social media metrics/canadian institute
TRANSCRIPT
The Canadian Institute
4th Annual Conference on Social Media,
Metrics and Measurement
Richard Binhammer, Social Media and Communities
November 2010
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10:15 Case Study: Implementing Metrics to Measure ROI on Your Social Media Tools
Q: Aligning your measurement strategy with your social media goalsA: depending on your goals then different things to measure. We will take a look at some of that but go a step further and talk about business goals Q: Selecting the metrics appropriate for each social media tool (Tweetdeck, Google Analytics, etc.) A:actually we look more at metrics in relation to what you are trying to achieve versus social media tools
Q: Examining the benefits and pitfalls of measuring social media in-house versus outsourcing to an agency A: I suppose it really depends and is likely going to involve a combination of efforts and data collection/analysis
Q: What are the human resources required to have a robust measurement practice? A: All depends, size of business, size of social program, where you going. Measurement is part of practically everything at Dell and baked into everything
Q: How to pick your social media partner/consultantA: I think that depends on an individual businesses needs
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Investigation “Just the facts, ma’am”
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Where is the ROI of Social Media
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Did we have immediate ROI
on Model T Assembly?
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Metrics & Measurement
is there influence in this purchase or simply a sale
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Metrics & Measurement
how was that decision really influenced and made?
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Business grew and succeeded based on word of mouth
… measurable?
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Traditional Points of Measurement
non linear, various localesunique tools at different points of
needNo single valid, consistent
measurement
Awareness Consideration Conversion
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The Social Web:
More Data More Available Across Every Aspect of Customer Experience
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A lot of it: 60 Seconds Online
• More than 200 new accounts• 62,000 tweets
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• Nearly 600 new members• 60 million photos viewed
• 21 hours video uploaded • Over 680,000 videos
watched
• 60 new members
• 6,500 apps downloaded
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Data from the Social Web is Not Fully Applied…
Statistically significant, Huge Global Sample Size, Unaided, Robust• Canada’s Internet population is growing - by 2013, it will hit
25.9 million, or nearly 75% of the entire nation.• Many of these people are among the world’s most committed
Internet users, spending 45 hours or more online each month
But
Not making use of it…• Large use of social Web for simple visibility, awareness.
Measurement often relies on traffic counts, and neglect analyzing the messages being communicated.
• 75 % of companies surveyed didn’t know where their most valuable customers were talking about them
Source: CNW Leger Study in Canada
McKinsey Research:
The promise of the social
media is being delivered
Incidental value
Promise + Metrics + Results ≠ ROI
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1. Of those surveyed, 69 percent of respondents report their companies have gained measurable business benefits
2. Benefits include: innovative products and services, more effective marketing, better access to knowledge, lower cost of doing business, and higher revenues.
3. Companies making greatest use of the technologies report even greater benefits. Successful companies integrate Web 2.0 technologies with work flows to create a “networked company,” linking themselves with customers and suppliers
Web 2.0: McKinsey Global Survey Results, September 2009
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• Where customers are• Do they like/love you?• What are they saying • They recommend you• Share links with friends• Rating & Reviews• Publicly complaining• Going to your website
Primary social media focus Sentiment Listen, learn and improve
business Your fans deserve
appreciation Advocates deserve attention
too Inform your products Showing you care about
customer Purchase or deeper interestIdentify your business objective
Choose the metrics that help you measure & evolve
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Are we making Progress?
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2008
March 2006Community Outreach Team FormedTeam begins by just listening and monitoring conversations to see what’s being said. The tech support experts are hand-selected for their tech problem-solving expertise and superior interpersonal skills.
August 2006Blog Outreach Expands Beyond Tech SupportEngagement with anyone who commented about the company. Business model and other issues considered.
December 2006Ratings and Reviews on Dell.com
2007
July 2006Direct2Dell LaunchedToday Direct2Dell exists in English, Spanish, Norwegian, Japanese and Chinese.
February 2006Michael Dell AsksWhy don’t we reach out and help bloggers with tech support issues?
January 2007StudioDell LaunchedDell’s video and podcast site, with helpful tips and tricks. Eventually expanding this into the YouTube channel making sharing easier.
2006 February 2007IdeaStorm LaunchedA voting based site allowing customers and others to submit ideas for Dell.
June 2007Dell joins TwitterWhy don’t we reach out and help bloggers with tech support issues?
Dell LaunchesEmployeeStormInternal Blogs Launched for Employees.
October 2007Michael Dell quote in Business WeekJeff Jarvis story quote, “These conversations are going to occur whether you like it or not. Do you want to be part of that or not? My argument is you absolutely do. You can learn from them. You can improve your reaction time. And you can be a better company by listening and being involved in that conversation.”
November 2007DellShares LaunchedThe first investor relations blog by a public company.
January 2008Dell Aligns Organization for Success
February 2008Twitter ExpandedStart experimenting with Twitter for business– another venue to help customers, but also thanking Dell customers. Outreach leads to some Twitters asking for help on purchases.
March 2008Accepted Solutions launched on Community Dell France begins Online Community Outreach
May 2008Dell Outlet Achieves $0.5M in Sales via TwitterCommunity team active on Twitter
Small Business blog launched
April 2008Inside IT LaunchedBlog focused on business customers, and Cloud Computing.
June 2008Channel Blog Launched
2009
2010January 2009Dell Organizes in to 4 customer focused business units
Spring 2009Some Members of Community and Conversations deployed within each of the new Dell Business units
June 2009 $2M+ Sales via TwitterDell outlet on Twitter surpasses $2 million in sales with another $1 million dollars in sales at dell.com
2009Dell TechCenterA Collaborative Community for Datacenter pros grows by 400%
June 2009Global Twitter Revenues of $6.5 M Community across the social web =3.5 million direct customer connections
December 2009Huffington Post BlogDell’s VP of Social Media and Community, Manish Mehta, begins blogging at Huffington Post
March 2010China Micro-Blogging
Four Years of Experiments and Experience
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Social ROI is measurabledirect and indirect
Like most innovations, Experiments leads to insights, Insights leave to “products” Products are deployed in real-world
“applications” firststart with a point solution and then scale out
Scaling is a journeyexciting discoveries and pitfalls await
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Getting to Return on Investment
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2 Million+Twitter Followers and Facebook ‘Likes’ in 4 Months
ConanOBrien and Michael Dell Exchange, Twitter reach
More than 30 million
Reach,24x7 Interaction, Direct unfiltered access to People
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Four Different Uses of Twitter = Different Metrics
Inform Sell Engage Support
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Customer Support on Twitter & Facebook– @DellCares launched on Twitter on 15 April, 2010.
– Dell Support on Facebook launched 11 April, 2010.
– Dedicated responders to engage/respond/resolve customer issues via social media. Global Expansion underway. Negative sentiment reductions noted.
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Revenue
Views & clicks to dell.com
Community size, Connections
Lower cost, faster hires
Issue tracking, Sentiment,
Share of voice
Myriad of Metrics to Consider
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Fancy Reporting
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Distillate
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Popular notions about Social Media
Some Dell Preliminary Findings
Social Media is just for Consumer businesses
Largest Enterprise customers use Communities for research and validation; 4000+ Flickr photos of Dell servers by customers sharing, not Dell
Relevant only for “top of the funnel” – good for awareness, not effective at acquisition
Impacts every part of the marketing funnel. Can be harnessed for lead gen and driving conversion, as well as across various other business functions
Cannot impact Brand building Social listening, support and research content establishes brand credibility.Impact is real time and measurable
Social Media cannot be measured as a direct business metric –more like PR – can “assist”, but cannot be tied to revenue
Run-the-business metrics can be applied on Social Media and integrated into business operations. Has been tied to Consideration and Revenue
Facebook is not as effective as email in driving retention / repeat visits
Facebook pages are effective for doing business
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The Journey of Social Business Metrics
Product
Application
Connected and Scaling
Build Out
Experiment
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Great Opportunities
Great Responsibiliti
es
Privacy:
High risk potential.
Businesses should be mindful, responsible and
exercise leadership
Cannot blindly promote social Web data exploitation
at expense of furthering relationships
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Availability/Access to rich information/ data is premised on trust…use in unexpected ways risk losing that trust Technical safeguards may be sound, but unintended “leaks” create a severe disruption of social expectations …
Forging New Paths…Be Responsible
At the very beginning of exploration/journey through new territory: Limits between private and public data are unchartered territory, still being defined on a case-by-case basis. Businesses, customers, social networks, technology developers, parents, children – together will set precedents/define the future.27
Application, build-out, scaling
Ultimate challenge: value of
relationships, networks and connections
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Relationship value
Awareness
Consideration
Conversion
Cost Savings
Innovation
The Opportunity of the Social Web: Putting All The Pieces Together
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Becoming a Social Business
Taking Advantage of New Opportunities
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Not just campaigns but in harmony across the fabric of a company
Product Group
Marketing
Services Solutions
Online
Sales
CustomerService
CommsPR & HR
QUALITY
DEMAND
CREDIBILITY
CONVERSION
CYCLE TIME
RESOLUTION
REPUTATION
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Embedding Use of Social Media Across the Fabric of Company
Sales
Mktg
Products
Support
HRmultiple points of engagementunique measures and metrics
unique ROI
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you gonna miss that old horse?
Thank You