social media performance measurement and business impact

Social Media Performance Measurement and Business Impact

Dr. Jim Hamill and Alan Stevenson

www.energise2-0.com [email protected]

June, 2010

Performance Measurement

• Social media can be ‘cool and funky’ ...... but it should also deliver ROI and positive business impact

• Your social media strategy should be: – fully aligned with and supportive of overall business goals and

objectives– driven by agreed business objectives, KPIs and targets

• On-going performance measurement benchmarked against agreed objectives is critical

Performance Measurement

Should be undertaken at four main levels....

• Web 1.0

• Web 2.0 (Individual Channels)

• Web 2.0 (Overall ‘Buzz’) • Business Impact

Web 1.0 KPIs

Site visits Unique visits Geographical spread of visits Length of time spent on the site Navigation through the site Most/least popular pages Number and quality of site enquiries e-mail registrations e-commerce sales User feedback on the site Links

Web 1.0 measures are still important....... but in a social media era, new performance measures are

required

Social Media KPIs

• There will be ‘winners’ and ‘losers’ in social media. ‘Winners’ will be those companies who fully utilise the interactive power of 2.0 technology for building strong ‘1-to-1’ customer and network relationships

• Those who fully leverage social media for Identifying, Acquiring, Retaining and Growing ‘Quality’ Customers

• In a social media era, the key drivers of future business success are:– Network quality– Relationship strength– Ability to leverage

The Four I’s

The Four I’s

• Involvement – number and quality of people in your various online networks/communities

• 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

The Four I’s

Can be measured at two main levels.....

• Individual Social Media Channels/Platforms – the effectiveness/success of each social media channel you use benchmarked against agreed targets

• Web 2.0 (Overall ‘Buzz’) – your organization’s performance or ‘presence’ in the wider social media landscape

Social Media Monitoring Tools

Emerging Social Media Monitoring Tools allow your organisation to monitor online

conversations about your brand, the overall‘buzz’ being created by your social media

activities , who is talking about your brand,where on social media and the sentiments being

expressed.... later

Web 2.0 – Individual Channels

• Most social media channels/platforms provide statistics which allow you to monitor/evaluate the ‘Four I’s’ to a high degree of accuracy

• Some examples......

Cafe Gandolfi

United Breaks Guitars

www.energise2-0.com

www.linkedin.com

Twitter

www.klout.com

Twitter

Merchant City – Twitter Performance


• Monitor and evaluate what is being said, by who, where and what impact – delivers actionable insights

• Three stage process– Aggregate what is being said – Natural language analysis – understand the data– Deliver actionable insights

• We have identified more than 100 Companies in this space

What they offer

• Search and relevance filters

• Further categorisation and tagging

• Assign Events to the Social Graph

• A variety of channels: web, news, blog, twitter

• Mention Volume, Importance and Demographics

• Analyse sentiment or tone

• Analyse date parameters

• Updates as they happen

Some Tools Are Free but

Relatively Unsophisticated

Google Alerts

Social Mention

Trackur

Others Are Expensive but

Highly Sophisticated

Social Radar

Business Impact

Business Impact

• The ‘Four I’s’ are ‘Lead’ rather than ‘Lag’ measures i.e. they are the main drivers of future business success NOT strategic goals in their own right

• Your social media strategy should be driven by agreed business objectives......– Marketing/communications effectiveness– Marketing/ communications efficiency– Marketing/communications ROI– Customer acquisition, increased sales– Brand awareness– etc

Business Impact

Recommend the use of a Balanced Scorecard approach to ensure that your social media activities are fully aligned with and supportive of overall business goals and objectives

SM Strategy Development

Strategic objectives Targets Key performance indicators (KPIs) Customer segments The key social media actions and initiatives required for ‘getting

there’ Organisational, people and resource issues

Ensure that your social media strategy is fully aligned with andsupportive of your overall strategic goals and objectives with

clear targets and ROI criteria

Social Media Strategy Map

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




Organisation People Resource

Thank You

Continue the discussion at

www.energise2-0.com

www.web2-0cpd.com

www.web2-0cpd.com