Social media & the C-Suite value debate

Understanding: what SM is and isn’t Integration & the end of business

fiefdoms (aka silos) Measurement approaches

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Can you measure what you don’t value?

>70% of Fortune 500 CEOs don’t do social media

Traditional advertising & PR: estimated reach and impressions ◦ Tells us nothing about the

customers ◦ Relies purely on correlations

What’s the ROI? (Right question: why invest?)

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Time Legal Safety (except for LinkedIn) Skepticism/trust Proof of financial return on money

spent

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26% fans, followers and supporters (#s) 25% web traffic (#s) 16% lead generation ($) 10% reduced cost of customer support ($) 7% value of sales generated through social

media programs ($) Source: Center for Marketing Research, University of

Massachusetts

Return on Engagement (ROE) Return on Participation (ROP) Return on Listening (ROL) Return on Fluid Listening (ROFL)

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Companies communicate/interact

People get relationships, trust, conversation

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Amplifier of existing business functions

Delivers velocity to marketing processes

Empowered WOM

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Public Relations/

Corp Comms

Marketing

Advertising

Web/ Content

Mktg/SEO

Human Resources

Customer Service

Sales

Customer

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2007 2008 2009

Total Rev: $61B

$6.5M 40 SM employees 25K to 1.5M followers

Social media is not a strategy, it is a communications tool Social media supports existing business goals & objectives Every customer touch point can be enhanced by social media

◦ Public relations/corporate communications/crisis management ◦ Marketing (including email marketing, newsletters, etc.) ◦ Customer service ◦ Human resources ◦ Lead generation/sales ◦ Event planning/management ◦ Market research ◦ Mobile apps

Goals & Objectives Tactics ◦ Blogging ◦ Blog comments ◦ LinkedIn Groups & LinkedIn Answers (B2B) ◦ Shares, mentions, retweets ◦ Status updates (Facebook, LinkedIn, Google+) ◦ Alternative channels(Pinterest, Tumblr, StumbleUpon)

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To measure, you must establish targets (timeframes)

Social media goal: increase brand awareness, encourage engagement via myriad social platforms, boost sentiment (non-financials) leading to conversion (financial) ◦ Frequency (more transactions) ◦ Reach (more customers) ◦ Yield (more transactions per

customer)

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$225.99 for 50K “100% Top Notch Quality Twitter Followers” in 20 days. $9.99 gets you 900

$590.99 for 100K+ video views

$350 for 25K Fan Page likes

$550 for 10K +1s

$55 for 300 followers

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Initiation

Outputs

Inputs

Non-financial

outcomes

Conver$ion

blogs, tweets, shares, updates, videos, comments

listening, tracking, monitoring, data

collection, analysis likes, shares, RTs, subscribers, mentions, bounce rates, page views, time per page

$ales, repeat $ales

plan development, KPIs set

KPI reveals if goals & objectives, which lead to specific tactics, achieve specific targets

Visitors/followers are easy (gamed); the “right” visitor is hard

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Website analytics Event registrations Newsletter subscriptions Likes Email signups Recommendations Registration for contests Blog Poll/surveys completed Blog comments Shares RSS subscriptions Retweets Content requests/downloads Bounce rates Click-throughs Sales revenue Time on page

ROI is not projection or estimate ROI calc: only after investment yields return Establish baseline; monitor deltas/changes & factor

sentiment analysis Incorporate all costs ◦ travel, personnel, training, memberships, consultant fees,

conferences, Facebook ads, sponsored tweets, YouTube ads, mobile app dev. Social media is not free.

Correlations are OK. Track non-financial metrics (transactional precursors), i.e. followers, likes, subscriptions. Dotted, not a direct line. Overlay sales data

Direct line consideration: isolate tactics & track customers ◦ promotional codes, special landing pages, CRM intelligence,

custom links, email bugs, i.e. track your customer from SM to conversion

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𝑅𝑅𝑅 = �𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝐶

sin(𝑡𝑡𝑡𝑅)

𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚 𝑀

𝑓𝑚𝑓𝑓𝑚𝑓𝑚𝑓𝑚 𝐹

𝑑𝑐𝑑𝑐𝑑𝑐𝑑𝑑𝑐(𝐶𝐹) + $𝑐𝑐𝑡 𝑐𝑐𝑐𝑦2

+ � 𝑐𝑠𝑠𝑐𝑐𝑐𝑐𝑠𝑐𝑐𝑐𝑚 cos𝑐𝑛𝑛

$𝑠𝑠𝑑𝑏𝑐𝑡 + 𝑠𝑚 sin𝑐𝑛𝐶

$𝑐𝑒𝑒𝑐𝑐𝑐𝑐

∞

𝑚=𝑚𝑚𝑖𝑓𝑚𝑚𝑚𝑚𝑚𝑚𝑚

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Monitoring

Facebook Insights

Google Analytics HootSuite Sprout

Social TweetDeck

Dashboards ($)

Cision Radian6 Spiral16 Sysomos Vocus

Focus Groups

Market Research

Customer Audits

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Objective: Increase sale of HMI licenses Target: 250 more licenses sold in Q2 in N.A. market

Q2 KPIs Positive company/product mentions in Q2 Net new FB likes, RTs, subscriptions, downloads isolated to HMI

campaign Net new click-throughs of links to website (inbound links) Net new downloads of promoted content (white papers,

backgrounders, marketing) showcasing why additional seats are needed

YouTube HMI promotional video (views) Coupon/discount codes isolated to Q2 campaign issued via

email marketing, tweets, FB updates, inbound website events Actual HMI license sales in Q2

ROI Correlate response with sales via social monitoring tools Comparison metric: HMI licenses sales outside of N.A.

market; comparative sale of other products (baselines. Social media campaign increased perception and

awareness, stimulating a preference and driving customers to purchase decision. Conversion.

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Objective: Reverse disinformation on bailouts & Ford Target: U.S. market, 2009

2009 KPIs Frequent and appropriate engagement with public Counter all blog, Facebook, Twitter, etc. posts including Ford in

federal bailout

ROI: pre and post-sales results Positive financials Analysis showed positive sentiment

Public relations alone insufficient Integrated corporate approach to crisis management

1. Social media ROI is a financial calculation. Likes, followers, shares, etc. are non-financial metrics.

2. You must have a business justification for social tactics. Followers, fans, subscribers have no value unless they can be turned into customers.

3. You cannot deliver ROI if you do not have access to digital intelligence and real-time financial data. Calculators + Excel are your new friends.

4. Anything and everything can be measured. Measure what matters; what matters to your company may not matter to mine.

5. If C-Suite demands ROI proof, SM campaign plan starts with business objective(s), targets (timeframe) and KPIs (metrics). No measurement, no ROI.

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“The single most potent negative business trend of the last several years has been the systematic dehumanization of business processes and the steady push towards transactional sales over relationship-based partnerships.”

Chris Brogan

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One-off or long-term relationship; one date or a marriage? Pay it forward

Not lacking ability to show social media ROI; missing tactics to link KPIs to transaction events – the digital footprints that lead to the cash register

Plan to capture those footprints before your first tweet, status update or blog post: track & trace

If you build it, you must nurture it

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public relations + social media + reputation enhancement

@joeldon jdon@commstrategies.com

Joel Don