Professional Documents
Culture Documents
Determining the Impact of
Customer Relationships
Social Media Measurement & Analysis
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www.crimson-consulting.com
Karen O’Brien Chris Terschluse
Partner Social Media Analyst
Interactive Services Interactive Services
Copyright © Crimson Consulting, Sept. 2009
INTRODUCTION
The Internet has become a vibrant social
space transformed by web platforms that have enabled
communication, collaboration, and sharing amongst
individuals online. Online audiences look to build networks
and relationships via the social web to connect with people,
organizations, and content relevant to their own personal
experiences. In social media marketing, marketers must
work to establish and maintain these online relationships to
create an impact on critical business objectives.
MARKETERS
media. In a recent study by eMarketer, 52% of US social
network users respondents stated that they had become
a fan/follower of some company or brand. Another 46%
said something positive about a brand/company,
70% of compared to 23% who had stated something negative
about a brand/company. Whether companies like it or
marketers do not not, online audiences are talking about their product,
believe they organization or brand, making it important to listen to
adequately what customers are saying and establish a dialogue.
measure their
MEASURING FOR SUCCESS
own social media Understanding how to effectively monitor and measure a
campaigns social media campaign sets apart those organizations
that successfully utilize social media from those that fail
to justify its value. In a recent poll by MarketingProf’s,
more than 70% of respondents did not believe their
companies adequately measured their social media
campaigns. The study also concluded that 25% of
marketers did not know what to measure, while another
30% stated they lacked the necessary resources. At a
time when social media marketing continues to grow in
importance and use, effective measurement has become
an essential component of social media marketing.
Understanding how to measure social media allows
marketers to learn about their customers and create
highly optimized campaigns that provide value both
financially and strategically.
THE
SOCIAL
MEDIA
MARKETING
PROCESSS
Figure 1.1
WHERE TO BEGIN
Social media marketing can be approached as a cyclical
process in which organizations listen, measure, engage,
and then optimize marketing efforts. Organizations can
also approach social media marketing by adopting one or
more of these strategy components (Figure 1.1). For
example, BMW’s Mini Cooper team used social media
monitoring (listening) in order to develop critical insights
from the online audience. These consumer insights were
then used to determine the direction and message of their
entire marketing mix, both traditional and digital.
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QUANTITATIVE IMPACTS
Measuring and understanding the reach and frequency of
social media use allows businesses to determine the web’s
impact on important outcomes such as awareness and
sales. Using traditional web analytics, marketers can work
to optimize metrics like traffic, unique visitors, inbound links,
and unique visitors through SEO and social media
marketing efforts.
KEY INSIGHTS
Traditional web metrics are an essential component of
social media measurement, as they provide a good
indication of reach and frequency. These metrics directly
Traffic generated per blog posting relate to important objectives such as awareness,
gives insight into content strategy successful content strategy, and site design. Metrics like
by identifying posts that drive traffic traffic can be linked to both online and offline, marketing
efforts through embedded codes or URL’s used to assess
campaign penetration. Web analytics can identify sales
attributable to affiliate marketers and leads generated by
social media content. Metrics such as bounce rate, time
spent on site, and click through path, also provide valuable
insight into successful website design and overall user
experience.
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SOCIAL
MEDIA
SOCIAL MEDIA METRICS
Social media analytics provide qualitative insight into the
KEY INSIGHTS
Time-series charts and tag clouds drill down topics of
conversation around a brand, pinpoint increases/decreases
in buzz, identify brand associations and other related
trending topics. Online sentiment provides insight into
product/service satisfaction and qualitative opinions about
brands. Share of online conversation is a good
determinate of online market share. Organizations can
even measure brand associations around topics of
conversation with competitors. Other sets of data such as
demographic data or behavioral data can also be utilized to
Social media analytic tools identify identify the level of influence of the online audience. Social
influence based on customizable pre- media analytic tools may then contain workflow
determined criteria: sentiment, authority,
components that allow marketers to then easily monitor
# of comments/responses, and reputation
and engage brand advocates, prospective leads, or
dissatisfied customers.
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ESSENTIAL
MEASUREMENT
TOOLS
Marketers should combine both traditional web analytics with social media analytics when measuring
social media efforts. Utilizing both sets of data will allow marketers to draw comprehensive conclusions
about measurable impacts on strategic objectives.
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ESTABLISHING
SOCIAL MEDIA SEGMENTATION
Effective engagement occurs after listening to online
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SOCIAL
MEDIA
CONTENT & ENGAGEMENT
Social media marketing is a dynamic process. Consistently
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DETERMINING
THE
LINKING METRCIS TO OBJECTIVES
Sales Impact and ROI of social media marketing may be
OUTCOMES
defined metrics. Social media measurement should be
tailored to the unique goals and objectives of the marketing
campaign or organization. Marketers can then use trend
analysis and statistical modeling to relate changes in social
media and web analytics to actual sales data.
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CONCLUSION
While businesses continue to adopt social
media as an exciting new marketing practice, many still
struggle to justify an ongoing commitment and investment
in the channel. Many executives still consider social
media marketing as an experimental tactic rather than a
long-term growth strategy. This is understandable given
that 84% of marketing professionals still do not measure an
ROI for social media programs. Understanding how to
measure social media marketing’s bottom-line impact
allows marketers to communicate the value of their efforts
to key stakeholders. In a period where budgets remain
constrained and expenses must be justified, marketers can
only continue to integrate the channel into their marketing
mix once a method of obtaining a ROI has been
established. The ease of access and use of social tools
has led to the widespread adoption of the social web
among both businesses and consumers. It is now up to
the marketing professional to develop creative, well-
planned strategies to harness the power of social media
marketing as a successful business platform. Once
effective social media marketing strategies are put in place,
business may work to build valuable assets out of their
customer communities.
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ABOUT
Since 1991, Crimson has provided product
and market, channel and interactive strategy and
implementation to some of the most successful companies
in the world. Our clients include Adobe, Cisco, eBay,
Hitachi, HP, IBM, Intel, Microsoft, Oracle, SAP, Seagate,
Symantec, and Verizon. We are experts in the marketing
of technology solutions.
Copyright © Crimson Consulting, Sept. 2009
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