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Measuring Meaning, Creating Value
         from data to action in social media
         Jason Burby                                               Ryan Turner
         Chief Analytics and Optimization Officer                  Social Media Lead
         jasonb@zaaz.com                                           ryant@zaaz.com




© 2008 ZAAZ, Inc. All rights reserved. Confidential information.
Jason = Measurement   Ryan = Social Media
Other places you can find us:

                            www.websocialarchitecture.com
www.amazon.com
We work at ZAAZ
Performance-Driven Design




   WE BELIEVE SUCCESS DOESN’T HAPPEN BY
   ACCIDENT. IT REQUIRES A UNIQUE
   COMBINATION OF LOGIC AND CREATIVITY TO
   ACHIEVE YOUR ONLINE OBJECTIVE.

   MORE THAN JUST A VIVID
   IMAGINATION, CREATIVITY IS EXPRESSED
   THROUGH INNOVATIVE
   THINKING, COMPREHENSIVE ANALYSIS TO
   CONTINUOUSLY IMPROVE YOUR RESULTS.

   WE CALL IT PERFORMANCE DRIVE DESIGN. IT
   WORKS. AND, YES, WE CAN PROVE IT.
Agenda

• The Web is a social medium.
• Focus on quality, not quantity.
• Case studies.
• Social media generates business intelligence.
• Cultivate business intelligence.
• Start with the basics.
• Discussion.
THE WEB IS A SOCIAL MEDIUM
When we talk about social media, what we really mean is


                     participation.
Some Context: Ryan’s Ten-Cent History of the Web

Community-Focused                Broadcast           Participatory

 User-Generated            Corporation-Driven   User-Generated

 Bottom-Up                 Top-Down             Bottom-Up

 HTML                      Data-Driven          Standards-Driven

 High Threshold of Entry   No entry             Lower Threshold of Entry

 Low Bandwidth             Flash intros!        High Bandwidth

 Text-Based                Text and Images      Multimedia

 Collaboration             Transaction          Interaction


         1980’s-1994              1994-2005            2005-Now
Web 2.0 and social media are social phenomena above all.

Blogs Discussion Boards
Forums Chat IM Vlogs


             SMS Podcasts
Moblogs
Microblogs Photo Blogs
                                  VS
Prediction Markets RSS

Collaboration Collective
Intelligence Communities
Wikis Recommender Systems
Mashups User-Generated
Content                                Social media is made up of
                                       people, relationships among
                                     people, and things people create
                                                and share
What Is Social Media
The tool-centric mentality has produced
  some of the worst marketing ever.
“Just because we understand tax code doesn’t mean we
can’t bust mad flow.” --Intuit
People don’t want to connect with each other online.
But that’s not the whole story. People do want value.
“The purpose of a business is to create value for its
 customers, and the reward for doing so is profit.”
The long-term winners are the ones who create
               the most value,

not the ones who convert the highest percentage
                   of traffic.

         The winners create meaning.

         They make stuff that matters.
FOCUS ON QUALITY, NOT QUANTITY.

           Not how much stuff you have, but what kind of stuff.

       Not how many people show up, but how many come back.

       Not how many conversations, but their inherent intelligence.

Not how many people listen to you, but how well you listen, how much you
                   learn, and what you do about it.
“We’ve already got 100,000 registered users.”
“Our users have posted 2500 videos.”
Four Flavors of Social Media: Quality Questions


1. Monitoring and response
      Where are your people, and what are they saying?


2. Social media products and services
      How can you engage customers to co-create value around your core offering?


3. Integrated social tools
      What doors can you open, enabling your customers to participate?


4. Intranet
      What business value do your participants create?
How does this work in practice?
Quantity vs. Quality Measurements
Quantity:        Quality:
• Visits         • Active Members
• Members        • Average Rate of
                   Participation
• Number of
                 • Positive Offsite
  Projects
                   Blog Postings
                 • Return Visitor %
Quantity vs. Quality Measurements
Quantity:          Quality:
• My Beacon        • Active My
  Activations        Beacon Users
                     (5x/month)
• Learn about My
                   • Avg. # of
  Beacon Visits
                     Buddies per
                     Active User
                   • % Regular User
                     vs. Heavy Users
Quantity vs. Quality Measurements
Quantity:        Quality:
• Number of      • % of Reviews
                   “Helpful” 75%+ of
  reviews
  submitted        the Time
                 • Review Visits per
                   Product Visit
                 • % of Reviewers
                   “Heavily Engaged”
                 • Conversion Rate
                   based on Review
Quantity vs. Quality Measurements
Quantity:          Quality:
• Visits           • Total MVP
                     Activity
• Page Views per
                   • Total Comment
  Visit
                     Prints
                   • % Rating
                     Experience
                     “Helpful”
Quantity vs. Quality Measurements
    Quantity:            Quality:
We’ve already done a lot of great work.
    • Visits             • Survey % -
                            Expanded View
    • Page Views
                            of MS Office
    • Comments
                            capabilities
                         • Survey % -
                            helpful content
                         • % Visits
                            Downloading
                            Templates
Quantity vs. Quality Measurements
Quantity:        Quality:
• Raw comment    • % of Votes
  counts           Over/Under 100
                   words
• Visits
                 • % of
                   “Recommend
                   Comments”
                   selected
                 • Rate of Full
                   Page Scrolls
Quantity vs. Quality Measurements
Quantity:           Quality:
• Visits            • % Return Voters
• Ideas Submitted   • # of Customer
                      Ideas Implemented
                    • # of Ideas with
                      20k+ votes
                    • % with Dell Status
                      Updates
                    • # of Active
                      Members
Quantity vs. Quality Measurements
Quantity:        Quality:
• # of Ratings   • Clickthroughs to
                   BlendTec Site
                 • Total Comments
                 • Video Views
                 • Active
                   Subscriptions
                 • “Favorited” Based
                   on Views
THE BASICS ARE THE SAME


             Start with your goals.

   Get the right tools, and set them up right.

            Act on what you learn.

                        .
Traditional Best Practices Still Apply
A plethora of tools are emerging to monitor online
 chatter, measure sentiment, and streamline the
        effort of engaging with customers.
Tools. There are a bazillion of them.
Every brand should build a programmatic
 approach to measuring and managing
     customer engagement online.
And it doesn’t have to take a huge budget.

             Or any budget!
SOCIAL MEDIA GENERATES
           BUSINESS INTELLIGENCE
Social media, unlike broadcast and transactive media, is a two-way channel.

                           Listen, don’t just talk.

 Don’t measure your social media marketing to improve your marketing—
            measure it to improve your business decisions.

                 And get ready for higher-level exposure.
Integrating Data to
Understand
the Full Landscape
BUSINESS INTELLIGENCE IS
      HUMAN INTELLIGENCE

Measurement tools can’t generate business intelligence, only data.

              People translate data into intelligence.
Where to begin?

The social media inventory.
Measuring the Success of Social Media in terms of Value




Defining Success – Where to Begin:

•   Create a list of key behaviors on your site.

•   Rank them by the amount of created value they reflect.

•   Group them into classes with scores.
Build a Value Index
                 KPI #1 - ENGAGEMENT INDEX
                                                                   Active Participation   Content Consumption
                                    500,000




                  Site Engagement
                                    400,000
                                    300,000




                        Index
                                    200,000
                                    100,000
                                         0
                                                Sep-07         Oct-07         Nov-07      Dec-07        Jan-08         Feb-08

                                                                            % Change      Jan-Feb        Nov-Dec          LTD Avg
                 Total Site Engagement Index [1]                              111.1%      228,460          108,221         213,095
                                                                        

                 Active Participation Index [2]                               301.4%        4,179            1,041              4,518
                                                                        

                     Success Events Details [Page Views]
                          Rating                                              1083.3%          178               15               93
                                                                        

                          Login                                               180.8%           139               50              276
                                                                        

                          Registration                                        224.6%           106               33               78
                                                                        

                          Content Generation                                  376.2%               50            11               33
                                                                        

                          Tagging                                             366.7%               7              2                4
                                                                        

                          Comment Post                                         28.6%               5              4                5
                                                                        

                 Content Consumption Index [3]                                109.3%      224,281          107,180         208,577
                                                                        

                     Success Events Details [Page Views]
                          UG Doc Visit - Unqualified                          130.5%        16,023           6,953          16,022
                                                                        

                          UG Doc Visit - Qualified                             75.6%        11,845           6,745              9,797
                                                                        

                          Download                                             73.4%         2,034           1,173              2,254
                                                                        

                          Tier 1 Doc Visit - Qualified [4]                    115.8%         1,606               744            1,415
                                                                        

                          Tier 1 Doc Visit - Unqualified [4]                   90.5%           651               342            1,433
                                                                        

                          Forum Thread Visit                                   61.8%               89            55               98
                                                                        

                          Social Bookmark                                      -46.0%              14            25               30
                                                                        

                          Email Signup                                         -60.0%              1              3                5
                                                                        

                          RSS Signup                                          100.0%               1              1                3
                                                                        
Methodologies for Success

How to Monetize Corporate Social Media Behavior
In order to monetize site behaviors we must understand the
impact to the business.
How do you translate visitor behaviors into financial benefits
for the company?
                                              ANALYZING THE VALUE OF ENGAGEMENT ON A
                                              COMMUNITY SITE
Methodologies for Success


“MONETIZING” BRAND VALUE: A “TOKEN” EXAMPLE
But monetization doesn’t tell the whole story.
What is the ROI of a blog post that saves your business?
START WITH THE BASICS
Summary

• Focus your measurement on quality.
• Create meaningful experiences. Add value.
• Build a picture of your social media ecosystem
• Build the right reporting systems
• Operationalize your business intelligence
• Cultivate your human intelligence
Discussion



Jason Burby                        Ryan Turner
Chief Analytics and Optimization   Social Media Lead, ZAAZ
Officer, ZAAZ                      ryant@zaaz.com
jasonb@zaaz.com

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Measuring Social Media Marketing

  • 1. Measuring Meaning, Creating Value from data to action in social media Jason Burby Ryan Turner Chief Analytics and Optimization Officer Social Media Lead jasonb@zaaz.com ryant@zaaz.com © 2008 ZAAZ, Inc. All rights reserved. Confidential information.
  • 2. Jason = Measurement Ryan = Social Media
  • 3. Other places you can find us: www.websocialarchitecture.com www.amazon.com
  • 4. We work at ZAAZ
  • 5. Performance-Driven Design WE BELIEVE SUCCESS DOESN’T HAPPEN BY ACCIDENT. IT REQUIRES A UNIQUE COMBINATION OF LOGIC AND CREATIVITY TO ACHIEVE YOUR ONLINE OBJECTIVE. MORE THAN JUST A VIVID IMAGINATION, CREATIVITY IS EXPRESSED THROUGH INNOVATIVE THINKING, COMPREHENSIVE ANALYSIS TO CONTINUOUSLY IMPROVE YOUR RESULTS. WE CALL IT PERFORMANCE DRIVE DESIGN. IT WORKS. AND, YES, WE CAN PROVE IT.
  • 6. Agenda • The Web is a social medium. • Focus on quality, not quantity. • Case studies. • Social media generates business intelligence. • Cultivate business intelligence. • Start with the basics. • Discussion.
  • 7. THE WEB IS A SOCIAL MEDIUM
  • 8.
  • 9. When we talk about social media, what we really mean is participation.
  • 10.
  • 11. Some Context: Ryan’s Ten-Cent History of the Web Community-Focused Broadcast Participatory User-Generated Corporation-Driven User-Generated Bottom-Up Top-Down Bottom-Up HTML Data-Driven Standards-Driven High Threshold of Entry No entry Lower Threshold of Entry Low Bandwidth Flash intros! High Bandwidth Text-Based Text and Images Multimedia Collaboration Transaction Interaction 1980’s-1994 1994-2005 2005-Now
  • 12. Web 2.0 and social media are social phenomena above all. Blogs Discussion Boards Forums Chat IM Vlogs SMS Podcasts Moblogs Microblogs Photo Blogs VS Prediction Markets RSS Collaboration Collective Intelligence Communities Wikis Recommender Systems Mashups User-Generated Content Social media is made up of people, relationships among people, and things people create and share
  • 13. What Is Social Media
  • 14. The tool-centric mentality has produced some of the worst marketing ever.
  • 15. “Just because we understand tax code doesn’t mean we can’t bust mad flow.” --Intuit
  • 16. People don’t want to connect with each other online.
  • 17. But that’s not the whole story. People do want value.
  • 18. “The purpose of a business is to create value for its customers, and the reward for doing so is profit.”
  • 19. The long-term winners are the ones who create the most value, not the ones who convert the highest percentage of traffic. The winners create meaning. They make stuff that matters.
  • 20. FOCUS ON QUALITY, NOT QUANTITY. Not how much stuff you have, but what kind of stuff. Not how many people show up, but how many come back. Not how many conversations, but their inherent intelligence. Not how many people listen to you, but how well you listen, how much you learn, and what you do about it.
  • 21. “We’ve already got 100,000 registered users.”
  • 22. “Our users have posted 2500 videos.”
  • 23. Four Flavors of Social Media: Quality Questions 1. Monitoring and response  Where are your people, and what are they saying? 2. Social media products and services  How can you engage customers to co-create value around your core offering? 3. Integrated social tools  What doors can you open, enabling your customers to participate? 4. Intranet  What business value do your participants create?
  • 24. How does this work in practice?
  • 25. Quantity vs. Quality Measurements Quantity: Quality: • Visits • Active Members • Members • Average Rate of Participation • Number of • Positive Offsite Projects Blog Postings • Return Visitor %
  • 26. Quantity vs. Quality Measurements Quantity: Quality: • My Beacon • Active My Activations Beacon Users (5x/month) • Learn about My • Avg. # of Beacon Visits Buddies per Active User • % Regular User vs. Heavy Users
  • 27.
  • 28.
  • 29. Quantity vs. Quality Measurements Quantity: Quality: • Number of • % of Reviews “Helpful” 75%+ of reviews submitted the Time • Review Visits per Product Visit • % of Reviewers “Heavily Engaged” • Conversion Rate based on Review
  • 30. Quantity vs. Quality Measurements Quantity: Quality: • Visits • Total MVP Activity • Page Views per • Total Comment Visit Prints • % Rating Experience “Helpful”
  • 31. Quantity vs. Quality Measurements Quantity: Quality: We’ve already done a lot of great work. • Visits • Survey % - Expanded View • Page Views of MS Office • Comments capabilities • Survey % - helpful content • % Visits Downloading Templates
  • 32. Quantity vs. Quality Measurements Quantity: Quality: • Raw comment • % of Votes counts Over/Under 100 words • Visits • % of “Recommend Comments” selected • Rate of Full Page Scrolls
  • 33. Quantity vs. Quality Measurements Quantity: Quality: • Visits • % Return Voters • Ideas Submitted • # of Customer Ideas Implemented • # of Ideas with 20k+ votes • % with Dell Status Updates • # of Active Members
  • 34. Quantity vs. Quality Measurements Quantity: Quality: • # of Ratings • Clickthroughs to BlendTec Site • Total Comments • Video Views • Active Subscriptions • “Favorited” Based on Views
  • 35. THE BASICS ARE THE SAME Start with your goals. Get the right tools, and set them up right. Act on what you learn. .
  • 37. A plethora of tools are emerging to monitor online chatter, measure sentiment, and streamline the effort of engaging with customers.
  • 38. Tools. There are a bazillion of them.
  • 39. Every brand should build a programmatic approach to measuring and managing customer engagement online.
  • 40. And it doesn’t have to take a huge budget. Or any budget!
  • 41.
  • 42. SOCIAL MEDIA GENERATES BUSINESS INTELLIGENCE Social media, unlike broadcast and transactive media, is a two-way channel. Listen, don’t just talk. Don’t measure your social media marketing to improve your marketing— measure it to improve your business decisions. And get ready for higher-level exposure.
  • 44.
  • 45.
  • 46. BUSINESS INTELLIGENCE IS HUMAN INTELLIGENCE Measurement tools can’t generate business intelligence, only data. People translate data into intelligence.
  • 47. Where to begin? The social media inventory.
  • 48.
  • 49.
  • 50. Measuring the Success of Social Media in terms of Value Defining Success – Where to Begin: • Create a list of key behaviors on your site. • Rank them by the amount of created value they reflect. • Group them into classes with scores.
  • 51. Build a Value Index KPI #1 - ENGAGEMENT INDEX Active Participation Content Consumption 500,000 Site Engagement 400,000 300,000 Index 200,000 100,000 0 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 % Change Jan-Feb Nov-Dec LTD Avg Total Site Engagement Index [1] 111.1% 228,460 108,221 213,095  Active Participation Index [2] 301.4% 4,179 1,041 4,518  Success Events Details [Page Views] Rating 1083.3% 178 15 93  Login 180.8% 139 50 276  Registration 224.6% 106 33 78  Content Generation 376.2% 50 11 33  Tagging 366.7% 7 2 4  Comment Post 28.6% 5 4 5  Content Consumption Index [3] 109.3% 224,281 107,180 208,577  Success Events Details [Page Views] UG Doc Visit - Unqualified 130.5% 16,023 6,953 16,022  UG Doc Visit - Qualified 75.6% 11,845 6,745 9,797  Download 73.4% 2,034 1,173 2,254  Tier 1 Doc Visit - Qualified [4] 115.8% 1,606 744 1,415  Tier 1 Doc Visit - Unqualified [4] 90.5% 651 342 1,433  Forum Thread Visit 61.8% 89 55 98  Social Bookmark -46.0% 14 25 30  Email Signup -60.0% 1 3 5  RSS Signup 100.0% 1 1 3 
  • 52. Methodologies for Success How to Monetize Corporate Social Media Behavior In order to monetize site behaviors we must understand the impact to the business. How do you translate visitor behaviors into financial benefits for the company? ANALYZING THE VALUE OF ENGAGEMENT ON A COMMUNITY SITE
  • 53. Methodologies for Success “MONETIZING” BRAND VALUE: A “TOKEN” EXAMPLE
  • 54. But monetization doesn’t tell the whole story.
  • 55.
  • 56.
  • 57.
  • 58. What is the ROI of a blog post that saves your business?
  • 59. START WITH THE BASICS
  • 60.
  • 61. Summary • Focus your measurement on quality. • Create meaningful experiences. Add value. • Build a picture of your social media ecosystem • Build the right reporting systems • Operationalize your business intelligence • Cultivate your human intelligence
  • 62.
  • 63. Discussion Jason Burby Ryan Turner Chief Analytics and Optimization Social Media Lead, ZAAZ Officer, ZAAZ ryant@zaaz.com jasonb@zaaz.com