How to Measure Social Media

Speaker

Katie Delahaye PaineKatie Delahaye PaineCEO, KDPaine & Partners

Speaker

Tim MarkleinE i VP M & SExecutive VP, Measurement & Strategy

Weber Shandwick

S i l M di Di t th M k t lSocial Media Disrupts the Marketplace

CRM MKTGADV/DM/ CRM MKTGADV/DM/POS

C t l i tCustomer complaintsActivist boycotts

Competitors agendaNegative experiencesNegative experiences

How the new marketplace works p• Before: • Today Hey, do

you need Hey,

everyone, I’ve got a

you need some help?

I ve got a business!

It’s not just about media anymoreIt s not just about media anymore 

Conversations

Customer Marketing & Competitive Business HRCustomer Service

Marketing & Sales

Competitive Intelligence

Business Analytics

HR

It’s the end of measurement as we know itIt s  the end of measurement as we know it  

1 person --Dave Carroll (United Breaks Guitars) cost United $180M th t f th 51 000 l t it $180M—the cost of more than 51,000 replacement guitars. USO’s donation server crashed when Obama was wrapping care packagesP t & G bl i i f t t b ll Procter & Gamble is now paying for engagement, not eyeballs Sodexho cut $300K (NET) out of its recruitment budget using TwitterHSUS gene ted $650 000 in ne don tion f om n on line photo HSUS generated $650,000 in new donations from an on-line photo contest on FlickrIBM sells more with a $500 podcast than it does from an ad11 M ’ t d d W l M t' i d d li d 11 Mom’s turned around Wal-Mart's image and delivered measureable increases in sales. Mark Stouse at BMC Software reports results in EPS every quarter SAP made $1 million from its small business communityNational Public RADIO won the White House photo journalism award

Measurable Goals for Marketing Today

1. Marketing/leads/sales/2. Relationship/reputation/positioninge at o s p/ eputat o /pos t o g3. Mission/safety/civic engagement

Goals drive metrics, metrics drive results ,

Reputation/

Relationships Get the word outSales

Relationships

Relationship scores

Get the word out

Engagement IndexGoal

Recommendations

% hearingCost per customer 

acquisition

Positioning

% believing Web analytics

Metrics Positioning

% acting 

Sales leads

Marketing Mix Modeling

Metrics

EngagementMarketing Mix Modeling

7

35,152,789 OTS

Red line indicates media impressions

6,253,852 OTS

7  steps to PR Measurement in the  21st Century

1. Define the “R” – Define the expected results?2. Define the “I” -- What’s the investment?3. Understand your audiences and what motivates

them D i h b h ki i4. Determine what you are benchmarking against

5. Define the metrics (what you want to become) 6 Pick a tool and undertake research6. Pick a tool and undertake research7. Analyze results and glean insight, take action,

measure againmeasure again

Step 1: Define the “R”

• What return is expected?– Define in terms of the business or

i imission

– Revenue generated or saved.

Wh bl i • What problems are you trying to solve?

• If you are celebrating complete 100% success a year from now, what is different about the what is different about the organization?

ROI iROI = revenue or savings 

• ROI = cost savings – + Cost of program

ReachFrequencyHit– + Cost of program

– – Cost elimination

• ROI = greater efficiency

HitsFriendsFollowers ROI greater efficiency

– +cost of program– – cost of doing something “the old way” (cost

per percentage point gained)

• ROI = greater revenue, improved ALP+ t f – +cost of program

– –value of leads/sales

Step 2: Define the “I” 

• Social Media is not “FREE”– Ning– Facebook– Promoted Tweets

• What is the investment? – PersonnelPersonnel– Agency compensation– Senior Staff timeSenior Staff time– Opportunity cost

12

Step 3: Define the universe and your role in it

• There is no “audience.” There are multiple constituencies constituencies

• Should you blog or Twitter? Don’t ask me, ask your customers your customers

• Understand your role in the conversation– Raise awareness– Increase preference– Increase engagement– Improve relationshipsImprove relationships– Customer service

Step 4: Define your benchmarks

Past Performance• Past Performance• Different programs, different tactics

Think 3• Think 3– Peer

U d d i i t h l– Underdog nipping at your heels– Stretch goal

Wh t k th C it t i ht• Whatever keeps the C-suite up at night

Step 5: Define your Key Performance Indicators (KPIs)

The Perfect KPIGets you where you want to go (achieves corporate Gets you where you want to go (achieves corporate goals)Is actionableContinuously improves your processesIs there when you need it

KPIs should be developed for: ProgramsgOverall objectives Different tactics

15

Step 6: Pick  a measurement tool p• For sites over which you

have no control • For sites you can control

• Web Analytics:• Content Analysis

• What is accuracy worth? • Look at the whole

conversation not just your

Not just visits, engagement

Downloads, coupons, conversation, not just your brand

• Separate out paid content vs. organic (coupons etc.)

registration• Business

Intelligence/Analyticsg ( p )

To measure relationships, preference etc. • Segmentation,

segmentation, segmentation

• Get as specific as you can get

Step 6: Selecting a measurement toolStep 6: Selecting a measurement toolObjective KPI Tool

M ffi i t t % d i t W b A l ti CRMMore efficient customer acquisition

% decrease in cost per customer acquisition% increase in ALP vs activity

Web Analytics + CRM

activity

Reduction in churn % renewal rate by activity % repeat traffic

Web Analytics + CRM

E k t l C ti i d t W b l ti C t t Engage marketplace Conversation index greater than .8Rankings % increase in engagement

Web analytics or Content Analysis: TypePad, Technorati Omniture, Google Analytics% increase in engagement Omniture, Google Analytics

Communicate messages % of articles containing key messagesTotal opportunities to see

Media content analysis –

Total opportunities to see key messagesCost per opportunity to see key messages

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1. Tools for Content Analysis  

• Content sources:

– Google News/Google Blogs, RSS feeds, Technorati,Social Mention, Tweetdeck, Radian 6, Sysomos Alterian Visible Technologies Scout Labs Sysomos, Alterian, Visible Technologies, Scout Labs, Cyberalert, CustomScoop, e-Watch, Crimson Hexagon, Boardreader

• A way to analyze that content – Automated vs Humans

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Then: A coding methodologyThen: A coding methodology• Tonality

P i i• Positive• Negative• Neutral• Balanced

• What messages were communicated• How you’re positioned on key issues• Dominance/Prominence/Visibility

A th it f th t• Authority of the poster• Subject of the article/posting• Who was quoted?• Who was quoted?• Products, events, initiatives, battles mentioned• The Kick Butt Index• The Kick Butt Index

Standard classifications of discussion

Supportive Conversations

•Critical Conversations

Neutral conversationsDi l i l

•Calling for action•Distributing media•Expressing agreement

•Expressing surprise•Calling for action•Giving a heads up

•Disclosing personal information•Acknowledging receipt of informationp g g

•Expressing support•Expressing surprise•Giving a heads up

Expressing criticism•Showing dismay•Responding to

iti i

•Advertising something•Answering a question•Asking a question•Making a jokeGiving a heads up

•Responding to criticism•Giving a shout-out•Rallying support

criticism•Augmenting a previous postOffering an opinion

Making a joke•Making a suggestion•Making an observation•Offering a greetingRallying support

•Validating a position•Augmenting a previous post

•Offering an opinion•Putting out a wanted ad•Showing dismay

•Offering an opinion•Putting out a wanted ad•Recruiting people•Soliciting commentspo •Showing dismay•Soliciting comments•Soliciting help•Starting a poll

Content Analysis: Why you need a Kick‐Butt Index?Content Analysis: Why you need a Kick Butt Index? 

• You decide what’s important:• Benchmark against peers and/or competitors• Track activities against OCS over time• Understand the cost of perfection vs good p g

enough

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How to calculate your KBI

Quality score +10 0 ‐10

Score Score Score

‐10

Score Score ScoreTonality Positive 3 Neutral 0 Negative ‐3

Positioning  Contains 2 Doesn't contain 0

Positions the competition favorably or positions Sargento negatively  ‐2Does not contain or 

Messaging Contains 3 partially contains 0miscommunicates key message (neg mess) ‐1

Quotes Contains 1 Does not contain  ‐1Competitive mention

Does not mention Competition 1

Competition mentioned prominently ‐3

Total Score  10 0 ‐10

Visibility Score+10 0 ‐10

Score Score ScoreContains competitive

Brand Photo Contains 3 Doesn't contain 0Contains competitive photo ‐5

Dominance Focal point 3 Not a focal point ‐1Visibility Headline mention 2 Top ‐20 % of story 0 Minor mention ‐2Target publication Top Tier 2 2nd tier 0 Not on target list ‐2

Total Score  10 0 ‐10

Charting KBI over time between divisions 

Optimum Content Score Relative to CompetitorsTh P t Diff B t E h B i U it' A O ti C t t S d th

400%

500%

The Percent Difference Between Each Business Unit's Average Optimum Content Score and theAverage Optimum Content Score of Tracked Competitors for each Business Unit

200%

300%

ce SASAESA ASAT Patriot

Patriot (Korea)

0%

100%

200%

% D

iffer

enc

IDSIISMS

DIB

FBX-T

DDG-1000 MSE

AESA for F-15E, Glory APS and

VIIRS vs.

ASAT, Patriot

RISS, GBS

MALD, APG-63 (v3) RIS JPL

-100%

0%

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun JulALR-67(V)3 APG-79, APG63

VIIRS delaysERGM cancellation

NPOESS; BOE B-52 jammer

2007 2008

Trend against competition with KBI  

Optimum Content Score by Company

0,70

0,80

0,90

0 40

0,50

0,60ClientCompany BC C

0,20

0,30

0,40 Company CCompany DCompany ECompany F

0,00

0,10

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

2007 2008

Assessing Influence 

• Free tools: Twitter Grader, Tweetlevel, , ,Twitalyzer, Hubspot

• $$: Hitwise, Compete, Quantcast

Web Analytics Must account for all activity

Metrics

Must account for all activityMust measure engagement, not just eyeballs

Level 1 Searchers % Unique Visitors 

Metrics

Level 2 Lurkers % Repeat visitors > 3‐5/month 

Level 3 Casuals % Comments friends followersLevel 3 Casuals % Comments, friends, followers 

Level 4 Actives % repeat comments, retweets, participation in threads threads

Level 5 Defenders % Advocating, recommending, defending the brand

Aspects of relationships 

Control mutualityControl mutualityTrustSatisfactionSatisfactionCommitmentExchange relationshipExchange relationshipCommunal relationship

Components of a Relationship Index• Control mutuality

– In dealing with people like me, this organization has a tendency to throw its weight around. (Reversed)

– This organization really listens to what people like me have to say.• Trust

– This organization can be relied on to keep its promises.– This organization has the ability to accomplish what it says it will do.

• SatisfactionGenerally speaking I am pleased with the relationship this organization has – Generally speaking, I am pleased with the relationship this organization has established with people like me.

– Most people enjoy dealing with this organization.• Commitment

– There is a long-lasting bond between this organization and people like me.C d t th i ti I l l ti hi ith thi i ti – Compared to other organizations, I value my relationship with this organization more

• Exchange relationship– Even though people like me have had a relationship with this organization for a

long time; it still expects something in return whenever it offers us a favor.– This organization will compromise with people like me when it knows that it will

gain something.– This organization takes care of people who are likely to reward the organization.

• Communal relationship– This organization is very concerned about the welfare of people like me.This organization is very concerned about the welfare of people like me.– I think that this organization succeeds by stepping on other people. (Reversed)

Key words to search forKey words to search for • Control mutuality

– Throw its weight around, bully, unfairThrow its weight around, bully, unfair– Listens, responsive,

• Trust, – Untrustworthy, luscious,– Relied on to keep its promises, accomplish what it says it will do.

• Satisfaction– Hate, dissatisfied, unhappy

Pleased satisfaction enjoy dealing– Pleased, satisfaction, enjoy dealing• Commitment

– Quit, churn, cancel– Long standing, renew, retention, g g, , ,

• Exchange relationship– expects something in return whenever it offers us a favor,– compromise

C l l ti hi• Communal relationship– stepping on other people, abuse– Concerned, caring, want it to succeed

Step 7: Analysis ‐ ‐Research without insight is just trivia

• Look for failures first• Ask “So What” 3 times• Check to see what the competition is doing • Then look for exceptional success• Compare to last month, last quarter, 13-month average• Figure out what worked and what didn’t work• Figure out what worked and what didn t work• Move resources from what isn’t working to what is

30

Best Practices:• Correlations to bottom-line

impactD ti

• Benchmarking against your peers– Looking at what the best do

– Donations– Memberships– Sign-ups

L d

– Setting goals accordingly– Use data to persuade

recalcitrant spokespeopleI C i i– Leads

• Using SMM for planning– Define the time frame,

k t/t i t t

• In Crisis– Listen instantly to a wide

range of influencersId tif k i market/topic you want to

study– Use Google News, Technorati

or Radian6 to identify the

– Identify weaknesses in communications, customer service, or in the product

• Improve your reputationor Radian6 to identify the conversations around the topic

– Analyze the conversations for

Improve your reputation– Listen first, then respond– Stop doing stupid things

ytype, tone and positioning

– Look at share of positioning, tone or conversation

Thank You!Thank You!

• For more information on measurement, read my blog: http://kdpaine.blogs.com or subscribe to The M t St d d Measurement Standard: www.kdpaine.blogs.com/themeasurementstandard

For a copy of this presentation go to: • For a copy of this presentation go to: http://www.kdpaine.com

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