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Keynote: How to Think About Giving Attribution to the Contribution Of Social Media Monitoring to Your Business
The document discusses the challenges and methods of calculating the return on investment (ROI) of social media efforts, highlighting common myths and misconceptions about ROI measurement. It emphasizes the importance of understanding social media analytics and offers case studies to illustrate how social media can impact business insights and decision-making. The presentation aims to equip marketers and business professionals with the tools and knowledge necessary to derive value from social media metrics.
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Keynote: How to Think About Giving Attribution to the Contribution Of Social Media Monitoring to Your Business
- 1. By Dr.Natalie Petouhoff @drnatalie www.drnatalienews.com/blog Real Social Media Monitoring Case Studies Demystifying the ROI of Social Media
- 2. This presenta,on is about how to set-‐up a measurement programs to calculate the value ROI of Social Media And get more business value out of social media…. If you’d like help… Contact Dr. Natalie Petouhoff www.DrNatalieNews.com @drnatalie
- 3. 3 Agenda • Look at ROIMyths • Set-up a social media measurement program • Calculate business impact & ROI @drnatalie
- 4. • Learning is the desire to discover new things We are amazed by new things… @drnatalie
- 5. • @drnatalie It’s the new shiny object And Social Media? @drnatalie
- 6. But the amountof information – can feel like an insurmountable blur @drnatalie
- 7. It can generallybe useless @drnatalie
- 8. Today’s goal isto… Provide… • Marketers • Brand Managers • Product Managers • Consumer Insights Teams & • Market Research Professionals w An understanding of the benefits of: • Having deep, real-time insights • Using insights to make business decisions & • Being able to be an invaluable resource to CEO- suite@drnatalie
- 9. ssss To TAKE THE CHAOS TO ORDER Usingcontext @drnatalie
- 10. 10 Business As Usual Executiveswant to know what the business value of social media is @drnatalie
- 11. WHERE ARE WE WITH RESPECT TO BEING ABLE TO CALCULATE ROI OF SOCIAL MEDIA? Most marketers indicate social media measurement is a high priority & 48% feel pressure to report qualified outcomes of social media.
- 12. Less than 20% of marketers can calculate the ROI of Social Media MARKETERS ARE UNSURE HOW TO CALCULATE SOCIAL MEDIA ROI
- 13. Some brands forge new ground by ac,vely making social media part of their cultural DNA. SOCIAL IS JUST IN SOME BRANDS’ BLOOD OTHERS WANT PROOF BEFORE THEY TAKE THE LEAP
- 14. SOCIAL MEDIA ADOPTION HAPPENED QUICKLY Companies jumped into social media without extensive ROI calculaRons There wasn’t any real business analysis. It happened because the boss said so, or because a social media PR disaster could cost much more. Examples:
- 15. ARE YOUR SOCIAL MEDIA EFFORTS WORTH THE MONEY? Jus,fying the business case for listening & engaging on social media is a BIG ques,on.
- 16. BUT IS CALCULATING SOCIAL MEDIA ROI EVEN POSSIBLE? Skep,cs think social media is too “fluffy” to adequately measure return on investment (ROI)
- 17. Misconceptions of ROI • That’sfunny • But ROI is not obvious to everyone • And your boss would like a number @drnatalie You may have heard… “Would you calculate the ROI of your mom or your pants? Then why would you calculate the ROI of social media? It’s obvious!” http://www.flowtown.com/blog/what-is-the-roi-of-your-mom @drnatalie
- 18. Social Media Myth #1 “Social media ROI cannot be calculated because there are too many unknowns…”
- 19. Social business is s,ll business… …and the business of business is increasing shareholder value. TRUTH IS…
- 20. WHAT IS ROI? A NUMERICAL VIEW OF STRATEGY And high ROI means execu,ve approval for your ini,a,ve.
- 21. Enhanced Brand protec,on… BeXer Consumer Insights… Faster lead genera,on/ increased lead conversion rates Reaching PR objec,ves faster, beXer, cheaper… Increased awareness, reach, relevance, engagement… Reduc,on in call center costs/ increase in customer revenue Decrease in customer churn/ inc customer life,me value DOES YOUR STRATEGY INCLUDE BUSINESS FUNDAMENTALS LIKE COST SAVINGS & REVENUE GENERATION… If your strategy includes… Social media ROI predicts if you’ll reach the goal…
- 22. Social Media Myth #2 “Would you calculate the ROI of pu^ng phones on every desk in your company? smROI doesn’t have to calculated! ”
- 23. Except businesses do… Evaluate produc,vity benefits vs. costs. And also the systems needed to support the business ac,vi,es. HMMM….
- 24. TRUTH IS… There was a day when… Secretaries answered the phones and typed EVERYTHING for workers. Along came phone switches and desktop computers… Someone did ROI calcula,ons for: Ge^ng a company-‐wide phone switch and phones on every desk top. (Ask Nortel and Avaya…) And a computer on every desk. And apps to get your work done -‐-‐ like email, word processing programs.
- 25. Social Media Myth #3 Metrics = ROI
- 26. KNOW WHAT ROI IS AND ISN’T Many people mistake social media data, metrics and Key Performance Indicators (KPIs) for ROI Metrics are used to measure: Reach, Relevance, Shares, Likes, Engagement, Purchases But that’s NOT ROI
- 27. COLLECT SOCIAL MEDIA DATA, METRICS & KPIS Website analy,cs and marke,ng automa,on data help provide insight into what you’re doing right & how you can improve.
- 28. TRUTH IS… Metrics are the like ingredients in a good recipe. They go into the ROI calcula,on, but they aren’t the finished dish.
- 29. Misconceptions of ROI… There’s achange in metrics!! • We have 500 more “Likes” • 10X click-thru rate on “Buy Now” button • $5M in annual support savings & sales advocacy • Viral videos increased company sales +700% • Social microsites secured 1,000,000 fans and a 10% increase in same-store sales E I have an ROI!! e Note to self: Metrics are necessary… But they are not ROI @drnatalie
- 30. ROI VS. METRICS Ac,vity Metrics # of: News Releases Media Interviews Analyst Briefings Blogger Engagements Blog Posts Video Posts Podcasts Web Site Page Edits Reach Metrics # of: Earned Media Placements Earned Media Impressions Paid Media Impressions News Release Downloads Analyst Report Men,ons Relevance Metrics # of: Key Message Penetra,on Earned Media Share Share of Conversa,on Word of Mouth Volume Click-‐Through Volume / Rate Return on Investment • Earned Media Value vs. Marke,ng Spend • Lead Value vs. Marke,ng Spend • Brand Equity Growth vs. PR Spend • Focus group vs. Social Media Monitoring or Community
- 31. ROI IS LIKE LOOKING AT AN ESCHER DRAWING It’s a complexity issue • Tradi,onal business goals & metrics • Social media business goals and metrics • How social media affects tradi,onal business
- 32. Myth #4 “ROI istoo difficult because I’m not a “math” person.” @drnatalie
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- 34. Analyzed online conversations: • Theirbrand • Key competitor Ran nat’l ad campaigns & wants to understand: • Effectiveness of messages and • Drivers of consumer purchase intent Case Study: Major Insurer Advertising Effectiveness & Competitor Evaluation @drnatalie
- 35. Insurer Ad Effectiveness • Insurer’sad campaign is liked • Didn’t generate conversation about buying or switching insurers @drnatalie
- 36. Insurer Ad Effectiveness • Insurer’sad campaign is liked • Didn’t generate conversation about buying or switching insurers • Competitor ad campaign is more divisive @drnatalie
- 37. Insurer Ad Effectiveness • Insurer’sad campaign is liked • Didn’t generate conversation about buying or switching insurers • But spurs a conversation trend related to purchasing • Competitor ad campaign is more divisive @drnatalie
- 38. Conclusion of socialmedia monitoring • Both campaigns generate healthy “buzz” • But positive sentiment doesn’t reflect intent to purchase • Using context avoids misinterpreting positive sentiment for a social buying gesture- intent to purchase @drnatalie
- 39. ROI of socialmedia monitoring ROI = Benefits - Costs x 100 = Percentage Return on the Investment Costs What is the cost? • People- to do the analysis • Process- process to compile the information • Technology- social media monitoring tool What is the benefit? • If the commercial drove sales? • Number of leads? • What is a lead worth? • Number of lead conversions? • What’s a sale worth? @drnatalie
- 40. Case Study: Craft Company ProductDevelopment & Marketing Wants to understand: • What topics dominate craft-related conversations? • Is marketing having the desired effect? • What’s lacking in the product line and accessories? @drnatalie cccccccccc
- 41. Identified New ProductOpportunities Discovered opportunity to develop more male-centric product line & accessories Consumers’ expressed strong desire for: • More & better supplies & accessories • Improved access to purchase those accessories @drnatalie
- 42. • In-house Research • Quickly and cost effectively identifies new product & market opportunities • Prompts development of new product accessories • Enables additional sales • Expands market share • Marketing • Gained increased confidence leveraging social-media • Confirmed effectiveness of current messaging and promotional approach Conclusions of social media monitoring @drnatalie
- 43. ROI of socialmedia monitoring ROI = Benefits - Costs x 100 = Percentage Return on the Investment Costs What is the cost? • People- to do the analysis • Process- process to compile the information • Technology- social media monitoring tool What is the benefit? • What does it cost the company to go to market with a product that isn’t what customers really wanted? • What would this type of market research normally cost the company? • How long would it normally take to get that kind of feedback? What’s the general cost for product dev to launch a product? • What’s the value of finding a new product to provide their market? • What was the value in revenue of the new products/ accessories? • What’s the value of key messaging that works? Higher lead conversa,on rate? @drnatalie
- 44. Case Study: Medical Devicefor Diabetes & Insulin Product Launch Marketing • What core messages will resonate most with these consumers? • How do patients discuss the complexities of treatment & control? • What is the significance for the new product launches? Wants to understand diabetes & insulin: @drnatalie
- 45. Lifestyle Consumers’ Concerns Top Conversations Lifestyle Treatment Success Support Device comments? LOWER @drnatalie
- 46. Opportunity for brandto: • Get more engaged • Become trusted-partner • Create a online Community for • Advice • Recommendations • Shared-support Conclusions of social media monitoring @drnatalie
- 47. ROI of social media monitoring ROI = Benefits -‐ Costs x 100 = Percentage Return on the Investment Costs What is the benefit? • What’s the value in knowing what to put the emphasis of content online? • I.e.., to create an editorial calendar that has content that specifically addresses why people might not use their medicine • And which means that don’t feel as well and they don’t live as long or buy the medicine-‐ which affects sales • What is the value of becoming a trusted resource for pa,ent concerns? Enhanced brand trust? • Did the online community: • Deflect any calls to the call center? • Increase the efficiency or effec,veness of the calls? • Did the company use the content in the community to update their FAQs or knowledge base which helped self-‐service? What is the cost? • People- to do the analysis • Process- process to compile the information • Technology- social media monitoring tool @drnatalie
- 48. Case Study: Healthy Snacking& Kids Campaign Planning: Product Launch & Marketing Wanted to know the nature of online conversations: • Concerns parents have providing kids a healthy diet • What factors drive purchase decisions and habits? @drnatalie
- 49. “Healthy” in KidsSnack Foods: More Effectively Resonate with Consumers NutriRon Allergies Top Conversations Convenience Taste Not as High @drnatalie
- 50. Opportunities for Brand: • Better launch messaging • Product packaging • On-going campaign messaging Conclusions of social media monitoring @drnatalie
- 51. ROI of social media ROI = Benefits -‐ Costs x 100 = Percentage Return on the Investment Costs What is the benefit? • What’s the cost of market research? • Focus group of 12 people = 15K • How many would you need to do to get the same volume of content? • 12 x $15K = $180,000 • What’s the value of targe,ng the message for a campaign? • What’s the value of being able to run an AB test of taste vs. allergies to see which one really gets the most responses? ROI of social media monitoring ROI = Benefits -‐ Costs x 100 = Percentage Return on the Investment Costs What is the cost? • People- to do the analysis • Process- process to compile the information • Technology- social media monitoring tool @drnatalie
- 52. How to Set-upA Social Media Measurement Program 6. Hone the analysis / teach the system 7. Analyze the information 8. Create appealing presentation of data 9. Present information to stakeholders 10. Take action on the data & repeat! @drnatalie How to Mone,ze Facebook With Social Commerce By Dr. Natalie 1. Get executive buy-in & support 2. Choose Staff 3. Determine your business goals • Product Development • Product Launch • Product Marketing… 4. Choose a social media monitoring system 5. Start listening to online conversations
- 53. Wayne St. Amand VicePresident, Marketing
- 54. SOCIAL MEDIA ISEVERYWHERE, AND EVERYONE IS USING IT. WE ANSWER THE QUESTIONS.
- 55. 1.75 BILLION POSTS PERWEEK 100+ BILLION POSTS TO DATE 250+ MILLION POSTS PER DAY
- 56. MASSIVE OPPORTUNITY NOT FULLYLEVERAGED BY MOST • Social media is the largest source of unfiltered information ever available about how consumers truly think and feel • The vast majority of companies have yet to take advantage of this intelligence to influence their business decisions Achieving Social Intelligence The management and analysis of customer data from social sources, used to activate and recalibrate marketing and business programs.
- 57. SOCIAL INTELLIGENCE CREATESACTIONABLE INSIGHTS True Social Intelligence Delivers • Consumer insights to drive business success – Greater marketing effectiveness – On-target product planning – Deeper competitive insights – Understand purchase triggers However, most of today’s tools do a terrible job of helping you achieve true Social Intelligence
- 58. MOST SOCIAL MEDIAMONITORING IS BROKEN Keywords and semantics don’t work well in social media • Traditional tools lack the ability to understand context • A computer cannot replace human judgment • Human analysts cannot scale or provide consistency • Predefined rules cannot support the dynamic nature of the social media conversation • Surface-level monitoring lacks accuracy and deep insight NLP Semantic Search Manual-coding Keyword Sentiment Monitoring
- 59. 59 THE CRIMSONHEXAGON FORSIGHT® PLATFORM
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- 61. Posi,ve Nega,ve 23% 66% Major Automo@ve Brand SENTIMENT ALONE IS INCOMPELTE 102,784 men,ons 11% Neutral 11% 9% 18% 9% 11% 8% 11% 12% 11% Love Chevy Legendary Want One Looks & Design Performance Great Business Maintenance Prefers CompeRtor Asking advice
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- 68. For more informa,on on how to calculate the ROI of Social Media Or get more business value out of social media…. Contact Dr. Natalie Petouhoff www.DrNatalieNews.com @drnatalie