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Proving the ROI of Social Media Proving the ROI of Social Media Marketing to the C-SuiteMarketing to the C-Suite
Jake WengroffJake WengroffGlobal Director, Corporate CommunicationsGlobal Director, Corporate Communications
Frost & SullivanFrost & Sullivan
October 21, 2010October 21, 2010
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Where To Find Me
Jake WengroffGlobal DirectorCorporate Communications(210) 247-3806mobile (917) [email protected]
Jake WengroffGlobal DirectorCorporate Communications(210) 247-3806mobile (917) [email protected]
Follow Frost & Sullivan on Twitter @Frost_Sullivan@JakeWengroff
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Got Content?
Every minute: 24 hours of video are uploaded to YouTube 36,000 messages are tweeted on Twitter 600,000 pieces of content (links, news, photos, etc.) are shared
on Facebook
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Got Content?
In two years, the content on the Internet will double every 72 hours.
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The Evolution of Media
PaidPaid
EarnedEarned
OwnedOwned
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Owned Media Example
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The Evolution of Media
Do you need a social media strategy, or a content strategy?
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The Evolution of Media
What’s the ROI?
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How Do Companies Use Social Media?
Gain New Productand Service Ideas
Brand/CorporatePositioning
Engage with Customersand Receive Feedback
Generate NewConnections
and Grow Business
Use for Internal Communications and Training
Key Uses
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Why We Hate Social Media (Why We Hate Creating Content)
“Free” isn’t really free Time, time, time! Damage control (or rather, how about any control in general?)
Who will be the voice? (and who will be the voice when the voice resigns?)
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Potential Risks of Social Networking Sites to Your Organization(N=1166)
29%
26%
24%
20%
17%
14%
28%
28%
30%
26%
27% 32%
31%
31%
25%
26%
25%
21% 8%
9%
9%
12%
12%
14%
11%
12%
12%
12%
14%
14%
0% 20% 40% 60% 80% 100%
Wasted Time by Employees/Loss of Productivity
Allow Malware (Viruses, etc.) to get onto Computer orNetwork
Confidential Information Going to Unintended Outsiders
Slow Down the Computer Network Due to increased Use
Incur Legal Liability/Financial Penalty
Increase IT Support Cost
High Risk Moderate Low No Risk Don’t know / No opinion Mean Scores
2.9
2.8
2.8
2.7
2.6
2.5
Source: Frost & SullivanQ15.Please rate the following potential risks of Social Networking Sites to your organization?
Perceived Risks of Social Networking Sites
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Perceived Values of Social Networking (N=952)
54%
54%
53%
53%
52%
51%
51%
50%
45%
42%
35%
35%
35%
35%
36%
38%
38%
42%
41%
7%
7%
7%
7%
9%
9%
6%
7%
10%
13%
34%
0% 20% 40% 60% 80% 100%
Gain Additional Customers
Increase Customer Satisfaction
Get Consumer/Customer/Client Feedback
Get Low-Cost Exposure/Public Relations
Reduce Operating Costs
Increase Revenues Per Customer
Increased Collaboration
Increase Staff Satisfaction
Reduce Staff Turnover
Recruit New Staff
Highly Valuable Moderately Valuable Low Value No Value At All Don’t KnowMean Scores
3.4
3.5
3.4
3.4
3.4
3.4
3.4
3.4
3.3
3.4
Source: Frost & SullivanNote: Proportions less than five percent not shown in above chart.
Q14. Please indicate the value you perceive your organization receives from any of the following benefit(s).
Perceived Value of Social Networking
Among Those Who Believe Corporate Social Networking Beneficial (Highly or Moderately)
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Corporate Roles within Social Networking Communities by Total Sample and Enterprise Size
49%
44%
44%
43%
34%
17%
2%
14%
45%
41%
40%
36%
30%
12%
2%
15%
61%
47%
53%
53%
43%
23%
1%
9%
47%
45%
41%
45%
33%
19%
2%
17%
0% 10% 20% 30% 40% 50% 60% 70%
Customer Support
Energizing
Formal Marketing
Market Research
Growth Platform
Sponsor Agreements
Other
None of the above
Total Sample (N=870) Small Enterprise (N=351) Medium Enterprise (N=190) Large Enterprise (N=329)
Source: Frost & Sullivan
Q9. Which of the following best describes the role(s) for the social networking communities that you use for corporate purposes with regard to client relations? (Multiple mention question)
Among Those Using Web 2.0 Tools for Client Relations
Corporate Roles in Social Networking Communities by Total Sample and Enterprise Size
/ Indicates significantly higher/lower than comparison group at the 95% level.
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Anticipated Change in Organization’s Future Use of Social Networking
30%
28%
2%
15%
22%
29%
28%
3%
17%
30%
36%
23%
2%
1%
8%
23%
28%
30%
1%
1%
16%
1%
24%
1%
0% 10% 20% 30% 40% 50%
Significantly Increase Use Compared to the Last 12Months (>25%)
Somewhat Increase Use Compared to the Last 12Months (1%-25%)
Usage Will Remain About the Same
Somewhat Decrease Use Compared to the Last 12Months
Significantly Decrease Use Compared to the Last 12Months
Don’t Know
Total Sample (N=1439) Large Enterprise (N=607) Medium Enterprise (N=270) Small Enterprise (N=562)
Source: Frost & SullivanQ16. Thinking about the next 12 months, how do you anticipate your organization’s overall usage of social networking will change?
Anticipated Change in Corporate Use of Social Networking by Total Sample and Enterprise Size
/ Indicates significantly higher/lower than comparison group at the 95% level.
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Article, press release
Video, podcast
PowerPoint presentation
Syndicate and Propagate Content
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Tracking, Measurement, Reporting
Choose Key Performance Indicators (KPIs)
Consider both free and paid tracking tools
It’s not all about sales (but it helps)
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Key Performance Indicators
What is valuable to you and your organization? (What will make you look good?) At least 100 social media indicators exist
Fans, friends, followers, likes/favorites, comments, ratings, “buzz”
Pageviews, downloads, embeds/installs Customer satisfaction, coupon redemption, job applications
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Free and Paid Tracking Tools
Why You Need Both
• Free Tools SocialMention, HowSociable, Grader.com Existing tools: Omniture, Webtrends
Paid Tools Radian 6, PR Newswire, Sysomos, Nielsen BuzzMetrics
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Screenshot of Social Mention
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Screenshot of Dashboard for PR Newswire’s SMM Tool
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Sales
Sales is the strongest indicator of social media ROI and proof of concept
Engages the sales and customer experience departments
Engages (and intrigues) the C-suite
Validates your social media programs and gets you resources (staff, budget)
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Tracking, Measurement, Reporting
Accept that you cannot track everything
Accept that you cannot do it alone
Accept that you will make mistakes
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Tracking, Measurement, Reporting
Are you comfortable with data and analysis? “I went into marketing because I suck at math.” “I’m in PR, I’m a people person.”
Are you a team player? “My MIS department hates me.”
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Best Practices in Social Media
• Designate a Social Media Task Force within the company to train employees, design policies, study trends, implement tactics, and measure results. Select from various departments: public relations, marketing, sales, customer service, research and development, human resources, or administration.
• Find existing content within the organization (press releases, articles, speeches, presentations) which can be repurposed for social media.
• Understand that metrics are very important to all stakeholders in order for social media programs to be nurtured, supported – and funded.
• Keep abreast of industry trends by reading as much as possible about new platforms and technologies, privacy policies (i.e., Facebook), and how other companies are effectively leveraging social media.
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Remarks
Always ask yourself, “Why is this valuable to my organization?”
Keep content organic, genuine, and authentic.
Your customers, employees, and investors will feel empowered.
Read….learn….engage!
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For Additional Information
Jake WengroffGlobal DirectorCorporate Communications(210) 247-3806mobile (917) [email protected]
Jake WengroffGlobal DirectorCorporate Communications(210) 247-3806mobile (917) [email protected]
Follow Frost & Sullivan on Twitter @Frost_Sullivan@JakeWengroff