Social Media Measurement and ROI Lauren McCadney @lmccadney [email protected] • Director, Digital Engagement and Social Media - CDW • Background: Advertising, Brand Management, Analytics, CRM and Sales • Industry Recognitions: Women to Watch in BtoB Marketing: FierceCMO; Top 25 Digital Marketers BtoB Magazine; 10 Hottest Digital Marketers 2013- iMedia • Passion: Volunteering and Photography Tell me about you • Name • What do you do? • Why are you here? Social Media is easy. Doing it well is hard. Social Media Percent of Marketing Budget 21.5% 11.5% next 5 next 12 years months 8.4% in 2013 Source: The CMO Survey March 2013 If you could only learn one thing…. 4 Key Takeaways: 1. C-Suite View of Social Media 2. The 6 Value Areas of Social Media. 3. How to think about measuring the impact of Social Media. 4. Tools and Platforms for Measureable Social Media Programs C-Suite view of social media is evolving Then vs. Now “It’s a fad.” “Give it to the intern.” “It’s a necessary part of customer care.” “I think we are doing something.” “It’s changing how customers buy.” “Are we doing enough?” “Help me understand.” CEO, Every Company • Why do our customers care about and engage in social media? • What are we doing? And why? • How do make money with social media? • How much are we making? Define “Social Media” Social Media • Covers a lot of territory Forms of electronic communication • Includes the site (as Web sites for social networking and activities and microblogging) through which • Big Story is changes in users create online communities to consumer share information, ideas, personal behavior fueling messages, and other content (as it’s growth videos) Webster Impact. It’s relative. Fight fire with fire. Be strategic. Exercise #1 Marketing Objectives 1. ____________________________ 2. ____________________________ 3. ____________________________ 4. ____________________________ 5. ____________________________ Exercise #2 Map your Social Media Programs/Initiatives to your Marketing Objectives Marketing Marketing Marketing Marketing Objective #1 Objective #2 Objective #3 Objective #4 Every tactic does not deliver immediate revenue; but it should put us on the path. Insight Awareness Perception 6 Social Media Value Driver Revenue Areas Advocacy Operational Efficiency 1. Insight Insight = Voice of the Customer Demonstrate relevant and actionable information that was gleaned exclusively via social media. Insight = Voice of the Customer Demonstrate relevant and actionable information that was gleaned exclusively via social media. Definition: Social Media Listening Social media listening, also known as social media monitoring, is the process of identifying and assessing what is being said about a company, individual, product or brand. Common Monitoring Metrics and Learnings Metrics So What? Followers Monitor social interest in the brand Engagement • Strength and Appeal of posts/conversations • Differences by platform Content Engagement Trends Content creation input Daypart Engagement Trends Improve engagement rates and increase program efficiency Mentions Volume of WOM (along with reach) Share of Voice relative to the competition Influencers Who’s talking? Who’s voice carries? Should we find ways to engage them? Topic Trends Volume of conversation about a topic. What is being said. Listening for Solution Insights Content Analysis Of Reviews • Overall “reviews” are predominantly positive. • Despite being mostly positive, some areas are polarizing 1,165 Reviews analyzed » AM, Price, Delivery, Customer Relations 1,135 58 Positive reviews Negative reviews Account AM Price/Cost AM Team 668 249 21 12 Customer Price/Cost Delivery Delivery Relations 239 222 11 9 Customer Company Relations Image 205 185 Content Analysis of Reviews. So What? • Sales Implication: – Rethink Account Manager Productivity Metrics • Training Implication: – Examples of what the customer values – Service delivery prioritization • Creative Implication: – Quotes and verbatims for copy support • Paid Social Implication: – Authentic posts as creative 2. Awareness Awareness Show that brand/product awareness and consideration is higher among social media users in general or our social media followers in particular. Brand Awareness Study • Include social media related questions in your Brand Awareness Tracking Survey such as: – Do you use social media for _________? – Do you engage with [brand/product] via social media on at least one platform? – Which platforms do you engage with [brand/product] on? – How frequently do you engage with [brand/product] – What actions do you take after engaging with [brand/product] on social media? Exercise #4 Total Universe: Brand Awareness and Consideration Total Social Media Users Non-Social Media Users Awareness 85% 94% 78% Consideration 63% 74% 50% Confidence 95% +/- 4ppt Key Findings: Exercise #5 Brand Consideration By Marketing Vehicle Those aware of brand Total Brand Social TV Email Print Media Engagers Consideration 63% 75% 78% 62% 55% Confidence 95% +/- 4ppt Key Findings: Exercise #6 Actions Taken After Engaging w/Brand on Social Media Q4 2013 Q2 2013 Q4 2012 No Action Taken 31% 35% 40% Visit company website for more 30% 20% 25% info Purchase from company 6% 8% 5% website Download information 13% 5% 10% Search web for more 12% 29% 16% information on product/brand Purchase from store 8% 3% 4% Confidence 95% +/- 4ppt Key Findings: 3. Perception Perception Show that social media engagers have a more positive perception of the brand than non- social media engagers. Explore the difference in perception compared to other tactics. All Social Media Non-Social TV Display Respondents Engagers Media Engagers Product Provider Solution Provider Services Provider Exercise 7 • List three attributes or perceptions that are important to your brand. – ______________________ – ______________________ – ______________________ 4. Revenue Revenue Quantify the sales achieved as a result of social media. Then calculate ROI: Return on Investment ROI = ((Incremental Revenue – Cost)/ Cost) x 100 Hypothesis • Social Media engagers (people that clicked on a post link) have a higher likelihood of purchasing – Aware of the brand by virtue of Followers or noticing the brand in their newsfeed – Consideration by virtue of trusting messages and content from our brand SharegraphTM - PATENTED AUDIENCE AMPLIFICATION • ShareGraphTM is proprietary software that: • Utilizes a variety of algorithms to analyze user behaviors and interactions • Maps user behaviors to identify users who are closely connected to your audience • Amplifies these segments to create a unique and large scale enhanced audience • Improves ad targeting and content personalization SEED SOCIAL ANONYMOUS DIGITAL SCALED RELEVANT AUDIENCE CONNECTIONS/SI PERSONAS AUDIENCE GNALS OF INTENT ShareGraphTM expands a small seed audience into a large, relevant, targetable new audience. New audiences through modeling Social Engager Lift Social Media Revenue Metrics Measure traffic to Coupons/Promotional Content Lead product/landing pages Codes Generation • Coremetrics or • Redemption • # of Leads Omniture • Cost Per Lead • Conversion Rate • Conversion Revenue Social Media Revenue Metrics On-Domain On-Domain Community Product Review Video Value • Incremental • Page • Overlap cart conversion Conversion Lift Analysis when viewing a • Incremental • Single Sign-on page with a Revenue • Average review Customer Value • Incremental Comparison Revenue • Customer Growth Rate Comparison 5. Advocacy Word of Mouth/Advocacy Demonstrate the value of customers speaking on your behalf. Categories: Advocates Influencers Bloggers Super Fans Why digital word of mouth matters Don’t trust advertising. Trust their peers Forrester Research 2012 Advocate Word of Mouth Lauren sends message and offer Friends click through to brand’s Brand sends message to Lauren to friends online store or other “buy page” “Lauren, refer your “Check this out” “Order this product friends” now” You’ll love this. Plus, you’ll get $50 if you buy this by Share this $50 off coupon with Enter referral code: June 1. Use my personal your friends. You’ll get $50 off referral code: A123 A123 your next purchase for each friend who purchases. Link to brand’s online store or other “buy page” Brand gives credit to Lauren once referred friend has purchased product 49 Notes about Case Studies • Each Advocate was given unique personal referral code – This allows us to track referrals and sales back to individual Advocate • # impressions is calculated as follows: – # Advocates x 150 people reached – Source for # people reached by Advocates: Forrester Research • Incentives were provided to encourage referrals 50 Consumer Electronics Mfr Item Amount # Customers invited to refer friends 500,000 # Advocates 53,494 “Advocate” is a customer who referred at least one friend. About 11% customers served as Advocates. Total # prospects referred 76,693 # prospects who visited web site or landing page directly from Advocate referral Ave. # prospects referred per Advocate 1.4 # Units Sold 766 # units sold as result of Advocate referral Conversion rate 1% 766 units sold divided by 76,693 prospects referred Sales Value: Revenues $383,000 Ave. revenue per unit sold $500 Media Value: Impressions $2,006,025 Value per impression: 25 cents x 8 million impressions Total Campaign Value $2,389,025 Total Campaign investment $100,000 Includes fees paid to Advocate marketing company; referral incentives; promotional costs ROI 23X Notes: 60-day campaign; Advocates were entered into a $10,000 drawing