Social Marketing Analytics A New Framework for Measuring Results in Social Media

A Joint Research Presentation With:

SOCIAL MARKETING ANALYTICS: A New Framework for Measuring Results in Social Media

@johnlovett @jowyang#SocialAnalytics

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About This Research

• A Collaborative Effort

• Our Methodology

• A Nod To Open Research

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Special Thanks To...

• Our co-authors– Charlene Li, Eric T. Peterson, Christine Tran

• Our Ecosystem Contributors– Lisa Barone, Connie Benson, David Berkowitz, Blake Cahill, Adam

Coomes, Monica Cordina, Bill Gassman, Jascha Kaykas-Wolff, Rob Key, Justin Kistner, Scott Lake, Matt Langie, Alex Mann, Louis Marascio, John McCory, Aaron Neumann, Katie Delahaye Paine, Sean Power, Chris Ramsey, Boaz Ronkin, Shiv Singh, R “Ray” Wang, Alan Webber, Jennifer Zeszut

– Alterian SM2, Biz360, Cymfony, Lithium, Omniture, Radian6, Scout Labs, Social Radar StatsIT, SWIX, Trackur, Trendrr, LugIron, Visible Technologies, Webtrends

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The conversation has shifted off domain

Source: Pew Resource Center’s Internet and American Life Project , October 8, 2009

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Facebook is the second biggest site in US

Source: : Compete.com , January 2010

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50 million tweets a day on Twitter

Source: Twitter, February 22, 2010

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companies are confused

Source: http://www.engagementdb.com

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The Big Social Experiment

• Many companies are stumbling blindly into social media marketing without a measurement strategy in place

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The Numbers are Telling…

• “While 2009 may have been a “trial” run for many brands and social media, in 2010, CMOs expect social initiatives to directly impact their bottom lines, without exception.”

• “CMOs reported that 64% of them would increase their social media budgets within the next year.”

• In 2009, 89% of CMOs tracked social media's impact by using standard metrics such as site traffic, pageviews, and number of fans. Source: BazaarVoice “CMOs Plan for Higher Social Media Measurability in

2010” December 8, 2009

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...Still Marketers are Perplexed

• Social media vendors and platforms are proliferating at an astounding rate

• Solutions exist for every channel

• A multitude of choice creates confusion

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The Big Payoff is Elusive

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The Marketing Funnel

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• The vast majority of businesses tracking social media today are using

the wrong metrics!

• It’s time for a new Social Media Measurement standard.

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Introducing...

• Social Marketing Analytics is the discipline that helps companies measure, assess and explain the performance of social media initiatives in the context of specific business objectives.

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The Discipline Includes a Framework

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Begin with an Inside-Out Strategy

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The SMA Strategy In Practice

Corporate Goals

Business Objectives

Measures of Success

Operational Tactics

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The SMA Strategy: Goals

• Corporate Goals = Vision

• Understand, embrace & support• Socialize goals widely• Leverage motivating factors

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The SMA Strategy: Objectives

• Business Objectives = Strategy

• Foster Dialog• Promote Advocacy• Facilitate Support• Spur Innovation

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The SMA Strategy: Measures

•Measures of Success =

Management

• Key Performance Indicators…• Provide context• Set expectations• Mandate actions

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The SMA Strategy: Tactics

•Operational Tactics =

Execution

• Specific campaigns• Channel preferences• Closed loop feedback

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Use a Measurement Framework

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Marketers Need A Framework

• A pragmatic approach using metrics derived from sound business objectives

• Minimizes confusion about the value of social marketing efforts

• And delivers tangible results

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The Framework Begins with Goals

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...From Goals Stem Objectives

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...Then Measures of Success

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And Finally Execution

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A Social Marketing Example...

•Goal

• Objective

• Measures

• Tactics

Driving Consideration

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DIALOG Trumps Sponsorship

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Dialog Requires…

• Building awareness by initiating the conversation

• Engaging with individuals to determine their response to ideas, thoughts, products and activities generated by the organization

• Responding to individuals on behalf of the brand through genuine interactions

Foster Dialog

Conversa- tion Reach

Audience Engage-

mentShare of

Voice

Strategy

Managem

entExecution

Granular Metrics

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Dialog KPIs in action• Share of Voice:

• Audience Engagement:

• Conversation Reach:

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If I Were At Nike...

Share of Voice

Conversation Reach

Audience Engageme

nt

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Advocacy in a Social World

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Advocacy Requires…

• 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

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Promote Advocac

y

Advocacy Impact

Advocate Influence

Active Advocate

s

Gra

nu

lar M

etrics

Strat

egy

Man

agem

ent

Exec

ution

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Advocacy KPIs in action• Active Advocates:

• Advocate Influence:

• Advocacy Impact:

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If I Were At The National Breast Cancer Awareness Foundation...

Active Advocate

s

Advocacy Impact

Advocate Influence

Support Goes Social

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Support Requires…

• Resolving service issues through social media channels via direct company response and crowd-sourcing alternatives

• Expediting issue resolution with quality and integrity

• Elevate satisfaction through flexible support options

Facilitate

Support

Resolution Time

Satisfaction Score

Resolution Rate

Granular Metrics

StrategyManagem

ent

Execution

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Support kpis in action• Social Media Issue Resolution Rate:

• Resolution Time:

• Customer Satisfaction Score:

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If I Were At Best Buy...

Issue Resolutio

n Rate

Satisfaction Score

Resolution Time

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Crowdsourcing innovation

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Innovation Requires…• Gathering customer insights via social media

channels with a clear mission of identifying market needs and service opportunities

• Processing ideas and community feedback as a means to drive products and services requires receptive product managers

• Delivering new products and services to the market with credit and acknowledgement to customers

Spur Innovatio

n

Topic Trends

Sentiment Ratio

Idea Impact

Strategy

Managem

entExecution

Gra

nu

lar

Metr

ics

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innovation kpis in action• Topic Trends:

• Sentiment Ratio:

• Idea Impact:

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If I Were At Dell...

Topic Trends

Idea Impact

Sentiment Rate

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The Framework Is a Process

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What about the Vendors???

Business Objective

Key Performance Indicator

Vendors to Watch

Foster Dialog

Share of VoiceAlterian SM2, Radian6, Scout Labs, Statsit, Trendrr, Visible Technologies

Audience EngagementCoremetrics, Webtrends, Radian6, Scout Labs, Converseon, Filtrbox (Jive), Visible Technologies

Conversation ReachAlterian SM2, Radian6, Scout Labs, Social Radar, Statsit, SWIX, Trendrr, Visible Technologies

Promote Advocacy

Active Advocates Biz360, Filtrbox (Jive), Radian6

Advocate InfluenceCymfony, Filtrbox (Jive), Radian6, Razorfish (SIM Score), Telligent, Twitalyzer, Visible Technologies

Advocacy ImpactCoremetrics, Omniture, Webtrends, SWIX, Telligent

Facilitate Support

Resolution RateFiltrbox (Jive), RightNow Technologies, Salesforce.com, Telligent

Resolution TimeFiltrbox (Jive), RightNow Technologies, Salesforce.com, Telligent

Satisfaction ScoreForeSee Results, iPerceptions, Kampyle, OpinionLab

Spur Innovation

Topic TrendsAlterian SM2, Cymfony, Filtrbox (Jive), Radian6, Scout Labs, Social Mention, Social Radar, Trendrr, Visible Technologies

Sentiment RatioAlterian SM2, Converseon, Cymfony, Filtrbox (Jive), Radian6, Scout Labs, Social Radar, Trendrr, Visible Technologies

Idea ImpactBiz360, Cymfony, Filtrbox (Jive), LugIron, Radian6, Scout Labs, Visible Technologies

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Vendors Are A Mandatory Component

• The perfect social media measurement vendor does not exist

• Existing vendors shine at listening, sentiment and trending conversations

• Technologies can facilitate data collection in diverse social media, but there are no silver bullets

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What about the Channels???

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Specific Channels Are Secondary to Strategy

• Find your audience, wherever they may be

• Recognize influence above the noise

• Promote advocacy and leverage your people

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A New Social Media Measurement Playbook is Mandatory• Measure based on specific business

objectives

• Use Key Performance Indicators to Become a Measurement Hero

• Adopt the Social Marketing Analytics Framework and make it your own

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Your Prescription For Measurement

1. Follow the process: Vision>Objectives>Measurement>Tactics

2. Know that not all channels are equal

3. Define requirements first; then select vendors

4. Develop your social media measurement playbook

5. Make our measurement framework your own

DON’T BE THIS GUY, OKAY?DON’T BE THIS GUY, OKAY?

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Want to Learn More?

Questions?