olivier blanchard presentation from smiatl 2010

Social Media Program Planning & R.O.I.olivier alain blanchard@thebrandbuilder

Social Media Integration ConferenceAtlanta, GA22 October 2010

#SMIATL

TrainingSocial Media Program Integrationfor C-Suite executives,Managers and organizations.

Consulting- Brand Mgmt. - Online Reputation Mgmt.- Social Web & New Media

… and the blog.

What do I do?

Advisory Board Shenanigans

First Rule: The tools are the tools. The tools are not the thing.

Second Rule: Your business, not Social Media, is in charge.

Ways in which Social Media can help a business:

SalesNet New Customers, Increased Frequency of Transactions, promo exposureIncreased yield (average $ value per transaction), and product penetration

Customer SupportImmediate feedback and response, positive impact in public forum, cost reduction

Human ResourcesMore effective recruiting, online monitoring of employee behavior (risk management)

Public RelationsOnline Reputation Management, improved brand image via Social Web

Customer LoyaltyIncreased interactions, better quality of interactions, deeper relationship with brand,

Increased trust in brand, increased mindshare of brand, greater values alignment

Business Intelligence

“The community closes the sale.”- Porter Gale (@virginamerica)

Virgin America invests in the good will of customers, simply by publicly acknowledging and supporting them in the same channels where they’re communicating.

Your customers = a vibrant community.

What Social Media really is:People talking with people.

(Which is nothing new, really.)

People connecting with each other.

People creating communities…

on their own terms.

People sharing their passions.

People sharing their complaints.

By the way...

There are 2 forces at work in Social Media:

Vertical EngagementAnd

Lateral Engagement

This is important.

Vertical Engagement= Brand + Customer.

Great Experiences & Brand Loyalty.

Lateral Engagement = customer + customer

Validation and Scale.

People share things they love.

Twitter, YouTube and Facebook Are word-of-mouth on steroids.

Social Media (Ecosystem & Platforms)Social Communications (What happens there)

Medium

Communications

Social media

Social communications

Social media (the channels)

Social communications

(Enablement)

The customer lifecycle funnel

Acquisition Development Retention

You are here You also need to build here

Create something worthwhile Let the community share it

The four core disciplines of Social Media Mgmt.

Module 1: Strategy & Development

Having “a presence” in Social MediaIs worthless unless you do something with it.

What many organizations forgot to askbefore getting into the Social space:

“What are we trying to accomplish?”

Define the objective FIRST.THEN come up with the tactics.

Tactics don’t dictate the objective.

You know…What this team really needsIs more Social Media!

And more followers too!

Objectives dictate tactics.

I need 3 more touchdownsbefore half-time. What can I do to get there?

What you do with your Social Media presenceneeds to be driven by purpose.

What are your objectives? Clarify them first.

Your organization doesn’t plug into Social Media.Social Media plugs into your organization.

Customer Support

Market Research

Online Reputation Management

Community Management

Consumer Insights

RecruitingBusiness Development

Business Measurement

Marketing

Education

Thought Leadership

Search/SEO Mobility

How Social Media plugs into business functions

Customer Acquisition

Ways in which Social Media can help a business:Sales

Net New Customers, Increased Frequency of Transactions, promo exposureIncreased yield (average $ value per transaction), and product penetration

Business IntelligenceKnow Everything. (No, really.)

AwarenessDo enough people know about us? Do enough people think about us?

ContextDo people think of us in the right way?

ValueDo people understand our value? What we offer?

RelevanceDo people appreciate our value to them?

CatalystsDo people have a reason to think about us? To engage with us? To buy into us?

Brand Management: Momentum Drivers

Social media is there to drive, amplify and reinforce all of these things:

AwarenessContext

ValueRelevance

InteractionsTransactions

Leveraging Social Communications

What needles are you trying to move?

Where do you want to start?Sales

Build your program based on these objectivesSales

Set targets. Be specific. Be clear.

Monitoring...?Engaging…?

Build your program based on these objectivesSales

Set targets for each programSales

Net New Customers: How many? What time frame? How? How does SM fit in?

Customer Supportcost reduction: What is the cost reduction target? How can we do it?

Public RelationsOnline Reputation Management: Define parameters. How will we gauge success?

Improved brand image via Social Web: Set targets. How will we measure this?

Customer LoyaltyIncreased mindshare: Set targets and method. How will we measure success?

Business IntelligenceKnow Everything: Enhance BI practice. What do we want to know? Can SM help us

gather data and insights? How will we do this? What tools do we need? Etc.

Goals are not targets

Increase net new customers

Increase sales revenue

Increase net unique website visitors

Increase the number of followers

Increase market share

Increase positive sentiment

Increase positive recommendations/WOM

Increase mindshare

Attract better talent

Amplify marketing efforts

Increase customer participation

Improve reputation with investors

Set targets. Be specific. Be clear.

+500 net new transacting customers this Q

+13% sales revenue YoY

+8000 net new website visitors this M

200 Net new followers this W

+3% more market share YoY

100% increase in pos.sentiment

How will you measure this?

+500 net new transacting customers this Q

+13% sales revenue YoY

+8000 net new website visitors this M

200 Net new followers this W

+3% more market share YoY

100% increase in pos.sentiment

What departments in your companyare tasked with meeting those objectives?

Marketing?

Customer Service?

Biz Dev?

(Who owns these functions now?)

Marketing

Customer Service

Biz Dev

How can Social Media support and enhance key business functions?

Are they capable of integrating this?

If not, what will it take?

Planning for Social Media Integration

Marketing CustomerService

PublicRelations

Advertising

ReputationMgmt.

BusinessDvlpmt.

CustomerSupport

Collaboration

Business Functions Business Processes

Measurement

Data Analysis

InternalCommunications

Research

How does Social Media fit into and across my

organization?

Marketing PRCustomer

ServiceBusiness

DevelopmentHR

CommunityManagerBlogger

The current state of Social Media Integration:

Buzzwords over Objectives:

“Engagement?” “Conversations?”

Social MediaManager

Marketing

CustomerService Technical

Support

BusinessDevelopment

C-suite

Phase 1: “Test” Adoption

SocialCommunications

Manager

Marketing

Support

BusinessDevelopment

C-suite

Phase 2: Marketing Adoption

SocialCommunications

Director

Marketing

Support

BusinessDevelopment

C-suite

Phase 3: Operational Adoption

VPSocial

Communications

Marketing

Support

BusinessDevelopment

C-suite

Phase 4: Operational Integration

ServiceBusiness

DevelopmentHR

The next step in Social Media Integration:

Objectives over buzzwords

Online Reputation ManagementReal-Time Customer Support

Digital Crisis ManagementMarket ResearchFRY

Digital Brand Management Innovation Collaboration

ServiceBusiness

DevelopmentHR

The current state of Social Media Integration:

Buzzwords over Objectives:

“Engagement?” “Conversations?”

ServiceBusiness

DevelopmentHR

The next step in Social Media Integration:

Objectives over buzzwords

Online Reputation ManagementReal-Time Customer Support

Digital Crisis ManagementMarket ResearchFRY

Digital Brand Management Innovation Collaboration

Okay, so how do we make this happen?

Thinking. Planning. Deploying.

Three-Step Process

Step 1: Strategy & developmentIdentifying goalsIdentifying key departmentsDeveloping strategies and tactics

Setting targets and budgetsClarifying intentProviding direction

Three-Step Process

Step 1: Strategy & development

Step 2: Operational Deployment

Identifying goalsIdentifying key departmentsDeveloping strategies and tactics

Getting departments up to speedTraining staffEnabling technology and toolsCreating the internal infrastructure

Working with Legal, IT, HR, etc.Creating guidelines Developing the organizationContinuous improvement

Three-Step Process

Step 1: Strategy & development

Step 2: Operational Deployment

Step 3: Management & Execution

Identifying goalsIdentifying key departmentsDeveloping strategies and tactics

Getting departments up to speedTraining staffEnabling technology and toolsCreating the internal infrastructure

Working with Legal, IT, HR, etc.Creating guidelines Developing the organizationContinuous improvement

Community managementOnline reputation managementMonitoring Measurement

Digital customer supportInternal collaborationEtc.

Managing a fully deployed program

VP Social CommunicationsDeveloped the Social Communications InfrastructureOversees SM activityCoordinates SM activityProvides leadership + Support

Customer Support

PR + Reputation Mgmt

Marketing

Measurement

MonitoringSupportTriage

Data AnalysisReporting

MonitoringResponding to crisesContent, events & Promotion

MonitoringResponding to inquiriesContentTriage

ResearchContent DevelopmentPromotions

InternalCollaborationHub / Channel

ServiceBusiness

DevelopmentHRCommunity Mgr.

Blogger guy

It makes absolutely no sense to expect that one Social Media role

can properly serve all of an organization’sBusiness functions.

Social Media Strategy?

The four categories of roles in Social Media

Different Focus + Different perspectives

Customer Support

Marketing

Measurement

Often the biggestchallenge

A word about “Value.”

The lesson here is this:

This isn’t about establishing a Social Mediapresence and then figuring out how to use it.

Think of how the Social Web, its technologies and networks can help you become more useful.

Competitive Edge

Value = Usefulness = Purpose = Value

How are you useful to your customers?clients?boss?organization?peers?industry?category?

How can you create “usefulness?”

Example: A garbage company wants to use Social MediaHow can they use Social technologies to be moreuseful and competitive?

Mobile AppPay Your bill Post pickup schedulesFollow/track the trucksLocate Recycling StationsRecycling + Composting TipsCommunicate service changesManage your accountShare app with friends

How would you use these?

ServiceBusiness

DevelopmentHR

Who owns all of these objectives?

This guy?(No)

ServiceBusiness

DevelopmentHR

Who owns all of these objectives?

These guys?(Yes)

Module 2: Integration & Deployment

Step 1: Map company’s capabilities

Identify key assets within the organizationBloggers, socially savvy execs, techies, leaders, etc.

Catalog all Social Media related activityIs the company already working in the social space? Who? How? Where?

Assess strengthsStrong communications team, swift IT department, horizontal culture…

Assess weaknessesPoor internal communications, no PR department, mobile what?

Step 2: Create a task force.

Senior ManagementDepartment heads

Legal CounselHuman Resources

Power users of Social MediaI.T.

Customer ServiceP.R.

Marketing.

Step 3: Decide on a Social Media Architecture

The Two Social Media Build Scenarios

1. Your company is fairly new to Social Media, and you have to start from scratch . Next on the agenda: Establishing business objectives, identifying opportunities, establishing listening posts, identifying assets within the company who can manage early social media-related tasks, and bringing all departments to the table to discuss synergies.

2. Your company already has clusters of activity in the Social Media space. These are mostly decentralized, autonomous, and disconnected. (Pirate ships.)Next on the agenda: Harness, incorporate, organize.Caution: Do not interfere. Pirates don’t bend to hierarchy without merit. Give them their space.

BrandCommunications

A. Centralized Management ModelCommand StructureHighly organizedCommand-ExecutionHighly connective

Corporate

B. Decentralized Management Model

Brand or silo

Autonomous structureOpen-source model

Centralized Ground-Up Model

Advantages: You can custom-engineer your Social Media infrastructure.You have complete control over your outposts.

Disadvantages: You have to start from scratch.Staff needs to be trained.

Decentralized pirate-ship model

Beware the pirate ships…

… but use them to your advantage.

Decentralized pirate-ship model

Disadvantages: Incorporating pirate cultures will be difficult.Advantages: Programs are already gaining traction.

You can build on your pirates’ expertise.

How to clean up a pirate ship model:

1. Respect the pirates. They know how to execute.2. Invite the pirates to the table. Recognize their wins.3. Ask the pirates to report on what they see and hear.4. Ask the pirates to report on their wins and losses.5. Ask the pirates how you can help them win more.6. Fund the pirates and send them on missions.7. Ask the pirates to help you build up your fleet.8. Ask the pirates to play a leadership role.9. Ask the pirates to write the playbook for you.10. Turn the pirates into privateers.

Step 4: Create Social Media Policies

1. The company’s position on Social Media2. Official Social Media usage for company3. Personal Social Media usage for company4. Confidentiality guidelines5. Disclosure guidelines6. Restricted Speech guidelines7. Anti-defamation guidelines8. Conduct guidlines9. Personal and professional responsibility guidelines10. A list of resources11. A note from Human Resources12. Training modules and schedules

What your Social Media Policies should include:

A. Clear internal written policies for what is and is not permitted- Require disclaimer that when mentioning the company, that is personal, not company

opinion. - No use of company or customer information, logo, trademarks, etc. without writtenpermission.- No talking about company plans, policies, financial information, other than what hasalready been made public.- Hold employees personally responsible for all social media conversations. Violation of policywill be grounds for termination.B. Clear “Rules of the Road” for blogging and Social Media behavior. (How to stay out of trouble.)

C. TrainingD. Monitoring is at the discretion of the company.E. Enforcement must be consistent and fair.

Some notes on internal Social Media Guidelines

Legal Considerations

Disclosure: The Rulebook

FEDERAL TRADE COMMISSION16 CFR Part 255Guides Concerning the Use of Endorsements and Testimonials in Advertising

The company must inform employees, agencies, and advocates they have a formal relationship with of their disclosure policies and take action quickly to correct problems where possible.

Clearly disclose company involvement on all blogs produced by the company and agencies.

Source: Social Media Business Council

The nugget: “Clients” are now responsible for 3rd party contractors infractions when it comes to disclosure and the content of communications.

Disclosure

“[A]n endorsement means any advertising message (including verbal statements, demonstrations, or depictions of the name, signature, likeness or other identifying personal characteristics of an individual or the name or seal of an organization) that consumers are likely to believe reflects the opinions, beliefs, findings, or experiences of a party other than the sponsoring advertiser, even if the views expressed by that party are identical to those of the sponsoring advertiser.”

16 CFR Part 255

DisclosureWhen communicating with blogs or bloggers on behalf of their company or on topics related to the business of the company, company agents must:

1. Disclose who they are, who they work for, and any other relevant affiliations from the very first encounter.2. Disclose any business/client relationship if they are communicating on behalf of a third party.3. Comply with all laws and regulations regarding disclosure of identity.

Pseudonyms:(Option 1) Never use a false or obscured identity or pseudonym.(Option 2) If aliases or role accounts are used for employee privacy, security, or other business reasons, these identities will clearly indicate the organization agents represent and provide means for two-way communications with that alias.

DisclosureFor personal blogs or social media interactions:

1. If employees write anything related to the business of their employer on personal pages, posts, and comments, they will clearly identify their business affiliation. The manner of disclosure can be flexible as long as it is clear to the average reader, directly connected to the relevant post, or provides a means of communicating further

(Example disclosure methods could include: usernames that include the company name, link to bio or about me page, or statement in the post itself: “I work for __<company>___ and this is my personal opinion”).

2. Employees will clarify which posts/comments are their own opinions vs. official corporate statements.

Disclosure

3. Writing which does not mention work-related topics does not need to mention the employment relationship.

4. If employees blog anonymously they should not discuss matters related to the business of their employer. If employer-related topics are mentioned, they should disclose their affiliation with the company.

DisclosureTransparency when providing bloggers with any form of compensation such as rewards, incentives, promotional items, gifts, samples, or review items:

1. Set formal policies on using incentives with bloggers for staff and agencies.2. Communicating these policies clearly to bloggers in advance, and asking that

they do the same in any post that may result.3. Proactively ask bloggers to be transparent about their relationship and

communications with your company.4. Encourage bloggers to disclose the source of any compensation directly in

any post they write about you.5. Paid posts or reviews must be clearly disclosed in the specific post as

advertisements.

Note: Sending bloggers products for review does not obligate them to comment on them at all, and they are free to write a positive, negative, or neutral comments. Be prepared.

Disclosure

When using external agencies or personnel to communicate on your behalf:

1. Require the agency to disclose its relationship with your company when it conducts blogger relations.

2. Require the agency to be truthful and never knowingly deceive bloggers.3. Publicly acknowledge when the agency and/or related parties act contrary

to these policies, and quickly take corrective action where possible.4. Require agencies and agency personnel to meet or exceed your internal

disclosure requirements.5. Require agencies to enforce these requirements on their subcontractors.

Note: Always discuss and secure formal agreement on these practices before entering into a business relationship with an agency involved in social media.

Give people clarity and set expectations.

ConfidentialityFor clarity: Establish confidentiality codes for internal communications and email.

Recipient Only – Confidential

Working Group – Group Confidential

Company – Company Confidential

Open – Free to share

ServiceBusiness

DevelopmentHR

Step 5: Division of labor: Who does what?

Monitoring Pushing promotions

Creating content

Answering questions

Responding to crises

Connecting with influentials

Blogger relations

Managing the accounts

#chats

Collaboration team lead

Reporting

#events

Step 5: Division of Labor – Who does what?

Visualizing A Structure

Coordinating with External agencies

Internal Communications

External Communications

Reporting to C-suite

Beware the pirate ships…

… but use them to your advantage.

Planning for outsourced management…

Integration Process

AgencyInternalMarketing

Can deliver

Can’t deliver

IntegrationInto

Organization

Merging

Consider an adaptive process rather than a “rigid” strategic model.

Step 6: IT enablement

IT owns technology deployment and process enablement.- Tools- Servers- Cloud- Connections- Processes

They make this happen:

This can’t happen without an infrastructure

Customer Support

Marketing

Measurement

I.T. and enablementInternal collaboration tools

SharepointYammerJive NetworksCalendarsEmailIMGroupsWikisRadian6TelephoneMicrosoft ProjectPost-it notesBulleting boardsShouting

This is not what you want.

Aim for synergy.

Step 7: Training your staff.

Once Social Media policies and guidelines are established, don’t just put them in the employee handbook and the intranet and forget about them.

Train your staff.Basic Social Media Guidelines

- Official Use- Personal use

Specific Functional Training

2 Tracks:

1. Awareness & Sensitivity trainingAll employees

2. Internal Certification ProgramsCommunity managementCustomer ServiceBusiness DevelopmentP.R.MarketingDigital EngagementEtc.

Step 8: Training your staff

Training in new disciplines is an open source model: Test. Test. Test.

The test kitchen model: Experiment.

It’s okay. We’re new at this.

Adequate training helps avoid messy situations.

Failure is an option. Just keep it small.People screw up. This is the real-time web.

Plan for small failures.Make failure a learning exercise.

Train.Supervise.Mentor.Repeat.

It seemed like a good idea at the time…

And then Monday morning arrived.

VP Sales

One mistake and you could be a trending topic.

Step 8: Creating Order with schedules

Just like editorial calendars:

Schedule Activity, reporting, meetings, permanence

Step 9: Account Continuity Planning

Sooner or later, every job comes to an end.

People leave. Plan for it.

Consider what happens to personal Twitter accounts when employees leave.

1. Does your company lose access to the followers of that account?2. Do your customers suddenly lose their twitter connection to you?3. Does the next person (the replacement) have to completely rebuild network

equity?

The absence of continuity planning can create serious headaches for organizations and invalidate months, even years of hard work.

A: Either own the official accounts (see next slide), or…B: Include a clause in the account manager’s employment/Social Media contract

that specifically addresses network/follower ownership and overlap with personal accounts used for official company use. (Hand over a list of followers monthly – Add to corporate account.)

Clear Association

Especially important for service roles.Less so for executive roles.

When someone moves out of a role…

Transition Procedures

1. Update the avatar/profile image.2. Update the profile information.3. Notify the community of the change.4. Focus on new account manager, not the former account manager.5. Make the transition painless for the customers.

Olivier BlanchardCommunity Mgr.

Likes Nutella.

Lisa SmallCommunity Mgr.Likes puppies.

Old New

Weekly/Monthly data transfers. All accounts must share fans andFollowers with central corporate account/database.

Data Consolidation:Fans and followers(constituting the network)are valuable. Own the data.

Step 10: Hiring for Social Media

A breadth of backgrounds is good. Look for variety and flexibility.

Resumes only tell part of the story. Titles don’t always mean experience.

Obtain references from trusted Social Media practitioners.

ServiceBusiness

DevelopmentHRCommunity Mgr.

Blogger guy

It makes absolutely no sense to expect that one Social Media rolecan properly serve all of an organization’s Business functions.

Social Media Strategy?

Hire for different roles in Social Media

Strategically-Minded

CEO-typeEntrepreneurial

Sees all the angles

OperationalAptitudeCOO-type

Very organizedWorks across silos

Communications-mindedCustomer servicePublic Relations

Task-orientedCaring and trustworthy

AnalyticalLoves numbers

Excel SenseiData visualization

Lunch Break

#SMIATL

Module 3: Program Management

Departments and functions

Customer SupportOnline Reputation ManagementCommunity ManagementChannel DevelopmentDigital Property ManagementMonitoring & MeasurementPublic RelationsMarketingEvent ManagementProduct ManagementCRM & sCRMHow to handle negativitySetting the record straightTargeting

The Triumvirate of Digital Brand Management

Customer Support

CommunityManagement

The SweetSpot

The Triumvirate of Digital Brand Management

CustomerSupport

CommunityManagement

1. Mutually Supportive.

3. Escalation of Response

2. Ensures Balanced Approach

Collaboration

Call Center Forums Twitter

1st layer

2nd layer(Back End)

P.R.CustomerSupport

CommunityManagement

Customer Support 2.0Customers / users / the public

(Front End)

Network Equity: Monitoring & Response

CommunityManagement

CustomerSupport P.R.

PositiveComment

NegativeComment

Acknowledge

AcknowledgeAddress

Assist

QuestionQuestion

Assist Assist

Customer Support

Marketing

Measurement

Integrated crisis response model

VP Social CommunicationsOversees ResponseProvides leadership + Support if neededDebriefs staff after incident

Customer Support

Measurement

MonitorsHelps the customer inreal time. Resolves thecrisis.

Measures impactof activity.

MonitorsWatches for escalationduring and after incident.Works with community managerand customer support if additionalsteps must be taken.

MonitorsAssists Customer SupportFollows up after the incident.

4. Channel Development

Channel Development in 30 seconds:

1. Identifying the channels you should be in.- Activity? No activity?- Positive sentiment? Negative sentiment?- Competition presence?

2. Understanding the channels you should be in.3. Creating listening outposts in those channels.4. Connecting with key denizens in those channels.5. Becoming involved with topics and conversations.6. Developing a positive reputation in those channels.7. Growing social equity in those channels.8. Establishing leadership presence in those channels.

#SMIATL

Module 4: Measurement

Fact: Achieving spectacular results requires planning.

Funnels are good. Follow the ball.

Your company doesn’t need 1,000,000 followers.

Your company needs 10 – 1,000,000 new customers.

Conversions are gold.

SOCIAL MEDIA IS NOT FREE.

1. It takes skilled people.

2. It takes technology.

3. It takes time and effort.

… all of which are limited resources.

We have… rocks.

These resources=

100%of your budget

Head CountAdvertising

E-Marketing

Inbound Call Center

Sales Dept.Public Relations

MarketingI.T.

Accounting

These resourcesgenerate

100%of your business

Which buckets do we emptyto fill this new one?

Understand that a newSocial Media program’sfunding doesn’t appear

out of thin air.:

Okay fine. But if I’m going to take a chanceon this social media thing,

it had better make good businesssense! Why should I allocate

resources to it?

Reason #1:It will result in a cost reduction.

Maybe in customer service?You mentioned something about

business intelligence andmarket research?

Reason #2:It will generate more revenue.

I want more transactions, more net new customers,

more customer loyalty,etc.

Business Justification

SAY HELLO TO:

R.O.I.

R.O.I.RETURN ON INVESTMENT

THE R.O.I. EQUATION

Investment Expectation of return

ROI =COST OF INVESTMENT

(GAIN FROM INVESTMENT - COST OF INVESTMENT)

THE R.O.I. EQUATION

Truth about R.O.I.

ROI is a business metric, not a media metric.

ROI is 100% media-agnostic.

Only measuring digital or social won’t get you anywhere.

The idea with the most promise wins.

To prove it, you need a plan AND sound metrics.

Improvement + Cost Reduction Idea: Customer Service

- One CSR can handle several customers at once. - Customers don’t have to wait on hold.- “Accents” are no longer an issue.- Resolution times remain the same, but to thecustomer, they seem considerably shorter.- CSRs spend less time on each ticket.- 140 Characters keeps things simple.- Transparency of process = positive PR.- Added convenience for customers on the go.- Proactive Customer Service can generate loyaltyand capture market share. (Angry consumers could be a competitor’s customers.)- Even a 10% shift to twitter customer servicecould yield significant cost savings.- Run simulations and measure impact.

Other cost-reduction ideas:

Business Intelligence / Market Research

Increased Reach through SM = Lower CPI (cost per impression)

In-network recruiting = lower recruiting costs

Now, to generate more revenue…

Objectives should be specific.

F.R.Y.FREQUENCY, REACH, YIELD

Increase how often customers buy from us each monthIncrease the net number of transacting customersIncrease average spend per transactionEtc.

What if you aren’t “for profit?”

You still depend on some kind of revenue to function:Grants, funding, donations, membership fees, etc.

Same thing.

Revenue is revenue. Budgets are budgets. Money is money.

Zero value, unless hype is your currency.

We’re doing Social Media! Woohoo!!!

The Problem.

I’m a Social Media guru.Love isn’t about ROI, baby.Forget your greedy ways.

ROI is NOT:Return on InspirationReturn on InvolvementReturn on InnovationReturn on ImmersionReturn on ImaginationReturn on ImportanceReturn on InboundReturn on ImbecilityReturn on IgnoranceReturn on Incompetence

ROI is:Return on Investment.

R.O.I. Confusion - A tale of operational silos

Engagement R.O.I.Different Focus + Different perspective

Reason #1:COST REDUCTION

Reason #2:REVENUE GENERATION

Remember what Mr. Bossman said…

Okay, hotshot,You have your Social Media doohickey.Now I’d better see some real results!

Or else…

I shrank my PR budget by 20%and my outbound call budget by 40%.

Now I can afford a team of social mediaRock stars. Can I get a hellz yeah?

Woohoo!I have a job!!!

Dudes, we are ON THIS!!!

Let’s start engagin’!!!

I call dibs on theCorporate blog.

One Month Later…

ACCOUNTING

Oh my! Look at all the newvisitors to our website!

and all of our FaceBook friends!Hot Damn, we even have

comments on the blog!

What about ourTwitternets?

This rocks!I never had it so

good!!!

Three Months Later…

ACCOUNTING

Monitoring to base…Monitoring to base…

Our Google Analytics are throughthe roof! Even our social mentions

are wicked good!We have liftoff!

Yeah but…What about

the P&L?

Measuring mediareally rocks my

world.

Six Months Later…

ACCOUNTING

Anything?

What kind of mood is The old man in today?

Not good.He doesn’t care how many visitors

the website gets, or how manyeyeballs we estimate we’ve reached

unless it means we’re sellingmore stuff.

But why?Our website is getting

mad hits, Jack!And we have 3,000 followers

on Twitter now!

I’m sorry, son.If your Social Media program

is generating revenue, we aren’tseeing it. We need to allocate

resources where we canmake money.

It’s just business.

Darn it.This media measurement

stuff isn’t working.

We need to starttying this stuff to actualBusiness performance.

Where to start?Let’s see…

At the beginning?

Non-financial impact = potential.

ROI = actualized potential.

Social Media Activity - Vertical/Lateral

Ultimately, Social Media activity has to positively impact customer behaviors and drive revenue in order to deliver R.O.I.

Step 1: Establish a baseline

8% YoY Growth

Step 2: Create Activity Timelines

Step 3: Monitor impact on conversationsWhat are people talking about and where?Map topics, keywords, trends, links, etc.

Step 4: Measure transactional precursors

Measuring transactional precursors

If you can, also look at # of transactions

Also measure net new customers

NNC is a measure of effective reach,not just media reach.

Transaction data should be specific

How often customers transact. (transactions per month)How many customers you are reaching. (net new customers)How much they spend. ($ per transaction)

Step 5: Finally, look at Sales Revenue

Step 6: Overlay your data onto a timeline

activities

transactions

social data

web data

loyalty metrics

We overlaid all of our timelinesand noticed that since our social media

activities began, our website visits are up,our social mentions are also up, and

everyone seems to love us.

So is there a discernable pattern

in this?

Step 7: Look for patterns

Before After

Impact

ImpactImpact

No Impact

Uncertain Impact

Step 8: Prove & disprove relationships

Before After

How was this groupTouched by SM or WOM?

(And how was it not?)

Look for patterns

Before After

Impact

ImpactImpact

No Impact

Uncertain Impact

Prove & disprove relationships

Before After

How was this groupTouched by SM?

How longwill all this

analysis take? It’s all a processof elimination, really.

Isolating patterns, quantifying deltas,proving ad-hocs…

Then allwe have to do is

figure out what the cost savings and revenue gains

are, and plug them into the equation.

Oh wow.This R.O.I. thing

wasn’t at all aboutmeasuring media,impressions and

eyeballs!

First things first: Prove that Social Media works

ACCOUNTING

All things remaining the

same…

We may have proof ofconcept.

Hot damn!

So it turns out that our Social Media program is impactingevery aspect of our business except

traffic in our brick and mortar stores.Can you get on that? Yeah. We need

to find out why we aren’t havingan effect there. Kthxbye.

Proper R.O.I. Analysis helps identify areas of improvement

Dudes, we are ON THIS!!!

Let’s start engagin’!!!

I’ll start crafting somewicked blog posts.

More store traffic.Roger that.

Drinks for Everybody!

And please, no more of this.

I’m a Social Media guru.Behold my army of followers.My personal brand is golden.

Only measurefollowers, fans, visitors,

downloads, click-throughs,mentions and web stats.

That’s Social Mediameasurement, baby!

Dig it.

What a Social Media win looks like:

Facebook.com/oldspice

94,000 followersVelocity: 8K to 66K in only 2 days

16,000,000 viewsMost response videos >200,000 views

706,000 fans/likes… sharing videos with friends on their wall

But will it “sell soap?”

Sales of body wash up 107% in the first month.(It’s a good start, but will it be enough to justify the campaign’s expense?)

(It already has.)

“Increasing revenue” is too abstract.

How often customers transact. (transactions per month)How many customers you are reaching. (net new customers)How much they spend. ($ per transaction)

Strategy drives tactics - Tactics drive metrics

FREQUENCY

How can we leverage Social Media to influence customers tobuy from us more often?How can we measure changes in this behavior?

How can we leverage Social Media to acquire net new customers?How can we measure increased reach and conversions?

How can we leverage Social Media to influence customers to spend more per transaction?How can we measure changes in this behavior?

I just figured outhow to increase deodorant sales

by about 9%!

FREQUENCY

YIELD I know how to increase yield!!!

Let them eat cake!

Awareness

Run through it logically.

AwarenessCampaign*

RetweetJoin club

ShareEtc.

Altered PurchasingBehavior

Track appropriate metrics

Create a “take the challenge” page where users log their product purchase.CRM captures that data at point of sale.Same store sales increase but market share remains the same.Etc.

Measurement should not be a religion. Adapt: Measure what makes sense.

Ask away.

Olivier Blanchard864.630.7398www.thebrandbuildermarketing.com@thebrandbuilder (on Twitter)

But wait… there’s more!

Measuring success: Defining metrics early

? ? ?? ?

Non-financial objective?

A leads to B leads to C leads to D...

? ? ?? ?

Non-financial objective?Start here.

Define Metric/value.What is my target?How much $ do I need to do this?

? ? ?? ?

Now move here.My $ target is $x.Where do I measure changes in $x?What behaviors leads to this?

? ? ?? ?

Now move here.My targets are X, Y and Z.My metrics are M, N and O.My channels are P, Q, R and SWhat behaviors drive these targets?

Plan first. Map out the route.Identify relevant metrics every step of the way.

Measure here…

Not here.

Now start from the beginning. 1. Baseline. 2. Timeline…You planned from outcome to catalyst.

Now measure from catalyst to outcome.R.O.I. = financial metrics within this process.

Your metrics

Q: What is the 2012 objective?

(Not 5,000,000 fans on Twitter)

A: Re-election.

Main non-financial objective(s)Get re-elected in 2012

Q: What is my most important resource?

A: Campaign funding. (It enables everything.*)

* Understand your business and its mechanics. If you don’t, you are flying blind.

Main non-financial objective(s)

My $ target is $x.Where do I measure changes in $x?What behaviors leads to this?

Q: How does Social Media fit in?

A: Above all else, it yields campaign contributions.

A: How it yields campaign contributions.1. Directly through vertical engagement

2. Indirectly, through lateral engagement (WOM + peer influence)

Let’s plug-in F.R.Y., just for fun.

Can we increase the frequency of contributions?

Note: Most Obama For America online supporters gave little, but they gave often. Frequency was a key factor in the O4A strategy.

Can we increase the frequency of contributions?

YES.Increase frequency of interactionsAsk more oftenUpdate swag more oftenRepeat message more oftenEngage more oftenSM is more cost effective than paid media

To specifically drive

Can we increase our reach?

Second largest search engine in the world, only to Google

Twitter now has over 100 MILLION registered users.

55,000,000 tweets per day.

37% of users tweet from their phones.

All talking to each other all day long.

Facebook has over 500 MILLION users

Millions of people are content publishers now.

Don’t forget…

Can we increase our reach?YES.Be everywhere.Seed and grow our channelsHelp our supporters share contentAsk our fans to share contentArm our fans with toolsMake our reach strategy clearVertical + Lateral engagement

Can we increase our Yield?

YEP!Foster depth of engagementDevelop and build loyaltyIncrease involvement of fansUnderstand the value of timingBuild clarity of purposeAsk when we need to ask

Because the objectives dictate the tactics...

… the objectives also dictate the metrics.

The metrics are the vital signs of your program.

Every measurement you take has its place and tells its part of the story.

Start here…

Ignore here.1

Connect the dots.

R.O.I. is a crucial link in the measurement chain.

Ask away.

Olivier Blanchard864.630.7398www.thebrandbuildermarketing.com@thebrandbuilder (on Twitter)

http://smROI.net

Thank you!

www.redchairgroup.com

@redchairgroup on:

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