Dr. Jim Hamill - jim.hamill@energise2-0.com Alan Stevenson - alan.stevenson@energise2-0.com Chiara Francalanci - francala@elet.polimi.it

Social Media Performance Measurement and Business Impact

Background

• Growing awareness and enthusiasm for social media among tourism and hospitality businesses.......but barriers remain - time, resource and effort required

• Greater focus on social media performance measurement, ROI and business impact

• Key questions currently being asked - Is social media worth it? What is the ROI and business impact? What KPIs, metrics and analytics are available for measuring on-going social media performance?

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Overview

• Session 1 – Performance Measurement Framework (JH)

• Session 2 – Social Media Monitoring Tools (AS)

• Session 3 – Case example: SMM in action (CF)

• Q&A (All)

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“2010 is the year to start putting real metrics onyour social media activity. Because if you’re not

monitoring it, you’re just playing with it” (Barone, 2010)

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Session 1

Performance Measurement Framework (JH)

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New Approaches Required

• Social media is about marketing as a conversation with your customers/network– two-way dialogue rather than one-way broadcasting

• But most organisations are not very good at this. We prefer ‘telling’ people how good we are rather than listening

• There will be Social Media ‘winners’ and ‘losers’– ‘Winners’ will be those organisations who fully utilise

the interactive power of Web 2.0 technology for engaging with and energising customer and network relationships

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New Performance Measures Required

• New performance measures and KPIs that emphasise:

• Quality of your network• Relationship strength• Ability to leverage

.....as the key drivers of future business performance

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The ‘6Is’ Approach

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The ‘6Is’ Involvement – network/community numbers/quality, time

spent, frequency, geography Interaction – actions they take – read, post, comment,

reviews, recommendations Intimacy – affection or aversion to the brand ; community

sentiments, opinions expressed etc Influence – advocacy, viral forwards, referrals and

recommendations, social bookmarking Insight – customer insight Impact - business impact

Social Media Monitoring Tools –Audit, Assess, Impact

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Uses a Simplified Balanced Scorecard

• Ensures that social media actions and initiatives are fully aligned with and supportive of agreed business goals; that KPIs are agreed for monitoring and evaluating social media performance, business impact and ROI; and all key success factors are considered, especially the organization, people and resource aspects critical to successful strategy implementation

• A Scorecard approach can also be very useful for internal and external communications – a simple framework to present social media goals, objectives, key actions and initiatives to colleagues, partners and other stakeholders

A Key Feature....

• ‘Lead’ and ‘Lag’ measures/KPIs

• ‘Lag’ measures – the ultimate business objective e.g. Increased visitor numbers and spend (Customer Insight and Business Impact)

• ‘Lead’ measures – the main ‘drivers that help you to achieve your core business objectives. In a social media environment, these are the ‘4Is’ – Involvement, Interaction, Intimacy and Influence

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Social Media Balanced Scorecard

• Not ‘paralysis by analysis’…..

• By providing an agreed framework to follow, the Balanced Scorecard considerably speeds up strategy development and implementation; and provides a solid foundation for on-going performance measurement

• The steps involved can be captured in a Social Media Strategy Map – focusing on five key questions

Five Key Questions

• What is the overall social media vision for your organization?

• What are the key objectives and targets to be achieved?

• Who are your customers?

• Key Actions and Initiatives

• Organisation, Resource and People Issues

Social Media Strategy Map

Brief statement of your overall 2.0/Social Media Vision and Mission Strategic Objectives Customer Perspective Internal Management Perspective Organisation Perspective

Strategic Objectives KPIs / Targets

KPIs / Targets KPIs / Targets

KPIs / Targets

Customer Group 1

Customer Group 2

Customer Group 3

Customer Group 4

2.0/Social Media Initiative 1 - Objectives - KPIs - Targets - Actions

2.0/Social Media Initiative 2 - Objectives - KPIs - Targets - Actions

2.0/Social Media Initiative 3 - Objectives - KPIs - Targets - Actions

2.0/Social Media Initiative 4 - Objectives - KPIs - Targets - Actions

Organisation People Resource

Organization, Resource and People Issues

Organization, Resource and People

• Organisation, resource and people issues sit at the bottom of your SM Balanced Scorecard NOT because they are the least important issues to address. In fact, the exact opposite is true

Performance Measurement

Three main levels:

• Individual channels

• Overall ‘buzz’

• Business impact

See Session 2

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Implementing a SMPM System

1. Agree core business objectives – Used effectively, social media can deliver multiple

objectives• Market/Customer Knowledge & Insight• Engagement & Reputation Management• Enhanced Customer Experience and Loyalty• Sales/Marketing Effectiveness, Efficiency and ROI• Operations/ Internal Processes (open source and

hosted apps)

– Key term is ‘used effectively’............

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Implementing a SMPM System

2. Agree specific targets for each core objective

3. Agree the KPIs/metrics/analytics to be used in monitoring on-going performance (‘lead’ and ‘lag’ measures; 3 main levels)

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Implementing a SMPM System

4. The key social media actions and initiatives required for ‘getting there’

5. Ongoing performance monitoring using the range of tools available e.g. Facebook Insights, Klout, Social Media Monitoring Tools.....Session 2

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Thank You!Questions?

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