Buzz Quotient: Measuring The Social Media ROI

Organizations are experimenting with Social Media Platforms and plans. However, after the initial experimentation, one has to quickly evaluate Social Media’s contribution to business, performance vis-a-vis other channels and establish best practices guidelines.

Social Media is not a sales channel and that makes measuring the impact on bottom line challenging. Social Media presence helps improve the traffic, conversions and revenue on other sales channels and also supports marketing, branding and CRM initiatives. The tangible and intangible contribution of Social Media to Marketing goals has to quantified and factored ito measure the true ROI on Social Media investments.

Here is the 5 step process I suggest to measure the Impact of Social Media and ROI on the Social Media Spend.

Set Social Media Expectations and Goals

Can social media drive sales? Is there a correlation between followers on Facebook and traffic to the website? Can Twitter help sell overstocked items? These are few burning questions for the top management and the marketing teams. The first step in the process of measuring the ROI is setting the Social Media Expectations and Goals. Define your objective and expectation from the Social Media. It is also important to define program Success Matrix at this stage. Starting with a clear mandate is a good idea.

For example, if you want to build  brand awareness, use Social media as a CRM tool and boost online sales you could start with goals statement that reads ” The Social Media campaign will help build a community of customers and potential customers; help understand customer’s need and pain areas better, endorse Brand Positioning, enable crowd-source innovation and augment online online sales. In the first 6 months we will build critical membership/ readership across Blogs, Facebook, Twitter, YourTube, Forums, Question and Answer websites. In 6th thru 9th month we will evaluate these platforms on the following parameters: Reach, Engagement, Revenue, Sentiments, Branding and investment

Create the Social and Business data correlation framework

social

To record measure and improve the Social Media campaign you would need to mash Social data with data from other channels. Mashing Social Web and business data requires a robust analytics and reporting system. You may need to tweak your present analytics tool to accommodate Social data.  For example, your existing analytics may not support mentions on a platform and the associate sentiments.

Data co-relation will help justify the investment on Social media. For example, if you want to measure the impact of social media on online sales you would need to

  • Track Traffic from social platforms through the buying process. Sale may not happen in the first visit. (Cookie?)
  • Import this data into your analytics and reporting tool.
  • Calculate the lifetime value of a customer
  • Compare it others channels: search, affiliate etc.

If you want to measure the impact on Brand awareness, you would need to track

  • Brand Mentions in discussions across all platforms ( social and otherwise)
  • Sentiments of the conversation (Positive, Neutral, Negative)
  • Contribution of Social traffic to total Traffic
  • Impact on Direct Traffic

It’s important to map each goal with relevant matrices.
Identify Social Media Data points and Sentiment Analysis Framework

The next step is identifying data points and data sources for the Social Media campaign. You need to measure and record social media information like # followers,  # mentions ( with links and without links), # comments, competition’s data and your share of conversation.

Manual monitoring and recording  of this data is tedious and impractical. However, a number of  tools are now available to monitor, measure and record this information. However, you could  start with the free ones like:

  • Google Alerts
  • Twitter Search
  • TweetDeck
  • Seesmic
  • Technorati

Once you have the data you need to analyze the sentiments associated with the comments and mentions. Sentiment analysis involves filtering the positive ( Good service, Helpful Representative etc.) and negative mentions ( Service Sucks, Non Responsive etc) and assigning a weightage that reflects the communication intensity.

Adding weightage helps rationalize Social Media and Business data to a common scale. Adding weightage could be a bit tricky and the process evolves over a period of time.

Account for Branding, PR and Opportunity.

Social Platforms help Brands and Business get closer to the consumers and  create recall, loyalty and community. Hence it id important to factor in the intangible impact of the social media campaign.

If you are running a print/ online campaign say on Time Magazine, Wall Street Journal or The Economic Times what is your cost per reader? And how does it compare if you reach out to their communities on Facebook  Time Magazine, Wall Street Journal, The Economic times? Account for free visibility and reach.

How does the cost of running a PPC campaign on Google compare with the cost of running targeted paid ads on Facebook?

Over a period of time you would need to develop a formula that quantifies each interaction/ mention and follower on Social Media Platforms and merge this information with business analytics.

Merging Social data with Web and Business data will give you an insight into the opportunity.

Analyze and Report

The last step in the process is collating the data and putting it in a format that gives perspective and helps make decisions. Compare Quality of visibility/ leads, volume of visibility/ leads across campaigns in a report that’s easy to put together and simple to understand.

I recommend a report that answers business critical questions like:

    1. Is there a difference between a lead from Social Platform and from other channels on parameters like:
      • Time spent on website
      • Lifetime value of customer
      • Revenue per customer
      • Brand Awareness
      • Brand Loyalty
    2. How does the cost to reach/ acquire customers compare across channels?
    3. Is there  a difference in Brand Experience between a lead from Social Platform and from other channels?
    4. Which Social Media Platform works best for your brand?
    5. Is there a seasonality/ Day part across platforms?

Social Buzz is a function of visibility (size of the community) and associated sentiments across platforms. The 5 steps mentioned in this post would help you track and continually improve  your Social Media program.

Improve Conversions with SEO and Social Media Cocktail

The Clients and Brands I work with usually have a fixed annual budget for Internet Marketing and a mandate to achieve incremental positive ROI.

Internet Marketing ROI is a function of Traffic, Leads, Sales and Brand Buzz. For sometime ( in 2008-2009) I tried cross-selling and up-selling SEO and Social Media Marketing (SMM) to my clients for additional fee; however, more often than not, it did not work. Business owners and Marketing Managers had one simple answer “ here’s the budget, use it the way you want, get me 50%??? over last years.

It did not take me long to figure out the trick was in blending the SEO and Social Media Marketing to get the maximum Bang for Buck. Here’s the 5 step SEO and Social Media Strategy that I have seen delivering maximum value to my client’s outbound and inbound Internet Marketing Programs.

 

#1. Website Usability Analysis

Is your website a space occupier on your business card? A digital brochure? Or is it a Brand Ambassador and a Sales Force?

Successful online campaigns start with websites designed for the target audience with visitor touch points and action callouts. Analyze the server logs to identify visitor click patterns and make changes to the website architecture to engage your visitors. Critical parameters to analyze includes Entry Page, Exit Page, Click Stream, Page Drop Rate, Referring websites and Keywords.

– It is advisable to add short contact forms on all pages and link to contact form in the site-wide footer.

– Test the forms regularly to ensure it works fine.

#2. Optimize your website, put together a Link and Outreach Program

Identify the key phrases that are most relevant for your business and have sufficient search volume . If you are a local business include geo targeted key phrases in  your key phrase bucket. You may want to optimize for Brands and models, if you are a retailer.
Include Key phrases in the website’s content, page titles, metatags, and other elements.

Develop  a Link strategy that’s clean and viral. Add Link baits and give other websites a reason to link to you. Avoid direct link solicitation.

#3. Social 101: Thought Leadership Blogs

Thought leadership blogs and absolute must if you want to create a buzz and grow your Brand. Create Blogs in your key product domains or service areas. Motivate the experts in your company to blog in their areas of expertise. Setup an editorial team and protocols. The digital assets you create on your blog will go a long way in establishing your leadership in the industry which will encourage repeat visits and new business. Target to establish your blog as one of the top go to destinations for information on your industry.  Here are some ideas on Blog posts:
o Industry news and trend analysis

o Opinions, critique and whitepapers

o How-to guides

o Interviews, Profiles and Reports.

#4. Social- Deep Dive

 

Leverage the reach of social platforms like Facebook, LinkedIn and Twitter to connect with your customers and Industry. Build consistent brand personality across social platforms. Use consistent branding, communication guidelines and visual layout across the social websites.

Encourage your employees and customers to join your social network. Incentivize feedback. Participate in discussions, conduct polls.

#5. Observe, Measure and Tweak

 

Setting up the website and outreach program is just the beginning. Success comes for observing the trend, measuring the impact and tweaking the program.

Set up monitoring and tracking for top key phrases you are targeting. The would include:

  1. Brands
  2. Competition
  3. Key Personnel
  4. Negative buzz like “ Brand + Sucks???

Establish response mechanism and protocol for positive and negative buzz on the Internet.

Evaluate and Key Phrases and Social Platform’s performance. Unique Visits, Referring website, Click Path and Conversion Rate are few important parameters to evaluate platforms on. Tweak you strategy/ tactic based on intelligence from analytics.

Buzz Quotient

Social ain’t fad no more. Social Web is the present and the future of  the world wide web and Internet. However, there are questions about  ROI of the Social Web Investments.

In this post I would like to introduce a method to quantify a website’s Social Web footprint and discuss Social Web strategies.

Definitions:

Buzz: a measure of website’s visibility on the Social Web.

Buzz Quotient: Normalized Score/ Index of  a website’s Social Web Footprint.

Concept:

Measure the width and depth of  website’s Social Media Engagement ( The Buzz)

Social Engagement Width is the spread across channels

Social Engagement Depth is the intensity of engagement

Calculate the Buzz Quotient by normalizing the Buzz.

Social Web Strategies
Social Web Strategies

Social Web Strategies:

Social Novice: Try out the top 4-5 Social Channels. Run Pilots to sell the program within the organization. Define success matrix and define budgets. Recommended for Starters.

Social Explorer : Build your foot print across as many channels as possible, keeping the depth of engagement shallow. Works for brands that have appeal across  socio economic segment and advised on diet budget.

Social Selective : Build your foot print across few channels, engage, entice and seduce your customers and prospects  . Works for niche brands.

Social Champ: Build your foot print across as many channels as possible, engage, entice and seduce your customers and prospects. Works for brands that have appeal across  socio economic segment.