PR News Social Media Measurement Conference Prove PR s Value With Metrics That Matter to Your Organization October 2012 Katie Delahaye Paine,

Transcription

1 PR News Social Media Measurement Conference Prove PR s Value With Metrics That Matter to Your Organization October 2012 Katie Delahaye Paine, Chairman & Founder KDPaine & Partners Chief Marketing Officer News Group International kdpaine@kdpaine.com Fellow and Board Member: Society for New Communications Research IPR Measurement Commission

2 What matters? Depends on your title! To CMOs *! ROI and Customer Experience is more important than sales.*! Relationships, not just transactions! ROMI will be the primary measure of their effectiveness! Bonds with customers! Developing a clear corporate character.! To CCO! Brand Recognition! Reputation & Image! Relationships! To CFO! Greater efficiency! Lower cost of sales! Shorter sales cycle *IBM Global CMO Study 2

3 What doesn t matter? Who owns it Conversations Customer Service Mktg Prod. Mktg CI Mkt Research Sales IR HR R&D Savings, shorter cycles, more renewals, better ideas, research

4 Yes we CAN measure the ROI of Social Media What does matter? Value Sodexo saved $300K in recruitment costs via Twitter In 3 months, via crowdsourcing, an engineer solved a problem that Exxon spent 20 years trying to solve The CEO of a hospital won a union battle via blogging HSUS generated $650,000 in new donations from an online photo contest BestBuy measures 85% lower turnover as a result of its Blue Shirt social community On Twitter, for free, a startup company got 100 great marketing ideas, women raised over $6,000 in a day and a wooden toy maker in NH got a nationwide contract IBM receives more leads, sales and exposure from a $500 podcast than it does from an ad

5 What doesn t matter: Silos 5

6 What Does Matter? Where people go for information! Friends & Family 90%! Google! Other Search Engines! Online News! TV

7 What doesn t matter? Likes

8 What doesn t matter? Impressions Impressions Likes Followers Trial/Consideration Purchase Advocacy 8

9 What matters? ROI

10 Reality: ROI may be Efficiency! Fishing where the fish are = Greater efficiency:! 44 % of junk mail goes to landfills unopened. Response rates <0.25% now acceptable! 94% better SEO results *! Greater loyalty: Listen for need, respond with help! Quilted Northern! Home Depot! Loss prevention; risk mitigation Need some help with that lawn?! Georgia Pacific *ComScore Group study

11 ROI = How to calculate it! ROI = cost savings! + Cost of program! Cost elimination! ROI = greater efficiency! +cost of program! cost of doing something the old way (cost per percentage point gained)! ROI = greater revenue, improved ALP! +cost of program! value of leads/sales Reach Frequen cy Hits Friends Follower s

12 What doesn t matter: Sentiment! There s a reason they call it earned You are what you do, not what you say! Assumes sentiment exists! 80% of conversation is neutral,! Majority of business doesn t evoke sentiment! Requires lots of data! After eliminating spam, content farms and invalid mentions! Assumes sentiment drives action, but you need analytics to prove it! Real time sentiment is not measurement

13 What matters? Your Kick Butt Index! You become what you measure! The Perfect KBI! Gets you where you want to go (achieves corporate goals)! Is actionable! Continuously improves your processes! Is there when you need it 13

14 Typical KPIs! % share of market space conversation! % increase in traffic to product specific URL! % increase in downloads/requests for info vs. prior launches! % increase in reposts and comments! % containing a campaign message! % favorable positioning on key issues! % share of quotes 14

15 What matters? Standards! Chasing fans and followers is insufficient! Marketplace is demanding standards! Common language for clients, agencies and research firms! Unify perspective/metrics across communications disciplines! Accelerate shift from low-level counting to higher-level value! Enable comparison across programs/brands/ organizations! Increase reliability of data and methods! Foster competition based on insights not black boxes

16 #1: Content Sourcing & Methods!. Social media measurement success stands or falls on the quality, scope and methodology of content analyzed, as well as analyst experience.! What content is included? How is unit of content defined?! Which channels? How deep? How is the data captured?! Are multiple languages captured? Via native-language queries?! How is the data calculated? What are the formulas?! How is irrelevant content from bots, spam blogs and aggregators filtered?! Are search methodologies included and search strings disclosed?

17 Introducing Interim Standard #1. Sources & Methods Transparency Table #SMMStandards Sources & Methods Transparency Table Timeframe Analyzed Research Lead(s) Channels Analyzed Data/Content Sources Analysis Depth Automated Manual Hybrid All Content Reviewed Rep. Sample Source Languages Search Languages Sentiment Coding Automated Manual Hybrid Manual Sampling: 3-pt scale 5-pt scale Other scale At entity level Paragraph/doc level Spam/Bot Filtering Automated Manual Hybrid Includes news releases Excludes releases Metrics Calculation and Sources -- Reach -- Engagement -- Influence -- Opinion/Advocacy Proprietary Methods Search Parameters See full search string list on page of this report

18 #2: Reach & Impressions! Accurate impressions data is hard to source, especially globally! Be transparent about sources used and clearly/ correctly label charts! Definitional confusion across media types and disciplines! Impressions; opportunities to see; circulation; reach; frequency; total vs. targeted reach; visits; visitors; followers; fans; views! Multipliers should not be used in fact, dividers are more appropriate! Few of your followers read every tweet; only 8-12% see Facebook posts

19 Typical KPIs for an Event! % share of the event Hashtag! Ratio of owned posts to earned posts/ tweets! Share of voice in event media! % of mentions containing a key message! % message integrity full, partial, negative! % favorable positioning on key issues! % share of quotes 19

20 #3: Engagement! Engagement is an action that happens after reach, beyond consumption! Engagement could be but is not necessarily an outcome! Engagement manifests differently by channel, but typically measurable at three levels Low, Medium and High based on effort required, inclusion of opinion and how shared with others! Low examples = Facebook likes and Twitter follows! Medium examples = blog/video comments and Twitter retweets! High examples = Facebook shares and original content/ video posts! Clients prioritize differently, but engagement levels are consistent

21 #4: Influence & Relevance! Influence is something that takes place beyond engagement! You have been influenced when you have thought something that you otherwise wouldn t have thought or done something that you otherwise wouldn t have done. Philip Sheldrake, The Business of Influence! Influence is multi-level and multi-dimensional, online and offline! Not popularity; not a single score! Domain & subject specific relevance is critical! Influencers should be identified and rated using custom criteria via desk research, not purely on automated algorithms

22 #5: Opinion & Advocacy! Sentiment is over-rated and over-used! Not the end-all, be-all qualitative measure other factors to consider! Sentiment reliability varies by vendor and approach be transparent! Opinions, recommendations and other qualitative measures are typically more valuable than raw sentiment and increasingly measurable:! Opinions ( it s a good product )! Recommendations ( try it or avoid it )! Feeling/Emotions ( That product makes me feel happy )! Intended action ( I m going to buy that product tomorrow )! Coding definitions, consistency and transparency are critical

23 #6: Impact & Value! Impact and value will always be dependent on client objectives! Need to define outcomes in advance will likely span multiple business goals, especially for social (crosses disciplines)! ROI should be strictly limited to measurable financial impact; total value can be used for financial and nonfinancial impact combination! Value can be calculated in positive returns (sales, reputation, etc.) or avoided negative returns (risk mitigated, costs avoided)! KPIs &balanced scorecards are helpful to connect social media impact to business results/language

24 What matters: Insight 24

25 What matters: Asking So What 35,152,789 OTS Red line indicates media impressions 6,253,852 OTS 25

26 What matters: Keep moving forward Crawl Walk Run Fly Monitoring /Listening Establish Rules Participate Measure Tailored content Integrate into Strategy Use Multiple Channels Follow best practices 26 Tie efforts to outcomes Crowdsource Integrate with all Mktg Continuously improve

27 Thank You!! For more information on measurement, read my blog: or subscribe to The Measurement Standard: For a copy of this presentation go to: Follow me on Twitter: KDPaine! Friend me on Facebook: Katie Paine! Or call me at