Olivier Blanchard Presentation from SMIATL 2010

Social Media Program
Planning & R.O.I.
olivier alain blanchard
@thebrandbuilder
Social Media Integration Conference
Atlanta, GA
22 October 2010
#SMIATL

Training
Social Media Program Integration
for C-Suite executives,
Managers and organizations.
Consulting
- Brand Mgmt.
- Online Reputation Mgmt.
- Social Web & New Media
… and the blog.
What do I do?
Advisory Board Shenanigans

First Rule: The tools are the tools. The tools are not the thing.

Second Rule: Your business, not Social Media, is in charge.

Ways in which Social Media can help a business:
Sales
Net New Customers, Increased Frequency of Transactions, promo exposure
Increased yield (average $ value per transaction), and product penetration
Customer Support
Immediate feedback and response, positive impact in public forum, cost reduction
Human Resources
More effective recruiting, online monitoring of employee behavior (risk management)
Public Relations
Online Reputation Management, improved brand image via Social Web
Customer Loyalty
Increased interactions, better quality of interactions, deeper relationship with brand,
Increased trust in brand, increased mindshare of brand, greater values alignment
Business Intelligence

“The community closes the sale.”
- Porter Gale (@virginamerica)
Virgin America invests in the good will of customers, simply by publicly
acknowledging and supporting them in the same channels where they’re
communicating.

Your customers = a vibrant community.

What Social Media really is:
People talking with people.

(Which is nothing new, really.)

People connecting with each other.

People creating communities…
on their own terms.

People sharing their passions.

People sharing their complaints.

By the way...
There are 2 forces at work in Social Media:
Vertical Engagement
And
Lateral Engagement
This is important.

Vertical Engagement= Brand + Customer.
Great Experiences & Brand Loyalty.

Lateral Engagement = customer + customer
Validation and Scale.

People share things they love.
Twitter, YouTube and Facebook
Are word-of-mouth on steroids.

Social Media (Ecosystem & Platforms)
Social Communications (What happens there)

Socialmedia
Socialcommunications
Blah!
Blah!
Blah!

Socialmedia (the channels)
Socialcommunications
Blah!
Blah!
Blah!
Blah?
Blah?
Blah?
(Enablement)

The customer lifecycle funnel
Acquisition Development Retention
You are here You also need to build here
Create something worthwhile  Let the community share it

The four core disciplines of Social Media Mgmt.

Module 1: Strategy & Development

Having “a presence” in Social Media
Is worthless unless you do something with it.

What many organizations forgot to ask
before getting into the Social space:
“What are we trying to accomplish?”
Define the objective FIRST.
THEN come up with the tactics.

Tactics don’t dictate the objective.
You know…
What this team really needs
Is more Social Media!
And more followers too!
NO

Objectives dictate tactics.
I need 3 more touchdowns
before half-time.
What can I do to get there?
YES

What you do with your Social Media presence
needs to be driven by purpose.
What are your objectives? Clarify them first.

Your organization doesn’t plug into Social Media.
Social Media plugs into your organization.

Customer Support
Market Research
Online Reputation Management
Community Management
Consumer Insights
Recruiting
Business Development
Sales
P.R.
Business Measurement
Marketing
Education
Thought Leadership
Search/SEO Mobility
How Social Media plugs into business functions
Customer Acquisition

Ways in which Social Media can help a business:
Sales
Customer Support
Human Resources
Public Relations
Customer Loyalty
Know Everything. (No, really.)

Awareness
Do enough people know about us? Do enough people think about us?
Context
Do people think of us in the right way?
Value
Do people understand our value? What we offer?
Relevance
Do people appreciate our value to them?
Catalysts
Do people have a reason to think about us? To engage with us? To buy into us?
Brand Management: Momentum Drivers

Social media is there to drive,
amplify and reinforce all of these things:
Awareness
Context
Value
Relevance
Interactions
Transactions
Leveraging Social Communications

What needles are you trying to move?
?

Where do you want to start?
Sales
Customer Support
Human Resources
Public Relations
Customer Loyalty

Build your program based on these objectives
Sales
Customer Support
Human Resources
Public Relations
Customer Loyalty

Set targets. Be specific. Be clear.
Monitoring...?
Engaging…?

Set targets for each program
Sales
Net New Customers: How many? What time frame? How? How does SM fit in?
Customer Support
cost reduction: What is the cost reduction target? How can we do it?
Public Relations
Online Reputation Management: Define parameters. How will we gauge success?
Improved brand image via Social Web: Set targets. How will we measure this?
Customer Loyalty
Increased mindshare: Set targets and method. How will we measure success?
Know Everything: Enhance BI practice. What do we want to know? Can SM help us
gather data and insights? How will we do this? What tools do we need? Etc.

Goals are not targets
Increase net new customers
Increase sales revenue
Increase net unique website visitors
Increase the number of followers
Increase market share
Increase positive sentiment
Increase positive recommendations/WOM
Increase mindshare
Attract better talent
Amplify marketing efforts
Increase customer participation
Improve reputation with investors

Set targets. Be specific. Be clear.
+500 net new transacting customers this Q
+13% sales revenue YoY
+8000 net new website visitors this M
200 Net new followers this W
+3% more market share YoY
100% increase in pos.sentiment

How will you measure this?
+500 net new transacting customers this Q
+13% sales revenue YoY
+8000 net new website visitors this M
200 Net new followers this W
+3% more market share YoY
100% increase in pos.sentiment

What departments in your company
are tasked with meeting those objectives?
Marketing?
PR?
Customer Service?
Biz Dev?
(Who owns these functions now?)

Marketing
PR
Customer Service
Biz Dev
How can Social Media support and enhance key
business functions?

Are they capable of integrating this?

Planning for Social Media Integration
Marketing Customer
Service
Public
Relations
HR IT
Advertising
Reputation
Mgmt.
Business
Dvlpmt.
Legal
Customer
Support
Collaboration
Business Functions Business Processes
Measurement
Data Analysis
Internal
Communications
Research
How does Social Media
fit into and across my
organization?

Marketing PR
Customer
Service
Business
DevelopmentHR
Community
Manager
Blogger
Guy
The current state of Social Media Integration:
Buzzwords over Objectives:
“Engagement?” “Conversations?”

Social Media
Manager
PR
Marketing
Customer
Service Technical
Support
Business
Development
HR
C-suite
Phase 1: “Test” Adoption

Social
Communications
Manager
PR
Marketing
Customer
Service Technical
Support
Business
Development
HR
C-suite
Phase 2: Marketing Adoption

Social
Communications
Director
PR
Marketing
Customer
Service Technical
Support
Business
Development
HR
C-suite
Phase 3: Operational Adoption

VP
Social
Communications
PR
Marketing
Customer
Service Technical
Support
Business
Development
HR
C-suite
Phase 4: Operational Integration

Marketing PR
Customer
Service
Business
DevelopmentHR
Community
Manager
Blogger
Guy
The next step in Social Media Integration:
Objectives over buzzwords
Real-Time Customer Support
Digital Crisis Management
Market ResearchFRY
Digital Brand Management Innovation Collaboration

Okay, so how
do we make
this happen?
Thinking. Planning. Deploying.

Three-Step Process
Step 1: Strategy & development
Identifying goals
Identifying key departments
Developing strategies and tactics
Setting targets and budgets
Clarifying intent
Providing direction

Three-Step Process
Step 2: Operational Deployment
Identifying goals
Clarifying intent
Providing direction
Getting departments up to speed
Training staff
Enabling technology and tools
Creating the internal infrastructure
Working with Legal, IT, HR, etc.
Creating guidelines
Developing the organization
Continuous improvement

Three-Step Process
Step 2: Operational Deployment
Step 3: Management & Execution
Identifying goals
Clarifying intent
Providing direction
Getting departments up to speed
Training staff
Enabling technology and tools
Creating the internal infrastructure
Working with Legal, IT, HR, etc.
Creating guidelines
Developing the organization
Continuous improvement
Community management
Online reputation management
Monitoring
Measurement
Digital customer support
Internal collaboration
Etc.

Managing a fully deployed program
VP Social Communications
Developed the Social Communications Infrastructure
Oversees SM activity
Coordinates SM activity
Provides leadership + Support
Customer Support
PR + Reputation Mgmt
Marketing
Measurement
Monitoring
Support
Triage
Data Analysis
Reporting
Monitoring
Responding to crises
Content, events & Promotion
Monitoring
Responding to inquiries
Content
Triage
Research
Content Development
Promotions
Internal
Collaboration
Hub / Channel

Marketing PR
Customer
Service
Business
DevelopmentHR
Community Mgr.
Blogger guy
It makes absolutely no sense to expect that
one Social Media role
can properly serve all of an organization’s
Business functions.
Social Media Strategy?

The four categories of roles in Social Media
Different Focus + Different perspectives

Managing a fully deployed program
Customer Support
Marketing
Measurement
Monitoring
Support
Triage
Data Analysis
Reporting
Monitoring
Monitoring
Content
Triage
Research
Content Development
Promotions
Internal
Collaboration
Hub / Channel
Often the biggest
challenge

A word about “Value.”
The lesson here is this:
This isn’t about establishing a Social Media
presence and then figuring out how to use it.
Think of how the Social Web, its
technologies and networks can help you
become more useful.
 Competitive Edge

Value = Usefulness = Purpose = Value
How are you useful to your customers?
clients?
boss?
organization?
peers?
industry?
category?
How can you create “usefulness?”

Example: A garbage company wants to use Social Media
How can they use Social technologies to be more
useful and competitive?
Mobile App
Pay Your bill
Post pickup schedules
Follow/track the trucks
Locate Recycling Stations
Recycling + Composting Tips
Communicate service changes
Manage your account
Share app with friends
How would you use these?

Marketing PR
Customer
Service
Business
DevelopmentHR
Community
Manager
Blogger
Guy
Who owns all of these objectives?
This guy?
(No)

Marketing PR
Customer
Service
Business
DevelopmentHR
Community
Manager
Blogger
Guy
Who owns all of these objectives?
These guys?
(Yes)

Module 2: Integration & Deployment

Step 1: Map company’s capabilities
Identify key assets within the organization
Bloggers, socially savvy execs, techies, leaders, etc.
Catalog all Social Media related activity
Is the company already working in the social space? Who? How? Where?
Assess strengths
Strong communications team, swift IT department, horizontal culture…
Assess weaknesses
Poor internal communications, no PR department, mobile what?

Step 2: Create a task force.
Senior Management
Department heads
Legal Counsel
Human Resources
Power users of Social Media
I.T.
Customer Service
P.R.
Marketing.

Step 3: Decide on a Social Media Architecture

The Two Social Media Build Scenarios
1. Your company is fairly new to Social Media, and you have to start
from scratch .
Next on the agenda: Establishing business objectives, identifying
opportunities, establishing listening posts, identifying assets within the
company who can manage early social media-related tasks, and bringing all
departments to the table to discuss synergies.
2. Your company already has clusters of activity in the Social Media
space. These are mostly decentralized, autonomous, and
disconnected. (Pirate ships.)
Next on the agenda: Harness, incorporate, organize.
Caution: Do not interfere. Pirates don’t bend to hierarchy without merit. Give
them their space.

Brand
Communications
Hub
A. Centralized Management Model
Command Structure
Highly organized
Command-Execution
Highly connective

Corporate
B. Decentralized Management Model
Brand or silo
Brand or silo
Brand or silo
Autonomous structure
Open-source model

BRAND
Centralized Ground-Up Model
?
?
?
?
?
?
?
Advantages: You can custom-engineer your Social Media infrastructure.
You have complete control over your outposts.
Disadvantages: You have to start from scratch.
Staff needs to be trained.

Decentralized pirate-ship model

Beware the pirate ships…
… but use them to your advantage.

BRAND
?
?
?
?
?
?
Decentralized pirate-ship model
?
?
?
?
Disadvantages: Incorporating pirate cultures will be difficult.
Advantages: Programs are already gaining traction.
You can build on your pirates’ expertise.

How to clean up a pirate ship model:
1. Respect the pirates. They know how to execute.
2. Invite the pirates to the table. Recognize their wins.
3. Ask the pirates to report on what they see and hear.
4. Ask the pirates to report on their wins and losses.
5. Ask the pirates how you can help them win more.
6. Fund the pirates and send them on missions.
7. Ask the pirates to help you build up your fleet.
8. Ask the pirates to play a leadership role.
9. Ask the pirates to write the playbook for you.
10. Turn the pirates into privateers.

Step 4: Create Social Media Policies
1. The company’s position on Social Media
2. Official Social Media usage for company
3. Personal Social Media usage for company
4. Confidentiality guidelines
5. Disclosure guidelines
6. Restricted Speech guidelines
7. Anti-defamation guidelines
8. Conduct guidlines
9. Personal and professional responsibility guidelines
10. A list of resources
11. A note from Human Resources
12. Training modules and schedules
What your Social Media Policies should include:

A. Clear internal written policies for what is and is not permitted
- Require disclaimer that when mentioning the company, that is personal, not company
opinion.
- No use of company or customer information, logo, trademarks, etc. without written
permission.
- No talking about company plans, policies, financial information, other than what has
already been made public.
- Hold employees personally responsible for all social media conversations. Violation of policy
will be grounds for termination.
B. Clear “Rules of the Road” for blogging and Social Media behavior. (How to stay out of
trouble.)
C. Training
D. Monitoring is at the discretion of the company.
E. Enforcement must be consistent and fair.
Some notes on internal Social Media Guidelines

Legal Considerations
Disclosure: The Rulebook
FEDERAL TRADE COMMISSION
16 CFR Part 255
Guides Concerning the Use of Endorsements and Testimonials in Advertising
The company must inform employees, agencies, and advocates they have a
formal relationship with of their disclosure policies and take action quickly
to correct problems where possible.
Clearly disclose company involvement on all blogs produced by the company
and agencies.
Source: Social Media Business Council
The nugget: “Clients” are now responsible for 3rd party contractors
infractions when it comes to disclosure and the content of communications.

Disclosure
“[A]n endorsement means any advertising message (including verbal
statements, demonstrations, or depictions of the name, signature, likeness or
other identifying personal characteristics of an individual or the name or seal of
an organization) that consumers are likely to believe reflects the opinions,
beliefs, findings, or experiences of a party other than the sponsoring advertiser,
even if the views expressed by that party are identical to those of the
sponsoring advertiser.”
16 CFR Part 255

Disclosure
When communicating with blogs or bloggers on behalf of their company or on
topics related to the business of the company, company agents must:
1. Disclose who they are, who they work for, and any other relevant affiliations from the
very first encounter.
2. Disclose any business/client relationship if they are communicating on behalf of a third
party.
3. Comply with all laws and regulations regarding disclosure of identity.
Pseudonyms:
(Option 1) Never use a false or obscured identity or pseudonym.
(Option 2) If aliases or role accounts are used for employee privacy, security, or other
business reasons, these identities will clearly indicate the organization agents represent
and provide means for two-way communications with that alias.

Disclosure
For personal blogs or social media interactions:
1. If employees write anything related to the business of their employer on
personal pages, posts, and comments, they will clearly identify their business
affiliation. The manner of disclosure can be flexible as long as it is clear to the
average reader, directly connected to the relevant post, or provides a means of
communicating further
(Example disclosure methods could include: usernames that include the company name,
link to bio or about me page, or statement in the post itself: “I work for __<company>___
and this is my personal opinion”).
2. Employees will clarify which posts/comments are their own opinions vs.
official corporate statements.

Disclosure
3. Writing which does not mention work-related topics does not need to
mention the employment relationship.
4. If employees blog anonymously they should not discuss matters related to
the business of their employer. If employer-related topics are mentioned, they
should disclose their affiliation with the company.

Disclosure
Transparency when providing bloggers with any form of compensation such as
rewards, incentives, promotional items, gifts, samples, or review items:
1. Set formal policies on using incentives with bloggers for staff and agencies.
2. Communicating these policies clearly to bloggers in advance, and asking that
they do the same in any post that may result.
3. Proactively ask bloggers to be transparent about their relationship and
communications with your company.
4. Encourage bloggers to disclose the source of any compensation directly in
any post they write about you.
5. Paid posts or reviews must be clearly disclosed in the specific post as
advertisements.
Note: Sending bloggers products for review does not obligate them to comment on them
at all, and they are free to write a positive, negative, or neutral comments. Be
prepared.

Disclosure
When using external agencies or personnel to communicate on your behalf:
1. Require the agency to disclose its relationship with your company when it
conducts blogger relations.
2. Require the agency to be truthful and never knowingly deceive bloggers.
3. Publicly acknowledge when the agency and/or related parties act contrary
to these policies, and quickly take corrective action where possible.
4. Require agencies and agency personnel to meet or exceed your internal
disclosure requirements.
5. Require agencies to enforce these requirements on their subcontractors.
Note: Always discuss and secure formal agreement on these practices before
entering into a business relationship with an agency involved in social media.

Give people clarity and set expectations.
Confidentiality
For clarity: Establish confidentiality codes for internal communications and
email.
Recipient Only – Confidential
Working Group – Group Confidential
Company – Company Confidential
Open – Free to share

Marketing PR
Customer
Service
Business
DevelopmentHR
Community
Manager
Blogger
Guy
Step 5: Division of labor: Who does what?
Monitoring
Pushing promotions
Creating content
Answering questions
Connecting with influentials
Blogger relations
Managing the accounts
#chats
Collaboration team lead
Reporting
#events

Step 5: Division of Labor – Who does what?
Visualizing A Structure
Coordinating with
External agencies
Internal Communications
External Communications
Reporting to C-suite

Beware the pirate ships…
… but use them to your advantage.
Planning for outsourced management…
Integration Process
AgencyInternal
Marketing
Dept.
Can deliver
Can’t deliver
Integration
Into
Organization
Merging
1
2
3
Consider an adaptive process rather than a “rigid” strategic model.

Step 6: IT enablement
IT owns technology deployment and process enablement.
- Tools
- Servers
- Cloud
- Connections
- Processes
They make this happen:

This can’t happen without an infrastructure
Customer Support
Marketing
Measurement
Monitoring
Support
Triage
Data Analysis
Reporting
Monitoring
Monitoring
Content
Triage
Research
Content Development
Promotions
Internal
Collaboration
Hub / Channel
Often the biggest
challenge

I.T. and enablement
Internal collaboration tools
Sharepoint
Yammer
Jive Networks
Calendars
Email
IM
Groups
Wikis
Radian6
Telephone
Microsoft Project
Post-it notes
Bulleting boards
Shouting

Step 7: Training your staff.
Once Social Media policies and
guidelines are established,
don’t just put them in the
employee handbook and the
intranet and forget about
them.
Train your staff.
Basic Social Media Guidelines
- Official Use
- Personal use
Specific Functional Training

2 Tracks:
1. Awareness & Sensitivity training
All employees
2. Internal Certification Programs
Community management
Customer Service
Business Development
P.R.
Marketing
Digital
Engagement
Etc.
Step 8: Training your staff

Training in new disciplines is
an open source model: Test.
Test. Test.
The test kitchen model: Experiment.

It’s okay. We’re new at this.

Adequate training helps avoid messy situations.

Failure is an option. Just keep it small.
People screw up. This is the real-time web.
Plan for small failures.
Make failure a learning exercise.
Train.
Supervise.
Mentor.
Repeat.

It seemed like a good idea at the time…

And then Monday morning arrived.
VP Sales
CFO

One mistake and you could be a trending topic.

Step 8: Creating Order with schedules
Just like editorial calendars:
Schedule Activity, reporting, meetings, permanence

Step 9: Account Continuity Planning
Sooner or later,
every job comes to an end.
People leave. Plan for it.

Consider what happens to personal Twitter accounts when employees leave.
1. Does your company lose access to the followers of that account?
2. Do your customers suddenly lose their twitter connection to you?
3. Does the next person (the replacement) have to completely rebuild network
equity?
The absence of continuity planning can create serious headaches for
organizations and invalidate months, even years of hard work.
A: Either own the official accounts (see next slide), or…
B: Include a clause in the account manager’s employment/Social Media contract
that specifically addresses network/follower ownership and overlap with
personal accounts used for official company use. (Hand over a list of
followers monthly – Add to corporate account.)

Clear Association
Especially important for service roles.
Less so for executive roles.

When someone moves out of a role…
Transition Procedures
1. Update the avatar/profile image.
2. Update the profile information.
3. Notify the community of the change.
4. Focus on new account manager, not the former account manager.
5. Make the transition painless for the customers.
Olivier Blanchard
Community Mgr.
Likes Nutella.
Lisa Small
Community Mgr.
Likes puppies.
Old New

Weekly/Monthly data transfers. All accounts must share fans and
Followers with central corporate account/database.
Data Consolidation:
Fans and followers
(constituting the network)
are valuable. Own the data.

Step 10: Hiring for Social Media
A breadth of backgrounds is good. Look for variety and flexibility.
Resumes only tell part of the story. Titles don’t always mean experience.
Obtain references from trusted Social Media practitioners.

Marketing PR
Customer
Service
Business
DevelopmentHR
Community Mgr.
Blogger guy
It makes absolutely no sense to expect that one Social Media role
can properly serve all of an organization’s Business functions.
Social Media Strategy?

Hire for different roles in Social Media
Strategically-
Minded
CEO-type
Entrepreneurial
Sees all the angles
Operational
Aptitude
COO-type
Very organized
Works across silos
Communications-minded
Customer service
Public Relations
Task-oriented
Caring and trustworthy
Analytical
Loves numbers
Excel Sensei
Data visualization

Departments and functions
Customer Support
Channel Development
Digital Property Management
Monitoring & Measurement
Public Relations
Marketing
Event Management
Product Management
CRM & sCRM
How to handle negativity
Setting the record straight
Targeting

The Triumvirate of Digital Brand Management
P.R.
Customer Support
Community
Management
The
Sweet
Spot

The Triumvirate of Digital Brand Management
P.R.
Customer
Support
Community
Management
1. Mutually Supportive.
3. Escalation of Response
2. Ensures Balanced Approach
Collaboration

Call Center Forums Twitter
1st layer
2nd layer
(Back End)
P.R.
Customer
Support
Community
Management
Customer Support 2.0
Customers / users / the public
(Front End)

Network Equity: Monitoring & Response
Community
Management
Customer
Support
P.R.
Positive
Comment
Positive
Comment
Positive
Comment
Negative
Comment
Negative
Comment
Acknowledge
Acknowledge
Acknowledge
Address
Assist
Assist
QuestionQuestion
Assist Assist

Integrated crisis response model
Oversees Response
Provides leadership + Support if needed
Debriefs staff after incident
Customer Support
Measurement
Monitors
Helps the customer in
real time. Resolves the
crisis.
Measures impact
of activity.
Monitors
Watches for escalation
during and after incident.
Works with community manager
and customer support if additional
steps must be taken.
Monitors
Assists Customer Support
Follows up after the incident.
Internal
Collaboration
Hub / Channel

Channel Development in 30 seconds:
1. Identifying the channels you should be in.
- Activity? No activity?
- Positive sentiment? Negative sentiment?
- Competition presence?
2. Understanding the channels you should be in.
3. Creating listening outposts in those channels.
4. Connecting with key denizens in those channels.
5. Becoming involved with topics and conversations.
6. Developing a positive reputation in those channels.
7. Growing social equity in those channels.
8. Establishing leadership presence in those channels.

Fact: Achieving spectacular results requires planning.

Funnels are good. Follow the ball.

Your company doesn’t need 1,000,000 followers.

Your company doesn’t need 1,000,000 followers.
Your company needs 10 – 1,000,000 new customers.
Conversions are gold.

… all of which are limited resources.
We have… rocks.

These resources
=
100%
of your budget
Head Count
Advertising
E-Marketing
Inbound Call Center
Sales Dept.
Public Relations
Marketing
I.T.
Accounting
These resources
generate
100%
of your business

Which buckets do we empty
to fill this new one?
Understand that a new
Social Media program’s
funding doesn’t appear
out of thin air.:

Okay fine. But if
I’m going to take a chance
on this social media thing,
it had better make good business
sense! Why should I allocate
resources to it?

Reason #1:
It will result in a cost reduction.
Maybe in customer service?
You mentioned something about
business intelligence and
market research?
Reason #2:
It will generate more revenue.
I want more transactions,
more net new customers,
more customer loyalty,
etc.

Business Justification
SAY HELLO TO:
R.O.I.

THE R.O.I. EQUATION
Investment Expectation of return

ROI =
COST OF INVESTMENT
(GAIN FROM INVESTMENT - COST OF INVESTMENT)
THE R.O.I. EQUATION

Truth about R.O.I.
ROI is a business metric,
not a media metric.
ROI is 100% media-agnostic.
Only measuring digital or social won’t get you anywhere.

The idea with the most promise wins.

To prove it, you need a plan AND sound metrics.

Improvement + Cost Reduction Idea: Customer Service

Improvement + Cost Reduction Idea: Customer Service
- One CSR can handle several customers at once.
- Customers don’t have to wait on hold.
- “Accents” are no longer an issue.
- Resolution times remain the same, but to the
customer, they seem considerably shorter.
- CSRs spend less time on each ticket.
- 140 Characters keeps things simple.
- Transparency of process = positive PR.
- Added convenience for customers on the go.
- Proactive Customer Service can generate loyalty
and capture market share. (Angry consumers
could be a competitor’s customers.)
- Even a 10% shift to twitter customer service
could yield significant cost savings.
- Run simulations and measure impact.

Other cost-reduction ideas:
Business Intelligence / Market Research
Increased Reach through SM = Lower CPI (cost per impression)
In-network recruiting = lower recruiting costs

Now, to generate more revenue…

Objectives should be specific.
F.R.Y.FREQUENCY, REACH, YIELD
Increase how often customers buy from us each month
Increase the net number of transacting customers
Increase average spend per transaction
Etc.

What if you aren’t “for profit?”
You still depend on some kind of revenue to function:
Grants, funding, donations, membership fees, etc.
Same thing.
Revenue is revenue. Budgets are budgets. Money is money.

Zero value, unless hype is your currency.
We’re doing Social
Media! Woohoo!!!

The Problem.
I’m a Social Media guru.
Love isn’t about ROI, baby.
Forget your greedy ways.

ROI is NOT:
Return on Inspiration
Return on Involvement
Return on Innovation
Return on Immersion
Return on Imagination
Return on Importance
Return on Inbound
Return on Imbecility
Return on Ignorance
Return on Incompetence
ROI is:
Return on Investment.

R.O.I. Confusion - A tale of operational silos
Engagement R.O.I.
Different Focus + Different perspective

Reason #1:
COST REDUCTION
Reason #2:
REVENUE GENERATION
Remember what Mr. Bossman said…

Okay, hotshot,
You have your Social Media doohickey.
Now I’d better see some real results!
Or else…
I shrank my PR budget by 20%
and my outbound call budget by 40%.
Now I can afford a team of social media
Rock stars. Can I get a hellz yeah?

Dudes, we are
ON THIS!!!
Let’s start engagin’!!!
I call dibs on the
Corporate blog.

One Month Later…
ACCOUNTING
Cool.

Oh my! Look at all the new
visitors to our website!
and all of our FaceBook friends!
Hot Damn, we even have
comments on the blog!
What about our
Twitternets?

This rocks!
I never had it so
good!!!

Three Months Later…
ACCOUNTING
Cool.

Monitoring to base…
Monitoring to base…
Our Google Analytics are through
the roof! Even our social mentions
are wicked good!
We have liftoff!
Yeah but…
What about
the P&L?

Measuring media
really rocks my
world.

Six Months Later…
ACCOUNTING
Anything?
Nope.
Nada.

What kind of mood is
The old man in today?
Not good.
He doesn’t care how many visitors
the website gets, or how many
eyeballs we estimate we’ve reached
unless it means we’re selling
more stuff.

But why?
Our website is getting
mad hits, Jack!
And we have 3,000 followers
on Twitter now!
I’m sorry, son.
If your Social Media program
is generating revenue, we aren’t
seeing it. We need to allocate
resources where we can
make money.
It’s just business.

Darn it.
This media measurement
stuff isn’t working.
We need to start
tying this stuff to actual
Business performance.
Where to start?
Let’s see…
At the beginning?

Non-financial impact = potential.

ROI = actualized potential.
Social Media Activity - Vertical/Lateral
Ultimately, Social Media activity has to positively impact customer
behaviors and drive revenue in order to deliver R.O.I.

Step 1: Establish a baseline
8% YoY Growth

Step 2: Create Activity Timelines

Step 3: Monitor impact on conversations
What are people talking about and where?
Map topics, keywords, trends, links, etc.

Step 4: Measure transactional precursors

Measuring transactional precursors

If you can, also look at # of transactions

Also measure net new customers
NNC is a measure of effective reach,
not just media reach.

Transaction data should be specific
How often customers transact. (transactions per month)
How many customers you are reaching. (net new customers)
How much they spend. ($ per transaction)

Step 5: Finally, look at Sales Revenue

Step 6: Overlay your data onto a timeline
activities
transactions
social data
web data
loyalty metrics
etc.

We overlaid all of our timelines
and noticed that since our social media
activities began, our website visits are up,
our social mentions are also up, and
everyone seems to love us.
So is there a
discernable pattern
in this?

Step 7: Look for patterns
Before After
Impact
Impact
Impact
No Impact
Uncertain Impact

Step 8: Prove & disprove relationships
Before After
How was this group
Touched by SM or WOM?
(And how was it not?)

Look for patterns
Before After
Impact
Impact
Impact
No Impact
Uncertain Impact

Prove & disprove relationships
Before After
How was this group
Touched by SM?

How long
will all this
analysis take? It’s all a process
of elimination, really.
Isolating patterns,
quantifying deltas,
proving ad-hocs…
Then all
we have to do is
figure out what the cost
savings and revenue gains
are, and plug them
into the equation.

Oh wow.
This R.O.I. thing
wasn’t at all about
measuring media,
impressions and
eyeballs!

First things first: Prove that Social Media works
ACCOUNTING
All things
remaining the
same…
We may have
proof of
concept.
Hot damn!

So it turns out that our
Social Media program is impacting
every aspect of our business except
traffic in our brick and mortar stores.
Can you get on that? Yeah. We need
to find out why we aren’t having
an effect there. Kthxbye.
Proper R.O.I. Analysis helps identify areas of improvement

Dudes, we are
ON THIS!!!
Let’s start engagin’!!!
I’ll start crafting some
wicked blog posts.
More store traffic.
Roger that.

And please, no more of this.
I’m a Social Media guru.
Behold my army of followers.
My personal brand is golden.
Only measure
followers, fans, visitors,
downloads, click-throughs,
mentions and web stats.
That’s Social Media
measurement, baby!
Dig it.

What a Social Media win looks like:

What a Social Media win looks like:
Facebook.com/oldspice
94,000 followers
Velocity: 8K to 66K in only 2 days
16,000,000 views
Most response videos >200,000 views
706,000 fans/likes
… sharing videos with friends on their wall

Sales of body wash up 107% in the first month.
(It’s a good start, but will it be enough to justify the campaign’s expense?)
(It already has.)

“Increasing revenue” is too abstract.
How often customers transact. (transactions per month)
How many customers you are reaching. (net new customers)
How much they spend. ($ per transaction)

Strategy drives tactics - Tactics drive metrics
FREQUENCY
REACH
YIELD
How can we leverage Social Media to influence customers to
buy from us more often?
How can we measure changes in this behavior?
How can we leverage Social Media to acquire net new customers?
How can we measure increased reach and conversions?
How can we leverage Social Media to influence customers to spend
more per transaction?
How can we measure changes in this behavior?

I just figured out
how to increase
deodorant sales
by about 9%!
FREQUENCY

YIELD I know how to
increase yield!!!
Let them eat cake!

Awareness
Run through it logically.
AwarenessCampaign*
Retweet
Join club
Share
Etc.
Altered
Purchasing
Behavior
Track appropriate metrics
Create a “take the challenge” page where users log their product purchase.
CRM captures that data at point of sale.
Same store sales increase but market share remains the same.
Etc.

Measurement should not be a religion.
Adapt: Measure what makes sense.

Ask away.
Olivier Blanchard
864.630.7398
www.thebrandbuildermarketing.com
@thebrandbuilder (on Twitter)

Measuring success: Defining metrics early
? ? ?
? ?
Non-financial objective
?
A leads to B leads to C leads to D...

? ? ?
? ?
?Start here.
Define Metric/value.
What is my target?
How much $ do I need to do this?

? ? ?
? ?
?
Now move here.
My $ target is $x.
Where do I measure changes in $x?
What behaviors leads to this?

? ? ?
? ?
?
Now move here.
My targets are X, Y and Z.
My metrics are M, N and O.
My channels are P, Q, R and S
What behaviors drive these targets?

Plan first. Map out the route.
Identify relevant metrics every step of the way.
Measure here…
Not here.

Now start from the beginning. 1. Baseline. 2. Timeline…
You planned from outcome to catalyst.
Now measure from catalyst to outcome.
R.O.I. = financial metrics within this process.
Your metrics

Q: What is the 2012 objective?

(Not 5,000,000 fans on Twitter)

Main non-financial objective(s)
Get re-elected in 2012

Q: What is my most important resource?

A: Campaign funding. (It enables everything.*)
* Understand your business and
its mechanics. If you don’t, you
are flying blind.

My $ target is $x.
Where do I measure changes in $x?
What behaviors leads to this?

Q: How does Social Media fit in?

A: Above all else, it yields campaign contributions.

A: How it yields campaign contributions.
1. Directly through vertical engagement
2. Indirectly, through lateral engagement (WOM + peer influence)

Let’s plug-in F.R.Y., just for fun.

Can we increase the frequency of contributions?

Note: Most Obama For America online supporters gave little, but
they gave often. Frequency was a key factor in the O4A strategy.

Can we increase the frequency of contributions?
YES.
Increase frequency of interactions
Ask more often
Update swag more often
Repeat message more often
Engage more often
SM is more cost effective than paid media

To specifically drive

Second largest search engine in the world, only to Google
Twitter now has over 100 MILLIONregistered users.
55,000,000tweets per day.
37%of users tweet from their phones.
All talking to each other all day long.
Facebook has over 500 MILLION users
 Millions of people are content publishers now.
Don’t forget…

Can we increase our reach?
YES.
Be everywhere.
Seed and grow our channels
Help our supporters share content
Ask our fans to share content
Arm our fans with tools
Make our reach strategy clear
Vertical + Lateral engagement

Can we increase our Yield?
YEP!
Foster depth of engagement
Develop and build loyalty
Increase involvement of fans
Understand the value of timing
Build clarity of purpose
Ask when we need to ask

Because the objectives dictate the tactics...

… the objectives also dictate the metrics.

The metrics are the vital signs of your program.

Every measurement you take has its place and
tells its part of the story.

4
2
5
3
Start here…
Ignore here.1
Connect the dots.

R.O.I. is a crucial link in the measurement chain.

Ask away.
Olivier Blanchard
864.630.7398
www.thebrandbuildermarketing.com
@thebrandbuilder (on Twitter)
http://smROI.net

www.redchairgroup.com
@redchairgroup on:
Also, look join our community on:

Olivier Blanchard Presentation from SMIATL 2010

Olivier Blanchard Presentation from SMIATL 2010

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Olivier Blanchard Presentation from SMIATL 2010