• Social Network Ad Revenues will grow to $3.08B in 2011 (eMarketer)

• Mobile App Store Revenues will hit $15B in 2011 (Gartner)

• 75% of SMB plan to use Social Media in 2011 (SaleSpider)

• 13% of Seniors 65+ will use Facebook in 2011 (SF Gate)

• 47% of Protestant congregations use Facebook (SF Chronicle)

• 37% of women use Facebook in the Middle East – total FB users in that region >>> 15M (Huffington Post)

• Social Networking more popular than voice, SMS by 2015 (Read Write Web)

7

Why Social Media is ‘serious

business’ in 2011

• According to The CMO Club, the Best Social Media Marketing service providers were employees – agencies were important, but internal skills and resources were of paramount importance

• Top most sought-after marketing technologies skills within marketing organizations were in social media, analytics, search optimization and integrated marketing technologies

8

Why Social Media is more than

relevant for the Enterprise in 2011

• Social Media is Media – Facebook, Twitter, YouTube, Slideshare, etc. etc.

• Social Media is now a part of SEO and SEM efforts:

• Link Building + Socialization of Content

• Traffic referral engine

• More links and traffic + More Authority and Ranking Ability

• Branding and Buzz

• Social Media Marketing is part of „Marketing and Branding‟

• Social Media is a part of the Value Chain in the Company

• Human Resources HAS TO use it

• Marketing MUST use it

• Sales CAN use it

• Customer Service SHOULD use it

9

New rules of engagement

10

New rules of engagement

11

The Sales and Marketing Funnel – Traditional

Prospect

Traditional ad & branding media

Direct & digital media

lower value

higher value

Prospects and Customers Customers

Loyalty

Cross Sell

Upsell

Purchase

Preference

Consideration

Interest

Awareness TV

Radio

Newspaper

Magazines

Outdoor

Cinema

Events

Direct Mail

Email

Search & Web

Social Media

Web 2.0

Mobile/SMS

DRTV

DR Print

CPC

Games 12

The Sales and Marketing Funnel - New

Awareness

Loyalty

Cross Sell

Upsell

Purchase

Preference

Consideration

Interest



lower value

higher value

TV

Radio

Newspaper

Magazines

Outdoor

Cinema

Events


Direct Mail

Email

Search & Web

Social Media

Web 2.0

Mobile/SMS

DRTV

DR Print

CPC

Games

Prospect

13

The Sales and Marketing Funnel – New Integrated Funnel



eRFP request

Select Partner

Research a product

Search brand

Nurture lead

Pass link

Qualify Lead

Email

$

$

View ad

Interact with ad

Social bookmark

Write a review

Rate a Product

Click email

Register account

Blog entry

Register account

Transact

View Facebook

M commerce

Info request

Close lead

lower value

higher value

TV

Radio

Newspaper

Magazines

Outdoor

Cinema

Events


Direct Mail

Email

Search & Web

Social Media

Web 2.0

Mobile/SMS

DRTV

DR Print

CPC

Games

Prospect

14

Traditional Metrics versus Online/Social Media Metrics

• Audience Reach

• Gross Ratings Points (Gross

Impressions divided by

population reached)

• Frequency

• Effective Reach (Population

reached by the ad at a

particular frequency, divided

by number of people in

universe)

15


• Click-Thru Rate (CTR)

• Conversion Rate

• Unique Visitors

• Cost per unique visitor

(placement or

application/unique visitors)

• Page Views (Facebook, etc.)

• Visits (UGC/Social Media)

• Return Visits

• Interaction Rate

• Time spent (section,

microsite, community)

16


• Video or App installs

• Relevant re-action taken by

User

> Friend / Follow / Tag /

Connect

> Contests

> Votes / Surveys

> Comments

> #of groups or fans

> Shares (reposts, retweets,

etc.)

• Payment Models

PPC

PPL

PPS

Hybrid Model

17


Traditional measurement:

Marketing Investment = $30,000

# of Leads Generated = 1000

Cost per Lead = $30

Social Media Measurement:

SM resource x (Blog Comments +

Conversations + LinkedIn +

Twitter + Facebook) x Time =

ROI Success (Brand value,

prospect data, greater

conversions)

18

Do you know which Metrics are Right for you?

Q: Which of these is best? How do you know?

• 1,000,000 one-time, unregistered unique visitors

• 500,000 visitors who view 2+ pages / stay 10+ sec

• 200,000 visitors who clicked on a link or button

• 20,000 registered users w/ email address

• 2,000 passionate fans who refer 5+ users / mo.

• 1,000 monthly subscribers @ $35/mo

the

good

stuff.

Courtesy: Dave McClure, Master of 500 Hats 19

Traditional media measurement

deals with what you aired…

…social media measurement

deals with what actually

happened!

Vs.

Traditional vs. Social Media

20

The Rules of Social Media Metrics

1. As much an Art as a Science

2. It keeps changing!

3. It‟s the basis on which future Brands are to be built

4. A few active participants are better than many eyeballs

5. Measurement depends on the Enterprise‟s Value Chain perspective

6. Social Media metrics trump traditional stats

7. Must convert SM metrics to Enterprise ROI

8. 1 +1 = 3 – Social Media Measurement is multi-variate

9. Those who “measure” social media are NOT those who “manage” social media

10. Who pays for Social Media? The entire C-level suite!

21

The Rules of Social Media Metrics

1. Key Performance Indicators (KPI) may vary for each industry

2. Every Enterprise has different ROI drivers

3. Each component in the Enterprise value Chain has different KPI drivers

4. KPI‟s keep changing, as business goals do

5. The Enterprise has to scale SM or be left behind

6. You have to sell to the C-level suite – get used to it!

7. There is no one right way to Track, Measure & Report – find YOUR way!

8. Assumptions driving KPIs – make them up (but be smart!)

9. Must have a Web Architectural strategy

22

Social Media Metrics Building Blocks

23

Reach – how far does it travel?

Relevance – does it support your intended

direction?

Influence – who shares and passes along with

who?

Authority – how trusted is the source?

Engagement – how involved do they get?

Interaction – do they do anything with it?

Velocity – how fast does it travel?

Attention – how much time do they spend with it?

Sentiment – how positive are they?

Net Promoter – are they recommending you?

The Brave New World of Social Media Metrics

1. Qualitative: Usability Testing / Session Monitoring

• Conversation Share, Brand Perception, Engagement, Tone of

dialogue, Relationship, Loyalty, Watch users, guess problems &

solutions from small # of users

2. Quantitative: Traffic Analysis / User Engagement

• Installs, membership, Market Share, Sales, Rankings, Track

users, usage, conv %'s for empirical sample # of users

3. Comparative: A/B, Multivariate Testing

• Compare what users do in one scenario vs another

• Measure which copy/graphics/UI are most effective

4. Competitive: Monitoring & Tracking Competitors

• Track competitor activity & compare against yours (if possible)

• Compare channels, keyword traffic, demographics, user sat, etc.

Courtesy: Dave McClure, Master of 500 Hats 24

The Brave New World of Social Media Metrics, cont.

1. Conversion Criteria:

• best-performing (%) channels / campaigns / copy

• largest-volume (#) channels / campaigns / copy

• lowest-cost ($) channels / campaigns / copy

• Registrations, installs, etc.

2. Measurement Components:

• Audience Segment (young women, regional metro, older singles)

• Channel Source (social network, SEM, organic, PR, etc)

• Campaign Theme / Brand Promise (“find a job”, “learn to cook”)

• Landing Page & CTA

• Authority ranking, influence, velocity,

• Comments per post, reTweets, WOM Influence

25

The Brave New World of Social Media Metrics, cont.

Marketing Plan = Target Customer Acquisition Channels

• 3 Important Factors = Volume (#), Cost ($), Conversion (%)

• Measure conversion to target customer actions

• Test audience segments, campaign themes, Call-To-Action (CTAs)

[Gradually] Match Channel Costs => Revenue Potential

• Increase Vol. & Conversion, Decrease Cost, Optimize for Revenue

Potential

• Avg Txn Value (ATV), Ann Rev Per User (ARPU), Cust Lifetime

Value (CLV)

• Design channels that cost <20-50% of target ATV, ARPU, or CLV

26

Social Media Enterprise Scalability

• Exposure

• Engagement

• Influence

• Action

• ROI

27

• Exposure

• Unique Visitors

• Page Views

• Search Engine Rankings

• Sentiment

• Message Inclusion

• Share of Online Discussion

• Net Positive Comments

• GetSatisfaction – customer service application

• Google Alerts with Keywords – easy and free monitoring

• Hootsuite, Butterfly Publisher – Twitter Management

• KnowEm – reputation management service

• PitchEngline – PR ‘social pitch’ platform

• Social Mention – free, social monitoring tool

• Radian6 – expensive monitoring tool

• Raven Tools – SEO, SERP and SM stats

• Trackur – free, quick and easy monitoring

• Trst.me – PageRank for Twitter Profiles

• Twitalyzer – elaborate Twitter profile analysis

28


• Engagement

• Click-thru‟s

• Repeat Visits

• Time on Visit

• Subscribe to Feeds

• Comment on posts

• Retweet / @replies

• Message recall

• Floaters on page

• Facebook Community Building

• Custom apps and widgets

• Twitter Engagement (Tweetups, lists, hashtags, etc.)

• RSS Feeds

• Google Analytics (support and monitoring)

• TweetDeck

29


• Influence

• Change in Awareness

• Change in Attitude

• Purchase Consideration

• Association with Brand

• Likelihood they will recommend to a friend

• Monitoring tools

• Comments

• Klout

• PostRank

• Google Insight

• KnowEm – reputation management service

• PitchEngline – PR ‘social pitch’ platform

30


• Action

• Visit the store

• Attend an event

• Tell a friend

• Contact the company

• Purchase the product

• Donate

• Volunteer

• eCommerce Tools

• Customer Satisfaction Dashboard

• Twitter

• Integrated CRM

31


• ROI

• Return on Investment

• Return on Ignoring

• Return on Influence

• Social capital

• Brand Equity

• Market Share or “Influence over large numbers”

• Loyalty

• AutoShip

• Relationship Management

• CRM

• Enterprise Platform

• Integrated Financials

• Social media performance tools

32


Why is the Enterprise different?

The Enterprise

The

Individual or

the Business

33

The problem

34

• Every component of the Enterprise Value Chain may be Social!

• Each has it‟s own KPI‟s and assumptions

• Every Enterprise / Industry is different

35

The Enterprise Value Chain

The Enterprise Social Value Chain

• Every department in the company

has a Social Value Chain Index

• The external world directly impacts

each department

• Every business processes has a

Social Media impact

• Cross-departmental inter-

dependencies exist

• Social Media by department finds its

community & resources organically

• New strategic alliances (internal &

external) and improved operations

occur based on efficient Social

communities interacting

36

Social Value Chain - Analysis

Company

Sales

Customer Service

Finance

HR

Manufacturing

Logistics

Legal

Procurement

QA

Marketing

Administration

• Proprietary Social2B Social Value Chain Analysis

• Map operational departments to their respective Social Communities

• Establish the Social Value Chain Maturity and Scalability Index rating

by department

• Map cross-departmental Social value

• Implement internal, external & B2B Social linkages

• Link the SVCMI to Budget, KPIs, ROI of the Enterprise

37

37

Social Media Scalability Approach

The Social Media Enterprise Strategy Blueprint

Strategy / Assessment

Brand & Content

Establish Enterprise

Metrics

Map to Scorecard

Monitor & Manage

Campaign Brand

Analysis Community

Ongoing Social Media

Enterprise Scalability

Roadmap

38

The Balanced Scorecard

as an Enterprise Roadmap

• Departmental

• Line-of-

Business

• Geographical

• Project

• Maps directly

to the Value

Chain

39


Company

Sales

Customer Service

Finance

HR

Manufacturing

Logistics

Legal

Procurement

QA

Marketing

Administration

0102030405060708090

100Sales

Customer Service

Finance

HR

Manufacturing

LogisticsLegal

Procurement

QA

Marketing

Administration

Twitter

Facebook

B2B Network

SocNet

Customer Service

Soc Campaign

Soc Analytics

• How do we drill down into the Enterprise

Value Chain and establish Social Value

Chain Maturity & Scalability?

40

40

0102030405060708090

100Sales

Customer Service

Finance

HR

Manufacturing

LogisticsLegal

Procurement

QA

Marketing

Administration

Twitter

Facebook

B2B Network

SocNet

Customer Service

Soc Campaign

Soc Analytics

Social Media

• Social profiles, Audience engagement, conversion

• Community building

• Branding & PR

• Sales Support

Marketing outcomes:

Customers, leads, sales, service contacts, conversion, retention, winback and response efficiencies. Acquisition cost, Avg. order, Avg. profit, Lifetime Value.

41


41

Company

Sales

Customer Service

Finance

HR

Manufacturing

Logistics

Legal

Procurement

QA

Marketing

Administration

Company

Sales

Customer Service

Finance

HR

Manufacturing

Logistics

Legal

Procurement

QA

Marketing

Administration

0102030405060708090

100Sales

Customer Service

Finance

HR

Manufacturing

LogisticsLegal

Procurement

QA

Marketing

Administration

Twitter

Facebook

B2B Network

SocNet

Customer Service

Soc Campaign

Soc Analytics

Social Media

• Reputation management

• Customer notices

• Customer Service

Customer satisfaction:

Usability, performance/availability, recommendation behavior. Opinions, attitudes, reasons for defection, brand impact and churn.

42


42

Company

Sales

Customer Service

Finance

HR

Manufacturing

Logistics

Legal

Procurement

QA

Marketing

Administration

0102030405060708090

100Sales

Customer Service

Finance

HR

Manufacturing

LogisticsLegal

Procurement

QA

Marketing

Administration

Twitter

Facebook

B2B Network

SocNet

Customer Service

Soc Campaign

Soc Analytics

Social Media

• Talent acquisition

• Research

• Community building (former & future employees!)

HR Channel promotion:

Talent Attraction efficiency. Vendor Referrer efficiency, cost of Payroll, Benefits administration

43


43

44


Methodology

• Craft a Scalability Methodology

• Industry-proven tools & methods Balanced Scorecard

Porter‟s Value Chain Model


In Practice

Enterprise Goals

Business Objectives

Measures of Success

Operational Tactics The following framework slides, courtesy:

45

46

Social Media Goals,

linked to Enterprise Goals …

47

...then to Objectives

48

...then to Measures of Success

… and Finally the Execution Plan

49

A Social Media Example...

•Goal

• Objective

• Measures

• Tactics

50

Driving Engagement

51

Engagement Requires…

• Building awareness by initiating Real Conversations

with Real People!

• Engaging with individuals to determine their response to

ideas, thoughts, products and activities generated by the

Enterprise

• Getting their ideas, suggestions, likes, dislikes, content,

etc.

• Responding to individuals on behalf of the brand through

genuine interactions

Foster Dialog

Conversa- tion

Reach

Audience Engage-

ment Share of

Voice

Granular Metrics

52

Engagement KPIs in action

• Share of Voice:

• Audience Engagement:

• Conversation Reach:

53

If This Was Nike...

Share of

Voice

Conversation

Reach

Audience

Engagement

54

55

Advocacy

Another Social Media Example...

• Encouraging word of mouth activity by

promoting and endorsing

conversations shared by individuals

• Developing relationships with

individuals who have an affinity

towards the brand

• Nurturing existing relationships with

customers as a proven method of

building advocacy within an

easily identified segment

55

Promote Advocacy

Advocacy Impact

Advocate Influence

Active Advocates

Gra

nu

lar M

etric

s

56

Advocacy KPIs in action

• Active Advocates:

• Advocate Influence:

• Advocacy Impact:

57

If This Was The National Breast Cancer

Awareness Foundation...

Active

Advocates

Advocacy

Impact

Advocate

Influence

58

Support Goes Social

59

Support Requires…

• Resolving service issues through social media

channels via direct company response and

crowd-sourcing alternatives

• See “140 Ways to Use Twitter for Customer

Service” (Social2B SlideShare)

• Expediting issue resolution with quality and

integrity

• Elevate satisfaction through flexible support

options

60

Facilitate Support

Resolution Time

Satisfaction Score

Resolution Rate

Granular Metrics

61

Support KPIs in action

• Social Media Issue Resolution Rate:

• Resolution Time:

• Customer Satisfaction Score:

62

If This Was Best Buy...

Issue

Resolution

Rate

Satisfaction

Score

Resolution

Time

63

Enterprise Social Value Chain ROI

Map SVC to a Balanced Scorecard

• Use the Enterprise‟s Scorecard or Business Goals

• Every component of the Value Chain is Social!

• Each has it‟s own KPI‟s, assumptions, metrics and measurements

64

Enterprise Social Value Chain ROI

Map SVC to ROI – How does it work (Support)?

1. Define the Social Media Campaign for

Customer Service Resolution

2. Solve for the KPI & projections

3. Apply Enterprise Scorecard parameters,

categories

4. Solve for risk, Enterprise cost, growth, etc.

5. Map to Social Media campaign cost

6. Solve for reduction in Enterprise costs thru SM

7. Shift $$$ to Social Media !!!

65

CS Resolution Cost

Total CS Budget

SM Customer Support Budget & New campaigns

Reduction in Enterprise Customer Support cost

Socialize to KPIs to ROIs

In Summary …

Specific Social Media Channels Are Secondary to:

Strategy – Tactics - Execution

Roadmap (read, Methodology) to follow

Configure your own Metrics

Link them to the Enterprise‟s (Scorecard, EVA, etc.)

Re-Define your Metrics, Goals & Market assumptions as

needed

Measure KsmPI‟s constantly (build an Enterprise Dashboard)!

Find your audience, wherever they may be

Engage Real Conversations with Real People!

Recognize influence above the noise

Promote advocacy and leverage your reach

Think Brand & Influence

Always convert to an Enterprise Metric (not a SM one!) 66

Socialize to KPIs to ROIs

In Summary …

• C-level Suite Roadmap:

– Compass Management

– Define who owns the Web & SM (every CxO does!)

– Identify the Enterprise‟s Value Chain components

– Understand the Enterprise‟s Financial Scorecard

• Resources

– #1 – Analytics

• Social Media

– Think in terms of Campaigns

• Online Architecture

– Web architecture

– Social Media platform

– SM Profiles

• Tools

– Too many to mention – get a Toolbox with Power Tools!

67

Some of the tactical, technical

and proactive steps – Social News Room

• PR and Social Media Strategies

• Build a PR 2.0 News Room

• Blogs, RSS Feeds, webinars, podcasts and social profiles

• Optimize all content

• Releases, FAQs, backgrounders, articles, blog posts

• Syndicate press releases and articles

• Integrate Metrics and Measurements

• URLs, tracking samples, unique #800, promo codes

• Augment Social Media with targeted PPCs

Some of the tactical, technical

and proactive steps

• Emergency Procedures – Panic Button Approach

• Red Cross Study – one in every five web users turn to Social Media in case of emergency

• In the event of website or blog „denial of service‟ – use social media (Basecamp as a recent example)

• Instant communication – response time is crucial

Top 10 questions to ask yourself

before you get out to ‘Scale’

• Is my organization and my executive management team ready for Social Media Marketing and Branding?

• Does everyone treat Social Media as a strategic effort or as an offshoot of marketing or PR/Communications?

• Where in the organization will Social Media reside?

• Will I be able to allocate sufficient budget to Social Media efforts in our company?

• How will Social Media discipline be aligned with HR, Technology, Customer Service, Sales, etc.?

• What tools and technologies will I need to implement SM campaigns?

• Will „social‟ also include „mobile‟?

• How will we integrated SM marketing campaigns with existing, more „traditional‟ marketing efforts?

• How much organizational training will we need to implement in integrating „social‟ within our Enterprise?

• Are we going to use „social‟ for advertising and PR/Communications? What about „disaster recovery‟ and „reputation management‟?

Are you ready to SCALE!?

[email protected]

@social2B

www.social2b.com

+1-212-658-9744

mailto:[email protected]

http://www.social2b.com/

Social Media Week Presentation from Social2B - Metrics, Measurements and Scalability

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Transcript of Social Media Week Presentation from Social2B - Metrics, Measurements and Scalability