turn social business strategies into business intelligence

1 © 2009 Forrester Research, Inc. Reproduction Prohibited

Measure What Matters:

Turn Social Business Strategies Into Business Intelligence

Alan F. NugentMzinga, CEO

September 2011

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Alan F. NugentMzinga CEO

@AlanFNugent anugent@mzinga.com

Introductions.

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Being social is about interacting & engaging each other & sharing ideas… so the best way to experience it, is to just jump in and do it!

Feel free to tweet about our discussion (#mzinga)

Join the chat. If you have any advance questions during the presentation, just add them into the chat now and we’ll address them at the end of the session

We also know some of you will prefer to just listen; that’s cool too

We’d love your participation.

After the event, the

following materials will

be made available to all

of you:

• Presentation slides

• Webinar recording

• Chat transcript

Session Follow-up

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Before we get started…

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Is your organization measuring your social business initiatives today?

• Yes

• No

• Don’t know

Poll Question

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Business results

What is meant by “Social ROI”?

Content, behaviors, activities & interactions

Ok, now let’s start with the basics…

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ROI should be measurement to all corporate objectives, not just revenue.

It’s actually more useful to think of it as ROO— return on objectives, rather than merely counting dollars.

“”

- Forrester

Food for thought…

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91% consider customer service important in deciding

to do business

48% report always or often using an online posting or blog to get other’s opinions about a company’s customer service reputation

21% believe companies take their business for granted

59% will readily speak poorly about a bad customer experience

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70% of consumers expect an apology for bad

service

Let’s examine that further…

Source: American Express Global Customer Service Barometer April 13th – April 20th, 2010

What we’re learning about customers today

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What they care about is evolving…

Source: 2010 Edelman Trust Barometer

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How employees do their jobs is too…

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The Elements of a Social Business

A New Paradigm

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Social Business Ecosystem

Partner Experience

Employee Experience

CustomerExperience

Brand Experience

• Streamlined client acquisition

• Customer engagement

• Loyalty & retention

• On-demand support

• Listening & engagement

• Brand building

• Demand generation

• Social commerce

• Social business outsourcing

• Indirect revenue streams

• Developer networks

• Engagement & collaboration

• Satisfaction & retention

• On-boarding & recruiting

• Social learning

Social Business Ecosystem

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Let’s look at a few examples…

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Customer support: The initial tweet

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Customer experience: The initial tweet

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Within 15 minutes…

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And then, a few days later…

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Business Goals

Solution Overview

Peer-to-peer support forums embedded within the SyncMyRide product site, including integrated vehicle avatars & pre-moderation

Results & ROI

• Provide more timely, efficient customer support and product research

• Establish a user-generated knowledge base of Sync product information for on-demand reference

• Over 14k active members

• More than 5M message views

• Reduced customer response times

• Decrease in Sync support costs

• Direct access to product research

An American multinational automaker, the second largest in the U.S. and the fifth-largest in the world based on annual vehicle sales in 2010 at $40 trillion.

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Business Goals

With nearly [60,000] members and several hundred posts, TIAA-CREF's myretirement.org seems to have established a solid footing among TIAA-CREF plan participants.

Solution Overview

A private, online community where TIAA-CREF annuity clients can network, interact, and discuss financial and lifestyle topics

Results & ROI

Improve engagement drive loyalty among TIAA-CREF’s most valuable & influential customers

• Increase revenue• Increase membership• Cultivate business intelligence &

market research

• Significant community adoption • High community retention rates• Increased participation in TIAA-CREF

programs“”

TIAA-CREF

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So, what should you measure in this new business paradigm?

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The basics of effective analysis….

Data

Information

Knowledge

WisdomUse knowledge to establish and achieve goals/ROI

Analyze & synthesize derived information

Give meaning to obtained data

Obtain the raw facts

Baker’s depiction of the Knowledge Continuum, 2007

Knowledge Continuum

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It all depends on your strategy & goals

The ROI Pyramid: All Roles, Metrics, and Data Types

Clearly Defined Business Objectives

Measurement aligned with strategy,

roles and target outcomes

24 July 2010 “The ROI Of Social Media Marketing”

4 Perspectives Of A Social Business Balanced Scorecard

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Sample social business goals & objectives

1. Financial

• Has revenue or profit increased or costs decreased?

2. Digital

• Has your company enhanced its owned and earned digital assets?

3. Brand Satisfaction

• Have consumer attitudes about the brand improved?

4. Risk Management

• Is your organization better prepared to note and respond to attacks or problems that affect reputation?

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Key performance indicators

Web traffic — Prior to beginning social strategy execution and weekly-monthly continuously.

Decreased costs — How much is being saved with social approaches versus traditional

approaches?

Increased customer satisfaction — Polls, surveys, behavioral analysis, sentiment analysis,

as well as formal and informal social media testimonials

Quality leads — Identify percentage increase in incoming sales leads and quality of leads

versus previous measurements.

Web referrals — Different from traffic in the identification of visitors who came to the

organization’s website directly from a social media channel.

Increase in efficiency — How much is being saved with social approaches versus traditional

approaches?

Product development — What can an organization extract from product reviews, good or

bad?

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Sample customer experience results

Source: MarketingProfs

28 “The ROI Of Online Customer Service Communities ”

Sample customer experience results

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What are your social business goals?

• Improved brand experience

• Increased customer satisfaction

• Improved employee productivity

• Cost reduction

• Risk mitigation

• Increased revenue

• Don’t know

Poll Question

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What makes an effective social intelligence model?

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Analytics Platform

Visualizations

Consolidate and associate data from various sources

Analyze data for insights, trends, patterns and discover assets

Drive business decisions and connect with employees and/or customers

Intelligence Applications

Content Behaviors/Interactions Social GraphsVoices User Info Business Data

Comprehensive Actionable Intelligence Model

(Flexible, extensible, integrated)

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Measurement: Considerations In Planning

What will be measured? Who will consume the metrics? What is the workflow?

What value will metrics be given to impact decisions?

How often should metrics be updated? What is a metric's priority?

How will social activity measurement be funded?

What are the models for ROI, total value and KPIs?

Planning QuestionsDuring the planning process of a social learning initiative, seek answers to the following questions:

Source: Gartner

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Measurement Best Practices

Listen and calculate

engagement, influence,

sentiment and overall

adoption & retention.

Establish a continuous

improvement culture, along with an ROI

model.

Maintain a benchmark to

compare against future

snapshots.

Build dashboards with relevant social metrics and learn the procedures of

test and measure.

Publish updates that

includes metrics to

inform others of the presence and value of the initiative, and recruit others to

participate.

Seek patterns among the

social learning activity to build a metric model

repository

Add social dimensions into the employee

record or customer

relationship management data model

Source: Gartner

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What, if any, are the obstacles your organization faces to effectively measuring social business outcomes?

• Lack of a clear strategy

• Lack of effective measurement tools

• Limited budget

• No dedicated focus or personnel to the initiative

• Don’t know

• No obstacles

Poll Question

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Questions

© 2009 Forrester Research, Inc. Reproduction Prohibited

Thank you!

Alan F. Nugentanugent@mzinga.com

mzinga.com