measuring social media roi - econometrics
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Copyright Bottom Line Analytics, LLC - All Rights Reserved, 2013 1
SOCIAL MEDIA ROI: CAN WE MEASURE THE IMPACT OF SOCIAL BRAND CONVERSATIONS?
HOW TO MONETIZE THE CUSTOMER EXPERIENCE
Copyright Bottom Line Analytics, LLC - All Rights Reserved, 2013
Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013
MONETIZING SOCIAL MEDIA CONVERSATIONS
SOCIAL MEDIA ENGAGEMENT INDEX
APPLYING THE SEI℠ METRIC
1. IDENTIFYING CATEGORY DRIVERS AND CONVERSATIONS IMPACTING BRAND ENGAGEMENT
2. QUANTIFYING THE IMPACT OF SOCIAL MEDIA
3. DEVELOPING A CUSTOMER ACQUISITION STRATEGY BASED ON CONSUMER CONVERSATIONS THAT DRIVE BRAND ENGAGEMENT
4. VALUING AND MONETIZING FACEBOOK MARKETING CAMPAIGNS
5. ENHANCING PROMOTION EXECUTION BASED ON CONSUMER ENGAGEMENT
ABOUT BOTTOM LINE ANALYTICS
2
Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013
• Bottom-Line Analytics and a North Carolina partner have developed an innovative new
consumer engagement metric called the “Social Engagement Index” or SEI
• When developing the SEI℠, our big “ahha moment” occurred when we realized that
since social media is a form of word-of-mouth, words and semantics, not sentiment
are the foundation for understanding consumer engagement with a brand!
• This knowledge was used to create a quantitative social media metric based on
Stance-Shift linguistics theory. (Stance Shift theory has been published and peer
reviewed)
• Uses the Social Media conversations about your Brand as input.
• Results in a quantitative engagement score that is a translation of his/her
“personal” and “emotional” relationship with a brand
• SEI is highly correlated with Brand sales (75% - 85%)
• The SEI is more actionable than current sentiment metrics since it is strongly correlated
with Brand sales
SOCIAL MEDIA ENGAGEMENT INDEX
3
ENGAGEMENT SCORE
WHEN CALCULATING THE SEI℠ METRIC, BRAND CONVERSATIONS ARE SCORED
DIFFERENTLY BASED ON THEIR PERSONAL AND EMOTIONAL CONTENT
“I REALLY LOVE HOW MY BAGS FLY FREE WITH MY SOUTHWEST” “I LIKE THE EVERYDAY LOW RATES OF SOUTHWEST” “I BOOKED A FLIGHT ON JET BLUE TODAY”
“THE DELTA FLIGHT ATTENDANT WAS NOT THAT HELPFUL” “MY FLIGHT ON AMERICAN HAD THE RUDEST FLIGHT ATTENDANTS YOU CAN IMAGINE”
4 Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013
Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013 5
THE SEI PROCESS CONVERTS SOCIAL MEDIA CONVERSIONS USING STANCE SHIFT
THEORY TO CREATE A QUANTITATIVE METRIC - SEI℠
POSITIVE
REVIEWS NEGATIVE REVIEWS
POSITIVE SCORES
NEGATIVE SCORES
SOCIAL MEDIA CHANNELS
LOW MED HIGH
High Med Low
EMOTIONAL SCORE
PER
SON
ALI
ZATI
ON
SC
OR
E
1. MINE ALL SOCIAL MEDIA CHANNELS FOR BRAND CONTEXT CONVERSATIONS, E.G. BRAND MENTIONS
2. PARSE INTO POSITIVE & NEGATIVE REVIEW
GROUPS. FURTHER DIVIDE INTO KEY TOPICS. 3. DERIVE ENGAGEMENT INDEX FROM 30
LINGUISTIC RULES TO “SCORE” MINED BRAND/TOPIC SOCIAL MEDIA CONVERSATIONS
4. TIME CODE BY WEEK & AGGREGATE METRICS
0
2
4
6
8
Per1
Per2
Per3
Per4
Per5
Per6
Per7
Per8
Per9
Per10
SEI SCORE
WHERE OTHER SOCIAL SENTIMENT METRICS FALL SHORT, THE SEI℠
SHOWS SUPERLATIVE CORRELATIONS TO BRAND SALES!
-20% 0% 20% 40% 60% 80% 100%
METRIC 1 POS/NEG RATIO
METRIC 2 POS/NEG RATIO
METRIC 3 POS/NEG RATIO
METRIC 4 POS/NEG RATIO
METRIC 5 POS/NEG RATIO
METRIC 6 POS/NEG RATIO
SOCIAL ENGAGEMENT INDEX (SEI )POS/NEG RATIO
9.9%
2.8%
-3.2%
7.7%
14.8%
5.9%
82.9%
Comparison Of The Correlation To Sales For The SEI Metric Versus Sentiment Metrics For The Six Leading Social Data Vendors
6 Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013
Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013
The Linkage & Correlation To Sales Over Time Shows That SEI Has Predictive Power
SEI℠ HAS PROVEN LINKAGE WITH BRAND SALES
7
Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013
MONETIZING SOCIAL MEDIA CONVERSATIONS
SOCIAL MEDIA ENGAGEMENT INDEX
APPLYING THE SEI METRIC
1. IDENTIFYING CATEGORY DRIVERS AND CONVERSATIONS IMPACTING BRAND ENGAGEMENT
2. QUANTIFYING THE IMPACT OF SOCIAL MEDIA
3. DEVELOPING A CUSTOMER ACQUISITION STRATEGY BASED ON CONSUMER CONVERSATIONS THAT DRIVE BRAND ENGAGEMENT
4. VALUING AND MONETIZING FACEBOOK MARKETING CAMPAIGNS
5. ENHANCING PROMOTION EXECUTION BASED ON CONSUMER ENGAGEMENT
ABOUT BOTTOM LINE ANALYTICS
8
Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013
• WHEN WE LOOK CONSUMER ENGAGEMENT (SEI℠) WITH NATIONAL RESTAURANT CHAINS, RESTAURANT A STANDS OUT AS A GIANT AMONG ITS COMPETITORS
1% 16%
12%
43%
10%
19%
Customer Engagement (SEI) by Restaurant Chain
Restaurant A
Restaurant B
Restaurant C
Restaurant D
Restaurant E
Restaurant F
1. IDENTIFYING CATEGORY DRIVERS AND CONVERSATIONS IMPACTING BRAND ENGAGEMENT
9
Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013
• ACROSS THE RESTAURANT, “HIGH QUALITY FOOD” AND “FRIENDLY SERVICE” CONVERSATIONS DRIVE CONSUMER ENGAGEMENT TO AN AIRLINE
0 10,000 20,000 30,000 40,000 50,000
A Good Place I Can Take My Children
Good Value for the Price
Has a Wide Variety on the Menu
Quick Customer Service
Fresh Tasting Food
Friendly Service
High Quality Food
Restaurant Industry Conversations Total Engagement (SEI) by Subject
1. IDENTIFYING CATEGORY DRIVERS AND CONVERSATIONS IMPACTING BRAND ENGAGEMENT
10
• RESTAURANT “A” HAS THE HIGHEST OVERALL ENGAGEMENT WHEN CONSUMERS HAVE “HIGH QUALITY FOOD” RELATED CONVERSATIONS
- 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5
Restaurant F
Restaurant E
Restaurant D
Restaurant C
Restaurant B
Restaurant A
SEI Ratio – High Quality Food
1. IDENTIFYING CATEGORY DRIVERS AND CONVERSATIONS IMPACTING BRAND ENGAGEMENT
11 Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013
• RESTAURANT “A’S” COMMITMENT TO HIGH QUALITY FOOD IS DRIVING MUCH OF ITS OVERALL ENGAGEMENT WITH CONSUMERS AND IS PROVIDING IT WITH A COMPETITIVE ADVANTAGE
0
1
2
3
4
5
6
0 1 2 3 4 5 6 7
SEI –
Hig
h Q
ual
ity
Foo
d
SEI - Total Restaurants
Relationship Between “High Quality Food” Conversations and Restaurant Conversations
Restaurant A
Restaurant B
Restaurant C
Restaurant D
Restaurant E
Restaurant F
1. IDENTIFYING CATEGORY DRIVERS AND CONVERSATIONS IMPACTING BRAND ENGAGEMENT
12
Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013
Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013 13
2. QUANTIFYING THE IMPACT OF SOCIAL MEDIA
• WE FIND THAT CONVENTIONAL ADVERTISING HAS BOTH A “DIRECT IMPACT” ON SALES AND AN “INDIRECT EFFECT” DUE TO ITS INFLUENCE ON SOCIAL MEDIA CONVERSATIONS AND THE SEI
• THE LARGE CONTRIBUTION FROM THE SEI℠ SUPPORTS THAT THIS IS A “WORD-OF-MOUTH” EFFECT
67%
8%
3%
2% 2%
10%
5%
11%
20%
Marketing Contributions
Base Sales Direct Alpha Brand Mass Media Direct Alpha Brand Digital Media
Direct Social Media Social Media on SNI Mass Media on SNI
Digital Media on SNI SNI Base
Net driven by media
SEI Engagement
Sub-model
The tree starts with an average SEI score of 100; and each level indicates a higher or lower SEI based on an
SEI score for a topic. The percent represents the percent of the sample in each segment.
3. DEVELOPING A CUSTOMER ACQUISITION STRATEGY BASED ON CONSUMER CONVERSATIONS THAT DRIVE BRAND ENGAGEMENT
14
Most Important Positive Drivers:
1. Place to Hang Out
2. For Meeting People
3. The Store Atmosphere
4. Beverage Products Positive SEI
3.93 = 100
Place2HangOut
>5.46= 211
9.1%
Place2HangOut
<5.46 = 83
91.9%
ToMeetPeople>
9.43 = 325
2.6%
ToMeetPeople<
9.63 = 188
6.5%
Atmosphere
>14.0 = 466
0.6%
Atmosphere
<14.0 = 288
1.9%
To Meet People
>5.4 = 229
3.8%
To Meet People
<5.4 = 85
85.5%
Beverage A
>6.4 = 271
7.7%
Beverage A
<6.4 = 74
77.8%
Place2HangOut
>3.6 = 126
5.9%
Place2HangOut
<3.6 = 76
71.9%
Beverage B
>5.2 = 211.1
1.6%
Beverage B
<5.2 = 67
70.3%
• INSIGHTS WERE USED TO DEVELOP A DIGITAL CONTENT STRATEGY AND IN-STORE PROMOTIONS THAT INCREASED SALES
Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013
Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013
4. VALUING AND MONETIZING FACEBOOK MARKETING CAMPAIGNS
• BY BUILDING A SALES RESPONSE MODEL USING THE SEI℠, WE CAN MONETIZE TARGETED MARKETING ACTIVITIES SUCH AS FACEBOOK CAMPAIGNS
15
Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013
5. ENHANCING PROMOTION EXECUTION BASED ON CONSUMER ENGAGEMENT
Promotion Results
• During a six month time period, the Client featured its Breakfast item with a promotion price of $2 with the purchase of a beverage.
• We analyzed the promotion impact by comparing the baseline average Social Engagement Index (SEI) performance prior to and after the promotion to the promotion period.
• SEI metrics reflect a significant promo lift in social engagements during the promo week compared to the benchmark 16wk pre and post periods. The net POS/NEG metric was up 180%.
• The promo lift was occurred across all social media channels.
* Net = POS minus NEG Ratio = POS/NEG
Lift By Channel
Total Blogs Boards Facebook Twitter
173% 193% 164% 39% 165%
Artisan Sandwich [Jan 4th - Jan 10th]
SEI Pre Promo Promo Post PromoLift Over Avg
Benchmarks
# Weeks 16 1 16 Pre & Post
Average Wk
POS 84 259 108 169%
NEG 23 77 37 160%
Net* 61 182 72 173%
Ratio* 3.73 3.37 2.96
• THE BREAKFAST SANDWICH PROMOTION GENERATED A POSITIVE LIFE IN CONSUMER ENGAGEMENT
12 1 12
150% 160% 180%
65 135 100 150 20 60 29 160 60 170 65 180 3.2 3.1 2.8
180% 150% 170% 40% 180%
Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013
• THE BREAKFAST ITEM TRENDED HIGHER DURING THE PROMOTION
Weekly Trended SEI ℠
• The SEI metric identified a significant promo lift for the Breakfast item based on social engagements during the promo week. This is comparable to the lift experience by a previous Free Coupon promotion.
• However, the SEI was much higher during the previous promo possibly due to the excitement created by “Free” product.
Breakfast Item
Breakfast Item
5. ENHANCING PROMOTION EXECUTION BASED ON CONSUMER ENGAGEMENT
Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013
Consumer Responses to Promotions
• AFTER THE BREAKFAST ITEM PROMOTION, CONSUMERS EXPRESSED CONCERNS ABOUT HIGH FAT CONTENT AND MADE DIRECT COMPARISONS TO COMPETITIVE BREAKFAST ITEMS
Concerns about Fat and Comparisons to competitive products
Breakfast Item
5. ENHANCING PROMOTION EXECUTION BASED ON CONSUMER ENGAGEMENT
Promotion
Cluster Promotion Day
Product
Cluster Taste
Product
Experience Time
Concerns
&
Compare
Cluster
Diet Retail
Competition Occasion
Average
All
Clusters
Breakfast
Item 0.10 0.25 -0.05 -0.19 -0.70 -0.10 0.33 2.45 0.15 2.66 3.12 0.46
Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013
MONETIZING SOCIAL MEDIA CONVERSATIONS
SOCIAL MEDIA ENGAGEMENT INDEX
APPLYING THE SEI℠ METRIC
1. IDENTIFYING CATEGORY DRIVERS AND CONVERSATIONS IMPACTING BRAND ENGAGEMENT
2. QUANTIFYING THE IMPACT OF SOCIAL MEDIA
3. DEVELOPING A CUSTOMER ACQUISITION STRATEGY BASED ON CONSUMER CONVERSATIONS THAT DRIVE BRAND ENGAGEMENT
4. VALUING AND MONETIZING FACEBOOK MARKETING CAMPAIGNS
5. ENHANCING PROMOTION EXECUTION BASED ON CONSUMER ENGAGEMENT
ABOUT BOTTOM LINE ANALYTICS
19
Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013
ABOUT US
Bottom-Line Analytics LLC is a consulting group focusing on
marketing and social media analytics
Our modeling experts have a total of over 100 years of direct
experience with marketing optimization modeling. This includes
direct experience in over 35 countries and dozens of product
categories.
We are dedicated to the principles of innovation, excellence
and uncompromising customer service.
Most important, however, we are dedicated to getting tangible
and positive business results for our clients.
20
OUR TEAM’S EXPERIENCE
21 Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013
Copyright Bottom Line Analytics, LLC and Next Generation Marketing Research - All Rights Reserved, 2013
Contact Information
• David Weinberger
• Chief Marketing Officer
• (o)770.649.0472
• David@bottomlineanalytics.com
• Bottom-Line Analytics LLC
22
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