turn social business strategies into business intelligence
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1 © 2009 Forrester Research, Inc. Reproduction Prohibited
Measure What Matters:
Turn Social Business Strategies Into Business Intelligence
Alan F. NugentMzinga, CEO
September 2011
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Being social is about interacting & engaging each other & sharing ideas… so the best way to experience it, is to just jump in and do it!
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Join the chat. If you have any advance questions during the presentation, just add them into the chat now and we’ll address them at the end of the session
We also know some of you will prefer to just listen; that’s cool too
We’d love your participation.
After the event, the
following materials will
be made available to all
of you:
• Presentation slides
• Webinar recording
• Chat transcript
Session Follow-up
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Before we get started…
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Is your organization measuring your social business initiatives today?
• Yes
• No
• Don’t know
Poll Question
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Business results
What is meant by “Social ROI”?
Content, behaviors, activities & interactions
Ok, now let’s start with the basics…
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ROI should be measurement to all corporate objectives, not just revenue.
It’s actually more useful to think of it as ROO— return on objectives, rather than merely counting dollars.
“”
- Forrester
Food for thought…
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91% consider customer service important in deciding
to do business
48% report always or often using an online posting or blog to get other’s opinions about a company’s customer service reputation
21% believe companies take their business for granted
59% will readily speak poorly about a bad customer experience
.
70% of consumers expect an apology for bad
service
Let’s examine that further…
Source: American Express Global Customer Service Barometer April 13th – April 20th, 2010
What we’re learning about customers today
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What they care about is evolving…
Source: 2010 Edelman Trust Barometer
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How employees do their jobs is too…
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The Elements of a Social Business
A New Paradigm
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Social Business Ecosystem
Partner Experience
Employee Experience
CustomerExperience
Brand Experience
• Streamlined client acquisition
• Customer engagement
• Loyalty & retention
• On-demand support
• Listening & engagement
• Brand building
• Demand generation
• Social commerce
• Social business outsourcing
• Indirect revenue streams
• Developer networks
• Engagement & collaboration
• Satisfaction & retention
• On-boarding & recruiting
• Social learning
Social Business Ecosystem
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Let’s look at a few examples…
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Customer support: The initial tweet
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Customer experience: The initial tweet
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Within 15 minutes…
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And then, a few days later…
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Business Goals
Solution Overview
Peer-to-peer support forums embedded within the SyncMyRide product site, including integrated vehicle avatars & pre-moderation
Results & ROI
• Provide more timely, efficient customer support and product research
• Establish a user-generated knowledge base of Sync product information for on-demand reference
• Over 14k active members
• More than 5M message views
• Reduced customer response times
• Decrease in Sync support costs
• Direct access to product research
An American multinational automaker, the second largest in the U.S. and the fifth-largest in the world based on annual vehicle sales in 2010 at $40 trillion.
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Business Goals
With nearly [60,000] members and several hundred posts, TIAA-CREF's myretirement.org seems to have established a solid footing among TIAA-CREF plan participants.
Solution Overview
A private, online community where TIAA-CREF annuity clients can network, interact, and discuss financial and lifestyle topics
Results & ROI
Improve engagement drive loyalty among TIAA-CREF’s most valuable & influential customers
• Increase revenue• Increase membership• Cultivate business intelligence &
market research
• Significant community adoption • High community retention rates• Increased participation in TIAA-CREF
programs“”
TIAA-CREF
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So, what should you measure in this new business paradigm?
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The basics of effective analysis….
Data
Information
Knowledge
WisdomUse knowledge to establish and achieve goals/ROI
Analyze & synthesize derived information
Give meaning to obtained data
Obtain the raw facts
Baker’s depiction of the Knowledge Continuum, 2007
Knowledge Continuum
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It all depends on your strategy & goals
The ROI Pyramid: All Roles, Metrics, and Data Types
Clearly Defined Business Objectives
Measurement aligned with strategy,
roles and target outcomes
24 July 2010 “The ROI Of Social Media Marketing”
4 Perspectives Of A Social Business Balanced Scorecard
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Sample social business goals & objectives
1. Financial
• Has revenue or profit increased or costs decreased?
2. Digital
• Has your company enhanced its owned and earned digital assets?
3. Brand Satisfaction
• Have consumer attitudes about the brand improved?
4. Risk Management
• Is your organization better prepared to note and respond to attacks or problems that affect reputation?
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Key performance indicators
Web traffic — Prior to beginning social strategy execution and weekly-monthly continuously.
Decreased costs — How much is being saved with social approaches versus traditional
approaches?
Increased customer satisfaction — Polls, surveys, behavioral analysis, sentiment analysis,
as well as formal and informal social media testimonials
Quality leads — Identify percentage increase in incoming sales leads and quality of leads
versus previous measurements.
Web referrals — Different from traffic in the identification of visitors who came to the
organization’s website directly from a social media channel.
Increase in efficiency — How much is being saved with social approaches versus traditional
approaches?
Product development — What can an organization extract from product reviews, good or
bad?
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Sample customer experience results
Source: MarketingProfs
28 “The ROI Of Online Customer Service Communities ”
Sample customer experience results
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What are your social business goals?
• Improved brand experience
• Increased customer satisfaction
• Improved employee productivity
• Cost reduction
• Risk mitigation
• Increased revenue
• Don’t know
Poll Question
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What makes an effective social intelligence model?
3131
Analytics Platform
Visualizations
Consolidate and associate data from various sources
Analyze data for insights, trends, patterns and discover assets
Drive business decisions and connect with employees and/or customers
Intelligence Applications
Content Behaviors/Interactions Social GraphsVoices User Info Business Data
Comprehensive Actionable Intelligence Model
(Flexible, extensible, integrated)
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Measurement: Considerations In Planning
What will be measured? Who will consume the metrics? What is the workflow?
What value will metrics be given to impact decisions?
How often should metrics be updated? What is a metric's priority?
How will social activity measurement be funded?
What are the models for ROI, total value and KPIs?
Planning QuestionsDuring the planning process of a social learning initiative, seek answers to the following questions:
Source: Gartner
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Measurement Best Practices
Listen and calculate
engagement, influence,
sentiment and overall
adoption & retention.
Establish a continuous
improvement culture, along with an ROI
model.
Maintain a benchmark to
compare against future
snapshots.
Build dashboards with relevant social metrics and learn the procedures of
test and measure.
Publish updates that
includes metrics to
inform others of the presence and value of the initiative, and recruit others to
participate.
Seek patterns among the
social learning activity to build a metric model
repository
Add social dimensions into the employee
record or customer
relationship management data model
Source: Gartner
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What, if any, are the obstacles your organization faces to effectively measuring social business outcomes?
• Lack of a clear strategy
• Lack of effective measurement tools
• Limited budget
• No dedicated focus or personnel to the initiative
• Don’t know
• No obstacles
Poll Question
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Questions
© 2009 Forrester Research, Inc. Reproduction Prohibited
Thank you!
Alan F. [email protected]
mzinga.com