social media roi: stop. don't run away! (debjani deb speaks at iir measure up conference, 6-8...
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Social Media ROI: Stop. Don’t Run Away!
Debjani DebManaging Partner
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Managing Partner
Tuesday, June 07, 2011
Your Consumers are Online Today
14% 21% 31%66% 14% 21% 31%
Of online Americans now
use social media
14% either publish a blog/ web page or upload video
21% post ratings or comments in online forums
31% update social
networking sitesuse social media
Travel Apparels Personal Care Food/Beverages Groceries
HOW MANY TURN TO SOCIAL MEDIA WHEN MAKING PURCHASES
28% 26% 18% 26% 17%
Sources: www.sanfranciscosentinel.com, www.blogs.forrester.com, Knowledge Networks – May 2010
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CONSUMERS ARE EXPRESSING OPINIONS ON
Paths to success
OPINIONS ON BRANDS/PRODUCTS/SERVICES AND LEARNING ABOUT THEM
not yet laid out
THIS RESULTS IN SEVERAL OPTIONS FOR INVESTMENT/ SPEND
ROI is still murky
SPEND
THEREBY INCREASING THE PRESSURE TO EMBRACE THIS NEW MEDIUM
Cause and effect is not well
thought out
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IN NEXTIN NEXT
MINUTES WE WILL DISCUSSMINUTES WE WILL DISCUSS…CURRENT ISSUES OF SOCIAL MEDIA MEASUREMENT
THE PURCHASE FUNNEL AND HOW IT RELATES TO SM
BLUEPRINT TO EFFECTIVE MEASUREMENT USING SM
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The Marketing Spend Scenario Today
Most marketing
$$$$$$$$
Most marketing dollars are spent today on the first
$$$$$$$$
2 steps of the purchase funnel
LoyaltyLoyalty
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But measuring awareness and interest does not ghelp. The core measurement issue today…
Relevance CFOs are not convinced by absolute measure such as these.
CFOs are not convinced by absolute measure such as these.
Leadership will not be content when results are
conveyed as re-tweets, fans
DASHBOARDS
Metrics need to reflect
conveyed as re tweets, fans or number of followers
SITE STATISTICSimpact on purchase intent,
purchase and loyalty
SITE STATISTICS
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Copyright Howard McWilliam. Produced with prior consent
Fact 1: External and Internal Stimuli Shaping Brand Perceptions are Captured in Social Media
EngagementAdvertisements Advocacy
Online Outreach
Changing brand ti fl t d i perceptions reflected in
social media by voice of the consumer
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Fact 2: Investments Made at the Top of Purchase Funnel are Reflected at the Bottom of Purchase Funnel
$$$$$$$$
$$$$$$$$ 1$$$$$$$$Higher
Purchase Intent
1
Intent
2LoyaltyLoyalty
Higher Sales and Loyalty
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So How Can We Use Social Media Data To Measure
BYTES + BRAINS
Aggregate at Large
Harness Online
Identify InfluencersOnline
OpinionInfluencers
11 22
Aggregation of Universe
Understanding Opinion Leaders
Insights
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How Does One Aggregate at Large?
Aggregation of unqualified chatter using
Stage -1Stage -1
Aggregation of unqualified chatter using tools
Stage -2Stage -2
Filter by using semantic rules as such as proximity, NLP or sentiments etc.
Stage -3Stage -3
Filter by using stratified random sampling for sub-populations that vary considerably
Stage -4Stage -4
Analysts led tagging for themes, tonality, demographic profile etc.
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Analysis Analysis
Nuts and Bolts of Purchase Intention
Price +ve
UtilitI Neutral-veUtilityImage
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Case in Point: Patient Consideration in Real Time
HiThe launch of
Product A lost some its sheen owing to negative chatter on
Product BProduct B
negative chatter on its price even when
it was highly recommended by opinion leaders. ar
enes
sopinion leaders.
This resulted in higher purchase
intent/consideration
Product A
Product AA
wa
Lointent/consideration for competitor that was still in pipeline. Interest
Lo
-Ve +Ve
Size of the bubble indicative of intent
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Size of the bubble indicative of intent
An Example of How Purchase Intent Metrics Impact Returns
Share of VoiceShare of Voice
5050
For a particular cereal brand, it was found that 10
20
30
40
10
20
30
40
was found that while moms had high awareness, it did not result
i t l Actual Purchase Intention Actual Purchase Intention
0
Brand A Brand B Brand C Brand D Brand E
0
Brand A Brand B Brand C Brand D Brand E
in actual purchase intent owing to poor
perceived
Actual Purchase Intention Actual Purchase Intention
40
50
60
40
50
60
pnutritional value
0
10
20
30
Brand A Brand B Brand C Brand D Brand E
0
10
20
30
Brand A Brand B Brand C Brand D Brand E
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Brand A Brand B Brand C Brand D Brand EBrand A Brand B Brand C Brand D Brand E
An Example of How Loyalty Metrics Impact Returns
Increase in Awareness Sentiment
The Greenpeace movement
against Leading Ch l t B d
Negative Chocolate Brand created a lot of interest for the
brand.
Sentiment
Interestingly, many more first time customers
Week 1 Week 2 Week 3 Week 4
Loyalist First timers
time customers bought the brand.
Switchers
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Social Media can Provide a Lead Indicator for Sales
Lag DataLag Data IntegratedInsights
IntegratedInsights
Marketing Data Promo Data
Sales Data
1gg
Social Media Lead Data
Sales Data
3
AwarenessAwareness Interest Interest Purchase
IntentPurchase
Intent
22
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Case in Point: Reasoning for Sales Fluctuations
The above result explains that negative
Social media sentiment can be
used as a lead indicator for the
SALES
p gsentiments in the previous months had some effect on sales performance.
indicator for the point of sale data.
Social media can explain the drivers explain the drivers and the ‘why’ of the peaks and troughs
for sales dataMon 1 Mon 2 Mon 3 Mon 4 Mon 5 Mon 6 Mon 7Mon 1 Mon 2 Mon 3 Mon 4 Mon 5 Mon 6 Mon 7
Brand’s Negative Sentiments
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Statistical Analysis Reveals Competitor’s Promotion Efforts and Its Negative Conversation Influences Brand Sales
Competitor promotion spend
Competitor’s negative tonality increased sales
Competitor promotion spend affected sales performance in a negative way
SALES
SALES
Mon 1 Mon 2 Mon 3 Mon 4 Mon 5 Mon 6 Mon 7
SALES
Competitor Promotion Spend Competitor Negative Tonality
Mon 1 Mon 2 Mon 3 Mon 4 Mon 5 Mon 6 Mon 7
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The Mom’s Index a Way to Understand Intent at the Segment Level
Moms TeensMillennials
Purchase Intent
Sales
Understand Mom’s outlook towards a category including purchase intent of purchase intent of brands within the
category relative to each other
Understand teens perception of a
brand. This index also lends itself to
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
also lends itself to understanding segment based drivers for sales
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In Conclusion
Social Media lends itself well towards learning about marketing impact
But focus on pure awareness as a measure is not enough to justify spending
True impact/ROI can be measured if purchase intent loyalty and sales canTrue impact/ROI can be measured if purchase intent, loyalty, and sales can be measured
The voice of the stakeholder is a powerful learning tool that brands should use to
empower and tweak marketing strategies
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