social media arithmetic: the metrics and monetization of social media
TRANSCRIPT
Presented by
Al Cadena, Senior Account Director, Digital Strategy, Beeby Clark+Meyler
Kevin Magee, Global Director, Client Development, Expion
Social Media Arithmetic:
The Metrics and Monetization of Social Media
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Today’s talk
Overview
Approach to Social Media
• How should I look at it?
Relevant Social Media Channels
• Which ones should I investigate?
The Banking Industry
• What’s going on?
Competitive Social Media Analysis in the Banking Industry
• How do you compare to your peers?
The ROI Challenge
• Yes you can
Takeaways
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Social Media
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What is Social Media?
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Approach to Social Media
Q: What do I analyze?
A: Relevant Social Media channels.
Q: How do I analyze it?
A: Quantitatively and Qualitatively.
Q: Who’s doing that?
A: Staff and agencies, using good tools.
Q: When do I do this?
A: Daily.
Q: Why?
A: It’s the future of your business.
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Relevant Social Media Channels
Social Networking sites
Mobile check ins
• Yelp
• FourSquare
App reviews
• iTunes store
• Android store
Chatter monitors
• Google Search – simple: Radian 6 & Vocus – more sophisticated examples
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Banking Industry & Social Media
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MovenBank: customers with strong Facebook pages will qualify for better rates or offers
http://www.huffingtonpost.com/2012/03/01/facebook-banks_n_1250696.html
Are you ready for Social Banking?
Convert the value of
your network
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The Big Challenges
Amplified
Negativity
Regulations
Regulations
RegulationsWe Can’t
Measure
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What’s going on in Social Media?
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Some Constraints4
1. Privacy: The Gramm Leach Bliley Act (GLBA) requires financial institutions to protect the
personal information of its customers. When posting or communicating over social media,
financial institutions and their employees must remember that the information being
published can be accessed by the public at large and personal information cannot be
disclosed.
2. Informal Posts May Be “Advertising”: The FDIC broadly defines the term advertisement
as “a commercial message, in any medium, that is designed to attract public attention or
patronage to a product of business.” This definition is broad and could include informal
communications in the form of tweets, blogs and comments.
3. Required Advertising Statements: If a financial institution is engaging in advertising over
social media, there are a variety of technical requirements that must be followed. For
example, the FDIC requires an official advertising statement and/or the FDIC logo be
used. 12 CFR§ 328.3. Another example requires banks advertising loans for dwellings to
include the “equal housing lender logotype” and/or indicate that the bank makes such loans
without regard to race, color, religion, national origin, sex, handicap, or familial status. 12
CFR§ 328.3.
Source: http://fbtbankingresource.com/social-media-landmines-for-Financial-Services
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What are the roadblocks? Use their voice
56% fear loss of control – unclear messaging, employees breaching security policies
52% are concerned about regulatory issues – compliance, security, audit trails
40% have resource constraints – time and budget as well as workflow efficiencies
36% don’t know how it should fit into their organization
12% don’t know how to identify real customers – i.e. who are they really talking to?
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Competitive Social Media Analysis in the
Banking Industry
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The percentage of consumers who have defected to smaller and more community-centered banks continues to rise
Acquisition of new customers by smaller banks and credit unions has increased by 2.2 percentage points to an average of 10.3 percent in 2012
19 percent of customers indicate promotions were the reason they selected their new bank and 32% will stay for the next year
Sticky-ness:46 to 51 percent of customers who chose the new bank because of either good service experience or positive recommendations say they definitely will not leave within the next year
J.D. Power and Associates' 2012 U.S. Bank Customer Switching and Acquisition Study 02/2012
There’s a movement happeningL
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Frequently discuss fees and other rates at their respective banks
41 percent of studied social conversations dealt with customer service
Beyond the customer service conversation, wait times were an especially
sensitive issue
Focusing on answering specific questions can help banks improve their
customers’ perceptions of them.
.
What’s the conversation on Bank Facebook pages?
. http://www.emarketer.com/Article.aspx?R=1008765
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Top Ten Banks Globally by Fan Count
Active Posting Strategy yields more impressions
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Much different picture when you sort for active fans
Large Banks struggle to engage
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Does size really matter?
Big Banks struggle to get fans engaged
How do they do it?
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Engage vs Promote wins for USAA
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• 10,000 Facebook posts over this time period.
• We analyzed these to get to the top 100 posts
Top 27 banks
• 100% of top 100 posts• Capital One, USAA, Chase,
ING Direct, B of A, and AllyTop 6
• 87% of top 100 posts• Capital One(40%), USAA(28%), and
Chase(19%)Top 3
• Capital One had 40% of the top posts• “Top post – Yea!!! Capital One is bringing
DOUBLE MASTERY and another free gift to Farmville players. Check it out. http://zyn.ga/6C5
• 2379 comments and 13740 likes
#1
Top Bank Posts
Posts are from January 1st 2011 to Feb 7, 2012 and ranked by fan comments.
Top 27 banks were selected based total Facebook fans
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Q&A Trivia
Money, Sports, Entertainment 50%
Q&A Trivia
Money, Sports, Entertainment 50%
Promotional/Giveaway 24%Promotional/Giveaway 24%
Day Celebrations 14%Day Celebrations 14%
Product Promotions 9%Product Promotions 9%
Public Relations 3%
Public Relations 3%
Top Posts grouped into 6 types
Expion Social Software Copyright 2012
Findings: 67% fan engagement and 33% promotional
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When fans talk to you, do you talk back?
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Track, Measure and Optimize
Action your content
Why does some content work
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Know your Fans
Use Social Info to reply with context and relevance
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Geo Target to DMA
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Local Pages Managed Centrally
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Local Pages Managed Locally
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The ROI Challenge
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How do you monetize social?
How do you measure success in a social media effort; what kind of metrics do you use?
Number of Followers
Number of people who like your brand
Manage and monitoring dispute resolutions
Number of customer service touches
Level of Fan engagement
How much traffic you can drive
Don’t really measure it
Can you measure conversations in branches?
http://www.bai.org/bankingstrategies/marketing-and-sales/marketing-and-promotion/banking-on-the-social-network
32http://www.newsobserver.com/2012/03/11/1922944/to-increase-revenue-banks-target.html#storylink=misearch
Mass Market Household earned $630 for the bank
Affluent Household earned $1193
What is the value of a banking customer
Your number could be higher
Or lower
But
There is a NUMBER
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One to One to Many
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The ROI Challenge
In the absence of eCommerce, how do you track back to sales? Very difficult. But
you can build a model to see how hard your media is working for you.
The POEM model of media efficiency – all paid & owned media must generate
earned media to offset the cost of media.
Step Tactic Notes
1 – Owned Media
Trackimpressions
You can’t measure anything if it’s not trackable. All digital touchpointsmust be properly tagged and tracked before any campaign begins. CPW and agencies should track.
2 – Paid Media Guaranteed # of impressions
Establish a Cost Per Impression (or Action, etc.) for your Paid Media. Media company should keep track of impressions.
3 – Earned Media
Calculate # of impressions
Track via Radian 6 or other tool the # of earned media impressions during the run of paid media.
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POEM model of media efficiency
Calculating costs, using an example of a $1MM digital media budget. You divide the guaranteed # of impressions by the total. Only paid media will give you a guaranteed impressions.
POEM KPI
# of
Impressions
(Total #)
Notes
Paid Media CPI 1MM (1MM)
What the media buy guaranteed. Effective CPI is $1
Owned Pageviews, etc.
100K(1.1MM)
People who visited website as a result of media. Effective CPI is $0.90
Earned Comments, likes, posts, mentions, etc.
400K(1.5MM)
People who generated stories in social media as a result of campaign. Effective CPI is $0.67
Takeaway
Social Media can be efficient in driving the cost of paid media down if it generates a significant amount of earned (positive) media.
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Takeaways
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The traditional marketing mindset of one-way communications and control over messaging stifles many bank marketing efforts.
Social media management software solutions offer secure solutions for banks (marketing actually posts and engages through the SMMS software few in the banking industry are either aware or confident in such approaches
The existing regulatory policies aren’t as constricting as bank marketers may think.
Customers in aggregate are inconsistent on many issues related to banks.
The majority of consumer comments about banks online is positive.
Compelling advertising works
If you are out of sight on social media, you will be out of mind.
Key Takeaways Social Media Explorer Banking Industry
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Takeaways
Your organization must become a social media savvy organization for
its own survival. You must adapt the following attributes:
AUTHENTICITY
TRANSPARENCY
IMMEDIACY
PARTICIPATION
CONNECTEDNESS
ACCOUNTABILITY.
--Source: Social Corp
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Know what you are measuring
Measure everything
Record and store everything
Native Facebook is risky
Social is not a channel by itself, integrate
Paid + Earned + Owned
Forget Tabs, focus on the newsfeed
Social is one-to-one-to-many
Summary