The document discusses social media metrics and scalability for enterprises. It provides an overview of traditional marketing metrics versus online and social media metrics. It outlines new rules for social media engagement and measurement, including that qualitative and quantitative metrics are needed. It also discusses how enterprises can scale their social media efforts through tools that help with exposure, engagement, influence, action, and calculating return on investment.

1. #SMWNYCNEW
#SMCNY
Metrics, Measurements
and Social Media
Scalability
A Social2B Presentation
February 8th, 2011

2. Agenda
• Social Media Marketing – what, why
and how
• The New Rules of Social Media
Engagement
• Social Media Enterprise Scalability
• Social2B Value Chain Strategy
• KPIs to ROI Path
• Q&A
2

3. Our qualifications
• Alex Romanovich, Founder – Social2B,
CMO – EuroSpaClub International, @Social2B
Advisory Board Member – The CMO Club
@alexromanovich
@eurospaclub
• Unique blend of technology, marketing and
business development skills and
experience (IBM, SGI, Bertelsmann AG,
Unified Technologies, Global Advertising
Strategies, Social2B, EuroSpaClub Intl.)
• Frequent speaker and advisor on topics
of Social Media, International and
Multi-Cultural Mktg.
(CNBC, CNN International, Forbes,
Crains, Voice of America, etc.)
• Social Media Marketing, Social Value
Chain, and Social Media
Scalability Expertise
3

4. Our qualifications
• Ytzik Aranov, Partner & COO, Social2B, Inc.
• Strategy / Management Consulting
for A.T. Kearney, Inc. & Coopers & Lybrand
@Social2B
@YtzikSocial
• Author/Co-Creator of Analytics,
Scorecard, Metrics, Co-Sourcing & Delivery
Methodologies
• Restructured the Value Chain,
Operations, Supply Chain and
Online Marketing for
Fortune 100 companies
• Serial Entrepreneur in Online,
Services, Health Care,
Real Estate & Technology
companies – 1 Company went
public then private
• Director, Corporate Finance, M&A and
Investment Banking
4

5. Our qualifications
• George Smith, Manager,
Social Strategy/Execution
PepsiCo @GeorgeGSmithJr
• Social Activation Leader – R/GA
• Social Media Specialist – Crocs, Inc.
• Setting Strategic Direction for social media
influencer and advocacy programs
• Subject matter expert on Social Media
topics
• Setting targets and policies for
Social Media programs and initiatives
• Writer, Blogger, Speaker
5

6. Why Social Media is ‘serious
business’ in 2011
• 4 out 5 US businesses over 100
people will use Social Media
Marketing in 2011(eMarketer, 2011)
• Social Media Marketing spending is
increasing and Social Media
Advertising (Ad spending on social
media destinations) will cross $2B in
2011(eMarketer, 2011)
• 85% of Marketers indicated that
Social Media Marketing generated
exposure for their business („Social
Media Marketing Report, 2010”)
• There are over 4,700 Social Media
Jobs available in NY market area
alone (Source: www.indeed.com)
6

7. Why Social Media is ‘serious business’
in 2011 (and beyond)
• Social Gaming to surpass $1B
(eMarketer)
• Social Network Ad Revenues will
grow to $3.08B in 2011 (eMarketer)
• Mobile App Store Revenues will hit
$15B in 2011 (Gartner)
• 75% of SMB plan to use Social
Media in 2011 (SaleSpider)
• 13% of Seniors 65+ will use
Facebook in 2011 (SF Gate)
• 47% of Protestant congregations
use Facebook (SF Chronicle)
• 37% of women use Facebook in the
Middle East – total FB users in that
region >>> 15M (Huffington Post)
• Social Networking more popular
than voice, SMS by 2015 (Read
Write Web)
7

8. Why Social Media is ‘serious
business’ in 2011
• According to The CMO Club,
the Best Social Media
Marketing service providers
were employees – agencies
were important, but internal
skills and resources were of
paramount importance
• Top most sought-after
marketing technologies skills
within marketing organizations
were in social media,
analytics, search
optimization and integrated
marketing technologies
8

9. Why Social Media is more than
relevant for the Enterprise in 2011
• Social Media is Media – Facebook, Twitter, YouTube, Slideshare, etc. etc.
• Social Media is now a part of SEO and SEM efforts:
• Link Building + Socialization of Content
• Traffic referral engine
• More links and traffic + More Authority and Ranking Ability
• Branding and Buzz
• Social Media Marketing is part of „Marketing and Branding‟
• Social Media is a part of the Value Chain in the Company
• Human Resources HAS TO use it
• Marketing MUST use it
• Sales CAN use it
• Customer Service SHOULD use it
9

10. New rules of engagement
10

11. New rules of engagement
11

12. The Sales and Marketing Funnel – Traditional
Prospect
lower
value TV Awareness
Radio
Newspaper
Interest
Magazines
Outdoor
Cinema Consideration
Events
Preference
Traditional ad & Direct & digital
branding media media
Purchase
Upsell Direct Mail
Email
Search & Web
Cross Sell
Social Media
higher Web 2.0
value Loyalty Mobile/SMS
DRTV
DR Print
Prospects and
Customers Customers CPC
Games
12

13. The Sales and Marketing Funnel - New
Prospect
lower
value TV Awareness
Radio
Newspaper
Magazines
Interest
Outdoor
Cinema Consideration
Events
Preference
Traditional ad & Direct & digital
branding media media
Purchase
Upsell Direct Mail
Email
Search & Web
Cross Sell Social Media
higher Web 2.0
value Loyalty Mobile/SMS
DRTV
DR Print
Prospects and
Customers Customers CPC
Games
13

14. The Sales and Marketing Funnel – New Integrated Funnel
Prospect
lower
value TV Email
Radio $
Newspaper
Magazines eRFP
Outdoor request
Cinema
Pass
Events Research a link
product
Info
Traditional ad & Click request Direct & digital
branding media email M media
Transact commerce
Interact
with ad Rate a $
Product Direct Mail
Register View Select
Search Email
account Facebook Partner
brand Search & Web
Qualify Social Media
Social Write a Lead Register
higher review Blog Close Nurture Web 2.0
bookmark View ad entry account
value lead lead Mobile/SMS
DRTV
DR Print
Prospects and
Customers Customers CPC
Games
14

15. Traditional Metrics versus Online/Social Media Metrics
• Audience Reach
• Gross Ratings Points (Gross
Impressions divided by
population reached)
• Frequency
• Effective Reach (Population
reached by the ad at a
particular frequency, divided
by number of people in
universe)
15

16. Traditional Metrics versus Online/Social Media Metrics
• Click-Thru Rate (CTR)
• Conversion Rate
• Unique Visitors
• Cost per unique visitor
(placement or
application/unique visitors)
• Page Views (Facebook, etc.)
• Visits (UGC/Social Media)
• Return Visits
• Interaction Rate
• Time spent (section,
microsite, community)
16

17. Traditional Metrics versus Online/Social Media Metrics
• Video or App installs
• Relevant re-action taken by
User
> Friend / Follow / Tag /
Connect
> Contests
> Votes / Surveys
> Comments
> #of groups or fans
> Shares (reposts, retweets,
etc.)
• Payment Models
 PPC
 PPL
 PPS
 Hybrid Model
17

18. Traditional Metrics versus Online/Social Media Metrics
Traditional measurement:
Marketing Investment = $30,000
# of Leads Generated = 1000
Cost per Lead = $30
Social Media Measurement:
SM resource x (Blog Comments +
Conversations + LinkedIn +
Twitter + Facebook) x Time =
ROI Success (Brand value,
prospect data, greater
conversions)
18

19. Do you know which Metrics are Right for you?
Q: Which of these is best? How do you know?
• 1,000,000 one-time, unregistered unique visitors
• 500,000 visitors who view 2+ pages / stay 10+ sec
the
good • 200,000 visitors who clicked on a link or button
stuff.
• 20,000 registered users w/ email address
• 2,000 passionate fans who refer 5+ users / mo.
• 1,000 monthly subscribers @ $35/mo
Courtesy: Dave McClure, Master of 500 Hats
19

20. Traditional vs. Social Media
Traditional media measurement
deals with what you aired…
Vs.
…social media measurement
deals with what actually
happened! 20

21. The Rules of Social Media Metrics
1. As much an Art as a Science
2. It keeps changing!
3. It‟s the basis on which future Brands are to be built
4. A few active participants are better than many eyeballs
5. Measurement depends on the Enterprise‟s Value Chain
perspective
6. Social Media metrics trump traditional stats
7. Must convert SM metrics to Enterprise ROI
8. 1 +1 = 3 – Social Media Measurement is multi-variate
9. Those who “measure” social media are NOT those who
“manage” social media
10. Who pays for Social Media? The entire C-level suite!
21

22. The Rules of Social Media Metrics
1. Key Performance Indicators (KPI) may vary for each industry
2. Every Enterprise has different ROI drivers
3. Each component in the Enterprise value Chain has different KPI
drivers
4. KPI‟s keep changing, as business goals do
5. The Enterprise has to scale SM or be left behind
6. You have to sell to the C-level suite – get used to it!
7. There is no one right way to Track, Measure & Report – find
YOUR way!
8. Assumptions driving KPIs – make them up (but be smart!)
9. Must have a Web Architectural strategy
22

23. Social Media Metrics Building Blocks
Reach – how far does it travel?
Relevance – does it support your intended
direction?
Influence – who shares and passes along with
who?
Authority – how trusted is the source?
Engagement – how involved do they get?
Interaction – do they do anything with it?
Velocity – how fast does it travel?
Attention – how much time do they spend with it?
Sentiment – how positive are they?
Net Promoter – are they recommending you?
23

24. The Brave New World of Social Media Metrics
1. Qualitative: Usability Testing / Session Monitoring
• Conversation Share, Brand Perception, Engagement, Tone of
dialogue, Relationship, Loyalty, Watch users, guess problems &
solutions from small # of users
2. Quantitative: Traffic Analysis / User Engagement
• Installs, membership, Market Share, Sales, Rankings, Track
users, usage, conv %'s for empirical sample # of users
3. Comparative: A/B, Multivariate Testing
• Compare what users do in one scenario vs another
• Measure which copy/graphics/UI are most effective
4. Competitive: Monitoring & Tracking Competitors
• Track competitor activity & compare against yours (if possible)
• Compare channels, keyword traffic, demographics, user sat, etc.
Courtesy: Dave McClure, Master of 500 Hats
24

25. The Brave New World of Social Media Metrics, cont.
1. Conversion Criteria:
• best-performing (%) channels / campaigns / copy
• largest-volume (#) channels / campaigns / copy
• lowest-cost ($) channels / campaigns / copy
• Registrations, installs, etc.
2. Measurement Components:
• Audience Segment (young women, regional metro, older singles)
• Channel Source (social network, SEM, organic, PR, etc)
• Campaign Theme / Brand Promise (“find a job”, “learn to cook”)
• Landing Page & CTA
• Authority ranking, influence, velocity,
• Comments per post, reTweets, WOM Influence
25

26. The Brave New World of Social Media Metrics, cont.
Marketing Plan = Target Customer Acquisition Channels
• 3 Important Factors = Volume (#), Cost ($), Conversion (%)
• Measure conversion to target customer actions
• Test audience segments, campaign themes, Call-To-Action (CTAs)
[Gradually] Match Channel Costs => Revenue Potential
• Increase Vol. & Conversion, Decrease Cost, Optimize for Revenue
Potential
• Avg Txn Value (ATV), Ann Rev Per User (ARPU), Cust Lifetime
Value (CLV)
• Design channels that cost <20-50% of target ATV, ARPU, or CLV
26

27. Social Media Enterprise Scalability
• Exposure
• Engagement
• Influence
• Action
• ROI
27

28. Social Media Enterprise Scalability
• GetSatisfaction – customer service
• Exposure application
• Google Alerts with Keywords – easy and
• Unique Visitors free monitoring
• Page Views • Hootsuite, Butterfly Publisher – Twitter
Management
• Search Engine • KnowEm – reputation management service
Rankings • PitchEngline – PR ‘social pitch’ platform
• Sentiment • Social Mention – free, social monitoring
tool
• Message Inclusion • Radian6 – expensive monitoring tool
• Share of Online • Raven Tools – SEO, SERP and SM stats
Discussion • Trackur – free, quick and easy monitoring
• Net Positive Comments • Trst.me – PageRank for Twitter Profiles
• Twitalyzer – elaborate Twitter profile
analysis
28

29. Social Media Enterprise Scalability
• Floaters on page
• Engagement
• Facebook Community Building
• Click-thru‟s
• Custom apps and widgets
• Repeat Visits
• Twitter Engagement
• Time on Visit (Tweetups, lists, hashtags,
• Subscribe to Feeds etc.)
• Comment on posts • RSS Feeds
• Retweet / @replies • Google Analytics (support and
monitoring)
• Message recall
• TweetDeck
29

30. Social Media Enterprise Scalability
• Monitoring tools
• Influence
• Comments
• Change in Awareness
• Klout
• Change in Attitude
• PostRank
• Purchase
Consideration • Google Insight
• Association with Brand • KnowEm – reputation
management service
• Likelihood they will
recommend to a friend • PitchEngline – PR ‘social pitch’
platform
30

31. Social Media Enterprise Scalability
• eCommerce Tools
• Action
• Customer Satisfaction
• Visit the store Dashboard
• Attend an event • Twitter
• Tell a friend • Integrated CRM
• Contact the company
• Purchase the product
• Donate
• Volunteer
31

32. Social Media Enterprise Scalability
• ROI • CRM
• Return on Investment • Enterprise Platform
• Return on Ignoring • Integrated Financials
• Return on Influence • Social media performance
• Social capital tools
• Brand Equity
• Market Share or
“Influence over large
numbers”
• Loyalty
• AutoShip
• Relationship Management
32

33. Why is the Enterprise different?
The Enterprise
The
Individual or
the Business
33

34. The problem
34

35. The Enterprise Value Chain
• Every component of the Enterprise Value Chain may be Social!
• Each has it‟s own KPI‟s and assumptions
• Every Enterprise / Industry is different
35

36. The Enterprise Social Value Chain
• Every department in the company
has a Social Value Chain Index
• The external world directly impacts
each department
• Every business processes has a
Social Media impact
• Cross-departmental inter-
dependencies exist
• Social Media by department finds its
community & resources organically
• New strategic alliances (internal &
external) and improved operations
occur based on efficient Social
communities interacting
36

37. Social Value Chain - Analysis
• Proprietary Social2B Social Value Chain Analysis
Sales • Map operational departments to their respective Social Communities
Customer • Establish the Social Value Chain Maturity and Scalability Index rating
Service by department
• Map cross-departmental Social value
Finance • Implement internal, external & B2B Social linkages
• Link the SVCMI to Budget, KPIs, ROI of the Enterprise
HR
Manufacturing
Company Logistics
Legal
Procurement
QA
Marketing
Administration
37

38. Social Media Scalability Approach
The Social Media Enterprise Strategy Blueprint
Establish
Strategy / Brand & Map to Monitor &
Enterprise
Assessment Content Scorecard Manage
Metrics
Ongoing Social Media Campaign Brand
Enterprise Scalability
Roadmap
Analysis Community
38

39. The Balanced Scorecard
as an Enterprise Roadmap
• Departmental
• Line-of-
Business
• Geographical
• Project
• Maps directly
to the Value
Chain
39

40. The Enterprise Social Value Chain
Sales • How do we drill down into the Enterprise
Customer Value Chain and establish Social Value
Service
Chain Maturity & Scalability?
Finance
HR Sales
100
Manufacturing Administration 90 Customer Service
80
70
Company Logistics 60 Twitter
50
Marketing 40 Finance Facebook
Legal 30
20 B2B Network
10
Procurement 0 SocNet
QA HR
Customer Service
QA
Soc Campaign
Marketing Soc Analytics
Procurement Manufacturing
Administration
Legal Logistics
40

41. The Enterprise Social Value Chain
Social Media
Sales • Social profiles, Audience engagement, conversion
Customer
• Community building
Service • Branding & PR
Finance • Sales Support
Marketing outcomes:
HR
Customers, leads, sales, service contacts, conversion, retention, winback and
Manufacturing response efficiencies. Acquisition cost, Avg. order, Avg. profit, Lifetime Value.
Sales
Logistics 100
Administration 90 Customer Service
Legal 80
Company 70
Procurement 60 Twitter
50
QA
Marketing 40 Finance Facebook
30
20 B2B Network
10
0 SocNet
Marketing QA HR
Customer Service
Soc Campaign
Soc Analytics
Administration Procurement Manufacturing
Legal Logistics 41

42. The Enterprise Social Value Chain
Sales
Social Media
• Reputation management
• Customer notices
Customer • Customer Service
Customer satisfaction:
Service Usability, performance/availability, recommendation behavior.
Opinions, attitudes, reasons for defection, brand impact and churn.
Sales
Finance 100
Administration 90 Customer Service
80
HR 70
Company 60 Twitter
50
Manufacturing Marketing 40 Finance Facebook
30
Logistics 20 B2B Network
10
0 SocNet
Legal QA HR
Customer Service
Procurement Soc Campaign
QA Soc Analytics
Procurement Manufacturing
Marketing
Legal Logistics
Administration 42

43. The Enterprise Social Value Chain
Sales
Social Media
Customer
Service • Talent acquisition
• Research
Finance
• Community building (former & future employees!)
HR Channel promotion:
Talent Attraction efficiency. Vendor Referrer efficiency, cost of
Payroll, Benefits administration
HR Sales
100
Administration 90 Customer Service
80
Company 70
Manufacturing 60 Twitter
50
Marketing 40 Finance Facebook
Logistics
30
20 B2B Network
Legal 10
0 SocNet
Procurement QA HR
Customer Service
QA Soc Campaign
Marketing Soc Analytics
Procurement Manufacturing
Administration
Legal Logistics 43

44. Social Media Enterprise Scalability
Methodology
• Craft a Scalability Methodology
• Industry-proven tools & methods
Balanced Scorecard
Porter‟s Value Chain Model
44

45. Social Media Enterprise Scalability
In Practice
Enterprise Goals
Business Objectives
Measures of Success
Operational Tactics
The following framework slides, courtesy:
45

46. Social Media Goals,
linked to Enterprise Goals …
46

47. ...then to Objectives
47

48. ...then to Measures of Success
48

49. … and Finally the Execution Plan
49

50. A Social Media Example...
• Goal Driving Engagement
• Objective
• Measures
• Tactics
50

51. Engagement Requires…
• Building awareness by initiating Real Conversations
with Real People!
• Engaging with individuals to determine their response to
ideas, thoughts, products and activities generated by the
Enterprise
• Getting their ideas, suggestions, likes, dislikes, content,
etc.
• Responding to individuals on behalf of the brand through
genuine interactions
51

52. Granular Metrics
Audience
Engage-
ment Conversa-
Share of tion
Voice
Reach
Foster
Dialog
52

53. Engagement KPIs in action
• Share of Voice:
• Audience Engagement:
• Conversation Reach:
53

54. If This Was Nike...
Share of Audience Conversation
Voice Engagement Reach
54

55. Advocacy
Another Social Media Example...
• Encouraging word of mouth activity by
promoting and endorsing
conversations shared by individuals
• Developing relationships with
individuals who have an affinity
towards the brand
• Nurturing existing relationships with
customers as a proven method of
building advocacy within an
easily identified segment
55 55

56. Active
Granular Metrics
Advocates
Promote Advocate
Advocacy Influence
Advocacy
Impact
56

57. Advocacy KPIs in action
• Active Advocates:
• Advocate Influence:
• Advocacy Impact:
57

58. If This Was The National Breast Cancer
Awareness Foundation...
Active Advocate Advocacy
Advocates Influence Impact
58

59. Support Goes Social
59

60. Support Requires…
• Resolving service issues through social media
channels via direct company response and
crowd-sourcing alternatives
• See “140 Ways to Use Twitter for Customer
Service” (Social2B SlideShare)
• Expediting issue resolution with quality and
integrity
• Elevate satisfaction through flexible support
options
60

61. Facilitate
Support
Resolution Satisfaction
Rate Score
Resolution
Time
Granular Metrics
61

62. Support KPIs in action
• Social Media Issue Resolution Rate:
• Resolution Time:
• Customer Satisfaction Score:
62

63. If This Was Best Buy...
Issue
Resolution Satisfaction
Resolution
Time Score
Rate
63

64. Enterprise Social Value Chain ROI
Map SVC to a Balanced Scorecard
• Use the Enterprise‟s Scorecard or Business Goals
• Every component of the Value Chain is Social!
• Each has it‟s own KPI‟s, assumptions, metrics and measurements
64

65. Enterprise Social Value Chain ROI
Map SVC to ROI – How does it work (Support)?
1. Define the Social Media Campaign for
Customer Service Resolution
2. Solve for the KPI & projections
3. Apply Enterprise Scorecard parameters,
categories
4. Solve for risk, Enterprise cost, growth, etc.
5. Map to Social Media campaign cost
6. Solve for reduction in Enterprise costs thru SM
7. Shift $$$ to Social Media !!!
 SM Customer Support Budget & New campaigns  CS Resolution Cost
 Reduction in Enterprise Customer Support cost  Total CS Budget
65

66. Socialize to KPIs to ROIs
In Summary …
 Specific Social Media Channels Are Secondary to:
 Strategy – Tactics - Execution
 Roadmap (read, Methodology) to follow
 Configure your own Metrics
 Link them to the Enterprise‟s (Scorecard, EVA, etc.)
 Re-Define your Metrics, Goals & Market assumptions as
needed
 Measure KsmPI‟s constantly (build an Enterprise Dashboard)!
 Find your audience, wherever they may be
 Engage Real Conversations with Real People!
 Recognize influence above the noise
 Promote advocacy and leverage your reach
 Think Brand & Influence
 Always convert to an Enterprise Metric (not a SM one!)
66

67. Socialize to KPIs to ROIs
In Summary …
• C-level Suite Roadmap:
– Compass Management
– Define who owns the Web & SM (every CxO does!)
– Identify the Enterprise‟s Value Chain components
– Understand the Enterprise‟s Financial Scorecard
• Resources
– #1 – Analytics
• Social Media
– Think in terms of Campaigns
• Online Architecture
– Web architecture
– Social Media platform
– SM Profiles
• Tools
– Too many to mention – get a Toolbox with Power Tools!
67

68. Some of the tactical, technical
and proactive steps – Social News Room
• PR and Social Media Strategies
• Build a PR 2.0 News Room
• Blogs, RSS Feeds, webinars,
podcasts and social profiles
• Optimize all content
• Releases, FAQs,
backgrounders, articles, blog
posts
• Syndicate press releases and
articles
• Integrate Metrics and
Measurements
• URLs, tracking samples,
unique #800, promo codes
• Augment Social Media with
targeted PPCs

69. Some of the tactical, technical
and proactive steps
• Emergency Procedures –
Panic Button Approach
• Red Cross Study – one in
every five web users turn to
Social Media in case of
emergency
• In the event of website or
blog „denial of service‟ – use
social media (Basecamp as a
recent example)
• Instant communication –
response time is crucial

70. Top 10 questions to ask yourself
before you get out to ‘Scale’
• Is my organization and my executive • What tools and technologies will I need
management team ready for Social to implement SM campaigns?
Media Marketing and Branding? • Will „social‟ also include „mobile‟?
• Does everyone treat Social Media as a • How will we integrated SM marketing
strategic effort or as an offshoot of campaigns with existing, more
marketing or PR/Communications? „traditional‟ marketing efforts?
• Where in the organization will Social • How much organizational training will
Media reside? we need to implement in integrating
• Will I be able to allocate sufficient „social‟ within our Enterprise?
budget to Social Media efforts in our • Are we going to use „social‟ for
company? advertising and PR/Communications?
• How will Social Media discipline be What about „disaster recovery‟ and
aligned with HR, Technology, „reputation management‟?
Customer Service, Sales, etc.?

71. Are you ready to SCALE!?
info@social2b.com
@social2B
www.social2b.com
+1-212-658-9744