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Social Media ROI
Customer Engagement, Brand Interactivity, and Revenue


                     August 2010
                      Greg Belkin




               ~ Underwritten, in Part, by ~
August, 2010

   Social Media ROI: Customer Engagement,
       Brand Interactivity, and Revenue
Between July and August 2010, Aberdeen surveyed 65 retailers regarding                           Analyst Insight
their use of social media marketing to interact with customers (see                              Aberdeen’s Insights provide the
definition in sidebar). Results indicate that 85% of these organizations have                    analyst perspective of the
an initiative in place to help manage brand reputation and encourage                             research as drawn from an
revenue-building consumer interactivity. Despite its pervasiveness, however,                     aggregated view of the research
significant challenges remain to achieve a full Return on Investment (ROI)                       surveys, interviews, and
from social media adoption. Fifty six percent (56%) of retailers have                            data analysis
indicated that they are unable to quantify the effect of social media. The
purpose of this Analyst Insight is to assess the different motivational factors
and corresponding actions inherent in a social media marketing initiative,
and the strategies retailers are taking to yield ROI benefits from these
initiatives.

Social Media for Shopping and Research Top Retail
Adoption Pressures                                                                               Social Media Marketing for
                                                                                                 Retailers Defined
In the face of difficult market conditions, including a sluggish lift in consumer
spend, retailers are noting an increasingly option-conscious consumer who                        Aberdeen defines social media
has new sources of information to utilize before making a purchase. For                          marketing as the dynamic
                                                                                                 exchange of information
example, according to Aberdeen's August 2009 Retail E-Commerce
                                                                                                 between a retailer and
benchmark, the top pressure driving Best-in-Class retailers to improve their                     consumer via an online
e-commerce functionality is low customer loyalty (40%). Given this reality, it                   community destination, such as
is no wonder that increased consumer utilization of social media as a                            a company blog, on-line forum,
primary shopping vehicle was the top adoption pressure (53%), as shown in                        website or any other type of
Figure 1.                                                                                        social media outlet or tool.
                                                                                                 This dynamic content includes
Figure 1: Top Retail Social Media Pressures                                                      (but is not limited to):
                                                                                                 √ Blogging
         Increased consumer utilization of social
              media as primary shopping vehicle
                                                                                         53%     √ Micro-blogging
                                                                                                 √ Product commenting
      Increased competitive use of social media                                    47%           √ Social networks (i.e.
                                                                                                   LinkedIn, Facebook)
                                                                                                 √ Online video widgets
            Rapidly changing customer affinities                       28%
                                                                                                 √ Presentation or document
                                                                                                   sharing
      Decreased consumer response to existing
                       marketing campaigns
                                                                19%
                                                                                                 √ Social bookmarking
                                                                                                 √ Podcasting
                                                    0%   10%   20%    30%    40%   50%    60%
                                                                                                 √ Product ratings
                                                          Source: Aberdeen Group, August 2010
© 2010 Aberdeen Group.                                                                                   Telephone: 617 854 5200
www.aberdeen.com                                                                                               Fax: 617 723 7897
Social Media ROI: Customer Engagement, Brand Interactivity, and Revenue
Page 2




The increased utilization of social media has challenged retailers to rethink
the way they interact with their customers. Using traditional media such as
a web site, or a product description or image, allows retailers to control the
look, feel and messaging of the consumer-retailer interaction. Social media,
on the other hand, forces retailers to share this real estate with consumers,
who can offer a widely varying set of opinions. In some cases, such as with
popular social pages, retailers must also share this space with their
competitors, who are fighting for an equal share of consumer attention. In
either case, retailers must make the best use of this space for the highest
possible appeal.
Fortunately, there are many different ways to accomplish this task. Social
media monitoring, for example, allows retailers to appropriately track and
respond to the way consumers articulate their experiences. Similarly, virtual
product manipulation may also encourage consumers to spend more time
with a particular retailer. Apparel retailer Wet Seal, for example, has made
use of a virtual apparel try-on program, whereby consumers can match
pieces of an outfit together, and post these pictures to their own sites to
gauge opinion. Whatever the strategy, the fact that more than half of
respondents identify this as a top pressure speaks volumes as to the
pervasiveness of social media as tool of choice for making (or researching)
an online purchase.
Another major business pressure associated with social media is from a
competitive standpoint. Retailers that regularly compete with each other
can use this medium to provide specialized marketing or product outreach.
Indeed, increased competitive use of social media was the second highest
adoption pressure among retailers (47%). Due to the fact that social media
initiatives can be executed in different forms, retailers can be creative with
how they use social media to compete.
Two examples of successful social media usage are Target and Home
Depot:
    •   Target utilized a video of The Like, a popular girl band, preparing      "Our virtual runway within
        for a concert in their hotel room proudly donning a signature            social media pages generates
        clothing line. The retailer relied on the success of that viral          three times the existing amount
        marketing initiative as the video made the rounds on YouTube,            of customer comments than
                                                                                 from fan page interaction
        collecting thousands of hits over a short period of time. This gives
                                                                                 alone."
        them competitive differentiation against Wal-Mart by allowing their
        younger customer groups to connect pop culture interests and                               ~ John Kubo
        internet video downloading to product catalogs and promotions.                 Chief Information Officer
                                                                                                       Wet Seal
    •   Home Depot has successfully integrated customer service and
        promotion delivery through the use of Twitter. With nearly 22,000
        followers, Home Depot promotes in-store and web specials, and
        responds in real-time to customer complaints or suggestions. Home
        Depot's social media program competes with Lowe's social media
        strategy, but the difference is Home Depot's high level of consumer
        pervasiveness, and the ability to connect social interactivity with


© 2010 Aberdeen Group.                                                                 Telephone: 617 854 5200
www.aberdeen.com                                                                             Fax: 617 723 7897
Social Media ROI: Customer Engagement, Brand Interactivity, and Revenue
Page 3




         local representatives who are available for specialized, region-
         specific support.

Social Media Adoption Strategies Vary by the Size of
the Retailer
According to Aberdeen data, no single particular social media strategy fits all      Aberdeen's Definition of
retailers. Given that social media retailing is relatively new (50% of initiatives   Company Size
are less than two years old), retailers are likely to have different priorities as   In terms of company size,
they continue to invest in this new medium. For example, Aberdeen data               Aberdeen separates retail
reveals that the size of a retailer makes an impact on how social media is           respondents into two different
utilized. The top social media action for Small to Midsize Enterprises (SMEs)        categories: Small to Midsize
in the retail sector (see definition in sidebar), is a focus on social media         Enterprises (SMEs), and Large
monitoring (58%). For larger retailers, on the other hand, the top strategic         enterprises:
action is to focus on establishing an enterprise-wide social media strategy          √ SMEs: Retailers with annual
(45%), as shown in Figure 2.                                                           revenues of $1 billion or less
                                                                                     √ Large retailers: annual
Figure 2: Top Social Media Initiative Actions                                          revenues above US $1 billion
  Deploy social media
    monitoring: own e-                                                58%
   commerce domain,                 18%
         external sites

Establish a formalized
                                              29%
enterprise-wide social
       media strategy                                          45%


                      0%   10%      20%      30%     40%        50%   60%      70%

                                                                            n=43
                             SME Retailers   Large Retailers

                                               Source: Aberdeen Group, August 2010


Large Retailers Focus on Enterprise-wide Social Media
Planning
According to Aberdeen data, larger size retailers have prioritized an
enterprise-wide involvement in social media planning (45%). Considering
that different departments can have different interests in how social media is
utilized, it is no wonder that these retailers are seeking input from various
different parts of their enterprise. These different departments can include,
among others, marketing, customer service, and product development:
    •    Marketing. Eighty seven percent (77%) of large retailers are
         sharing social media insight with their marketing department.
         Marketing departments can use social media insight to coordinate
         and execute campaigns targeted specifically to active social media
         users who, through their social media activity, show a dedicated
         interest in their organization or particular product.


© 2010 Aberdeen Group.                                                                     Telephone: 617 854 5200
www.aberdeen.com                                                                                 Fax: 617 723 7897
Social Media ROI: Customer Engagement, Brand Interactivity, and Revenue
Page 4




    •   Customer service. Forty six percent (46%) of large retailers are
        sharing social media insight with their customer service department.
        Customer service departments can use social media insight to
        respond to specific customer issues and challenges. Increasingly,
        these issues and complaints are articulated not on a phone call to a
        customer service representative, but on a public social media
        channel, such as Facebook or Twitter.
    •   Product development. Twenty three percent (23%) of large
        retailers are sharing social media insight with their product
        development departments. Product development managers can use
        social media insight to identify potential products or new features /
        functionality that is highly relevant to and desirable among their
        target consumer base.

Small- to Mid-Size Retailers Prioritize Social Media
Monitoring
According to Aberdeen data, 38% of SME retailers have prioritized social
media monitoring as the most significant part of their social media initiative.
Social media monitoring tools provide a way to capture and analyze
customer comments, both positive and negative. Although these tools may
not be able to change stated opinion, they do allow retailers to monitor and
react to these opinions to the best of their ability. Comments from an
unhappy customer, for example, may be dissipated by solution suggestions
from the retailer. Conversely, positive feedback may be captured and
highlighted in a retailer's marketing programs, or linked directly to a specific
product offering. In either case, the ability to monitor this process can
provide valuable feedback as to which specific products, campaigns, or
policies are likely to succeed on a long-terms basis, and which are in need of
adjustment. One example of effective social media monitoring is by apparel
retailer Chico's, whose social media program monitors and reports
potential increased sales from different existing and potential product
offerings.

              Aberdeen Insights — KPIs for Social Media

 According to Aberdeen data, the majority of social media initiatives are still
 in their relative infancy. This is not surprising considering the relative
 infancy of social media technology as a whole. Fifty percent (50%) of these
 initiatives are two years old or less. As such, it is not surprising to see a
 desire to move social media from simple adoption to a tool that is justified
 through the ability to quantify increased sales and influenced opinions. In
 fact, one of the top three actions associated with social media initiatives is
 to define KPIs relevant to measuring the success of social media initiatives
 (25%), as shown in Figure 2. However, for retailers, this is easier said than
 done. More than half of respondents (56%) indicated that they are unable
 to quantify the effect of social media on their organization, and an
 additional 24% indicated "gut feel" measurement.
                                                                       continued

© 2010 Aberdeen Group.                                                             Telephone: 617 854 5200
www.aberdeen.com                                                                         Fax: 617 723 7897
Social Media ROI: Customer Engagement, Brand Interactivity, and Revenue
Page 5




                Aberdeen Insights — KPIs for Social Media

 Retailers are also undecided as to which specific KPIs are relevant to
 their social media initiatives. According to Aberdeen data, quality of
 consumer insights, number of repeat visitors, and quantity and quality of
 new sales leads were all within 12 percentage points of each other
 (respondents were asked to rate on a 1 to five scale which KPIs had the
 most social media measurement relevance). Granted, the usefulness of a
 particular KPI is likely to differ from one retailer to another. However,
 retailers would be wise to explore which KPI provides the most value to
 the retailer, and use accordingly.

 Figure 3: Top Social Media KPIs for Retailers

        Quality of customer insights                                       43%



           Number of repeat visitors                                  39%



          Quality of new sales leads                                 36%



        Quantity of new sales leads                            31%



              Number of comments                    17%



              Frequency of postings           11%


                                       0%   10%     20%    30%       40%     50%

                                                  Source: Aberdeen Group, August 2010


Executive-level Support Tops Key Social Media
Capabilities
According to Aberdeen research, four key capabilities have emerged as top
strategies retailers are embracing to enhance their social media initiatives
(Figure 4). These include:
    •   Executive-level support for social media initiatives (64%)
    •   Dedicated resources/team devoted to social media activities (47%)
    •   Marketing executives meet/talk regularly with customers to
        ascertain needs (33%)
    •   Clear understanding of which marketing channels are most effective
        (31%)
© 2010 Aberdeen Group.                                                                  Telephone: 617 854 5200
www.aberdeen.com                                                                              Fax: 617 723 7897
Social Media ROI: Customer Engagement, Brand Interactivity, and Revenue
Page 6




Executive-level Support for Social Media
Executive-level support for social media initiatives is a top adoption
capability (64%). Given the difficulty in obtaining a quantifiable ROI from
social media, it is not surprising to see retailers start their social media
initiatives with an executive-level sponsor. Top-level retail executives have
the benefit of insight from not only one departmental perspective, but from
an enterprise-wide perspective as well. For example, if a marketing
department can only articulate the benefits of social media in terms of
increased estimated campaign exposure, an executive-level sponsor will be
able to supplement this information with insight regarding the effect on
customer service, product development, sales, etc. The result is an easier
justification for increased investment of future initiatives.
Dedicated Resources / Team Devoted to Social Media
Nearly half of all retailers (47%) are focusing on allocating dedicated
resources to social media. These resources include not only technology             "We see a direct link between
investments, but human capital support as well. This human capital may be          social media and increased
tasked with monitoring social media pages for positive or negative feedback.       customer loyalty. [For the
They may also be tasked with coordinating marketing campaigns with                 purposes of building loyalty],
increased interest in a particular product or service. For example, if apparel     customers seamlessly turned
                                                                                   towards twitter, and ‘Twelp
retailer Wet Seal is monitoring increased interest in a particular outfit that
                                                                                   force’ helps [Best Buy] on a
their virtual "try-on" program has yielded, they may choose to offer a             real-time basis by responding
specific promotion tailored around those products. Given that less than half       to 30,000 inquiries in one
of small, medium, and large retailers are currently utilizing automatic social     month.”
media monitoring programs (Figure 2), dedicated human capital resources
may be necessary to record such interest with appropriate depth of                                   ~ Matt Smith
                                                                                        Vice President of Financial
information, and coordinate this activity with existing marketing programs.
                                                                                               Services Marketing,
Social Media Marketing Communication with Consumers                                                       Best Buy
Thirty-three percent (33%) of retailers are tasking their marketing
executives with establishing regular communications with customers to
ascertain their social media needs. An apparel retailer, for example, may
seek to understand which technologies are preferred by the consumer to
best interact with products (video, product try-on, data from the
manufacturer, etc). They may also wish to understand which method of
consumer expression is easiest for the consumer to participate in (ratings
and reviews, commenting, blogging, etc.). Similarly, electronics retailers may
need to understand specific required types of product data and interactivity
that needs to be available in the social media space (product measurements,
demos, virtual product interaction, etc.) Whatever the type of retailer,
having a regular interaction with consumers enables retailers to provide a
social media platform that is conducive to their needs.
Identification of Highly Effective Marketing Channels
Thirty one percent (31%) of retailers are focused on understanding which
social media marketing channels are the most effective. Considering the
myriad of different forms of social media that are available to retailers, it is
important to identify which particular channel is most effective for use as a
marketing tool. Home Depot and UPS, for example, both heavily use micro-
© 2010 Aberdeen Group.                                                                   Telephone: 617 854 5200
www.aberdeen.com                                                                               Fax: 617 723 7897
Social Media ROI: Customer Engagement, Brand Interactivity, and Revenue
Page 7




blogging to monitor and respond to customer service challenges. Other
retailers, such as Barneys New York, prioritize social media fan pages to
push their product promotions, including the regular "Barney's Babble"
outreach program.

Figure 4: Top Social Media Capabilities
      Executive-level support for Social Media
                                                                                     64%
                                    initiatives

   Dedicated resource/team devoted to social
                                                                            47%
                            media activities

Marketing executives meet / talk regularly with
                                                                     33%
               customers to ascertain needs

      Clear understanding of which marketing
                                                                    31%
                 channels are most effective

           Regular monitoring of social media
                                                                   30%
           performance against costs/budget

    Analytics resources devoted to leveraging
                                                                 26%
                           social media data

                                                  0%   10% 20% 30% 40% 50% 60% 70%

                                                        Source: Aberdeen Group, August 2010

Social Media Enablers Focus on Visual and Literary
Coordination
According to Aberdeen research, retailers place high value in the use of
visual and literary interactivity when it comes to social media. Social
networks were the number one social media enabler (85%), as shown in
Figure 5. Additionally, micro-blogging, a way to mass distribute short
announcements, was the second most popular medium at 51% of
respondents, as well as blogging, at 43% of respondents.
Social Networks
Social networks such as Facebook and MySpace have the distinct advantage
of both visual and literary display interactivity. Retailers can take advantage
of this medium to provide visual descriptions, such as pictures and videos,
to promote their product. At the same time, they can provide
accompanying text describing the product and specific promotions that may
support its sale. Most retailers use this environment to offer brief product
and sale information, and then link back to their own e-commerce site to
provide more information and complete the transaction. Some retailers,
however, such as 1-800-FLOWERS, allow customers to buy products
directly from these social networks. As retailers continue to find new ways
of interacting with consumers using social media, the 1-800-FLOWERS
model may become more pervasive. In fact, many point-solution providers
are emerging that specialize in e-commerce/social network integration, as
well as an increased focus from best-of-breed platform providers.

© 2010 Aberdeen Group.                                                                        Telephone: 617 854 5200
www.aberdeen.com                                                                                    Fax: 617 723 7897
Social Media ROI: Customer Engagement, Brand Interactivity, and Revenue
Page 8




Micro-blogging
Micro-blogging is a social media tool (such as Twitter) based exclusively on
literary interaction with the consumer. Unlike sites such as Facebook and
Myspace, this tool is dependant on short phrases or sentences designed to
attract attention to sales promotions, new events, and product upgrades.
The tool also works as a medium of approval/disapproval from consumers,
which is where the benefits of social media monitoring come in. One such
case is Dell, which uses monitoring to scan customer opinions articulated in
micro-blogging forums (see 'Social Media Monitoring', Page 5).
Blogging
Blogging is an expanded use of literary cross-communication between
retailer and consumer. Unlike micro-blogging, which limits its writer to a
certain number of characters, blogging allows for unlimited commentary.
Many retailers, such as Amazon.com, offer consumers unlimited blogging
opportunities (whether positive or negative). Additionally, many third party
sites have emerged that are dedicated to product commenting. Either way,
many consumers are now willing to take part in the blogging process post-
transaction, which forces retailers to actively monitor and respond to this
commentary accordingly.

Figure 5: Top Social Media Enablers

    Social networks                                                          85%


      Microblogging                                      51%


           Blogging                                43%


Online video Widgets                          38%


Product commenting                            38%


                      0%   10%   20%   30%   40%    50%    60%   70%   80%   90%

                                              Source: Aberdeen Group, August 2010

Conclusion: Retailers Must Take Social Media
Interaction to the Next Level
The fact that 85% of retailers are investing time and money in social media
participation speaks volumes about its perceived value for brand
management and its potential as a key retail marketing medium. Indeed, of
those investing in social media initiatives, a near universal 92% of
respondents are sharing social media data with their marketing departments,
and a smaller but still significant number are sharing this same data with
customer service (53%) and product development (36%) departments.
Despite this pervasiveness, however, just 15% of respondents indicated they
have found ways to validate the ROI from their social media initiatives.

© 2010 Aberdeen Group.                                                              Telephone: 617 854 5200
www.aberdeen.com                                                                          Fax: 617 723 7897
Social Media ROI: Customer Engagement, Brand Interactivity, and Revenue
Page 9




Although this can be partially attributed to the infancy of social media in
general, it does not mean that this initiative does not need to be quantified.
Quantification not only helps retailers understand specifically where their
social media successes exist, but it also helps justify additional expenses
both internally to executive management, and externally for stock holder
and other stakeholders. Fortunately, social media is offered in different
forms, such as blogs, social pages, ratings and reviews, Wikis, videos, etc.,
leaving room for creative interpretation. Assuming retailers engage their
social media strategy in a beneficial and quantifiable way, increased customer
satisfaction, brand value, and revenue are all possible results.
Recommendations for Action
Aberdeen data suggests mid-market retailers take the following steps
toward achieving internal process management performance:
    •   Monitor potential brand management threats to mitigate a
        negative impact on future sales. Currently, 78% of retailers do
        not have a formal process in place to detect potential threats to
        their company's brand reputation. Given that social media is an ideal
        forum for the disgruntled shopper, and given that there is no way to
        fact-check any comments made, retailers must be acutely aware of
        what is being said about their brand, and determine a way to
        mitigate damage. While it is difficult to remove negative comments
        entirely, a monitoring strategy would allow retailers to identify the
        extent of the comments, and offer suggestions to make a difficult
        situation more palatable.
    •   Integrate analytics resources into social media initiatives to
        increase organizational visibility. Just 26% of retailers are
        utilizing analytics resources devoted to leveraging social media data.
        Considering that nearly half of retailers (47%) are making social
        media an enterprise-wide strategy, analytics resources would help
        to facilitate this process by centralizing and breaking down this data
        into relevant, actionable conclusions to be shared with relevant
        stakeholders. Although 24% of retailers are still relying on "gut feel"
        decision-making, analytics resources can be used to centralize any
        conclusions, and distribute accordingly. Analytics tools can also
        make the sharing process a regular, defined initiative, which is a
        current deficiency for 76% of retail respondents.
    •   Embrace non-traditional social media tools for an
        increased competitive advantage. According to Aberdeen data,
        just 17% of retailers are using document sharing, 15% are using
        podcasting, and 14% are using social bookmarking. It is
        understandable that the vast majority (85%) of retailers are
        embracing social pages such as Facebook and Twitter, given their
        popularity. However, other channels that are currently not in the
        mainstream could be used as a competitive advantage (a top
        pressure by 47% of respondents). Podcasting of expert testimonials,
        for example, can be used to support product descriptions. Similarly,

© 2010 Aberdeen Group.                                                            Telephone: 617 854 5200
www.aberdeen.com                                                                        Fax: 617 723 7897
Social Media ROI: Customer Engagement, Brand Interactivity, and Revenue
Page 10




            document sharing can be utilized to provide instruction books and
            other relevant product data for would-be purchasers, either in the
            product description, or in a forum designed to increase product
            awareness. While Facebook and Twitter may seem like obvious first
            starts for some retailers, they must not forget that differentiation is
            what will set them apart from their competitors.
      •     Consider customer engagement frequency as a potential
            KPI for increased customer visibility. According to Aberdeen
            data, just 11% of retailers consider "frequency of postings" as a top
            social media KPI. This is surprising, considering that the more
            frequent a comment is made, the more relevance both the message
            and the medium will carry. Granted, there are other KPIs that have
            similar importance, such as quality of comments, quantity and quality
            of social media-related sales leads, etc. However, retailers would be
            wise not to dismiss this metric as they try to determine which social
            media channel has the most relevance for their organization.
      •     Examine benefits of re-platforming for increased focus on
            customer interactivity. According to the August 2009 High
            Definition Retail E-Commerce benchmark report, 38% of retailers who
            have an existing social media initiative are re-platforming their
            existing e-commerce site. Re-platforming an e-commerce site
            provides an opportunity for retailers to re-address site design,
            merchandising strategies and other related functionalities to support
            increased consumer interaction, personalization, as well as affinity-
            based selling (commonly used for social media programs).
For more information on this or other research topics, please visit
www.aberdeen.com.

                                            Related Research
 Restocking the Marketer's Toolbox in the                    Retail E-Commerce Analytics: Cornerstone
 Digital Age: June, 2010                                     of the Complete Customer Profile;
 High Definition Retail E-Commerce:                          February, 2010
 Higher Customer Conversions Through                         Online Retailers Embrace E-commerce
 Effective Online Merchandising; August                      Analytics for Increased Visibility into
 2009                                                        Customer Activity; July 2010
 Author: Greg Belkin, Research Analyst, Retail, Hospitality, and Banking
 (greg.belkin@aberdeen.com)
Since 1988, Aberdeen's research has been helping corporations worldwide become Best-in-Class. Having
benchmarked the performance of more than 644,000 companies, Aberdeen is uniquely positioned to provide
organizations with the facts that matter — the facts that enable companies to get ahead and drive results. That's why
our research is relied on by more than 2.2 million readers in over 40 countries, 90% of the Fortune 1,000, and 93% of
the Technology 500. As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the
global direct and targeted marketing company. Aberdeen's analytical and independent view of the "customer
optimization" process of Harte-Hanks (Information – Opportunity – Insight – Engagement – Interaction) extends the
client value and accentuates the strategic role Harte-Hanks brings to the market. For additional information, visit
Aberdeen http://www.aberdeen.com or call (617) 723-7890, or to learn more about Harte-Hanks, call (800) 456-9748
or go to http://www.harte-hanks.com. This document is the result of primary research performed by Aberdeen Group.
Aberdeen Group's methodologies provide for objective fact-based research and represent the best analysis available
at the time of publication. Unless otherwise noted, the entire contents of this publication are copyrighted by Aberdeen
Group, Inc. and may not be reproduced, distributed, archived, or transmitted in any form or by any means without
prior written consent by Aberdeen Group, Inc.                           010110a

© 2010 Aberdeen Group.                                                                                                    Telephone: 617 854 5200
www.aberdeen.com                                                                                                                Fax: 617 723 7897
Social Media ROI: Customer Engagement, Brand Interactivity, and Revenue
Page 11




                   Featured Underwriters
This research report was made possible, in part, with the financial support
of our underwriters. These individuals and organizations share Aberdeen’s
vision of bringing fact based research to corporations worldwide at little or
no cost. Underwriters have no editorial or research rights and the facts and
analysis of this report remain an exclusive production and product of
Aberdeen Group. Solution providers recognized as underwriters were
solicited after the fact and had no substantive influence on the direction of
this report. Their sponsorship has made it possible for Aberdeen Group to
make these findings available to readers at no charge.




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© 2010 Aberdeen Group.                                                          Telephone: 617 854 5200
www.aberdeen.com                                                                      Fax: 617 723 7897
Social Media ROI: Customer Engagement, Brand Interactivity, and Revenue
Page 12




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© 2010 Aberdeen Group.                                                          Telephone: 617 854 5200
www.aberdeen.com                                                                      Fax: 617 723 7897
Social Media ROI: Customer Engagement, Brand Interactivity, and Revenue
Page 13




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restaurants and industry partners from the U.S. and more than 45 countries
abroad. In the U.S., NRF represents the breadth and diversity of an industry
with more than 1.6 million American companies that employ nearly 25
million workers and generated 2009 sales of $2.3 trillion. www.nrf.com




© 2010 Aberdeen Group.                                                          Telephone: 617 854 5200
www.aberdeen.com                                                                      Fax: 617 723 7897

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Socialmedia roi

  • 1. Social Media ROI Customer Engagement, Brand Interactivity, and Revenue August 2010 Greg Belkin ~ Underwritten, in Part, by ~
  • 2. August, 2010 Social Media ROI: Customer Engagement, Brand Interactivity, and Revenue Between July and August 2010, Aberdeen surveyed 65 retailers regarding Analyst Insight their use of social media marketing to interact with customers (see Aberdeen’s Insights provide the definition in sidebar). Results indicate that 85% of these organizations have analyst perspective of the an initiative in place to help manage brand reputation and encourage research as drawn from an revenue-building consumer interactivity. Despite its pervasiveness, however, aggregated view of the research significant challenges remain to achieve a full Return on Investment (ROI) surveys, interviews, and from social media adoption. Fifty six percent (56%) of retailers have data analysis indicated that they are unable to quantify the effect of social media. The purpose of this Analyst Insight is to assess the different motivational factors and corresponding actions inherent in a social media marketing initiative, and the strategies retailers are taking to yield ROI benefits from these initiatives. Social Media for Shopping and Research Top Retail Adoption Pressures Social Media Marketing for Retailers Defined In the face of difficult market conditions, including a sluggish lift in consumer spend, retailers are noting an increasingly option-conscious consumer who Aberdeen defines social media has new sources of information to utilize before making a purchase. For marketing as the dynamic exchange of information example, according to Aberdeen's August 2009 Retail E-Commerce between a retailer and benchmark, the top pressure driving Best-in-Class retailers to improve their consumer via an online e-commerce functionality is low customer loyalty (40%). Given this reality, it community destination, such as is no wonder that increased consumer utilization of social media as a a company blog, on-line forum, primary shopping vehicle was the top adoption pressure (53%), as shown in website or any other type of Figure 1. social media outlet or tool. This dynamic content includes Figure 1: Top Retail Social Media Pressures (but is not limited to): √ Blogging Increased consumer utilization of social media as primary shopping vehicle 53% √ Micro-blogging √ Product commenting Increased competitive use of social media 47% √ Social networks (i.e. LinkedIn, Facebook) √ Online video widgets Rapidly changing customer affinities 28% √ Presentation or document sharing Decreased consumer response to existing marketing campaigns 19% √ Social bookmarking √ Podcasting 0% 10% 20% 30% 40% 50% 60% √ Product ratings Source: Aberdeen Group, August 2010 © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 3. Social Media ROI: Customer Engagement, Brand Interactivity, and Revenue Page 2 The increased utilization of social media has challenged retailers to rethink the way they interact with their customers. Using traditional media such as a web site, or a product description or image, allows retailers to control the look, feel and messaging of the consumer-retailer interaction. Social media, on the other hand, forces retailers to share this real estate with consumers, who can offer a widely varying set of opinions. In some cases, such as with popular social pages, retailers must also share this space with their competitors, who are fighting for an equal share of consumer attention. In either case, retailers must make the best use of this space for the highest possible appeal. Fortunately, there are many different ways to accomplish this task. Social media monitoring, for example, allows retailers to appropriately track and respond to the way consumers articulate their experiences. Similarly, virtual product manipulation may also encourage consumers to spend more time with a particular retailer. Apparel retailer Wet Seal, for example, has made use of a virtual apparel try-on program, whereby consumers can match pieces of an outfit together, and post these pictures to their own sites to gauge opinion. Whatever the strategy, the fact that more than half of respondents identify this as a top pressure speaks volumes as to the pervasiveness of social media as tool of choice for making (or researching) an online purchase. Another major business pressure associated with social media is from a competitive standpoint. Retailers that regularly compete with each other can use this medium to provide specialized marketing or product outreach. Indeed, increased competitive use of social media was the second highest adoption pressure among retailers (47%). Due to the fact that social media initiatives can be executed in different forms, retailers can be creative with how they use social media to compete. Two examples of successful social media usage are Target and Home Depot: • Target utilized a video of The Like, a popular girl band, preparing "Our virtual runway within for a concert in their hotel room proudly donning a signature social media pages generates clothing line. The retailer relied on the success of that viral three times the existing amount marketing initiative as the video made the rounds on YouTube, of customer comments than from fan page interaction collecting thousands of hits over a short period of time. This gives alone." them competitive differentiation against Wal-Mart by allowing their younger customer groups to connect pop culture interests and ~ John Kubo internet video downloading to product catalogs and promotions. Chief Information Officer Wet Seal • Home Depot has successfully integrated customer service and promotion delivery through the use of Twitter. With nearly 22,000 followers, Home Depot promotes in-store and web specials, and responds in real-time to customer complaints or suggestions. Home Depot's social media program competes with Lowe's social media strategy, but the difference is Home Depot's high level of consumer pervasiveness, and the ability to connect social interactivity with © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 4. Social Media ROI: Customer Engagement, Brand Interactivity, and Revenue Page 3 local representatives who are available for specialized, region- specific support. Social Media Adoption Strategies Vary by the Size of the Retailer According to Aberdeen data, no single particular social media strategy fits all Aberdeen's Definition of retailers. Given that social media retailing is relatively new (50% of initiatives Company Size are less than two years old), retailers are likely to have different priorities as In terms of company size, they continue to invest in this new medium. For example, Aberdeen data Aberdeen separates retail reveals that the size of a retailer makes an impact on how social media is respondents into two different utilized. The top social media action for Small to Midsize Enterprises (SMEs) categories: Small to Midsize in the retail sector (see definition in sidebar), is a focus on social media Enterprises (SMEs), and Large monitoring (58%). For larger retailers, on the other hand, the top strategic enterprises: action is to focus on establishing an enterprise-wide social media strategy √ SMEs: Retailers with annual (45%), as shown in Figure 2. revenues of $1 billion or less √ Large retailers: annual Figure 2: Top Social Media Initiative Actions revenues above US $1 billion Deploy social media monitoring: own e- 58% commerce domain, 18% external sites Establish a formalized 29% enterprise-wide social media strategy 45% 0% 10% 20% 30% 40% 50% 60% 70% n=43 SME Retailers Large Retailers Source: Aberdeen Group, August 2010 Large Retailers Focus on Enterprise-wide Social Media Planning According to Aberdeen data, larger size retailers have prioritized an enterprise-wide involvement in social media planning (45%). Considering that different departments can have different interests in how social media is utilized, it is no wonder that these retailers are seeking input from various different parts of their enterprise. These different departments can include, among others, marketing, customer service, and product development: • Marketing. Eighty seven percent (77%) of large retailers are sharing social media insight with their marketing department. Marketing departments can use social media insight to coordinate and execute campaigns targeted specifically to active social media users who, through their social media activity, show a dedicated interest in their organization or particular product. © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 5. Social Media ROI: Customer Engagement, Brand Interactivity, and Revenue Page 4 • Customer service. Forty six percent (46%) of large retailers are sharing social media insight with their customer service department. Customer service departments can use social media insight to respond to specific customer issues and challenges. Increasingly, these issues and complaints are articulated not on a phone call to a customer service representative, but on a public social media channel, such as Facebook or Twitter. • Product development. Twenty three percent (23%) of large retailers are sharing social media insight with their product development departments. Product development managers can use social media insight to identify potential products or new features / functionality that is highly relevant to and desirable among their target consumer base. Small- to Mid-Size Retailers Prioritize Social Media Monitoring According to Aberdeen data, 38% of SME retailers have prioritized social media monitoring as the most significant part of their social media initiative. Social media monitoring tools provide a way to capture and analyze customer comments, both positive and negative. Although these tools may not be able to change stated opinion, they do allow retailers to monitor and react to these opinions to the best of their ability. Comments from an unhappy customer, for example, may be dissipated by solution suggestions from the retailer. Conversely, positive feedback may be captured and highlighted in a retailer's marketing programs, or linked directly to a specific product offering. In either case, the ability to monitor this process can provide valuable feedback as to which specific products, campaigns, or policies are likely to succeed on a long-terms basis, and which are in need of adjustment. One example of effective social media monitoring is by apparel retailer Chico's, whose social media program monitors and reports potential increased sales from different existing and potential product offerings. Aberdeen Insights — KPIs for Social Media According to Aberdeen data, the majority of social media initiatives are still in their relative infancy. This is not surprising considering the relative infancy of social media technology as a whole. Fifty percent (50%) of these initiatives are two years old or less. As such, it is not surprising to see a desire to move social media from simple adoption to a tool that is justified through the ability to quantify increased sales and influenced opinions. In fact, one of the top three actions associated with social media initiatives is to define KPIs relevant to measuring the success of social media initiatives (25%), as shown in Figure 2. However, for retailers, this is easier said than done. More than half of respondents (56%) indicated that they are unable to quantify the effect of social media on their organization, and an additional 24% indicated "gut feel" measurement. continued © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 6. Social Media ROI: Customer Engagement, Brand Interactivity, and Revenue Page 5 Aberdeen Insights — KPIs for Social Media Retailers are also undecided as to which specific KPIs are relevant to their social media initiatives. According to Aberdeen data, quality of consumer insights, number of repeat visitors, and quantity and quality of new sales leads were all within 12 percentage points of each other (respondents were asked to rate on a 1 to five scale which KPIs had the most social media measurement relevance). Granted, the usefulness of a particular KPI is likely to differ from one retailer to another. However, retailers would be wise to explore which KPI provides the most value to the retailer, and use accordingly. Figure 3: Top Social Media KPIs for Retailers Quality of customer insights 43% Number of repeat visitors 39% Quality of new sales leads 36% Quantity of new sales leads 31% Number of comments 17% Frequency of postings 11% 0% 10% 20% 30% 40% 50% Source: Aberdeen Group, August 2010 Executive-level Support Tops Key Social Media Capabilities According to Aberdeen research, four key capabilities have emerged as top strategies retailers are embracing to enhance their social media initiatives (Figure 4). These include: • Executive-level support for social media initiatives (64%) • Dedicated resources/team devoted to social media activities (47%) • Marketing executives meet/talk regularly with customers to ascertain needs (33%) • Clear understanding of which marketing channels are most effective (31%) © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 7. Social Media ROI: Customer Engagement, Brand Interactivity, and Revenue Page 6 Executive-level Support for Social Media Executive-level support for social media initiatives is a top adoption capability (64%). Given the difficulty in obtaining a quantifiable ROI from social media, it is not surprising to see retailers start their social media initiatives with an executive-level sponsor. Top-level retail executives have the benefit of insight from not only one departmental perspective, but from an enterprise-wide perspective as well. For example, if a marketing department can only articulate the benefits of social media in terms of increased estimated campaign exposure, an executive-level sponsor will be able to supplement this information with insight regarding the effect on customer service, product development, sales, etc. The result is an easier justification for increased investment of future initiatives. Dedicated Resources / Team Devoted to Social Media Nearly half of all retailers (47%) are focusing on allocating dedicated resources to social media. These resources include not only technology "We see a direct link between investments, but human capital support as well. This human capital may be social media and increased tasked with monitoring social media pages for positive or negative feedback. customer loyalty. [For the They may also be tasked with coordinating marketing campaigns with purposes of building loyalty], increased interest in a particular product or service. For example, if apparel customers seamlessly turned towards twitter, and ‘Twelp retailer Wet Seal is monitoring increased interest in a particular outfit that force’ helps [Best Buy] on a their virtual "try-on" program has yielded, they may choose to offer a real-time basis by responding specific promotion tailored around those products. Given that less than half to 30,000 inquiries in one of small, medium, and large retailers are currently utilizing automatic social month.” media monitoring programs (Figure 2), dedicated human capital resources may be necessary to record such interest with appropriate depth of ~ Matt Smith Vice President of Financial information, and coordinate this activity with existing marketing programs. Services Marketing, Social Media Marketing Communication with Consumers Best Buy Thirty-three percent (33%) of retailers are tasking their marketing executives with establishing regular communications with customers to ascertain their social media needs. An apparel retailer, for example, may seek to understand which technologies are preferred by the consumer to best interact with products (video, product try-on, data from the manufacturer, etc). They may also wish to understand which method of consumer expression is easiest for the consumer to participate in (ratings and reviews, commenting, blogging, etc.). Similarly, electronics retailers may need to understand specific required types of product data and interactivity that needs to be available in the social media space (product measurements, demos, virtual product interaction, etc.) Whatever the type of retailer, having a regular interaction with consumers enables retailers to provide a social media platform that is conducive to their needs. Identification of Highly Effective Marketing Channels Thirty one percent (31%) of retailers are focused on understanding which social media marketing channels are the most effective. Considering the myriad of different forms of social media that are available to retailers, it is important to identify which particular channel is most effective for use as a marketing tool. Home Depot and UPS, for example, both heavily use micro- © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 8. Social Media ROI: Customer Engagement, Brand Interactivity, and Revenue Page 7 blogging to monitor and respond to customer service challenges. Other retailers, such as Barneys New York, prioritize social media fan pages to push their product promotions, including the regular "Barney's Babble" outreach program. Figure 4: Top Social Media Capabilities Executive-level support for Social Media 64% initiatives Dedicated resource/team devoted to social 47% media activities Marketing executives meet / talk regularly with 33% customers to ascertain needs Clear understanding of which marketing 31% channels are most effective Regular monitoring of social media 30% performance against costs/budget Analytics resources devoted to leveraging 26% social media data 0% 10% 20% 30% 40% 50% 60% 70% Source: Aberdeen Group, August 2010 Social Media Enablers Focus on Visual and Literary Coordination According to Aberdeen research, retailers place high value in the use of visual and literary interactivity when it comes to social media. Social networks were the number one social media enabler (85%), as shown in Figure 5. Additionally, micro-blogging, a way to mass distribute short announcements, was the second most popular medium at 51% of respondents, as well as blogging, at 43% of respondents. Social Networks Social networks such as Facebook and MySpace have the distinct advantage of both visual and literary display interactivity. Retailers can take advantage of this medium to provide visual descriptions, such as pictures and videos, to promote their product. At the same time, they can provide accompanying text describing the product and specific promotions that may support its sale. Most retailers use this environment to offer brief product and sale information, and then link back to their own e-commerce site to provide more information and complete the transaction. Some retailers, however, such as 1-800-FLOWERS, allow customers to buy products directly from these social networks. As retailers continue to find new ways of interacting with consumers using social media, the 1-800-FLOWERS model may become more pervasive. In fact, many point-solution providers are emerging that specialize in e-commerce/social network integration, as well as an increased focus from best-of-breed platform providers. © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 9. Social Media ROI: Customer Engagement, Brand Interactivity, and Revenue Page 8 Micro-blogging Micro-blogging is a social media tool (such as Twitter) based exclusively on literary interaction with the consumer. Unlike sites such as Facebook and Myspace, this tool is dependant on short phrases or sentences designed to attract attention to sales promotions, new events, and product upgrades. The tool also works as a medium of approval/disapproval from consumers, which is where the benefits of social media monitoring come in. One such case is Dell, which uses monitoring to scan customer opinions articulated in micro-blogging forums (see 'Social Media Monitoring', Page 5). Blogging Blogging is an expanded use of literary cross-communication between retailer and consumer. Unlike micro-blogging, which limits its writer to a certain number of characters, blogging allows for unlimited commentary. Many retailers, such as Amazon.com, offer consumers unlimited blogging opportunities (whether positive or negative). Additionally, many third party sites have emerged that are dedicated to product commenting. Either way, many consumers are now willing to take part in the blogging process post- transaction, which forces retailers to actively monitor and respond to this commentary accordingly. Figure 5: Top Social Media Enablers Social networks 85% Microblogging 51% Blogging 43% Online video Widgets 38% Product commenting 38% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Source: Aberdeen Group, August 2010 Conclusion: Retailers Must Take Social Media Interaction to the Next Level The fact that 85% of retailers are investing time and money in social media participation speaks volumes about its perceived value for brand management and its potential as a key retail marketing medium. Indeed, of those investing in social media initiatives, a near universal 92% of respondents are sharing social media data with their marketing departments, and a smaller but still significant number are sharing this same data with customer service (53%) and product development (36%) departments. Despite this pervasiveness, however, just 15% of respondents indicated they have found ways to validate the ROI from their social media initiatives. © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 10. Social Media ROI: Customer Engagement, Brand Interactivity, and Revenue Page 9 Although this can be partially attributed to the infancy of social media in general, it does not mean that this initiative does not need to be quantified. Quantification not only helps retailers understand specifically where their social media successes exist, but it also helps justify additional expenses both internally to executive management, and externally for stock holder and other stakeholders. Fortunately, social media is offered in different forms, such as blogs, social pages, ratings and reviews, Wikis, videos, etc., leaving room for creative interpretation. Assuming retailers engage their social media strategy in a beneficial and quantifiable way, increased customer satisfaction, brand value, and revenue are all possible results. Recommendations for Action Aberdeen data suggests mid-market retailers take the following steps toward achieving internal process management performance: • Monitor potential brand management threats to mitigate a negative impact on future sales. Currently, 78% of retailers do not have a formal process in place to detect potential threats to their company's brand reputation. Given that social media is an ideal forum for the disgruntled shopper, and given that there is no way to fact-check any comments made, retailers must be acutely aware of what is being said about their brand, and determine a way to mitigate damage. While it is difficult to remove negative comments entirely, a monitoring strategy would allow retailers to identify the extent of the comments, and offer suggestions to make a difficult situation more palatable. • Integrate analytics resources into social media initiatives to increase organizational visibility. Just 26% of retailers are utilizing analytics resources devoted to leveraging social media data. Considering that nearly half of retailers (47%) are making social media an enterprise-wide strategy, analytics resources would help to facilitate this process by centralizing and breaking down this data into relevant, actionable conclusions to be shared with relevant stakeholders. Although 24% of retailers are still relying on "gut feel" decision-making, analytics resources can be used to centralize any conclusions, and distribute accordingly. Analytics tools can also make the sharing process a regular, defined initiative, which is a current deficiency for 76% of retail respondents. • Embrace non-traditional social media tools for an increased competitive advantage. According to Aberdeen data, just 17% of retailers are using document sharing, 15% are using podcasting, and 14% are using social bookmarking. It is understandable that the vast majority (85%) of retailers are embracing social pages such as Facebook and Twitter, given their popularity. However, other channels that are currently not in the mainstream could be used as a competitive advantage (a top pressure by 47% of respondents). Podcasting of expert testimonials, for example, can be used to support product descriptions. Similarly, © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 11. Social Media ROI: Customer Engagement, Brand Interactivity, and Revenue Page 10 document sharing can be utilized to provide instruction books and other relevant product data for would-be purchasers, either in the product description, or in a forum designed to increase product awareness. While Facebook and Twitter may seem like obvious first starts for some retailers, they must not forget that differentiation is what will set them apart from their competitors. • Consider customer engagement frequency as a potential KPI for increased customer visibility. According to Aberdeen data, just 11% of retailers consider "frequency of postings" as a top social media KPI. This is surprising, considering that the more frequent a comment is made, the more relevance both the message and the medium will carry. Granted, there are other KPIs that have similar importance, such as quality of comments, quantity and quality of social media-related sales leads, etc. However, retailers would be wise not to dismiss this metric as they try to determine which social media channel has the most relevance for their organization. • Examine benefits of re-platforming for increased focus on customer interactivity. According to the August 2009 High Definition Retail E-Commerce benchmark report, 38% of retailers who have an existing social media initiative are re-platforming their existing e-commerce site. Re-platforming an e-commerce site provides an opportunity for retailers to re-address site design, merchandising strategies and other related functionalities to support increased consumer interaction, personalization, as well as affinity- based selling (commonly used for social media programs). For more information on this or other research topics, please visit www.aberdeen.com. Related Research Restocking the Marketer's Toolbox in the Retail E-Commerce Analytics: Cornerstone Digital Age: June, 2010 of the Complete Customer Profile; High Definition Retail E-Commerce: February, 2010 Higher Customer Conversions Through Online Retailers Embrace E-commerce Effective Online Merchandising; August Analytics for Increased Visibility into 2009 Customer Activity; July 2010 Author: Greg Belkin, Research Analyst, Retail, Hospitality, and Banking (greg.belkin@aberdeen.com) Since 1988, Aberdeen's research has been helping corporations worldwide become Best-in-Class. Having benchmarked the performance of more than 644,000 companies, Aberdeen is uniquely positioned to provide organizations with the facts that matter — the facts that enable companies to get ahead and drive results. That's why our research is relied on by more than 2.2 million readers in over 40 countries, 90% of the Fortune 1,000, and 93% of the Technology 500. As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the global direct and targeted marketing company. Aberdeen's analytical and independent view of the "customer optimization" process of Harte-Hanks (Information – Opportunity – Insight – Engagement – Interaction) extends the client value and accentuates the strategic role Harte-Hanks brings to the market. For additional information, visit Aberdeen http://www.aberdeen.com or call (617) 723-7890, or to learn more about Harte-Hanks, call (800) 456-9748 or go to http://www.harte-hanks.com. This document is the result of primary research performed by Aberdeen Group. Aberdeen Group's methodologies provide for objective fact-based research and represent the best analysis available at the time of publication. Unless otherwise noted, the entire contents of this publication are copyrighted by Aberdeen Group, Inc. and may not be reproduced, distributed, archived, or transmitted in any form or by any means without prior written consent by Aberdeen Group, Inc. 010110a © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 12. Social Media ROI: Customer Engagement, Brand Interactivity, and Revenue Page 11 Featured Underwriters This research report was made possible, in part, with the financial support of our underwriters. These individuals and organizations share Aberdeen’s vision of bringing fact based research to corporations worldwide at little or no cost. Underwriters have no editorial or research rights and the facts and analysis of this report remain an exclusive production and product of Aberdeen Group. Solution providers recognized as underwriters were solicited after the fact and had no substantive influence on the direction of this report. Their sponsorship has made it possible for Aberdeen Group to make these findings available to readers at no charge. J.D. Power Web Intelligence: Using Social Media to Drive Business Insights For more than 40 years, J.D. Power and Associates has been delivering voice of the customer insights to global businesses. J.D Power Web Intelligence combines that experience with patent-pending technology to turn millions of online consumer conversations into insights about consumers, trends, brands and products. From our Intelligent Social Media Listening tools to our Tribe Intelligence consumer segmentation, J.D. Power Web Intelligence unique combination of technology and industry expertise helps companies use social media research to drive decisions about market trends, understand how to reach a particular segment of consumer or inform new product development. J.D. Power Web Intelligence offers a way to turn millions of consumer conversations into business insights. For additional information on J.D. Power Web Intelligence: 10225 Westmoor Drive Suite 325 Westminster, CO 80021 303.217.8271 www.jdpowerwebintelligence.com Todd_Morin@jdpa.com © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 13. Social Media ROI: Customer Engagement, Brand Interactivity, and Revenue Page 12 Venda is the leading global provider of onDemand eCommerce solutions and is the consistent choice of eCommerce leaders in the apparel, electronics, entertainment, and gift verticals. Venda’s unique business model eliminates the economic, technology, and implementation risks which typically challenge sophisticated eCommerce deployments, while providing rich merchandising features and full pricing/cost transparency. In today’s challenging retail climate, intelligent merchandising tools are crucial to conversion, revenue-growth and profitability. With intelligent merchandising tools, built-in, Venda’s Enterprise eCommerce platform ensures seamless operation, zero integration headaches and a lower Total Cost of Ownership (TCO) than “bolt-on” merchandising solutions. Comprehensive merchandising tools in a world-class platform. For additional information on Venda: 1500 Broadway, 18th floor New York, NY 10036 212.808.4004 x1001 www.venda.com jmax@venda.com © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897
  • 14. Social Media ROI: Customer Engagement, Brand Interactivity, and Revenue Page 13 Featured Association Partner As the world's largest retail trade association and the voice of retail worldwide, the National Retail Federation's global membership includes retailers of all sizes, formats and channels of distribution as well as chain restaurants and industry partners from the U.S. and more than 45 countries abroad. In the U.S., NRF represents the breadth and diversity of an industry with more than 1.6 million American companies that employ nearly 25 million workers and generated 2009 sales of $2.3 trillion. www.nrf.com © 2010 Aberdeen Group. Telephone: 617 854 5200 www.aberdeen.com Fax: 617 723 7897