How to Measure Social Media
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1 How to Measure Social Media Speaker Katie Delahaye Paine CEO, KDPaine & Partners Speaker Tim Marklein Executive VP, Measurement & Strategy Weber Shandwick
2 Social lmdi Media Disrupts the Marketplace ADV/DM/ CRM MKTG POS Customer complaints Activist boycotts Competitors agenda Negative experiences
3 How the new marketplace works Before: Today Hey, do Hey, everyone, I ve Ive got a business! you need some help?
4 It s not just about media anymore Conversations Customer Marketing & Competitive Business HR Service Sales Intelligence Analytics
5 It s the end of measurement as we know it 1 person --Dave Carroll (United Breaks Guitars) cost United $180M the cost of more than 51,000 replacement guitars. USO s donation server crashed when Obama was wrapping care packages Procter & Gamble is now paying for engagement, not eyeballs Sodexho cut $300K (NET) out of its recruitment budget using Twitter HSUS generated $650, in new donations from an on-line photo contest on Flickr IBM sells more with a $500 podcast than it does from an ad 11 Mom s turned around Wal-Mart's image and delivered d measureable increases in sales. Mark Stouse at BMC Software reports results in EPS every quarter SAP made $1 million from its small business community National Public RADIO won the White House photo journalism award
6 Measurable Goals for Marketing Today 1. Marketing/leads/sales/ 2. Relationship/reputation/positioning eato eputato /posto 3. Mission/safety/civic engagement
7 Goals drive metrics, metrics drive results Reputation/ Relationships Get the word out Sales Goal Relationship scores Engagement Index % hearing Cost per customer acquisition Recommendations % believing Web analytics Metrics Positioning % acting Sales leads Engagement Marketing Mix Modeling 7
8 35,152,789 OTS 6,253,852 OTS Red line indicates media impression s
9 7 steps to PR Measurement in the 21 st Century 1. Define the R Define the expected results? 2. Define the I -- What s the investment? 3. Understand your audiences and what motivates them 4. Determine what you are benchmarking against 5. Define the metrics (what you want to become) 6. Pick a tool and undertake research 7. Analyze results and glean insight, take action, measure again
10 Step 1: Define the R What return is expected? Define in terms of the business or mission i Revenue generated or saved. What problems are you trying to solve? If you are celebrating complete 100% success a year from now, what is different about the organization?
11 ROI = revenue or savings Reach Frequency + Cost of program Hits Cost elimination Friends Followers +cost of program cost of doing something the old way (cost per percentage point gained) ROI = cost savings ROI = greater efficiency ROI = greater revenue, improved ALP +cost of program value of leads/sales
12 Step 2: Define the I Social Media is not FREE Ning Facebook Promoted Tweets What is the investment? Personnel Agency compensation Senior Staff time Opportunity cost 12
13 Step 3: Define the universe and your role in it There is no audience. There are multiple constituencies Should you blog or Twitter? Don t ask me, ask your customers Understand your role in the conversation Raise awareness Increase preference Increase engagement Improve relationships Customer service
14 Step 4: Define your benchmarks Past Performance Different programs, different tactics Think 3 Peer Underdog d nipping i at your heels Stretch goal Whatever keeps the C-suite up at night
15 Step 5: Define your Key Performance Indicators (KPIs) The Perfect KPI Gets you where you want to go (achieves corporate goals) Is actionable Continuously improves your processes Is there when you need it KPIs should be developed for: Programs Overall objectives Different tactics 15
16 Step 6: Pick a measurement tool For sites over which you have no control Content Analysis What is accuracy worth? Look at the whole conversation, not just your brand Separate out paid content vs. organic (coupons etc.) For sites you can control Web Analytics: Not just visits, engagement Downloads, coupons, registration Business Intelligence/Analytics To measure relationships, preference etc. Segmentation, segmentation, segmentation Get as specific as you can get
17 Step 6: Selecting a measurement tool Objective KPI Tool More efficient i customer % decrease in cost per Web Analytics + CRM acquisition customer acquisition % increase in ALP vs activity Reduction in churn % renewal rate by activity % repeat traffic Web Analytics + CRM Engage marketplace Conversation index greater Web analytics or Content t than.8 Analysis: TypePad, Rankings Technorati % increase in engagement Omniture, Google Analytics Communicate messages % of articles containing key messages Total opportunities to see key messages Cost per opportunity to see key messages Media content analysis 17
18 1. Tools for Content Analysis Content sources: Google News/Google Blogs, RSS feeds, Technorati,Social Mention, Tweetdeck, Radian 6, Sysomos, Alterian, Visible Technologies, Scout Labs, Cyberalert, CustomScoop, e-watch, Crimson Hexagon, Boardreader A way to analyze that content Automated vs Humans 18
19 Tonality Then: A coding methodology Positive i Negative Neutral Balanced What messages were communicated How you re positioned on key issues Dominance/Prominence/Visibility Authority of the poster Subject of the article/posting Who was quoted? Products, events, initiatives, battles mentioned The Kick Butt Index
20 Standard classifications of discussion Supportive Conversations Calling for action Distributing media Expressing p g agreement Expressing support Expressing surprise Giving a heads up Responding to criticism Giving a shout-out Rallying support Validating a position Augmenting a previous post Neutral conversations Disclosing l i personal information Acknowledging receipt of information Advertising something Answering a question Asking a question Making a joke Making a suggestion Making an observation Offering a greeting Offering an opinion Putting out a wanted ad Recruiting people Soliciting comments Soliciting help Starting a poll Critical Conversations Expressing surprise Calling for action Giving a heads up Expressing criticism Showing dismay Responding to criticism i Augmenting a previous post Offering an opinion Putting out a wanted ad Showing dismay
21 Content Analysis: Whyyou you need a Kick ButtIndex? You decide what s important: Benchmark against peers and/or competitors Track activities against OCS over time Understand the cost of perfection vs good enough 21
22 How to calculate your KBI 10 Quality score Score Score Score Tonality Positive 3 Neutral 0 Negative 3 Positions the competition favorably or positions Sargento Positioning Contains 2 Doesn't contain 0 negatively 2 Does not contain or miscommunicates key Messaging Contains 3 partially contains 0 message (neg mess) 1 Quotes Contains 1 Does not contain 1 Competitive Does not mention Competition mentioned mention Competition 1 prominently 3 Total Score Visibility Score Score Score Score Contains competitive Brand Photo Contains 3 Doesn't contain 0 photo 5 Dominance Focal point 3 Not a focal point 1 Visibility Headline mention 2 Top 20 % of story 0 Minor mention 2 Target publication Top Tier 2 2nd tier 0 Not on target list 2 Total Score
23 Charting KBI over time between divisions 500% Optimum Content Score Relative to Competitors The Percent Difference Between Each Business Unit's Average Optimum Content t Score and the Average Optimum Content Score of Tracked Competitors for each Business Unit 400% Patriot (Korea) 300% % Differenc ce 200% 100% FBX-T DIB DDG-1000 MSE AESA for F-15E, Glory APS and VIIRS vs. ASAT, Patriot MALD, RISS, GBS APG-63 (v3) RIS JPL SAS IDS IIS MS 0% -100% ALR-67(V)3 APG-79, APG63 ERGM cancellation VIIRS delays NPOESS; BOE B-52 jammer Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
24 Trend against competition with KBI 0,90 Optimum Content Score by Company 0,80 0,70 0,60 Client 0,50 Company B 040 0,40 Company C Company D 0,30 Company E 0,20 Company F 0,10 0,00 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
25 Assessing Influence Free tools: Twitter Grader, Tweetlevel, Twitalyzer, Hubspot $$: Hitwise, Compete, Quantcast
26 Web Analytics Must account for all activity Must measure engagement, not just eyeballs Level 1 Searchers % Unique Visitors Metrics Level 2 Lurkers % Repeat visitors > 3 5/month Level 3 Casuals % Comments, friends, followers Level 4 Level 5 Actives Defenders % repeat comments, retweets, participation in threads % Advocating, recommending, defending the brand
27 Aspects of relationships Control mutuality Trust Satisfaction Commitment Exchange relationship Communal relationship
28 Components of a Relationship Index Control mutuality In dealing with people like me, this organization has a tendency to throw its weight around. (Reversed) This organization really listens to what people like me have to say. Trust This organization can be relied on to keep its promises. This organization has the ability to accomplish what it says it will do. Satisfaction Generally speaking, I am pleased with the relationship this organization has established with people like me. Most people enjoy dealing with this organization. Commitment There is a long-lasting bond between this organization and people like me. Compared to other organizations, I value my relationship with this organization more Exchange relationship Even though people like me have had a relationship with this organization for a long time; it still expects something in return whenever it offers us a favor. This organization will compromise with people like me when it knows that it will gain something. This organization takes care of people who are likely to reward the organization. Communal relationship This organization is very concerned about the welfare of people like me. I think that this organization succeeds by stepping on other people. (Reversed)
29 Key words to search for Control mutuality Throw its weight around, bully, unfair Listens, responsive, Trust, Untrustworthy, luscious, Relied on to keep its promises, accomplish what it says it will do. Satisfaction Hate, dissatisfied, unhappy Pleased, satisfaction, enjoy dealing Commitment Quit, churn, cancel Long standing, renew, retention, Exchange relationship expects something in return whenever it offers us a favor, compromise Communal relationship stepping on other people, abuse Concerned, caring, want it to succeed
30 Step 7: Analysis Research without insight is just trivia Look for failures first Ask So What 3 times Check to see what the competition is doing Then look for exceptional success Compare to last month, last quarter, 13-month average Figure out what worked and what didn t work Move resources from what isn t working to what is 30
31 Best Practices: Correlations to bottom-line impact Donations Memberships Sign-ups Leads Using SMM for planning Define the time frame, market/topic you want to study Use Google News, Technorati or Radian6 to identify the conversations around the topic Analyze the conversations for type, tone and positioning Look at share of positioning, tone or conversation Benchmarking against your peers Looking at what the best do Setting goals accordingly Use data to persuade recalcitrant spokespeople In Crisis i Listen instantly to a wide range of influencers Identify weaknesses in communications, customer service, or in the product Improve your reputation Listen first, then respond Stop doing stupid things
32 Thank You! For more information on measurement, read my blog: or subscribe to The Measurement Standard: d For a copy of this presentation go to: Follow me on Twitter: KDPaine Friend me on Facebook: Katie Paine Or call me at
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