Social Analytics How to measure and monetize Social Media

June 2013

1.  Definition Social Media, Social Analytics, Social CRM

2.  Structure and Market Sizing

3.  Metrics

4.  Key Players

5.  Case Studies

6.  Introductory Framework

Application across six industries including outcomes

Social media user segmentation, disrupting trends, Western world vs. China, Social Media market sizing, Facebook growth, Social CRM market sizing, Social Analytics market sizing

Six key metrics to measure Social media: Description and examples

Eight vendor profiles for Facebook analytics, Twitter analytics, Social media monitoring, Social CRM analytics

Eight business goals in order to introduce social analytics

Table of Contents

Social Analytics �

7. Benefits and Challenges Perceived benefits and underlying challenges

1. CRM has evolved from one-to-one communication to customer-focused collaborative interactions �

Timelines of Social CRM

Pre-Web Era �

1990 2006 �

¤  Collection and analysis of internet data allows to optimise web channels and increase sales

¤  Log files and embedded scripts (mostly JavaScript) on web pages are the main forms of data collection

¤  Measure and analyze interactions between brands and consumers or businesses across digital channels

¤  Use Web 2.0-based platforms such as social networks, photo and video sharing, forums, blogs, etc. as information sources

¤  Customer interaction is one-to-one and on a transactional basis

¤  Telephone interview, paper-based questionnaire, face-to-face focus group, letters and service centers

Sources: University of Twente, CRM Search, Pininterest �

¤  Social media provide tools and services to create and exchange user-generated content

¤  High consumer engagement with rich media and and novel forms of communication

¤  Internet as a global network connects users and enables new forms of interactions

¤  Two-way communication with the adoption of web technologies

¤  Non-web channels: Radio, TV and newspaper ads

¤  One-way communication to promote products and services

Internet Era Social Media Era

Traditional Analytics � Web Analytics Social Media Analytics

2. 28% of US Social Media Users actively participate and share information. �

Social Media User Segmentation

Sources: Aimia Inc �

Six social media types represent the entire spectrum of social media usage within the United States, according to a 2011 survey by Aimia. The following types describe the main behavioural patterns and their distribution across the Social Media population: 1.  Sparks (3%): The most active and deeply engaged users of

social media. They use social media as a means of self-expression in creative and engaging ways. They engage with brands frequently and will serve as enthusiastic ambassadors for their favourites.

2.  Mix-n-Minglers (19%): They actively participate on multiple social networking platforms, understand the importance of data privacy and are influential within their networks of friends.

3.  Cliquers (6%): Active, single-network users who congregate primarily on Facebook, most likely to be influential women who share photos, status updates and comments within the small network of close friends and family

4.  On Lookers (16%): Lurk on several social media networks but post infrequently to control their online information, who primarily keep up on the online lives of others but reluctant to share details about themselves

5.  New Comers (15%): Passive users of a single social media network who primarily use social media to enhance offline relationships

6.  No Shows (41%): Not logged on to a social network in the last 30 days, most likely a 65-plus male that shows low degrees of trust and has no interest in broadcasting activities or interests

High Exposure �

Low Exposure �

Active Participation�

Passive Participation�

2. Mix-n-Minglers

(19%)

3. Cliquers (6%)

4. On Lookers (16%)

5. New Comers (15%)

6. No Shows (41%)

1. Sparks (3%)

0

0.5

1

1.5

2

2.5

3

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Number of Users, billion

Number of Internet and Social Media Users Worldwide from 2007 to 2016

Total Internet

Social Media

2. By the end of 2016, 3 out of 10 people worldwide will actively engage in Social Media – replacing traditional online communication. �

Social Media Market Sizing: Number of Users

Sources: Areppim, Comscore, The Radicati Group �

¤  In 2011, Social Media sites reached 82% of the world’s online population - that is 1.2 billion users worldwide

¤  The number of worldwide Social Media users will rise to 2.3 billion by the end of 2016, nearly 32% of the total population

¤  The adoption of Social Media is likely to grow proportionately at a CAGR of 20.8% from 2007 to 2016

¤  The time people spent on Social Networking tripled in the last five years from 6% in 2007 to nearly 19% in 2011

¤  Time spent on social networking sites gained ground by taking share predominantly from online communications, as another primary communication channel for users

13.5 18

2

6.5 4

4.9

Search/Navigation

Retail

0 5

10 15 20 25 30 35

2007 2008 2009 2010 2011

Hours per Month

Time Spent on Social Networking and other Internet activities from 2007 to 2011

CAGR 9.08% �

CAGR 20.8% �

Communication

Forecast

Social Media

Other Content

2. Social analytics and CRM may reach to a sizable of 30% share of the total CRM market�

Market Size of Social CRM

CRM Software Growth ¤  Worldwide CRM software sales enjoy a steady rise

and will reach $18.5 billion in 2016, up from $9.5 billion in 2009. at a CAGR of approximately 10%

¤  Sales and Marketing Automation represent the key areas of growth as technological advances introduce game-changing effects.

90% 70%

9%

20%

1% 10%

2000 2013

CRM Applications: Analytics grows in Application Mix

Traditional CRM Social CRM Analytics

2.5 2.8 3.1 3.5 4 4.2 4.7 3.8 3.7 4.2 4.5 5 5.6 5.8 5 5.5 5.7 6

6.5 7.2 8

0

5

10

15

20

2009 2010 2011 2012 2013 2014 2015 2016

Revenue in USD,

billions

Worldwide CRM Software Revenue Forecasts

Sales Customer Service and Support Marketing Automation

Sources: Gartner�

CAGR 10% �

Social CRM and Analytics

¤  Social CRM technologies are expected to grow a market share of 10% in 2013, up from 4% in 2010.

¤  Spending on analytics and social CRM is expected to rise, up to a point where social CRM alone accounts for 20% of the total CRM market

3. Customer experience perfection leads to multiple additional benefits �

Six Metrics: Customer Experience (5/6)

Sources: Altimeter Group, Social Media Explorer�

Metric � Purpose � Action� Example �

Customer Experience

�

¤  Immediate impacts on customer experiences, which lead to multiple additional benefits such as brand health, cost savings and increased revenue

¤  Insights: −  How people talk about a brand

and product −  Momentum of a topic or issue −  Sentiment and emotion drivers −  Blind spots identification and

satisfaction scores

¤  Service improvement by setting service levels and indentifying issues

¤  Align content and service focus to top issues in social channels

¤  Directly engage with and address both positive and negative service issues

¤  Management of issues and crisis intelligently

Dell evolves a set of service levels for acknowledgement of issues online. This ensures accountability across the organization for how customer issues are handled.�

Doughnuts for how people feel� Bar Charts for People’s Attitude�[Visible Technologies] � [Spiral16]�

Key Players: Social Media Monitoring (5/8)

Sources: Salesforce �

Radian6 ¤  Integration: Software platform for web-

based data listening analytics

¤  Tracked Media: Cross-platform

¤  Functions: Comprehensive reporting, text analytics, engagement workflow

¤  Key Customers: Volvo, Cisco, Wiley Publishing, Pizza Hut, Frontier Airlines

Features ¤  Social brand monitors and measures

buzz around the brand, competitors and industry; analyzes trends and evaluate reactions

¤  Expand social reach by building connections between employees and customers

¤  Create customer experiences to acquire and qualify social leads through purchase signals and point-of-need conversations

¤  Discover and drive sales opportunities through social channels

4. Social media monitoring tracked all sorts of social media to extend social reach and maximize efficiencies mainly for large enterprises�

Brand Name� Description� Results �

   

 TELUS (Canada)

¤  Situation: TELUS saw an increased number of customers using new channels to obtain customer service, voice opinions and connect with other customers to share ideas and solutions

¤  Action: TELUS trained a group of care agents using Salesforce Marketing Cloud to monitor social media and launch @TELUSsupport on Twitter to monitor conversations that matter to them and connect with customers who have questions or concerns�

¤  @TELUSsupport became the first account in Canada verified by Twitter solely for customer support

¤  TELUS achieved a huge milestone with 30+ specially trained agents and 20,000+ followers to resolve 13,000+ client care issues and sent 32,000+ tweets�

5. Telcos use social media as a new channel to take care of their customers �

Case Study: Social Analytics in Telecom (1/6)

Sources: Salesforce �

The complete market overview contains a 41 page Powerpoint presentation and a comprehensive Excel research sheet

¤  41 page Powerpoint/ PDF presentation ¤  Social Media market segmentations and

trends ¤  6 Social Core Metrics, 8 Key Vendor

profiles, 6 Case studies ¤  Fully reusable ¤  Source URLs are embedded on each slide ¤  Embedded charts & figures are easily

accessible

Presentation

¤  Excel sheets for market segmentation, sizing & growth figures,

¤  42 Vendor Profiles, 26 Case studies across all major industries

¤  Links URLs to 100+ sources: Whitepapers, Studies, Presentations, News releases, Blogs, Twitter, Academic papers

Research sheet

Buy the full market overview with flexible license models for individuals, small teams and corporate customers

Social Analytics How to measure and monetize Social Media

June 2013

Preview – Full presentation (1/5) !"#$%#&$!'(

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Social Analytics How to measure and monetize Social Media

June 2013

1.  Definition Social Media, Social Analytics, Social CRM

2.  Structure and Market Sizing

3.  Metrics

4.  Key Players

5.  Case Studies

6.  Introductory Framework

Application across six industries including outcomes

Social media user segmentation, disrupting trends, Western world vs. China, Social Media market sizing, Facebook growth, Social CRM market sizing, Social Analytics market sizing

Six key metrics to measure Social media: Description and examples

Eight vendor profiles for Facebook analytics, Twitter analytics, Social media monitoring, Social CRM analytics

Eight business goals in order to introduce social analytics

Table of Contents

Social Analytics

7. Benefits and Challenges Perceived benefits and underlying challenges

1. Social Media nourish communities with user-generated content that drives stickiness and communication

Definitions and Categories

Sources: University of Applied Sciences Utrecht, Out: think Group

Social Media are Internet-based applications that allow the creation and exchange of user-generated content. It can be defined as a supply chain indicating the low barriers to participation, where users can be both media producer and media consumer.

Six types of Social Media

!  Social Networks connect people of similar interest and background. Personal profiles, groups and messaging allow users to interact and establish structures.

!  Social News post news items or links to 3rd party articles. Voting mechanisms on items determine the prominence of items.

!  Bookmarking Sites: Users save, organize and manage links to any web resource. Tagging makes links easy to search and share

!  Media Sharing: Users upload and share media such as pictures and video with additional social features like profiles and comments etc

!  Microblogging focuses on short news or updates that are pushed out to subscribers

!  Blog Comments and Forums facilitate conversations and contributions from readers

!  Media (Text, Music, Photos, Movies)

!  Relations !  Links

!  Video/ music/ photo sharing

!  Wiki, Blogs !  Social

Networks

!  Internet

!  Mobile platforms

!  Classic Web Browser

!  Mobile Web & Applications

AggregationCreation Distribution Consumption

1. Social media triggers a new form of business analysis insights to manage customer relationship

Sources: Awareness Networks

Definition and Purpose

of Social Analytics

!  Social Analytics measure the impact of Social Media on business

!  Identify and understand relevant conversations in online communities

!  Influence business performance and drive conversations with experts, competitors, prospects, customers, social marketing teams.

1. Extract Data from Social Media

2. Segment Data

3. Mix Internal and External Data

4. Identify Business Metrics

5. Create New Business Insights

6. Inform Future Business Strategies

Social Analytics: From Social Data to Business Strategy Insights

Goals and Sample Metrics

of Social Analytics

Improve Marketing and Sales by measuring and influencing:

!  Brand Awareness and Reputation !  Marketing Program Effectiveness

!  Lead Generation Effectiveness

!  Increased Sales and Shorter Sales Cycles

!  Customer Satisfaction and Reduced Churn

Share of Voice = # of brand conversations / # of industry conversations

Social Reach = # of followers, Engagement Level

Lead Generation Effectiveness = # of new leads / # of total leads

Effectiveness = # of sales from social channels / # total sales

Complaint Visibility and Feedback, Sentimental Analysis

Social Analytics

Decision making process with Social Analytics(

1. CRM has evolved from one-to-one communication to customer-focused collaborative interactions

Timelines of Social CRM

Pre-Web Era

1990 2006

!  Collection and analysis of internet data allows to optimise web channels and increase sales

!  Log files and embedded scripts (mostly JavaScript) on web pages are the main forms of data collection

!  Measure and analyze interactions between brands and consumers or businesses across digital channels

!  Use Web 2.0-based platforms such as social networks, photo and video sharing, forums, blogs, etc. as information sources

!  Customer interaction is one-to-one and on a transactional basis

!  Telephone interview, paper-based questionnaire, face-to-face focus group, letters and service centers

Sources: University of Twente, CRM Search, Pininterest

!  Social media provide tools and services to create and exchange user-generated content

!  High consumer engagement with rich media and and novel forms of communication

!  Internet as a global network connects users and enables new forms of interactions

!  Two-way communication with the adoption of web technologies

!  Non-web channels: Radio, TV and newspaper ads

!  One-way communication to promote products and services

Internet Era Social Media Era

Traditional Analytics Web Analytics Social Media Analytics

CRM: A strategic approach to manage customer

relationships to create business value

Social Media: Internet-based applications, tools and services that facilitate

two-way interactions

Social CRM: A business strategy to manage customer relationships through social media with the goal

of improving business value

Sources: University of Twente, Booz

1. Social CRM extends traditional CRM. It requires both proactive and reactive approaches

Social Customer Relationship Management (Social CRM)

!  Social CRM is an extension for traditional CRM processes and tools. There are real costs involved from the enterprise in generating required capabilities and the return on investment should be clearly understood and measured

!  Social CRM involves both proactive marketing, sales, service (lead generation and social sales, social marketing and promotions, brand and product awareness, loyalty and VIP customer treatment) and reactive preemption and mitigation (market and product insights, social support, complaints management, public relationship crisis reaction) from monitoring and analyzing social media data

!  The key to a successful social CRM effort lies in extending traditional CRM strategies and processes to a company’s entire extended social network – a dynamic, constantly evolving organism that encompasses customers and suppliers

2. 28% of US Social Media Users actively participate and share information.

Social Media User Segmentation

Sources: Aimia Inc

Six social media types represent the entire spectrum of social media usage within the United States, according to a 2011 survey by Aimia. The following types describe the main behavioural patterns and their distribution across the Social Media population: 1.  Sparks (3%): The most active and deeply engaged users of

social media. They use social media as a means of self-expression in creative and engaging ways. They engage with brands frequently and will serve as enthusiastic ambassadors for their favourites.

2.  Mix-n-Minglers (19%): They actively participate on multiple social networking platforms, understand the importance of data privacy and are influential within their networks of friends.

3.  Cliquers (6%): Active, single-network users who congregate primarily on Facebook, most likely to be influential women who share photos, status updates and comments within the small network of close friends and family

4.  On Lookers (16%): Lurk on several social media networks but post infrequently to control their online information, who primarily keep up on the online lives of others but reluctant to share details about themselves

5.  New Comers (15%): Passive users of a single social media network who primarily use social media to enhance offline relationships

6.  No Shows (41%): Not logged on to a social network in the last 30 days, most likely a 65-plus male that shows low degrees of trust and has no interest in broadcasting activities or interests

High Exposure

Low Exposure

Active Participation

Passive Participation

2. Mix-n-Minglers

(19%)

3. Cliquers (6%)

4. On Lookers (16%)

5. New Comers (15%)

6. No Shows (41%)

1. Sparks (3%)

1. Microblogging is a disruptive force in Social Media, affecting society and commerce. Social Media usage is accelerated by mobile devices.

Disrupting Trends (1/2)

Sources: BBC, comScore

Microblogging as a way to communicate through short-form content has emerged as a disruptive new force in social media.

Twitter saw the eruption of its audience in the spring of 2009 and showed an impressive growth rate of 59% over 2012. In 2013, Twitter reaches 1 in10 Internet users worldwide. Taking Arab Spring activists as an example, Twitter itself offers a platform to connect and share information - effectively bypassing government restrictions. Sina Weibo is the leading Chinese microblogging site that ranks as the 10th largest social network globally and enjoyed an increase of 181% in 2012. Weibo is considered a mainstream media for people to express and amplify their opinions such as sensitive political issues, environmental problems and daily emergencies.

Tumblr (acquired by Yahoo in May 2013) is ranked as the 12th largest social network globally and exhibits a strong annual growth rate of 172% in 2012. Specifically in Southeast Asia, Tumblr has become one of the top blogshops for mass participation in online retailing as a unique way to do socially-oriented approach to e-commerce.

“Mobile accounts for 40% of time spent on social media.” -- BI Intelligence !  Mobile devices are fueling the social as they

allow to connect on-the-go and facilitate real-time interaction amongst users.

!  Most mobile social networkers using their mobile phones to post a status update and read posts.

13% 19%

48% 50%

70% 99%

0% 20% 40% 60% 80% 100%

Tumblr LinkedIn Pinterest

Facebook Twitter

Instagram

U.S. Share of time spent on Social Media by device (Nov 2012)

Mobile PC

1. Social networks are no longer for kids. The fastest growing user segment is people over at the age 55 or older.

Disrupting Trends (2/2)

Sources: comScore

Everyone is using social networks, not just young people. In fact, users 55 and older represent the fastest growing segment in social networking usage, especially in North and Latin American where the penetration rate reach more than 90%.

79% 75%

72% 75%

71% 72%

79%

84% 83% 80%

83% 80% 81%

84%

60%

65%

70%

75%

80%

85%

90%

Age 15-24 Age 25-34 Age 35-44 Age 45-54 Age 55+ Males Females

Social Networking Penetration Among Worldwide Demographic Groups

Jul-10

Oct-11

+5.0% +8.0% +8.4% +8.4% +9.4% +9.3% +5.3%

94.7%

93.0%

86.0%

59.8%

79.9%

North America

Latin America

Europe

Asia Pacific

Worldwide

Social Networking Penetration Among Users Age 55+

8.6

5.8

5.6

6.4

4.9

7.5

4.9

3.9

3.9

2.7

Age 15-24

Age 25-34

Age 35-44

Age 45-54

Age 55+

Social Networking Engagement (Average Hours Per Visitor Per Week)

Males

Females

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2. The Western world and China have developed two complementary ecosystems of influential Social Media networks

Social Media: Western world vs. China

Sources: TweetSmarter, TechInAsia

TOP 5 Popular Social Networking Sites Worldwide (May 2013)

TOP 5 Popular Social Networking Sites in China (March 2013)

1,110M users 40% Male

60% Female

Facebook

343M users 63% Male

37% Female

Google+

48.7M users 32% Male

68% Female Pinterest

555M users 43% Male

57% Female

Twitter

225M users 55% Male

45% Female LinkedIn

(712M users

QZone

500M users

Sina Weibo172M users

RenRen

507M users

Tencent Weibo

300M users

WeChat

1.  QZone, a social networking website for blogging, photo & media sharing and more

2.  Tencent Weibo, a Chinese microblogging site

3.  Sina Weibo, a Chinese microblogging site with hybrid functionality of Twitter and Facebook

4.  WeChat, mobile messaging app 5.  RenRen, Facebook of China

1.  Facebook, a social network to share photos, interests, check-ins and posts with friends.

2.  Twitter, a microblogging service to share posts and stay updated on news and comments

3.  LinkedIn, a social network used for finding jobs, people and business opportunities

4.  Google+, a social network that integrates Facebook and Twitter- like features

5.  Pinterest, a social photo sharing site to keep an online pinboard with photo collections

0

0.5

1

1.5

2

2.5

3

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Number of Users, billion

Number of Internet and Social Media Users Worldwide from 2007 to 2016

Total Internet

Social Media

2. By the end of 2016, 3 out of 10 people worldwide will actively engage in Social Media – replacing traditional online communication.

Social Media Market Sizing: Number of Users

Sources: Areppim, Comscore, The Radicati Group

!  In 2011, Social Media sites reached 82% of the world’s online population - that is 1.2 billion users worldwide

!  The number of worldwide Social Media users will rise to 2.3 billion by the end of 2016, nearly 32% of the total population

!  The adoption of Social Media is likely to grow proportionately at a CAGR of 20.8% from 2007 to 2016

!  The time people spent on Social Networking tripled in the last five years from 6% in 2007 to nearly 19% in 2011

!  Time spent on social networking sites gained ground by taking share predominantly from online communications, as another primary communication channel for users

13.5 18

2

6.5 4

4.9

Search/Navigation

Retail

0 5

10 15 20 25 30 35

2007 2008 2009 2010 2011

Hours per Month

Time Spent on Social Networking and other Internet activities from 2007 to 2011

CAGR 9.08%

CAGR 20.8%

Communication

Forecast

Social Media

Other Content

2. Social Media is about to grow into a $34 billion industry by 2016. Advertising revenues will contribute more than 50%.

Social Media Market Sizing: Financials

Sources: Gartner, Mashable, Brandastic

11.8 16.9

34

2011 2012 2016

billion, USD

Total Global Social Media Revenue

Growth and Revenue drivers !  Advertising is the biggest contributor, accounting for

52.1% of the total revenue. In 2012, social media ad revenue is $8.8 billion, a YOY growth rate of 60%.

!  Social Gaming is the other major source of revenue. By selling virtual goods, it grossed $6.2 billion in 2012 or 36.7% of total Social Media revenues.

!  Subscriptions from monthly or annual service access fees generated $278 million in 2013

!  Others include traffic diversion to affiliated sites and premium services fee. With $1.6 billion, others accounted for 9.6% of total revenue in 2012

Year Social Media Revenues ($US, billions)

US Europe other

2011 5.26 2.88 3.66

2012 6.97 3.97 5.96

CAGR 23.5%Forecast

Social Media Market growth !  Gartner forecasts that global social media revenues will

increase by 43% from $11.8 billion in 2011 to $16.9 billion in 2012.

!  By 2016, total social media revenues worldwide is likely to reach $34 billion.

!  In terms of market share, the rest of the world is catching up while Europe and the US are growing at comparable pace

2.8

0.2

3.1

5.7

1.6

0.3

6.2

8.8

0.0 2.0 4.0 6.0 8.0 10.0

Others

Subscriptions

Social Gaming

Advertising

billion, USD

Global Social Media Revenue by segments

2012 2011

0 0.2 0.4 0.6 0.8

1 1.2 1.4 1.6

2007

20

08 20

09 20

10 20

11 20

12 20

13 20

14 20

15 20

16 20

17 20

18 20

19

Number of people, billion

Facebook Users vs. Population of China/ India

2. Facebook overtook U.S as the third largest “country” in 2010 and may be the largest “country” on earth by 2016

Focus on Facebook

Social Advertising Revenue !  Social network advertising includes paid

advertising on social site, applications and games

!  As social advertising grew ~50% in 2012, it is expected to become a $11.87 billion worldwide market by 2014.

!  Facebook owns roughly two thirds of the total social network advertisement market

!  Facebook may increase its market share and achieve $7.64 billion in ad revenues by 2014

Sources: Pingdom, eMarketer, World Bank

3.2 5.1

6.7 7.6

5.2

7.7

10.2 11.9

0.0 2.0 4.0 6.0 8.0

10.0 12.0 14.0

2011 2012 2013 2014

USD, billion

Facebook and Social Network Ad Revenue

Facebook Social Network

Facebook key growth figures !  1.11 billion users in May 2013, up from 58 million users

in Dec 2007

!  42% of all Internet users worldwide (2.4bn) are also Facebook users

!  Facebook as a “country” may become larger than China & India by 2016/ 2018 (at 10%/ 6% YoY growth)

!  Facebook is still blocked in China. If this changes in the future, the world’s largest online market will further stimulate its penetration rate.

6%YoY

10%YoYChina

India

2. Social analytics and CRM may reach to a sizable of 30% share of the total CRM market

Market Size of Social CRM

CRM Software Growth !  Worldwide CRM software sales enjoy a steady rise

and will reach $18.5 billion in 2016, up from $9.5 billion in 2009. at a CAGR of approximately 10%

!  Sales and Marketing Automation represent the key areas of growth as technological advances introduce game-changing effects.

90% 70%

9%

20%

1% 10%

2000 2013

CRM Applications: Analytics grows in Application Mix

Traditional CRM Social CRM Analytics

2.5 2.8 3.1 3.5 4 4.2 4.7 3.8 3.7 4.2 4.5 5 5.6 5.8 5 5.5 5.7 6

6.5 7.2 8

0

5

10

15

20

2009 2010 2011 2012 2013 2014 2015 2016

Revenue in USD,

billions

Worldwide CRM Software Revenue Forecasts

Sales Customer Service and Support Marketing Automation

Sources: Gartner

CAGR 10%

Social CRM and Analytics

!  Social CRM technologies are expected to grow a market share of 10% in 2013, up from 4% in 2010.

!  Spending on analytics and social CRM is expected to rise, up to a point where social CRM alone accounts for 20% of the total CRM market

Sources: Forbes, Information Week, Report Linker

2. The total revenue of social analytics is likely to reach $2 billion by the end of 2013, doubled from 2011

Market Size of Social Analytics

!  Uniqloud estimates the total market size for Social Analytics at $2.2 billion. Its main components are Social CRM and Social Media Analytics and Monitoring.

!  In Social Analytics and Monitoring, the relative market share has expanded since 2011 from 35% to 54% in 2013.

!  Social CRM also enjoys considerable growth compared to the total CRM market, contributing 20% of the total CRM revenue.

0

0.5

1

1.5

2

2011 2012 2013 Revenues in USD, billions

Estimated Global Market Size of Social Analytics

1.0

1.3 (20% of total

CRM)0.7

0.4

0.6

0.9 (54% of Text

Analytics)Social Media Analytics and

Monitoring

Social CRM

Social Analytics

+

$2.2 billion$1.6 billion$1.1 billion

=

3. Social media measurement compass specifies the direction of the business journey to realize the final objective

Six Metrics

Sources: Altimeter Group

Business Goal

Brand Health A measure of attitudes, conversation and behavior toward your brand

Market Optimization Improve the effectiveness of marketing programs

Revenue Generation Where and how your company generates revenue

Operational Efficiency Where and how your company reduces expenses

Innovation Collaborating with customers to drive future products and services

Customer Experiences Improve your relationship with customers and their experience with your brand

“Brand building today is so different than what it was 50 years ago. 50 years ago you could get a few marketing people in a small room and decide, ‘this is what our brand will be,’ and then spend a lot of money on TV advertising and that was your brand. Today, whether it is an employee or a customer, if they have a good or bad experience with your company they can blog about it or Twitter about it and it can be seen by millions of people. It’s what they say now that is your brand.”

- Tony Hsieh, CEO and Founder of Zappos

3. Brand health examination can discover opportunities and mitigate crisis

Six Metrics: Brand Health (1/6)

Sources: Altimeter Group, Dashboard Spy

Metric Purpose Action Example

Brand Health

!  Add richness to market research efforts, prevent or mitigate crisis and uncover threats and opportunities

!  Insights !  How people feel about the brand !  Sentiment variation by channels !  Advocate or detract influencers !  Competitive position in industry !  Emerging issues

!  Conduct real-time market research and scenario planning

!  Use as a support for business decisions

!  Identify and develop relationship with advocates and detractors

American Express tracks social media metrics as a part of the overall brand health data, viewing sentiment metrics as a complement part to NPS (Net Promoter Score).

Bar Charts for Brand Awareness Line Charts for Brand Commitment Radar Charts for Brand Attributes[Xcelsius]

3. Market optimization facilitates learning and improvement process

Six Metrics: Market Optimization (2/6)

Sources: Altimeter Group, Capture the Conversation

Metric Purpose Action Example

Market Optimization

!  Facilitate learning, accountability and continuous improvement

!  Insights: !  Compare with traditional

advertising campaigns !  How many people viewed,

shared and liked the content !  Channel and timing

effectiveness

!  Focus on highest potential markets or groups

!  Develop future campaigns based on insights

!  Plan social channel investment, timing to engage and strategies

American Express partnered with YouTube and VEVO to live-stream a concert and incorporated with Google chat to better understand how people thought about the concert in order to influence purchase intent and brand perception.

Data Statistics of how many people clicked ‘Like’, viewed and shared the content across a certain timeframe

[StatsMix]

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3. Revenue generation is directly linked to conversion rate and social referral

Six Metrics: Revenue Generation (3/6)

Sources: Altimeter Group, Marketo

Metric Purpose Action Example

Revenue Generation

!  Have demonstrable impact on lead generation and conversion in a relationship manner

!  Insights: !  Whether social experience

influences purchase behaviour !  Impact on search results !  Manage customer loyalty

!  Focus on highest-impact products and services

!  Develop programs for highest-value customers

!  Make investment decisions based on social channel performance

PETCO takes a holistic approach to social media. Its Facebook and Twitter pages have little product information, but more conversation with customers, which drives conversion sales.

Line Charts for Social ReferralPie Charts for Social Conversion[Google Analytics]

3. Operational efficiency can be greatly improved through media monitoring

Six Metrics: Operational Efficiency (4/6)

Sources: Altimeter Group, Cirruslabs

Metric Purpose Action Example

Operational Efficiency

!  Deliver both hard and soft cost containment benefits to organizations over time through public brand advocacy and one-to-one interactions

!  Insights: !  Potential cost saving from

contained calls !  Identification of advocates and

super fans !  Best answered services issues

!  Identify efficiencies by aligning web content to customer questions and issues and moving into knowledge based

!  Extend advocate reach by developing advocacy network to accelerate the impact

Best Buy created a video in Spanish to demonstrate the ordering process on the landing page of its Spanish-language website to instruct their customers, which effectively decreased calls on this topic to a toll-free number by half.

Bubble Charts for followers’ activeness Bubble Charts for Tweeting Efficiency[Crowdbooster] [TweetStats]

3. Customer experience perfection leads to multiple additional benefits

Six Metrics: Customer Experience (5/6)

Sources: Altimeter Group, Social Media Explorer

Metric Purpose Action Example

Customer Experience

!  Immediate impacts on customer experiences, which lead to multiple additional benefits such as brand health, cost savings and increased revenue

!  Insights: !  How people talk about a brand

and product !  Momentum of a topic or issue !  Sentiment and emotion drivers !  Blind spots identification and

satisfaction scores

!  Service improvement by setting service levels and indentifying issues

!  Align content and service focus to top issues in social channels

!  Directly engage with and address both positive and negative service issues

!  Management of issues and crisis intelligently

Dell evolves a set of service levels for acknowledgement of issues online. This ensures accountability across the organization for how customer issues are handled.

Doughnuts for how people feel Bar Charts for People’s Attitude[Visible Technologies] [Spiral16]

3. Innovation process is motivated and improved by customers’ feedback

Six Metrics: Innovation (6/6)

Sources: Altimeter Group, Corasworks

Metric Purpose Action Example

Innovation

!  Listen and respond to product feedback and incorporate product innovation

!  Insights: !  Products and services

opportunities and threats !  Customer requests in context !  Perspective on the popularity of

ideas !  Idea impacts over time

!  Add products and service innovation from customer requirements to roadmaps

!  Trend spotting and evaluation against corporate criteria

!  Monitor competitors’ innovation and community response

Starbucks has pioneered the idea of crowd-sourced innovation on sites such as MyStarbucksIdeas.com. This site serves as a purpose-built innovation platform.

Pie Charts for Product Ideas[Corasworks]

4. Twitter analytics targets potential customers to improve the level of engagement and monitor competitors’ behavior

Key Players: Twitter Analytics (1/8)

Sources: Social Bro

Social Bro

!  Functions: Twitter dashboard, Comprehensive reporting, Text analysis

!  Tracked Media: Twitter only

!  Integration: Add-on for Chrome or a desktop application (the most comprehensive tool for analyzing Twitter data)

!  Key Customers: MasterCard, HP, Walmart, Cisco, Google, Mercedes Benz

Key Features !  Targeting potential customers and

influencers using filter and search tools, analyzing competitors, monitoring keywords

!  Helps to find optimal times and content to engage with contacts

!  Analytics dashboard shows basic statistics about what is happening in the community

!  Manages presence and interactions with contacts

Key Players: Twitter Analytics (2/8)

Sources: Topsy,

Topsy !  Functions: Twitter dashboard,

Comprehensive reporting, Text analysis and web URL analysis

!  Tracked Media: Twitter only

!  Integration: Web-based data enrichment system with real-time count and metrics

!  Key Customers: Yahoo, The New York Times, NFL, Nielson, IDG

Key Features !  Comprehensive counts on the numbers

of any term, phrase, username, link or hashtag

!  Relevance ranking surfaces the most important content on the social web

!  Geo-Inference to landmarks or events !  Sentiment analysis is tailored to

information and abbreviated language !  Related terms discovery helps to

discover new terms related to own topic

4. Twitter analytics mainly target potential customers to improve the level of engagement and monitor competitors’ behavior

4. Facebook analytics focuses on in-depth analysis to determine the next move through trend predictions

Key Players: Facebook Analytics (3/8)

Sources: Simply Measured

Simply Measured !  Integration: Web-based analytics over

a dozen data sources

!  Tracked Media: Facebook, Twitter, Instagram, Google+, YouTube, Pinterest, LinkedIn

!  Functions: Analytics insights for Facebook with excel-based reports and web views

!  Key Customers: American Express, Microsoft, Samsung, IPG, Aol

Features !  Cross-channel profile analysis from

one central location !  Competitive analysis and

benchmarking performance to report with context

!  In-depth analysis and insights to inform the next move by monitoring and research

Key Players: Facebook Analytics (4/8)

Sources: SEOmoz

SEOmoz !  Integration: Open site explorer or web

browser toolbar to access unparalleled link data

!  Tracked Media: Facebook

!  Functions: Offer comprehensive web crawl and data-services API with valuable link and site intelligence data

!  Customers: Over 15,000 PRO members and 250,000 free members

Features !  Weekly crawls and rank tracking to

notify about issues that might impact your performance and monitor rankings for all keywords

!  On-Page recommendations gives instructions on what to fix in order to see immediate improvement results

!  Competitive analysis monitors competitors’ rankings and link metrics so as to gain an edge on search results

4. Facebook analytics focuses on in-depth analysis to determine the next move through trend predictions

Key Players: Social Media Monitoring (5/8)

Sources: Salesforce

Radian6 !  Integration: Software platform for web-

based data listening analytics

!  Tracked Media: Cross-platform

!  Functions: Comprehensive reporting, text analytics, engagement workflow

!  Key Customers: Volvo, Cisco, Wiley Publishing, Pizza Hut, Frontier Airlines

Features !  Social brand monitors and measures

buzz around the brand, competitors and industry; analyzes trends and evaluate reactions

!  Expand social reach by building connections between employees and customers

!  Create customer experiences to acquire and qualify social leads through purchase signals and point-of-need conversations

!  Discover and drive sales opportunities through social channels

4. Social media monitoring tracked all sorts of social media to extend social reach and maximize efficiencies mainly for large enterprises

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Key Players: Social CRM (6/8)

Sources:

Spredfast !  Integration: Social media management

software system as a platform

!  Tracked Media: Cross-Platform

!  Functions: Comprehensive reporting, text analytics, engagement workflow, search and translate content

!  Key Customers: Weight Watchers, Warner Bros, WCG, T.Rowe Price Group

Features !  Scalable social media management

systems integrates engagement and reporting across all major social platforms

!  Multichannel publishing allows to manage day-to-day social engagement

!  Shared enterprise content library for content and audit trails

!  Integrated analytics and reporting from brand to message level, integrating common analytics tools, customer care and content effectiveness analysis

4. Social media monitoring tracked all sorts of social media to extend social reach and maximize efficiencies mainly for large enterprises

Key Players: Social CRM (7/8)

Sources: Bazaar Voice

Bazaar Voice

!  Integration: Plug into existing systems and workflow, website plugins and application software

!  Tracked Media: Cross-Platform

!  Functions: Comprehensive reporting, text analytics, engagement workflow, search and translation

!  Key Customers: Lenovo, HP, Lexus,

Toshiba, The North Face, P&G, Argos

Features !  Conversations are the core of

Bazaarvoice. Collect and leverage ratings /reviews, generate sales etc.

!  Connections with retail sites to drive sales and loyalty and bring credible brand voices to shoppers

!  Intelligence system analyses conversations and yields a visual dashboard

!  Media networks target shoppers on retail sites with relevant brand media and advertising

4. Social CRM maintains the relationship between customers and companies and explore targeted potential markets

Key Players: Social CRM (8/8)

Sources: Visible Technologies

Visible Technologies !  Integration: Software platform to do

web-based data analytics

!  Tracked Media: Cross-Plattform

!  Functions: Comprehensive reporting, text analytics, engagement workflow, search and translation

!  Key Customers: Xerox, Microsoft, FedEx, American Express

Features !  Establish the online-offline

relationship to lift the potential value of the market and social data integration to ensure an effective outcome

!  For enterprises: corporate brand monitoring, product analysis, tracking and performance evaluation

!  For agencies: trending data to clients, internal research support

4. Social CRM maintains the relationship between customers and companies and explore targeted potential markets

5. Case Studies: Social analytics are not constrained within niche markets but span across multiple industries

Case Studies: Overview

Sources:

Social Analytics

Industries Case Studies

Telecom TELUS (Canada)

Enterprise Microsoft (USA)

Health CareUniversity of Texas M.D. Anderson Cancer

Center (USA)

EntertainmentYahoo! Music

(USA)

RetailBest Buy

(USA)

Financial Sector

American Automobile Association (USA)

”If only HP knew what HP knows, we would be three times more productive.” - Former Hewlett-Packard CEO Lew Platt Brand Name Description Results

((

(TELUS (Canada)

!  Situation: TELUS saw an increased number of customers using new channels to obtain customer service, voice opinions and connect with other customers to share ideas and solutions

!  Action: TELUS trained a group of care agents using Salesforce Marketing Cloud to monitor social media and launch @TELUSsupport on Twitter to monitor conversations that matter to them and connect with customers who have questions or concerns

!  @TELUSsupport became the first account in Canada verified by Twitter solely for customer support

!  TELUS achieved a huge milestone with 30+ specially trained agents and 20,000+ followers to resolve 13,000+ client care issues and sent 32,000+ tweets

5. Telcos use social media as a new channel to take care of their customers

Case Study: Social Analytics in Telecom (1/6)

Sources: Salesforce

Brand Name Description Results

((

(Microsoft (USA)

!  Situation: To help drive adoption of Windows 7, Microsoft needed a solution to broadcast the impact and focus on the most influential voices and content

!  Action: Microsoft turned to Visible Intelligence in order to identify, filter and score a targeted list of highly relevant blog and forum posts, addressing the needs to find and engage the most influential voices, respond rapidly and effectively to questions and collect highly targeted content within the community

!  Scale community engagements from dozens to hundreds each week

!  Reduce the time needed to indentify and respond to highly relevant posts from hours to minutes

!  Identify 250 influential subject matter experts in 29 countries

5. Enterprises take advantage of social media to introduce and broadcast new products and services

Case Study: Social Analytics in Enterprise (2/6)

Sources: Visible Technologies, Iwick

Brand Name Description Results

((

University of Texas M.D. Anderson

Cancer Center (USA)

!  Situation: One of the largest cancer hospitals in USA treats over 90,000 patients every years

!  Action: Started using social media in 2007, its initial focus were Twitter, Facebook and blogosphere to monitor both the brand and cancer-related topics. Turned to Alterian SM2 in order to set up a structured monitoring process and measuring the benefit of campaigns

!  Sufficient visibility into message boards allows to identify which ones should be watched or joined

!  Link ROI to social media efforts: the amount of registered physician in turn increases the number of patients referred to the hospital

!  Social activity was responsible for 9.5% increase in patient referrals in a three month period

5. Social analytics are used by healthcare institutions to drive ROI

Case Study: Social Analytics in Healthcare (3/6)

Sources: Alterian

Brand Name Description Results

((

Yahoo! Music

(USA)

!  Situation: Yahoo! Music is one of Yahoo’s content-driven business units and provides subscription-based premium and software product releases

!  Action: Yahoo! Music began working with Overton to collect and analyse customer feedback. Goal was to improve overall products and services by uncovering hidden themes and sentiment among online conversations

!  Given access to a multi-channel, multi-dimensional and multi-faceted view of customer experiences

!  Early warning system allowed to identify a critical product issue through analysis of customer comments and fix bugs from software in near real time

5. The entertainment industry uses social media to react fast to customer feedback and fix product issues

Case Study: Social Analytics in Entertainment (4/6)

Sources: CMS Wire

Brand Name Description Results

((

Best Buy (USA)

!  Situation: Best Buy was an American multinational consumer electronics corporation offering both online and in-store services

!  Action: Worked with Barn Raisers to build company’s reputation and benefit customer experiences with social media. They examined comments from both Twitter and websites and responded quickly to requirements

!  Employee communities grew to 2,200 employees within 3 months and responded to over 13,000 customers

!  @twelpforce counts over 29,000 followers, the number of questions averages 100-125 per day and is considered a key value-add by customers

5. Retailers use social media to build 1-on-1 relationships with customers

Case Study: Social Analytics in Retail (5/6)

Sources: Barn Raisers

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Brand Name Description Results

((American Automobile

Association (USA)

!  Situation: AAA is a non-profit insurance company providing emergency roadside service, maps and other travel services. AAA wanted to learn about customer issues via social media and be as responsive as possible to avoid public relations disasters

!  Action: Using Radian6’s listening platform, AAA began monitoring what is being said about brand, industry and competitors online

!  An average of about 8,500 AAA mentions per month using social media

!  Daily alerts for certain keywords allows the company to see what people were saying and devise appropriate response

!  AAA responds to 100 to 200 of the total mentions generated

5. Social analytics help financial institutions with finding potential customer and monitoring issues

Case Study: Social Analytics in Financial Sectors (6/6)

Sources: CMS Wire

GOALS WHY HOW

Gauge the Brand Health !  Complement existing brand metrics (NPS) !  Be aware and responsive to issues

!  Search for terms related to business !  Develop a stack of keywords and phrases

Flag Service Opportunities!  Find customers’ complaints on social media

and catch emergence issues !  Pay attention to responsiveness

!  Determine who is the customer !  Crosscheck with CRM data !  Observe feedback and earn trust

Handle Next Crisis!  Respond quickly to the right issue !  Preserve and improve brand’s reputation in

a crisis

!  Early warning system before issue erupts !  Adjust priorities !  Create awareness and fix unsolved issues

Generate Leads!  Do the sales pitch, connection or outreach

at the point of need !  Find chances without sales pressure

!  Think about the wording used in inquiries !  Monitor recommendation keywords !  Collect and reflect

Keep Tabs on Competition!  Uncover market insights !  Gain competitive intelligence from new

dimensions (social media)

!  Save marketing efforts !  Enhance products !  Keep customer interactions

Collect Product Feedback!  Supply voluntary feedback and product

reviews without cost of focus groups !  Figure out how to satisfy customers

!  Monitor keywords implying room for improvement

!  Establish comments management

Track Industry Trends

!  Listen to the level above and understand the share of conversation

!  Learn about emerging trends and issues

!  Listen what the larger community is saying about your company

!  Identify and locate conversations that aren’t about your company

Identify Advocates !  Foster strong connections with advocates !  Know detractors as well

!  Listen to conversations along the sales funnel and rank a list

6. What, why, when and how can social analytics be introduced in a targeted, intelligent and effective mannerProposed Framework: 8 Business Goals to apply Social Analytics

Sources: Salesforce

7. 79% of enterprises use social media, mostly in order to create awareness and to drive more traffic to their website

Impact survey about social media benefits

Sources: Harvard Business Review, IBM

“Conventional marketing wisdom long held that a dissatisfied customer tells ten people. But!in the new age of social media, he or she has the tools to tell ten million.”

- Paul Gillin, author of “The New Influencers”

According to an HBR survey, 79% of businesses are using social media channels. Respondents mentioned the following as key benefits of social media (% reflects the # of mentions):

Top 10 perceived benefits of Social Media engagement

50% Increased awareness of the organization 30% Increased traffic to website 26% Greater favorable perceptions of the brand 23% Able to monitor conversations about the organization 21% Able to develop targeted marketing activities 20% Better understanding of customers perceptions of their brand 19% Improved insights about targeted markets 18% Identification of positive and negative comments 11% Increase in new business 11% Identification of new product or service opportunities

Social analytics market overview covers definitions, market sizing, metrics, key players, use cases, frameworks and impacts Abstract

Social Media Definitions, Type of Users, Potential Trends, and Social Analytics Definitions !  Social media are Internet-based applications that

allow the creation and exchange of user-generated content

!  Microblogging, mobile devices and older people further stimulate the growth of social media

!  Social media analytics is triggered by social media as a new form of business analysis insights to manage customer relationship

Market sizing Social Media, Social CRM, Social Analytics and Key Metrics !  There will be 3 out of 10 people actively engaging in

social media and total revenue may reach to $34 billion worldwide by the end of 2016

!  Social analytics and social CRM may reach a sizable of 30% share of the total CRM market

!  Brand health, market optimization, revenue generation, operational efficiency, customer experiences and innovation are the six core metrics

Key Players and Case Studies across various industries !  Key players across four main disciplines: Twitter

analytics, Facebook analytics, social media monitoring and social CRM

!  Social analytics has been widely used in Telecom, Enterprise, Health, Entertainment, Retail and Financial sectors.

Proposed Framework, Benefits and Challenges

!  8 Business goals help to apply social analytics in a targeted, intelligent and effective manner

!  Increasing the organization’s awareness is regarded as the top benefit of using social media analytics

!  Social media analytics should be used with care in order to deal with underlying challenges at different times

Enterprise vs. Consumer Social Media

Appendix. Enterprise Social Media usage grows at similar rates as Consumer Social Media

Sources: The Radicati Group

35 37 40

43 45

0

10

20

30

40

50

2012 2013 2014 2015 2016

Minutes Per Day

Enterprise Social Media Usage Forecast Enterprise Social Media

!  Create internal and external networks for organizations

!  Create and support user collaboration through private or public communities

!  Key Vendors: Atlassian, Broadvision, IBM, Jive, Microsoft, Salesforce, Social Text, Telligent, Yammer

40 43 46 50

55

0

10

20

30

40

50

60

2012 2013 2014 2015 2016

Minutes Per Day

Consumer Social Media Usage Forecast Consumer Social Media

!  Collaborative space to network and form communities for consumers with broad or specialized interests

!  Key features include user profiles, blogs, forums, message boards, instant messaging, private messaging, photo and video sharing, status updates etc

!  Key Vendors: Facebook, Googe+, LinkedIn, Twitter etc

Preview – Excel research sheet: Market sizing (1/5)

Preview – Excel research sheet: Additional figures (2/5)

Preview – Excel research sheet: Vendors (3/5)

Preview – Excel research sheet: Case studies (4/5)

Preview – Excel research sheet: Sources (5/5)