Social Media Performance Measurement and Business Impact

Social Media Performance Measurement and Business Impact Dr. Jim Hamill and Alan Stevenson www.energise2-0.com [email_address] June, 2010

Performance Measurement Social media can be ‘cool and funky’ ...... but it should also deliver ROI and positive business impact Your social media strategy should be: fully aligned with and supportive of overall business goals and objectives driven by agreed business objectives, KPIs and targets On-going performance measurement benchmarked against agreed objectives is critical

Performance Measurement Should be undertaken at four main levels.... Web 1.0 Web 2.0 (Individual Channels) Web 2.0 (Overall ‘Buzz’) Business Impact

Web 1.0 KPIs Site visits Unique visits Geographical spread of visits Length of time spent on the site Navigation through the site Most/least popular pages Number and quality of site enquiries e-mail registrations e-commerce sales U ser feedback on the site Links

Web 1.0 measures are still important....... but in a social media era, new performance measures are required

Social Media KPIs There will be ‘winners’ and ‘losers’ in social media. ‘Winners’ will be those companies who fully utilise the interactive power of 2.0 technology for building strong ‘1-to-1’ customer and network relationships Those who fully leverage social media for Identifying, Acquiring, Retaining and Growing ‘Quality’ Customers In a social media era, the key drivers of future business success are: Network quality Relationship strength Ability to leverage

The Four I’s Involvement – number and quality of people in your various online networks/communities Interaction – actions they take – read, post, comment, reviews, recommendations Intimacy – affection or aversion to the brand ; community sentiments, opinions expressed etc Influence – advocacy, viral forwards, referrals and recommendations, social bookmarking

The Four I’s Can be measured at two main levels..... Individual Social Media Channels/Platforms – the effectiveness/success of each social media channel you use benchmarked against agreed targets Web 2.0 (Overall ‘Buzz’) – your organization’s performance or ‘presence’ in the wider social media landscape

Social Media Monitoring Tools Emerging Social Media Monitoring Tools allow your organisation to monitor online conversations about your brand, the overall ‘ buzz’ being created by your social media activities , who is talking about your brand, where on social media and the sentiments being expressed.... later

Web 2.0 – Individual Channels Most social media channels/platforms provide statistics which allow you to monitor/evaluate the ‘Four I’s’ to a high degree of accuracy Some examples......

Merchant City – Twitter Performance

Social Media Monitoring Tools Monitor and evaluate what is being said, by who, where and what impact – delivers actionable insights Three stage process Aggregate what is being said Natural language analysis – understand the data Deliver actionable insights We have identified more than 100 Companies in this space

What they offer Search and relevance filters Further categorisation and tagging Assign Events to the Social Graph A variety of channels: web, news, blog, twitter Mention Volume, Importance and Demographics Analyse sentiment or tone Analyse date parameters Updates as they happen

Some Tools Are Free but Relatively Unsophisticated

Others Are Expensive but Highly Sophisticated

Business Impact The ‘Four I’s’ are ‘Lead’ rather than ‘Lag’ measures i.e. they are the main drivers of future business success NOT strategic goals in their own right Your social media strategy should be driven by agreed business objectives...... Marketing/communications effectiveness Marketing/ communications efficiency Marketing/communications ROI Customer acquisition, increased sales Brand awareness etc

Business Impact Recommend the use of a Balanced Scorecard approach to ensure that your social media activities are fully aligned with and supportive of overall business goals and objectives

SM Strategy Development Strategic objectives Targets Key performance indicators (KPIs) Customer segments The key social media actions and initiatives required for ‘getting there’ Organisational, people and resource issues Ensure that your social media strategy is fully aligned with and supportive of your overall strategic goals and objectives with clear targets and ROI criteria Social Media Strategy Map

Continue the discussion at www.energise2-0.com www.web2-0cpd.com

Social Media Performance Measurement and Business Impact

More Related Content

What's hot (20)

Viewers also liked (10)

Similar to Social Media Performance Measurement and Business Impact (20)

More from Hamill Associates Ltd (20)

Recently uploaded (20)

Social Media Performance Measurement and Business Impact