room214.com } [email protected] } 303.444.9214 social media roi february 25, 2010 presented by: james...

room214.com } [email protected] } 303.444.9214

Social Media ROI February 25, 2010

Presented by:James Clark, Co-Founder

Room 214


American Marketing Association@marketing_power

James Clark, Room 214@jamesoclark@room_214

#AMAReadyTalk


Return On Investment

Source: Wikipedia


Return On Investment

The Formula Simplified

Return – Investment = ROI

More Simplified

It’s about $$$$$


Tying ROI to Social Media

Why Does it Matter?Forrester Research* Projects $3.1 billion annual spend on social media by 2014* US Interactive Marketing Forecast, 2009 to 2014

What Gets Measured Gets FundedFive Steps to Get B2B Social Media Funded*:1.Understand the Numbers2.Develop a Strategy Based on Financial Gains3.Understand Resources Needed Before Starting4.Find and Build a Hero5.Set ROI Metrics and Time Table From the Beginning*Kip Bodnar, SocialMediaB2B.com


Measure What?


Measurement = Confusion


Program MeasurementProgram …defined as… Measure

Buzz MarketingUsing high-profile entertainment or news to get people to talk about your brand

Conversation volumes, SOV, MMM, Reach, Sentiment

Viral MarketingCreating entertaining/informative messages designed to be passed along in exponential fashion

Conversation volumes, SOV, MMM, Reach, Sentiment

Community Marketing

Forming or supporting niche communities that are likely to share interests about a brand; providing tools, content and information to support those communities

Advocacy, Cost Deflection, Cost per Conversion, Conversation Volume and Share, Influence, MMM, Reach, Sentiment Analysis, Value of Conversation

Grassroots Marketing

Organizing and motivating volunteers to engage in personal or local outreach

Advocacy, Cost per Conversion, Conversation Volume and Share, Influence, MMM, Reach, Sentiment Analysis, Value of Conversation

Evangelist Marketing

Cultivating evangelists, advocates, or volunteers who are encouraged to take a leadership role in actively spreading the word on your behalf


WOMMA Measurement and Metrics Guidebook


Program Measurement

Program …defined as… Measure

Product SeedingPlacing the right product into the right hands at the right time, providing information or samples to influential


Influencer Marketing

Identifying key communities and opinion leaders who are likely to talk about products and have the ability to influence the opinions of others

Advocacy, Cost per Conversion, Conversation Volume and Share, Influence, MMM, Reach, Sentiment Analysis, social Media Success Metrics Value of Conversation

Cause Marketing Supporting social causes to earn respect and support from people who feel strongly about the cause


Conversation Creation

Interesting or fun advertising, emails, catch phrases, entertainment, or promotions designed to start word of mouth activity

Conversation Volume and Share, MMM, Reach, Sentiment Analysis, Social Media Success Metrics



Program Measurement

Program …defined as… Measure

Brand Blogging

Creating blogs and participating in the blogosphere, in the spirit of open, transparent communications; sharing information of value that the blog community may talk about

Conversation Volume and Share, Cost Deflection, MMM, Reach, Sentiment Analysis, Social Media Success Metrics

Referral ProgramsCreating tools that enable satisfied customers to refer their friends

Advocacy, Cost per Conversion, Conversation Volume and Share, Influence, MMM, Rating and Reviews, Reach, Sentiment Analysis, Value of a Conversation



Conversation Volume and Share of Voice

The total number of posts on a given brand, product, campaign or topic tracked over a set time period. Start when a campaign launches, or service starts or product is introduced.

Volume = Total Number of Post Share = Total Number of Post Compared to Competitor

Analyze by traffic source (blogs, mainstream media, forums, Twitter, social media, comments, YouTube) to look at the media distribution platforms where your message is being carried


Conversation Volume and Share of VoiceOnline Monitoring Tools

1. Radian6, - http://www.Radian6.com

2. Filtrbox – http://www.Filtrbox

3. Techrigy SM2, http://techrigy.com

4. Google Alerts, http://google.com/alerts

Resources:

1. Social Media Monitoring, http://www.socialmediamonitoring.ca/index.html

2. Monitoring Tool Directory: http://bit.ly/5LCyTf


Sentiment & Opinion AnalysisAssessment of an author’s tone – whether or not they express a positive or negative opinion about something – within a specific text


Sentiment & Opinion Analysis

Sentiment Analysis Metrics and Indicators1.Sentiment Volume: The number of positive/negative/neutral consumer opinions expressed about a brand, company or product2.Sentiment Ratio: number of +/- opinions expressed divided by the total number of consumer opinions or similar formula3.Polarity/Intensity: beyond +/- exp: District 9 was f***ing amazin!, District 9 was a decent Sat night date flick4.Qualitative Factors: what do they cite as their reasons? E.g. Comcast is terrible my internet is crawling5.Specific Customer Feedback: I wish Netflix had subtitles, Blockbuster is better than Netflix, I wish Netflix would come to Canada

Natural Language ProcessingBEWARE – claim to have 80% accuracy – don’t believe the hype

Human ReviewedLimit the number of posts to review and assign each to a category

WOMMA Measurement and Metrics Guidebook, Margaret Francis


Opinion Analysis – Actionable Data•Conversation about ACME as an

innovative “green” company appears in the Exciting New Technology and Socially Responsible categories, which make up more than one third of content.

•Conversation portraying ACME as an Evil Corporate Giant focuses the xxxx indictment.

•AMCE’s attempt to impose a surcharge on customers with solar panels fuels Anti-Green conversation

•XXXXX conversation contains some discussion of ACME’s attempt to include executive perks in a rate hike, as well as more neutral discussion about routine rate increases

•The greatest proportional of user-generated content, much of it from Twitter, appears in Outages and Emergencies.

Key Topics of Conversation about ACME Company

Analysis Dates8/15 – 9/17

Exciting New Technology

25%

Socially Responsible

13%

Evil Corporate Giant10%

Complaints about Rate

Hikes20%

Outages & Emergencies

9%

Other11%

Anti-Green11%


Sentiment & Opinion AnalysisRoom 214’s Recommended Sentiment and Opinion Analysis Tools

Sysomos, http://www.sysomos.com

Crimson Hexagon, http://www.crimsonhexagon.com


Measurement is Not ROI

An increase in sentiment is NOT a financial metric

An increase in conversation is NOT a financial metric

An increase in positive opinion is NOT a financial metric


The Rise of the Statisticians

Cohort Analysis

Multivariate Regressions

Time Series Data

Nested Case-Control

Marketing Mix Modeling


Marketing Mix Modeling

Wikipedia: Marketing Mix Modeling


What’s the Formula

Ed Halteman, PhD, Survey Design and Analysis

“All formulas are wrong, BUT are they usable?”


Before and After Social Media


Baseline Against Financial Targets

Before Social Media After Social Media


Add In Social Media Measurement


Run Correlations

• Did the spike in conversations impact total sales volume?

• Has the steady uptake in total community members resulted in more sales activity?

• Is it content or tactic?

• What mix of marketing efforts drove the increase in sales?


ROI Techniques – Is There a Correlation?INCREASING REVENUE EARNED:•Frequency – increasing the number of purchase transactions•Acquisition- increase the number of net new customers•Yield – increasing value of individual purchases w/o sacrificing freq•Acceleration – shortening the time it takes to acquire a customer

REDUCING COSTS:•Customer Acquisition – shifting cost of sales to lower cost channels without sacrificing the customer experience•R&D – expediting R&D time and surfacing new product and feature needs•Institutional Learning and Insights – removing organizational friction and creating synergies between otherwise disparate groups•Customer Service and Support – shifting cost to serve to lower cost channels



Public and Private Communities

Employee Engagement

Marketing and Sales• Deeper customer relationships• Social CRM• Insights from Target Market• Boost SEO

Innovation

Market Engagement

Support


Net Promoter Score

Source: Satmetrix

How likely are you to recommend to a college or friend?

Promoters: (score 9-10) are loyal enthusiasts who will keep buying and refer others, fueling growth

Passives: (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings

Detractors: (score 0-6) are unhappy customers who can damage your brand and impede growth through negative word of mouth


ROI ResourcesNet Promoter Scorehttp://www.netpromoter.com

Social Media Today6 Must Read Posts about the ROI of Social Mediahttp://bit.ly/4E0WqA

MashableHow To: Measure Social Media ROIhttp://mashable.com/2009/10/27/social-media-roi/

SocialSteveMeasuring the Value of Social Mediahttp://bit.ly/7jhOfK

WikipediaMarketing Performance Measurement and Managementhttp://en.wikipedia.org/wiki/Marketing_ROI

Measurement and Metrics Guidebookhttp://womma.org/metrics/Metrics-Best-Practice-Guidebook.pdf


Breaking the Golden Rule

Room 214’s Competitors – Doing Cool Stuff

Awesome ROI PresentationOliver Blanchard Basics of Social Media ROIhttp://bit.ly/aUHBpP

Conversation ImpactOgilvy 360 Digital Influencehttp://bit.ly/5DWGQc

Social Influence MarketingRazorfishFluent Report: http://bit.ly/7MnurP

Customer Experience ProgramsStatmetrixhttp://www.statmetrix.com


Thank You!

James Clark

Co-Founder, Room 214

[email protected]

Twitter: @jamesoclarkPhone: 303-444-9214 x100

room214.com } [email protected] } 303.444.9214 social media roi february 25, 2010 presented by: james...

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