Create a Social Media Measurement Strategy That Clearly Ties to Organizational Goals

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1 Create a Social Media Measurement Strategy That Clearly Ties to Organizational Goals Angela Jeffrey, APR, Senior Counsel CARMA

2 Leap-Frogging to Outcomes Great conceptual frameworks from Don Skip the usual metrics soup Explore cool financial metrics and links to outcomes!

3 Your Comfort Zone PRNews/CARMA 2013 Measurement Survey % Respondents Measuring Outcomes CRM Systems 20% Search Analytics Tracking of Sales, Leads, Donations Benchmark and Tracking Surveys URL Tracking via Bit.ly, etc. 32% 35% 35% 40% Owned Channel Metrics 55% Web Analytics 78%

4 Your Comfort Zone PRNews/CARMA 2013 Measurement Survey % Respondents Measuring Outcomes CRM Systems 20% Search Analytics Tracking of Sales, Leads, Donations Benchmark and Tracking Surveys URL Tracking via Bit.ly, etc. 32% 35% 35% 40% Owned Channel Metrics 55% Web Analytics 78%

5 Your Comfort Zone PRNews/CARMA 2013 Measurement Survey % Respondents Measuring Outcomes CRM Systems 20% Search Analytics Tracking of Sales, Leads, Donations Benchmark and Tracking Surveys URL Tracking via Bit.ly, etc. 32% 35% 35% 40% Owned Channel Metrics 55% Web Analytics 78%

6 New IPR Paper - Tying SSM to Organizational Goals Eight-Step Process with AMEC Framework Extensive tools and metrics appendices

7 COMMUNICATIONS PHASES Valid Metrics Framework Template: COMMUNICATIONS/MARKETING STAGES Key Area of Communication (Brand/Product Marketing, Reputation Building, Issues Advocacy/Support, Employee Engagement, Investor Relations, Crisis/Issues Management, Notfor-Profit, Social/Community Engagement) Awareness Knowledge/ Understanding Interest/ Consideration Support/ Preference Action Public Relations Activity Intermediary Effect (Outputs) Target Audience Effect (Outtakes, Outcomes) ORGANIZATION/ BUSINESS RESULTS 7

8 Here We Go -- Outcomes & Cost Efficiency ROI and Cost-Efficiency Web Financial Metrics Goals, funnels and channel comparisons Linking to Outcomes Pearson Correlations Market Mix Models

9 ROI & Cost Efficiency

10 Return on Investment (ROI) NOT! True ROI applies to organization-wide financial measures. But if you insist ROI = [(Payback - Investment) / Investment)] * 100 Payback = incremental revenue Investment = what you put into it Example: Payback = donations of $100,000 Investment = 250 $100/hour = $25,000 ($100,000 - $25,000) = $75,000/$25,000 = 3 x 100 = 300%

11 Revenue Events Good Alternative! These are mini-contributions to overall ROI Revenue Event = (Payback Investment) Payback = incremental revenue Investment = what you put into it Example: 100 people registered at your conference at $150 = $15,000 Staff time and out-of-pockets = $1,000 Net: $14,000 Caveat: Not ROI but valid as a contribution toward it

12 Cost Efficiency by Activity Activity metrics are great for comparisons across channels. Thanks to: Katie Paine Measure What Matters Cost-per-Impression (Tweets, Fans ) Add up target Impressions Divide campaign costs by impressions Result: Cost for one person to see your item Example: Your release receives 500,000 Target Impressions Cost is $5,000 ($5,000/$500,000) = $.01 Cost-per Impression Caveat: If comparing to a paid campaign, multiply results by 1,000. To convert: $.01 x 1000 = $10.00 CPM (cost-per-thousand)

13 Cost-per-Message-Communicated Since a relatively small number of stories have key messages, (if so, they are 6x as likely to be favorable), another approach: Cost-per-Message Communicated For each story, multiply the # of key messages by impressions Divide campaign costs by # of impressions Result - Total opportunities to see a key message Example: 1,000,000 Impressions with Key Messages Cost of campaign is $10,000 ($10,000/1,000,000) = $.01 Cost-per Impression

14 Cost-per-Survey Results Using results from surveys w/questions specific to your campaign, you can compare campaign costs against the amount of improvement seen. Cost-Per-Awareness, Attitude, Understanding, Preference or Loyalty Uplift Gather % uplift in survey scores Divide Campaign Costs by % gain Result - Cost of % gain in survey results Example: Unaided Awareness of new product rose by 10% Cost of campaign is $20,000 ($20,000/10) = $2,000 to increase awareness by 1%

15 Web Financial Metrics

16 Web and Owned Channel Efficiencies Moving past the usual let s explore two cool methods for gauging success. But first:

17 Assigning $$ Macro and Micro Goals Assigning dollar results to Micro goals can show progress against Macro organizational goals, and can be established with a bit of internal research and agreement with management. Example: A Macro goal is a $500 sale or donation A Micro goal is a Contact Me sign-up It takes 10 Contact Me sign-ups to get a sale $500/10 = $50 for each Contact Me sign-up Read Chapter 14 of Sam s - Set up Goals and Funnels Avinash Kaushik Excellent Analytics Tips #19: Identify Website Goal [Economic] Values

18 Channel Revenue Comparisons What is the value of a visit from a social channel? How do they compare? Set up goal funnels in web analytics or owned channels Track visits and dollars spent from each channel Divide revenue (or other goal value) by # of visits from each platform to compare values-per-visit Example: Channel Visits Revenue $/Visit Facebook 3,390 2,433 $0.72 Blog 357 $56 $0.16 Twitter 41 $8 $0.20

19 Linking to Outcomes (Correlations & MMMs)

20 Correlations to Outcomes

21 Correlations to Outcomes Hundreds of studies show a direct Pearson Correlation between competitive share of coverage and outcomes Coverage must factor in quality and quantity Quality = Net Positive (Positive + Neutral Negative) Quantity = Impressions or Item Counts Best to do a combined scorecard index

22 Scorecards and Market Mix Models Scorecards work best for Market Mix Models, as well as correlations. (Don t supply simple clip counts or impressions to MMMs) Clip Quality Variables Tone Media Index Scorecard points -100 to points Media Index Score Multiply Part 1 x Part 2 / 100 Net Impressions Multiply Index Score as a % against Impressions (best for traditional media) (Use Media Index Score to compare Social and Traditional Results)

23 Easy Correlations in Excel! Row 2 is Media Index or Share of Voice % Row 3 is Business Result A B C D E F G 1 Time Period Jan Feb Mar April May June 2 SoV % Leads In an empty cell, enter the cell numbers of the starting and ending values: =Correl or =Pearson(B2:G2,B3:G3) Hit enter and result appears r =.80

24 Take-Away Tips Social and web metrics are great, but link your full PR effort to business outcomes Master a few comparative financial metrics instead of ROI Try your hand at setting financial goals in Google Analytics Measure social and traditional media by quality and quantity Correlate to outcomes!

25 For More Information Angela Jeffrey, APR Senior Counsel, CARMA International President,

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