Measuring ROI and Building a Business Case

1. Social Media:
Measuring ROI and Making the Business Case
Carmine Porco – January 25, 2012
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 1

2. Prescient Focus
Founded in 2001
• “The focus of Prescient is to emphasize the
business side of websites and to deliver measured
value. It’s not enough to be cool: we must deliver
measured performance in the form of bottom line
return on investment so our clients can show how
the site is delivering value to their organizations.”
• Toby Ward, President & Founder
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 2

3. What is Prescient?
Prescient has:
• A proven methodology for gathering and assessing
web-specific data from internal and external
stakeholders
• Wide and deep experience in aligning information
to business requirements
• A range of techniques to ensure user requirements
and audience knowledge drive a design that
delivers client needs
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 3

4. Our Clients
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 4

5. Discussion Topics
• Social Media Statistics
• Why use Social Media?
• Measurement Software
• Social Media and ROI
• Case Studies
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 5

6. Social Media Statistics
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 6

7. What is Social Media
Erik Qualman: http://youtu.be/auiczd4OUms Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 7

8. What is Social Media
Erik Qualman: http://youtu.be/auiczd4OUms Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 8

9. What is Social Media
 Media for social interaction,
using highly accessible and
scalable publishing
techniques. A common
thread running through all
definitions of social media
is a blending of technology
and social interaction for
the co-creation of value.
Wikipedia, 2012
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 9

10. Social Media Visitor
Growth
http://www.searchenginejournal.com/the-growth-of-social-media-an-infographic/32788/ Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 10

11. Facebook Participation (by country)
Country Facebook Population % on Facebook 24 month
Users Growth Rate
USA 126 m 307 m 41% 352%
UK 27 m 62 m 44% 137%
Canada 15 m 34 m 44% 61%
More Canadians on Facebook than people living in
New Zealand, Ireland and Norway combined.
Source: eMarketer, October 2010 Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 11

12. Who Is Using Social Media?
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 12

13. Facebook - Usage statistics
Source: DigitalSurgeons Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 13

14. Twitter - Usage statistics
Source: DigitalSurgeons Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 14

15. Google plus – Losing Steam?
Source: http://www.flowtown.com/blog Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 15

16. Why use Social Media?
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 16

17. Why use Social Media?
o Social networks can be used to increase brand
awareness, band recall or market penetration
o Presence networks or blogging can be used to
create a buzz or increase awareness around
certain products
o eCommerce networking can be used to provide
incentives and discounts for prospective
customers
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 17

18. Getting Social
"Social media and networks, online communities and other Internet
communications tools are important to me in the workplace."
Source: Insidedge Survey: January 2011, 1000 respondents Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 18

19. Face It
“Face to face communications is important to me in the workplace.”
Source: Insidedge Survey: January 2011, 1000 respondents Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 19

20. Increase Social Recruitment
Social Media can be a valuable tool for engaging and
drawing young, tech savvy individuals to your
organization. Here are a few things to consider about
your social media sites:
o Think of your pages as microsites of your website
o Showcase blogs about tips on getting hired at your firm
o Practice good reputation management
o Feature success of current employees
o Get familiar with tools for job seeking in the age of social
media like LinkedIn
Strictly Confidential © 2012 Prescient Digital Media
Source: http://www.socialtoaster.com/blog-entry/tips-using-social-media-engage-potential-employees Not For Distribution 20

21. Reach Customers through Social Media Apps
o “There’s an App For That”
o The mobile app today is what the website was ten
years ago, turning it into a necessity for many
businesses
o Webtrends Mobile Analytics offers 5 tips in
developing your app:
• Weigh the options – Mobile App or Mobile Websites
• Consider where your app will be used
• Be aware of various screen sizes
• Follow existing UI conventions
• Design for touch
Source: http://mashable.com/2010/07/07/designing-mobile-apps/ Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 21

22. Latest Trends
Gartner's top ten consumer mobile applications for 2010
• Money Transfer
• Location-based services
• Mobile Search
• Mobile Browsing
• Mobile Health Monitoring
• Mobile Payment
• Near Field Communication Services
• Mobile Advertising
• Mobile Instant Messaging
• Mobile Music
Source: http://www.gartner.com/it/page.jsp?id=1230413
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 22

23. Why Does My Organization Need It?
An organization without Web 2.0 tools, or plans to
use them, risks being out-maneuvered by the
competition, being left-behind, or outright failure
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 23

24. Measurement Software
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 24

25. Measurement Software
o Platforms such as YouTube and Facebook have
built-in tools which can be used to view
analytical data for your specific pages
o Facebook fan pages can also be linked to
Google Analytics to provide more information
on visitor statistics, visitor countries, traffic
sources and keyword searches, etc.
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 25

26. Measurement Software
Radian 6
• Allows for real time viewing
of conversations taking
place around your brand or
products
• Aggregated data ensures
the most relevant
information is retrieved
• Also provides tips on social
media strategies, how to
interact with consumers,
methods to handle negative
feedback and best
interaction guidelines on
the social web
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 26

27. Measurement Software
Lithium
• Uses frequent word analysis to keep your organization on top of
emerging topics providing a competitive edge
• Provides the ability to monitor team responses, activities and
involvement with social customers through email alerts and reports
• Search expands over various social media channels including Twitter,
Facebook, YouTube and Flickr as well as active blogs and forums, quality
data is provided while eliminating spam and duplicate information
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 27

28. Measurement Software
SocialMention
• Analysis platform used to aggregate
content into a single stream of
information
• Quickly track and measure what
people are saying about your
organization or product across a vast
social media landscape in real time
• Monitors 100+ social media properties
including Twitter, Facebook,
FriendFeed, YouTube, Digg, Google,
etc.
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 28

29. Measurement Software
Alterian
• Provides the ability to monitor
brands, address customer service
issues, conduct unbiased research
and generate sales leads
• Answers questions such as “What
are people saying about your
brand?” and “What is the
competition doing?”
• SM2 coverage includes blogs,
message boards and forums, wikis,
video and photo sharing websites
and social networking sites
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 29

30. Measurement Software
Other software:
WebTrends Salesforce
Topsy Youtube Insight
Tweetstats bit.ly
Twitter Analyzer Klout
Coremetrics Backtype
Boardreader CoComment
Hootsuite Omgili Graphs
IceRocket Compete
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 30

31. What to Measure
What types of metrics can be measured?
• Brand Awareness
• Brand Recall
• Customer Retention
• Propensity to Buy
• Financial (profit, revenue)
• Market Penetration
• Customer Demographics
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 31

32. What to Measure
Other tools can help you:
• Track the number of visits
• New visitors, repeat visitors
• Page views and average time
• The number of RSS subscribers
• Number of inbound links
• Revenues from direct sales, affiliates, partners, resellers
etc.
• Weekly rank
• Click throughs with advanced attribution models
• Email opens and forwards
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 32

33. Always remember:
Tools are a vehicle,
not a story.
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 33

34. Social Media ROI
According to 2011 study by Hypatia Research , 40% of professionals do not measure
ROI of Social Media Programs at least once a year
Source: 2011 Hypatia Research 34
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution

35. Can’t miss what you can’t measure
Source: Marketing Profs
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 35

36. How to Measure Social Media ROI
Step 1: Establish a baseline
• Before Social media: 8% YoY Growth
• After Social Media: TBD
Step 2: Create activity timelines
• Weekly time lines based on social media activity (ie. Joe starts
tweeting, new podcast, whitepaper, press release)
Step 3: Look at sales revenue, number of transactions, net new
customers
• Transaction data should be specific (frequency, reach, yield)
Step 4: Measure transactional precursors
Step 5: Overlay all timelines
• Activities, social data, web data, transactions, loyalty metrics etc
Step 6: Look for Patterns and Prove Relationships
Source: http://www.slideshare.net/thebrandbuilder/olivier-blanchard-basics-of-social-media-roi?from=ss_embed For Distribution 36
Strictly Confidential © 2012 Prescient Digital Media Not

37. Social Media and ROI
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 37

38. Social Media and ROI
o ROI is best determined when Social Media
goals are aligned with Business goals
o Determine the goals of the organization and
ensure they align with the strategy
o All goals must be measurable
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 38

39. Define Measurable Goals
o Determine which social media platforms can
be leveraged to achieve these goals
o Ensure all channels are working in tandem
o Different Social Media platforms can be
utilized in various environments so as to
provide the best results through their use
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 39

40. External Social Media Platforms
Conversation Enabled Publishing Platforms
Social Networks
Social Bookmarking
Democratized Content Networks
Presence Networks (Micro-blogging)
Content Sharing Sites
Virtual Networking Platforms
Location-Based Social Networking
eCommerce Networking (Social Buying)
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 40

41. ROI from Web 2.0
…some companies use Web 2.0 in revolutionary ways. This elite group of
organizations—3 percent of those in our survey—derived very high levels
of benefits from Web 2.0’s widespread use, involving employees,
customers, and business partners, according to the survey. Respondents at
these organizations reported higher levels of employee benefits than
internally networked organizations did and higher levels of customer and
partner benefits than did externally networked organizations. In applying
Web 2.0 technologies, fully networked enterprises seem to have moved
much further along the learning curve than other organizations have. The
integration of Web 2.0 into day-to-day activities is high, executives say,
and they report that these technologies are promoting higher levels of
collaboration by helping to break down organizational barriers that
impede information flows.
Source: www.holtz.com
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 41

42. ROI from Web 2.0
Source: www.holtz.com
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 42

43. ROI from Web 2.0
Source: www.holtz.com
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 43

44. ROI from Web 2.0
o 52% of organizations using Web 2.0 tools
including social media achieved Best-In-Class
performance compared to only 5% that didn’t
o Companies using Web 2.0 tools achieved 18%
increase in engagement vs. 1% among those
that didn’t
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 44

45. Employee Networking
Up 15%
18% enterprise deployment
21% limited deployment
17% have no plans
Source: The Social Intranet Study 2011 Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 45

46. www.PrescientDigital.com
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 46

47. Case Studies
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 47

48. The Smell of Success
o July 18: 94 million views on
YouTube
• All time most viewed sponsored
channel
o 186 personalized responses
• 34 million aggregate views
• Billion PR impressions in a week
• 80,000 Twitter followers
• 630,000 Facebook fan base
- Fan interaction +800%
o Traffic to OldSpice.com +300%
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 48

49. Show me the money
o Old Spice sales +106% for four weeks ending June
17
• +4.8 share points in category that grew 17.7%
o Gillette body wash +277%
• National drop-off of high value coupons
o How much of Old Spice’s recent gains come from
ads and how much from the coupons?
• “It’s impossible to know,” said P&G spokesman Mike
Norton (Advertising Age).
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 49

50. The Gap: Reaching new Customers
o The Gap teamed with group-buying site Groupon, offering a nation
wide deal; $50 worth of apparel for $25
o In one day, 441,000 groupons were sold bringing in a little more than
$11 million
o The deal brings Gap a ton of cash and, hopefully, new customers
o “We want to reach them in ways that are part of their everyday life,
so it becomes like a conversation” – Gap’s Senior Director of Media
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 50

51. Intuit: TurboTax campaign
o To help build its brand among a
younger generation of tax payers
and promote a free online
TurboTax service
• More than 10,000 participants
• 10% lift in purchase intent
• 165 million audience impressions
• 100,000 people to
SuperStatusContest.com
• Online unit sales for TurboTax
+36% in the quarter
Source: Marketing Profs
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 51

52. Intuit: Key Lesson
“I would say the No. 1 thing [to do when
launching a social campaign] is to get the
measurement right before you launch. Ask
yourself what you want to learn and how
[you will measure it]. Don’t do this as you go
because this type of campaign is too
dynamic.”—
Seth Greenberg, Director of Online Marketing,
TurboTax
Source: Marketing Profs
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 52

53. Intuit: TurboTax Inner Circle
o Web based community comprised of 17,000 customers
o Tested 30 product concepts, and 20 made it into next year’s TurboTax
product
o Reduces support costs by minimizing support call volume and decreasing
detractor statements
o Drives revenue by identifying issues important to customers: one feature
alone attributed to a revenue lift in the millions of dollars
o Highly engaged: 60%+ participation rate per interaction
Source: Groundswell Awards
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 53

54. Starbucks – Value in user-generated
content and Feedback
Mystarbucksidea.com (Democratized content network)
o A site where customers from around the world can submit and
prioritize ideas for improving Starbucks
o Ideas being worked on by Starbucks show their progress reports,
thus increasing the sites transparency
o The site
• Share
• Vote
• Discuss
• See
Source: http://www.forrester.com/Groundswell/embracing/mystarbucksidea.html
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 54

55. Content and Feedback Generation
o Consumer Insight
• Customer ratings and reviews rose to the top of useful marketing
feedback, as they delivered tangible ROI insight
• In a study conducted in 2009, 80% of respondents reported that
consumer stories and suggestions shape products and services
o MarketingProfs Study concluded that user-generated
content would increase in 2010
• A 400% increase in use of Twitter comments to inform decisions
about products and services
• 59% increase in use of customer ratings and reviews
• A 24% increase of social media for pre-sales Q&A
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 55

56. Paranormal Returns
Paramount film Paranormal
Activity was a success as a
result of fans actively
promoting the movie
online
o Production budget just
under $10,000
o Never originally in theatres, videos of audience reactions
and twitter posts went viral eventually making it into a
national blockbuster
o The movie has created over $193 million in revenue
Casestudiesonline.com Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 56

57. Best Buy
o Best Buy introduced a new
way to answer customer
questions: Twitter
Twelpforce
o Using 2,900 employee
volunteers Best Buy
answered 40,000 questions o Not only did this skyrocket
over 12 months Best Buy’s twitter
following, it also improved
employee morale across the
company on a very low
budget
Casestudiesonline.com Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 57

58. #McDstories
o Became a magnet for criticism
of the brand.
o “Fingernail in my Big Mac
once” and “ordered a
McDouble. Something in the
damn thing chipped my
molar.” o McDonald’s may have
o Launched another hashtag another issue with
campaign called #littlethings. #LittleThings: DoubleTree by
Hilton recently launched a
Promoted Tweet campaign
with the same hashtag.
Casestudiesonline.com Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 58

59. Pink Ponies
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 59

60. 6 Killer Reasons
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 60

61. Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 61

62. Executives get it
94% of executives are using Web 2.0 to boost internal communications
Strictly Confidential © 2011 Prescient
Digital Media Not For Distribution © 2012 Prescient Digital Media Not For Distribution
Strictly Confidential 62

63. The competition gets it
87% of organizations have at least one intranet 2.0 tool
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 63

64. Adds ‘tacit’ knowledge & context to2012 Prescient of content.
Strictly Confidential © a sea Digital Media Not For Distribution 64

65. New hires expect it
Employees under 40 use social media everyday;
they expect that the companyStrictly Confidential © 2012for alsoMedia Not For Distribution
they work Prescient Digital does. 65

66. Virtually every single knowledge worker under the age of 50 uses social media
Strictly Confidential © 2011 Prescient
Digital Media Not For Distribution © 2012 Prescient Digital Media Not For Distribution
Strictly Confidential 66

67. Q&A
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 67

68. Carmine Porco
General Manager & V.P.
Prescient Digital Media
cporco@prescientdigital.com
www.PrescientDigital.com
www.IntranetBlog.com
www.Facebook.com/Prescient-Digital-Media
www.Twitter.com/intranet2
416.986.8800
Strictly Confidential © 2012 Prescient Digital Media
Strictly Confidential © 2012Prescient Digital Not For Distribution
Not Distribution 68

69. What is Social Media
Erik Qualman: http://youtu.be/auiczd4OUms Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 69

70. Provide Technology They Already Use
Consumers want to: Business users want to:
• Keep informed of what friends are doing • Keep informed of what colleagues are
and thinking doing and thinking
• Easily tap into their opinions and advice • Easily tap into their opinions and advice
• Mobilize them for events and causes • Mobilize them for events and projects
• Control what others can see and know • Control what others can see and know
about me about me
• Tailor the platform with extensions and • Tailor the platform with extensions and
applications applications
• Tag videos and postings that other people • Tag documents and postings that other
should see, filtering out the noise people should see, filtering out the noise
• Know which sources and Web sites • Know which sources and Web sites
friends use colleagues use
Source: Gartner
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 70

71. Social Engagement at HRPA
HRPA is the first
professional
association in
Canada to adopt
social networking to
leverage their
diverse member
networks
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 71

72. Ongoing Feedback
o 800 members joined
within first 30 days of
launch; 60 active
discussions created
across broad subject
matter groups
o Speechbobble’s Analytics
Panel – monitors
trending topics, informal
leaders and member
feedback to inform
strategic decision making
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 72

73. Ronald McDonald House Charities
o Launched “Day of Change”, a campaign driving people to donate
spare change at McDonald’s restaurants
o 150,000 Facebook page fans; 50,000 Twitter followers; 180,000
interactions created on fan pages in 28 days
o Increased online donations in August 2010 by 130% compared to
August 2009
o E-newsletter subscriptions grew by 748% during the campaign
o Total donations received amount to nearly $25 million
Source: www.socialmediaexaminer.com 73
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution

74. New ideas at British Telecom (Ideas Jar)
o BT Ideas encourages staff to submit ideas online
o Implemented ideas pay out rewards
o Approx 10% of ideas are implemented
o 10% of the savings up to a maximum of £30,000
o BT paid out £400,000 (about US $700,000) to
employees last year
o Saved £100m (US $173 million) over four years
Strictly Confidential © 2012 Prescient Digital Media Not For Distribution 74