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Contemporary Issues in Social Media Marketing - (Chapter 9 Social Media Engagement Andreturn On Engagement)
Contemporary Issues in Social Media Marketing - (Chapter 9 Social Media Engagement Andreturn On Engagement)
Contemporary Issues in Social Media Marketing - (Chapter 9 Social Media Engagement Andreturn On Engagement)
Introduction
The term ‘social media’ refers to a bouquet of online services that facilitate the
way communication and content sharing is happening today through collaborative
networks of people, communities and organizations (Ludwig et al. 2013; Muniz
and Schau 2011; Mangold and Faulds 2009; Kane et al. 2009). In the present
world, companies cannot afford to neglect considering this media along with
other traditional media, as the Internet has become the backbone of urban society.
With the advent of Web 2.0 we have moved to an interactive social system that is
available to most of us 24/7. Accessibility to gadgets such as personal computers,
smart phones, webcams and digital recorders has given individuals the freedom
to create and share content. Today is the day of the ‘horizontal’ communication
revolution, where each one of us can communicate online with a huge number of
people through a single click (Tuten and Solomon 2015: 4).
As elaborated by Zimmerman and Sahlin (2010: 10), social media include sev-
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•• blogs: websites designed to let you easily update or change content and which
allow readers to post their own opinions or reactions
•• social networking services: the origin of these services was to facilitate
the exchange of personal information (messages, photos, videos, audio) to
groups of friends and family. These included full networks such as Facebook
and Myspace, professional networks such as LinkedIn, and microblogging
sites such as Twitter
•• social media sharing services: these media channels facilitate posting and
commenting on videos, photos and podcasts
•• social bookmarking services: social bookmarks are a publicly viewable list
of sites that others have recommended, which are similar to private bookmarks
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118 Ritu Srivastava
Along with these examples, there are also many service channels available to
businesses to reach out and communicate with their customers. However, while
companies understand the benefits of social media, it is a big challenge for them
to design an effective social media strategy.
the online mode as well, given the characteristics of the Chinese market1 outlined
in what follows.
The number of Chinese Internet users in 2010 was estimated to be 457 mil-
lion (35 per cent of the population), an increase of 19 per cent compared with the
previous year, which is more than 300,000 new users per day. Internet usage was
intensive, with the average daily time spent on the Internet twice that in Europe
and America, but this usage was varied, consisting of blogs, IM (instant mes-
saging), social networks (235 million users, which comprised 18 per cent of the
population) and e-commerce (more than 100 million online users, around 8 per
cent of the population in 2009 according to Goldman-Sachs). These figures were
very impressive, but when one considers them in relation to the entire population,
they were far from being fully developed, and thus predicting anything was not
possible. In addition, in China it was the big local social service providers who
Contemporary Issues in Social Media Marketing, edited by Bikramjit Rishi, and Subir Bandyopadhyay, Taylor & Francis Group, 2017.
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Social media engagement and return on engagement 119
shared the market, occupying similar market positions to their American coun-
terparts: Baidu was the Google equivalent; Sina Weibo (a mix of Facebook and
Twitter) was the most popular Chinese social network; Tencent was another major
social player which owned QQ (IM); Taobao was similar to eBay (70 per cent
of e-commerce, 2 per cent of retail); Alipay was the equivalent of PayPal (more
than 1.5 billion RMB of transactions/day); Tudou was YouTube; and, in March
2011, there were already more than 4,000 group purchasing sites comparable to
Groupon. So the external environment characteristics offered potential but with
its own set of challenges.
The younger generation was consumerist, hedonistic and confident of the
future, feelings that are reinforced by their country’s growth. They were also
torn between the two opposing poles of westernization on one hand, and pride in
being Chinese on the other. The Chinese are very extraverted and love to explain
and share their opinions, posting, for example, many photographs of themselves
online, and love clubs, privileges and social circles. Politics was discussed on the
network using a coded language that evaded the filters of the censor. Contrary to
received ideas, consumers did not necessarily want to buy fake brands, and the
shopping malls were as much a place for a sociable stroll as they were destinations
at which to make purchases.
E-commerce in China at that time was essentially a place for transactions
between consumers. Ninety-two per cent of transactions were consumer to con-
sumer, with almost as many sellers as buyers. More than 100 million people, each
with a modest commercial space online, sold on Taobao.
At the outset of their move into China, Decathlon established a store on Taobao.
Taobao allows companies to display their products and provides customer support
by communicating with customers through an online messaging system. Taobao
also provided payment processing for online sales. In return, it charged a service
fee. The Decathlon store was opened in 2010 and sales increased but the limitations
posed another challenge; when a prospective customer searched for a product, all
related products, including competitor brands, were displayed. This reduced the
rate of conversion and the prospect would move on to a competing brand as there
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was nothing to attract them to Decathlon. Decathlon realized this and changed
their strategy to include multiple social media options, where the customer started
talking to the brand and engaging with it. Thus, merely having an online presence
or a social media presence leads businesses nowhere. Gone are the days when an
online presence along with some customer interaction would satisfy the customer
or the business interest. This holds true globally and adapting it to a local context
poses an even more specific challenge as seen in the previous section.
Contemporary Issues in Social Media Marketing, edited by Bikramjit Rishi, and Subir Bandyopadhyay, Taylor & Francis Group, 2017.
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120 Ritu Srivastava
Message
Channels of
Communication
Decodes
Verbal
Formulates
Sender Telephone
Voicemail Receiver
Formulates Email
Online Decodes
Letters
Media
Feedback
Web 2.0, therefore offering the benefits associated with Web 2.0: speed, con-
nectivity, scalability and reach. However, being a communications platform,
social media work on an underlying communication cycle with the interaction
between the two parties becoming very strong and dynamic. Strategically, it
becomes imperative to consider the communications cycle as given by Shanon
and Weaver (1949).
For businesses to communicate with their customers they occupy the position
of the sender and send the message to the customer group, which gets further
transmitted or operates as a customer node and participates in the viral cycle
at high speed. Communication happens across several customer-to-customer,
sender/receiver loops, which form viral networks. Because of the speed and gre-
gariousness of this activity, there is a chance for both the messages to travel
many times positively and negatively, or for the messages not to travel at all.
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This is a very important point because firms do not want to have a social media
strategy that does not perform, as in the Decathlon case. For the social media
strategy to perform the message will have to go through the hierarchy of effects,
as emphasized in response hierarchy models (Strong 1925; Lavidge and Steiner
1961; Rogers 1962; and McGuire; 1968). The customer interaction characteris-
tics at each stage will be different and for customers to speak virally, businesses
will have to make an effort to engage the customer throughout these stages (Kane
et al. 2009)
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Social media engagement and return on engagement 121
Awareness
Attention Reception
Awareness
Cognitive
Knowledge Cognitive response
Interest
Liking
Interest
Attitude
Desire Preference
Affective
Purchase Trial
Behaviour A ction
Adoption Behaviour
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122 Ritu Srivastava
Innovators
2.5% Early
Adopter Early Majority Late Majority Laggards
13.5% 34% 34% 16%
Action: In most cases, the desired action is to lead consumers to making pur-
chases, but in certain cases it can relate to generating inquiries, brand building etc.
The hierarchy of effects model developed by Lavidge and Steiner (1961) is
one of the older linear models that states that advertising must shift people up a
series of steps from cognitive processing to attitude change to purchase behaviour.
Consumers do not switch from being impartial individuals to convinced purchas-
ers in one single step and this holds true for social media also. The first stage
of exposure and visibility is where many Indian firms were stuck until the first
decade of 2000, when Internet penetration was 5 million, compared to 81 million
in 2013.
The innovation adoption model developed by Rogers (1962) holds that indi-
viduals adopt products with different intensities. Based on the diffusion of inno-
vation theory, it looks at customers as adopters of new innovations and classifies
them as: innovators, first to adopt, early majority, late majority, and laggards, the
last to adopt. It points out that not all customers will be convinced in one go and
it makes more sense for firms to direct their promotional efforts at the innovators
and early adopters first.
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Social media engagement and return on engagement 123
i. Motivating some behaviour in the target audience, such as visits to the web-
site, purchasing, advocacy etc.
ii. Influencing brand knowledge and attitudes specifically among those who are
likely to spread the message to their own viral networks.
iii. Working media options within budgetary constraints.
When setting the objectives, they must be SMART, that is, they must be spe-
cific as to what is being expected as the outcome, must have measurable metrics,
should be appropriate to the task and realistic. This can be done with regard to
a defined time frame, for example, ‘How much time did the customer invest in
engaging with our socially published content?’
1. Firms must be clear about their target audience (Verhoef et al. 2009; Straker
and Wrigley 2016), its key characteristics in terms of demographics, but
even more importantly in terms of behaviour and decision making processes.
What motivates them?; what are their preferences, likes and dislikes that can
be organized around values, lifestyles, activities and preferences?; how are
their attitudes shaping up?; which role models do they follow?; what are their
methods of self expression? These all become important pointers for content
and activity design.
2. These behavioural characteristics provide a base for firms to design activities
around, which can happen online when the customer is engaged (Barwise and
Meehan 2010; Mangold and Faulds 2009). For example, for the re-launch of
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124 Ritu Srivastava
Recommended
Purchased
Interacted
Clicked
Commented
Repeated
Rated
Saved
Saw
its brand Brisk, Lipton Pepsi carried out a social media campaign featuring
animations that could relate better to its teen target audience.
3. At the point of choosing media options across the customer decision making
stages, it is seen that traditional media such as television and print along with
point of sale activities work better in terms of creating awareness and inter-
est up until the trial stage; however, once the customer has tried the product,
that is after trial and evaluation, the decision to repeat purchase and become
loyal to the brand is strongly influenced by the image of the product and the
customer often looks for content and conversations originating from brands
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Contemporary Issues in Social Media Marketing, edited by Bikramjit Rishi, and Subir Bandyopadhyay, Taylor & Francis Group, 2017.
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Social media engagement and return on engagement 125
Sales
Promotion
Personal
Selling
Advertising
and Publicity
Return on investment
Return on investment (ROI) is one of the most common metrics used to evaluate
the success of social media. It captures how effective a company is at using capital
to generate profits. To determine ROI, we assign a financial value to resources
and measure the financial outcomes. The ratio between the input and its outcomes
gives us the ROI, which indicates how much income was generated from invest-
ments in certain activities. For social media, which is a communications based
platform, this purely hard financial measure does not work. Instead, there are
certain alternative approaches that calculate Social Media Return on Investment
(SMROI) (Fisher 2009). While metrics measure the effects and success of activi-
ties, effectiveness is essentially considered through return metrics. However,
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126 Ritu Srivastava
return on investment has also been criticized for its overemphasis of short-term
returns over long-term brand building (Calkins and Rucker 2008).
Return on impressions
This model explains how many media impressions were generated by the social
media tactics applied. An impression is simply an opportunity for the target audi-
ence to notice something. In the traditional method, advertising space was bought
based on the number of impressions it could provide; while social media also
provides impressions, media space is typically not purchased. The opportunity
for exposure to the brand message might be delivered as a part of the virtual
world event, on a social networking site, through product reviews and/or customer
generated messages. Impressions are valuable according to this model because
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Social media engagement and return on engagement 127
advertising, an AEV would attempt to equate the following with paid advertis-
ing value: source authority, source prominence, depth of brand mention and
recommendation.
While mentioning the approaches to measuring social media effectiveness, it
becomes evident from the above section that costs form a very important compo-
nent in evaluating effectiveness. How organizations view the cost function, as an
expense or an investment, is also important. Costs are to be viewed against the
value they give and therefore it is important to do a cost benefit analysis. What
does it take to participate in a social media event and what is it worth? What is
the value of a customer or a lead? What does it cost to maintain a blog? These are
some of the questions that organizations need to answer to understand the costs of
social media and their associated value. Costs would typically include opportunity
cost, speed of control and the kind of message response.
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128 Ritu Srivastava
The final step in measuring the effectiveness of social media is customer track-
ing. Data on the metrics are collected to compare and assess the effectiveness of
the social media marketing strategy. The tracking stage will involve the following
steps (as elaborated by Tuten and Solomon 2015):
An effective way to track customers is listening and monitoring. There are vari-
ous ways of doing this, and companies may use individual social media vehicle-
specific tools, as well such as Facebook Insights, Twitter Analytics etc. Tracking
can be forward, coincident or reverse.
Forward tracking ensures that the tracking mechanisms are developed prior
to launching the activity or campaign. It is the most precise approach because it
enables the account team to track exactly the data desired. Coincident tracking is
done concurrently throughout the campaign. It relies on residual data left at the
point of interaction or sale and does not require a unique mechanism developed
for the purpose. It is interaction or outcome oriented because tracking occurs
only when people leave traces of their opinions or activity. Reverse tracking is
done after the conclusion of an activity or campaign. It also uses residual data
and may additionally use some primary data collection to assess the effects of
the campaign. Baselines and measurement maps are two visual tools that allow
marketers to compare its performance against specific dimensions or different
types of tools used.
Social media listening and monitoring means to monitor conversations and content
in social media channels by ‘listening’. This listening works with the aid of soft-
ware that systematically searches for particular keywords it finds in social spaces
such as blogs, social networks and forums. By carefully choosing and searching
the appropriate keywords and the relevant social communities, the researcher can
gather insights into customer decision making, perceptions of the brand, percep-
tions of competitors and more. An automated monitoring service can be retained
to crawl the web, collecting conversations according to established criteria for
inclusion in a database. From this database, conversation volume, source and sen-
timent can be determined through a mix of quantitative and qualitative data.
Monitoring explains what was said, when, by whom and how many times.
Thus, this process answers four basic questions:
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Social media engagement and return on engagement 129
The content of the data collected using monitoring serves many marketing pur-
poses, such as using customer comments as testimonials and competitor infor-
mation as competitive intelligence. Conversations among like-minded people
provide information useful for targeting and positioning. If a firm can use data
from multiple data sources and maintain a detailed database, many more insights
can be gleaned as the data synthesize comments from thousands of people. In fact,
data can be merged through multiple channels.
All this needs is a properly conceptualized social media marketing strategy,
with a detailed plan taking in all of these steps. The steps in planning are essen-
tially the same; the difference is in the way social media characteristics and con-
sumer behaviour is understood and handled.
Conclusion
Effective social media engagement is an important business concern today. The key
lies in understanding online customer behaviour as being part of a communication
hierarchy, and designing online media content and activities, with a suitable assess-
ment metric defined at each stage. Measurement using the metrics through a chosen
tracking mechanism will help in assessing the progress of the social media strategy
and the need to take corrective steps, as well as deciding on its cost effectiveness.
Note
1 http://www.butter-cake.com/2011/11/20/e-commerce-in-china-what-is-the-best-strat-
egy-for-western-brands/
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130 Ritu Srivastava
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Social media engagement and return on engagement 131
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