Archive for the ‘Measurement’ Category

Welcome to the Big Data Era, How do Marketers Cope?

Tuesday, July 26th, 2011

You may have heard a term being thrown around referring to the significant amount of data that is being produced most often called “Big Data”.  Here is a loose excerpt from the recent Future of Digital conference that explains the concept of big data pretty well:

“The explosion of data or ‘Big Data’ will give marketers the potential to mine data, discover new trends and learn more about the behaviour in their target market. If you took all the data in the world, cut them onto DVDs and stacked them on top of each other, you could reach the moon and back. This storage capacity equates to 14 Exabytes, where if you captured all the words ever spoken and digitized them into text, this would only occupy 1 Exabyte!

Labels on products will soon be talking over the internet as more sophisticated labels are attached or embedded into products. This could give business more insight into how and where their products are consumed. Big Data is about to get even bigger.”

The days of marketing via web, mobile and social by “gut feel” is over.   It’s not a matter of what you think your customer might like, it has to be what your customer is telling you they want, individually.  To stay competitive, Marketers need to begin adapting their marketing systems and their departments to include marketing analytics across every aspect.  Consider this: in order to make an offer (web, mobile or social could be display, search or even your very own web page) to a prospect, a marketer would take into account previous web visits to my site, recent posts made socially, checkins via mobile social and recent web surfing patterns before they visited you site.  From all that activity plus appending demographic and geographic information based on the IP address that is attached to the digital prospect, the new digital marketer will determine within milli-seconds what you should see when you come to my website.  For instance: A web prospect visited the product pages of my site last week.  After leaving my site, they went to two other competitive sites to their product pages.  On Twitter, they ask they network which is the best stereo system (you sell stereo systems) and then they come back to your website again.  This time you recognize their IP address from last week, append their geographic information (Manhattan) and adjust your homepage on the fly that compares your stereo favorably to the industry and has a big buy button on right on the first page.  Conversion goes up 120% and you start to gain significant ground on the web compared to your comeptitors.

This scenario is not fictional.  It is happening everyday, in real-time.  It’s not happening a lot right now but it is happening and will happen much more in the near future.  How does your marketing stack up?  To learn more about this topic we brought in the VP, Group Director at Digitas, Ken Burbary to work through this conversation.  Ken is a long time industry expert  and thought leader in the emergence of marketing analytics.  The conversation this week will follow the following topic and related questions.

Topic: Welcome to the Big Data Era, How do Marketers Cope?

Q1:  What types of data (digital, social, mobile) do marketers need to capture, track and analyze to effectively understand consumers in this era?

Q2:  Who (which group/function) should be responsible for the planning, collection and analysis of consumer data?

Q3:  How long will companies and organizations have to wait for the “big data” phenomenon to kick in and realize the benefits?

Please join us in this online chat on Tuesday, July 26 at noon ET.  Follow #sm120 from your favorite Twitter client or simply go to our LIVE page at www.hashtagsocialmedia.com/live.  The format will stay the same with the first question starting at noon and a new question coming every 20 minutes at 12:20 and 12:40.

Managing the Marketing Mix: Which Channel is More Effective?

Monday, April 26th, 2010

Just because you have Digital in your title does not make you Interactive

On its surface, this topic is a “status quo” topic, one that fits into the traditional advertising model that says radio, television and print are channels therefore the Internet is a channel too.  Agencies and old-school marketers feel comfortable when discussing digital as just another channel.  They figure if a portion of their budget allocated to digital and they tweak their messaging to match the medium then Whoalla! we are all new-age digital marketers.

The problem with this approach is it assumes consumers are the same and want the same messaging pushed at them to interfere with their online entertainment just like they consume television or radio entertainment.  Consumers have changed!  Consumers do not shop the same, communicate the same, consume content the same nor do they react the same to advertising.  When it comes down to it this topic cannot be about marketers adding a new channel, it has to be about those marketers who can adopt to changing consumer behaviors and those who cannot.

Consumers no longer want to be talked at, they want to be engaged with.  They want to see who prepares the food and talk with the baggage handlers, they want to feel they have a voice in determining the features of their next car model and want to help select what charities their soda maker donates to.   The majority of companies today are not set up to handle this new consumer.  Decades of closed systems and legally approved content are getting in the way of companies trying to interact with the consumer.

So what is this post about then?  Even though consumers are changing their behaviors by the second, companies can not move that quickly.  Companies need to have some transition period to move from traditional to digital and it’s not just in the way they advertise.  This is a cultural shift,  a systems shift, a shift in processes and approvals to a more distributed workforce.  This is much more than simply a messaging shift.

This post is about transitioning.  Many times, the only way to move the needle or to convince traditional executives is with proof.  That proof comes in comparing what they already know and are familiar with and in a way that they understand like reports and measurements that can compare traditional apples with digital apples (apples to apples).  If you measure traditional marketing with reach (ie. magazine has 100k circulation + 2 times pass along and costs $5k) and sales (call volume rises when our infomercial airs and conversion increases 12%) then your digital marketing reports cannot use language like followers, subscribers and linkbait, they must be consistent.  The good news is with proven success comes additional funding and a higher tolerance for experimentation.

Once you are able to measure and report consistently across traditional/digital and begin to show positive results, how do you determine how much is the optimal amount to spend on each?  Again, a fully integrated interactive marketer does not allocate a bucket of monies per channel.  Integrated messaging and consumer engagement is determined by the need at the time.  If a customer makes an online mess, it may require an online video response or it may require an actual television ad to express your point-of-view.  In order to stay flexible and meet your daily needs you cannot have a pre-allocated budget based on channels that was set 9 months ago.

In staying with the theme though, you need to be able to show value as you transition from traditional advertising to more integrated.  You have to show that any investment is worth the return before executives will release additional funds and approve more experiential marketing.  In light of that, what is the right mix?  Ford transitioned 25% of their marketing budget to social.  Seems like an arbitrary number but what is the right mix for your company as it transitions from what it was to what it needs to be?

To help us get a better handle on the right marketing mix for your company, we are bringing in a moderator this week who not only understands the measurement and monitoring side, she also understands the business side and promotes the advancement of companies into a more integrated marketing approach.  Amber Naslund, the Director of Community at Radian6, understands organizational change is just as important as technical change is and knows how to get people there.  While there is before digital (traditional) and after, more importantly there is a during or a transition that not many can talk to except Amber.  This week’s topic and supporting questions are as follows:

Topic:  Managing the Marketing Mix: Which Channel is More Effective?

Q1:  How do you know your traditional marketing efforts are effective?

Q2:  How do you know your digital marketing efforts are effective?

Q3:  What is the right budgeting mix between traditional & digital?

Be sure to join us Tuesday April 27 at noon Eastern and participate by following #sm57 from any Twitter client or simply goto our LIVE page during the event.

Managing the Effectiveness of Your Social Programs

Monday, April 12th, 2010

Effective social media programs? Yeah right, how would you ever prove it?

That’s the struggle of corporate social media marketers.  There are tons of systems that help you listen and monitor, there are a lot of publishing tools that let you update multiple accounts and personas in the same dashboard, hundreds of social platforms and a few reporting tools.  The problem is they are all just that, all disparate systems that are not connected and certainly not integrated. 

So back to the question, How do you manage the effectiveness of your campaign?  If you are like most social marketers today, there is little support for the social manager who is typically part of the marketing or communications team.  Left to their own devices, they usually use the free tools and simply infer the results that they can patch together. 

There is a new suite of tools coming onto the market that proclaim Social Media Managment Systems (SMMS) that begin to couple two or three components together.  Here’s the problem, even the specific SMMS solutions don’t provide a real look.  The current SMMS solutions are tools.  They were created as tools to measure other tools.  What’s missing are the actual use cases, the tools that marketers need to track, analyze and report campaigns.  In general, here’s a list of what’s missing:

  1. Central Database – to pull the results together and create a single platform to analyze and report from
  2. Proper Reporting – that integrates the different systems and provides true enterprise analytics and reports
  3. Advanced Sentiment Analysis – not just positive and negative either.
  4. CRM Integration
  5. Traditional Marketing Comparison

Take a look at that last point.  To truly understand the effectiveness of your social programs, you have to have something to compare them against.  Think about it, a platform that could listen, suggest influencers (based on advanced sentiment), provide a place to respond from, track internal links and their paths/subpaths, manage digital ad spend, then monitor traditional ad spends, effectiveness and finally compare and recommend an optimized marketing mix based on real-time results and all at an enterprise scale.  The panacea of managing the effectiveness of your social media programs.  (From my experience, I have only seen this solution from one provider, Accenture Interactive (Disclaimer: I work for AI)).

The reality is that only the top brands require the type of solution mentioned above.  Every marketer has unique needs and unique results that will all have different values for each marketer’s brand.  There is one marketer that has the experience to help us work through what’s most appropriate for all needs.  That marketer is Tac Anderson.  Tac has experienced the brand side at HP and the agency side from his current position at Waggener Edstrom.  He will lead the discussion around the following topic: 

Topic:  Managing the Effectiveness of Your Social Programs

Q1:  What type of planning should go into your social media campaigns? What is your process?
Q2:  What metrics should you always be looking at?
Q3:  What should always be on your scorecard to measure effectiveness? Are there any constants?

We invite you to join the conversation on Tuesday 4/13 at 12 noon EST by following #sm55 from any Twitter client or from our LIVE site.

Social and the New Model For Market Segmentation

Tuesday, February 23rd, 2010

So you know by now that we attempt to shake things up a bit and challenge people to think differently about topics and their impact on business.  Our topic this week is no exception and with the skills of our moderator, we are going to test those limits.  This week’s discussion is around market segmentation and how social can change how we approach it.

Market segmentation is more than what markers do with homogeneous products before deciding which actress to use in the commercial to best reach a desired consumer group.  Market segmentation is defined by Wikipedia as:

“A market segment is a sub-set of a market made up of people or organizations sharing one or more characteristics that cause them to demand similar product and/or services based on qualities of those products such as price or function.”

This is a good start as a definition, however this does not even begin to scratch the surface.  How do we take this to the next level?  To explore ways by which to re-imagine consumer grouping, we must get past the traditional segmenting like demographics, geographics, income, even behavioral.  For many marketers, they look at data models that break out behavioral with layers of demo and geographics mashed in.  This modeling then determines a budgeted ad spend for a period in time like 3 or 6 months where the messaging is developed, pricing assigned and commercial created.  The problem is that by the time the ads hit, the data models have shifted and the intended groups have moved on.  Now with peer reviews and endless product content the real-time web is heavily influencing consumer preferences  that continue to change with increased velocity.

Savvy marketers have been using insights for more than just marketing also.  Saavy marketers use segmentation for product development, pricing, marketing channel, and even customer retention.  Using the last example, customer retention, the segmenting considers factors like profitability, strategic fit, product version and longevity.  Can you service your customers differently with better targeting for profitability or would you be more proactive with customers who were ripe for renewal or upgrades?  Now consider going beyond your internal gates and imagine the results if you combined internal factors along with external or social listening capabilities.  Maybe that customer who is really loud socially is a drain on your profitability.

So what this means is that the social web is having a profound affect on preferences, therefore insights that are not derived in near-real time are simply missing the mark.  If we open our research and insights departments to the social web, how can they can they use these tools that have never been considered before?  Every company will find different value in different social instances, however there are some great new possibilities that are emerging:

  • What if you titled the buckets of your listening tools with Underserved, Disenfranchised and Contemplators.  Could you use that insight to build better products or price more according to near real-time inputs?
  • What if you targeted people who played Mafia Wars on Facebook or joined relevant fan pages.  Could you use those applications for consumers to self segment themselves and find commonalities?
  • What if you targeted people who used certain hashtags (#) on Twitter or similar platforms.  Could you infer commonalities from everyone who tweeted #farm, #beer or #sweets?

Understanding and using social segmentation is challenging.  The pace at which social moves and the pace by which people flutter around digitally are simply exhausting.  Marketers like General Mills and Coke are early adopters of social segmentation and blazing a trail for others to follow.    This week’s moderator Ken Burbary is going to help us sort out this topic.  Ken manages the social media duties for Ernst & Young where he develops these types of solutions for their respective clients.  The topic this week is:

TOPIC: Social and the New Model For Market Segmentation

Q1) Is traditional market segmentation still relevant?

Q2) What should be more important for Brands: social segmentation or engagement?

Q3) How are you segmenting your customers with Social Media?

Please join us Tuesday 2/23 at noon EST by using #sm48 on Twitter or follow our LIVE page

Sentiment Analysis: Opinions Matter, If Only You Knew Which Ones

Friday, February 12th, 2010

active_listeningListening is the first step in social media (everyone says so).  Not onlydo you have to listen, you have to listen for 6 months or more before you are allowed to do anything.  Just ask the experts!

Frankly, I think everyone says that just to buy a little time before they have to really figure out what to do with social.  At any rate, most of the people who are told to listen have no idea what to listen for or who to listen to.  I’m not going to get into the depths of all things social media monitoring because that would take all day.  So let’s focus a minute.  

  1. You want to listen for mentions of your company, brand and top executives
  2. You quickly determine there is no way to manually search every blog post, tweet or comment on the web so you turn to automation
  3. Yeah, now you’re tracking buzzzz, but what does it all mean?
  4. So you start running reports and determine they are inadequate at best.
  5. Now you’re back to listening again but still not sure what you’re listening for.

 There is a word in the industry called “Sentiment” that is used when trying to determine a person’s attitude.  Online it’s a digital attitude and you only have text to go by.  No voice inflection.  No hand gestures or facial signals.  Just a bunch of words (or “noise” as they call it in the bubble) with little signal.  The challenge, after aggregating all of the buzz or mentions of everything you are tracking, is to make sense of it all and to make it actionable back inside your company.  So the sticking point here is whether or not you can use automated analysis to provide sentiment or if it has to be all human interface.  For any local or small business, human processing of sentiment might be reasonable.  However with any size at all, you would need a small army to determine if people liked your new product or enjoy working with your company…or would you?

If you ask 10 people how to measure sentiment, you will most certainly get 12 answers (yes 12).  The popular themes of managing sentiment revolve around polarity and intensity.  Polarity meaning either good/bad, positive/negative, like/dislike, etc and intensity meaning the volume or amount of mentions.  These are not wrong by any means, but I use a little different formula and you might say it’s probably for different purpose.  I like to consider the following:

  • Mentions – which is broken into volume, intensity and opinion (polarity)
  • Influence – of the person it comes from. How many followers, how often they interact (like a TwitterGrader)
  • Severity – of the content itself. “X product just saved my life or killed my brother” would be Sev1, where “Boss caught me goofing off and fired me, X company sucks” would be low severity.  Further defined by a direct vs indirect mention and context of the content.

OK, try managing that formula through reports.  No way, Jose!  And, by the way, I usually change what I am monitoring (at least the focus) to match what I am working on.  There are companies who are working on ways to automate forms of sentiment through natural language processing and machine based or community based learning.  They have their claims on successes and what they have may work for a lot of people in a lot of situations.  It has to be an individual call.  So how do you know what’s right for you?  That’s where this week’s moderator Katie Paine comes in.  Katie, affectionately known as the “queen of measurement”, spends most of her day answering these questions for her customers.  She will host our next chat with the following topic and questions:

TOPIC: Sentiment Analysis: Opinions Matter, If Only You Knew Which Ones

Q1:  How do you define positive sentiment?
Q2:  How does that impact your organizational goals?
Q3:  How do you know that what you are measuring matters?

Please join us Tuesday 02/16 at noon est and become part of the conversation.  Learn insights and have an opportunity to capture Katie’s attention for a solid hour.  Follow along using #sm47 or simply go to our LIVE page.

Advancing the Discussion of Social Media & ROI

Monday, December 21st, 2009

Return on Investment or (ROI) is one of those terms that has been mis-used by all in 2009.  As we look to 2010, how can we get back on track.  We know there is going to be a strong influx of interest in social media projects by companies.  In fact, a report from econsultancy and bigmouthmedia suggest that 86% of the 1,100 companies surveyed plan to spend more on social media in 2010 and 13% plan to spend the same amount.  The report is further detailed here.  With all this investment in 2010, will any of it be tied to ROI or will it be looked at as non-financial impact?

We stated that the term ROI is widely mis-used.  Here’s what we mean:

This is NOT ROI:

  • The return of my Twitter usage is 2009 is 1,637 followers.
  • I increased the page views of my website by 300% on an investment of $120.
  • I increased my brand awareness by putting better content on my blog.

The actions above relate to non-financial impact on a business.  For more information on Impact on Business we did a post a couple of months ago here.  What seems to happen is that we take what is a financial term (ROI) and mix it around with investments in media measurement or listening tools or other social media tactics that are a part of non-financial metrics like building relationships, brand management or engagement.  While these are all necessary and they do require an investment, the results are almost always non-financial.  Therefore, if you are in front of executives and trying to attain funding or approvals, they will be interested in financial returns as measurement.  While redefining the terms to meet your specific needs may be fun or even cute, no one is going to sign up for ROI when it means Return on Interest or Return on INgagement. 

So what is ROI?  The accepted definition of return on investment is very straightforward: gain from investment minus cost of investment, then divided by cost of investment.  In other words, recruitment, engagement, interactions, listening are all very important pieces of the ROI equation however until that customer or prospect does something (ie: make a purchase) there is no financial measurement.  The exception to this is the relation to cost savings realized by an investment.  A great image of this was done by Olivier Blanchard:

roi1
 

 

 

 

 

 

 

Another important piece of the ROI pie is about actuals.  ROI is not about what we think is going to happen, it is about what happened.  Or in the words of Olivier again, “It’s not about potential, it’s about actual performance.”  So ROI is not a forward looking statement, rather it is backwards looking results.  So if you are looking for a quick refresher, check out this widely viewed deck on ROI here.

You may have guessed already on who could possibly by moderating this much needed discussion on ROI.  If you guessed Olivier Blanchard aka “The Brand Builder” then you are correct!  Olivier has long been a recognized and sought after practitioner and speaker on the topic of social media ROI.  He brings a very clear yet in-depth understanding to the topic and we are thrilled to have him moderating this chat with us.  The topic and question this week are as follows:

Topic: Advancing the Discussion of Social Media & ROI

Q1: How can strategy & planning can impact ROI?

Q2: What are the steps to integrate SM across a business?

Q3: What is the difference between measurement & ROI?

Please join us this Tuesday 12/22 for the weekly chat event at 12 noon EST.  The hashtag for this event will be #sm39.

The Future of Socialnomics

Sunday, December 13th, 2009

social-media-revolutionSocial media: The most important change in business or the biggest waste of productivity?  Looking back, 2009 brought about some better examples of the value that social media brings to businesses yet social is still very much an unknown quantity to executives and hard to execute by practictioners.  In short, it comes down to the economics of social media or, Socialnomics.

In order for social media and social networks to be truly transformational in the corporate world, they need to show value.  Many of the efforts of 2009 were experimental while there were a few glimmers of hope including Ford Motor Company and the acquisition of Zappos (a buisiness built almost entirely on social media).   We have discussed the need to move from campaigns to conversations and the importance of hiring an agency that has the skills to best serve your company.  For a better understanding of some metrics, Erik Qualman has put together a widely viewed video on the idea of socialnomics. Socialnomics 09 

Most of the digital experiments using social media for businesses has happened on two primary consumer networks: Twitter and facebook.  In looking into the future, what will be the goto networks next year?  What does it take for these networks to entice companies?  It’s apparent that size does matter.  How about quaility though.  Does it matter if the digital network has elements of quality without the quantity of users?   Consumers are using social networks to connect with old friends and get access into “a day in the life of” whoever they follow.  Will that be enough in the future though?  What will consumers require out of their digital interactions with brands?  So many questions and not enough answers.

To explore the value and economics of social media we went to the source.  Charlene Li has been the source of information for many of us since her days at Forrester, her bestselling book Groundswell and now with her company Altimeter Group.  Charlene has influenced corporate executive boards for many years and this week we have an opportunity for her to help shape this discussion.  So what does 2010 and beyond bring for the industry?  That’s what we will discuss: 

Topic: The Future of Socialnomics

Q1: What social networks will prevail in 2010?

Q2: How will consumers use them in the future?

Q3: What will the value metrics look like for consumers / businesses?

This week’s chat will take place Tuesday December 15th at noon EST.  Follow along using #sm38 or on our Live site.

The Impact of Social Media in Government

Monday, November 30th, 2009

gov20-mediumFor the past 7 months or so, the #socialmedia chat has focused on what social media can do for businesses.  We’ve covered b-2-b and b-2-c, we’ve looked into how social media affects internal departments as well as external communications.  Well, now it’s December.  For the month of December we promised to shake it up a bit and start to take a look from different perspectives on how social media is influencing different sectors and what the future holds (or at least 2010).  For the first day of December we will focus on the business of Government and what impact social media has had and will have.

First, the term being used to associate social media and Government is Gov2.0.  For this purpose, I will refer mostly to gov2.0 in this context for the rest of the post.  Second, why now?  Why is gov2.0 the soup du jour for describing the change needed in government?  Roughly, it started with the Howard Dean campaign for president in 2004.  As an early front runner for the Democratic ticket, he started using the web in very different ways to help run his campaign.  Gov2.0 got a sharp uptick in popularity as it fueled President Barack Obama’s successful run in 2008.  Then in 2009, President Obama issued The American Recovery and Reinvestment Act (the Act) of 2009 offering close to $787 Billion in stimulus funds for agencies.  However, the Act requires an extraordinary level of “transparency” on the part of Federal, State and Local agencies.  While the Act’s intent is to create new levels of transparency at all levels of government, there are no guidelines on exactly how.  Many are looking at the application of social technologies and methodologies to meet the demand for more transparency and inter-departmental coordination.

Today there are few great examples of government using social media to complement its efforts to either better communicate with constituents or coordinate better across agencies.  There are many people who talk about it like Steve Radick from Booz Allen Hamilton who authors a well-read blog and some who are actually in charge of doing it like Jeff Levy who’s the Director of Web Communications from the Environmental Protection Agency (EPA).  Then you have Brian Drake from Deloitte saying gov2.0 is not moving fast enough  and on the other side Larry Lessig who cautions too much transparency can be detrimental and all are paving new roads with their work as the Gov2.0 movement is certainly in it’s infancy. 

So how can businesses, who have dipped their toes further into the waters, help Government not have to re-learn all the mistakes that have already been made?  Conversely, government has been dialoguing with their constituents for decades already and what learnings can transfer over to businesses, some of whom are communicating for the first time with their consumers. 

I know you are thinking who in the world would agree to take on this monster of a topic.  Well, with a bit of coaxing, we believe we have the perfect person.  Kim Patrick Kobza is the CEO and founder of Neighborhood America (disclaimer, I work for Neighborhood America and started www.hashtagsocialmedia.com along with Marc Meyer and Terry McKyton as a skunkworks project).  Kim has been bridging the experience gap between government and private enterprises for much of his career.  His thought leadership and actual work is sought after by many leaders in governement, those behind the gov2.0 movement and companies alike.  Kim blogs here and Neighborhood America published a Gov2.0 readiness kit under his guidance here.

Topic: The Impact of Social Media in Government

Government 2.0 is being promoted as one of the most transformative trends in governance. But what does it mean? And what meaningful impact can social media have in the relationship between citizens and their government?

Q1) What does Gov 2.0 mean to you?

Q2) What can government agencies & companies learn from each other’s experiences in implementing social media strategies?

Q3) What do you think are the primary barriers for citizens and agencies in implementing gov 2.0 strategies?

This chat will be held on Tuesday December 1st at 12 noon EST.  The format will stay the same with the first question at noon with Q2 and Q3 to follow in 20 inute increments.  Follow along on #SM36 on on our LIVE site.

Social Media’s Impact on Business (and ROI)

Monday, November 9th, 2009

gas_powered_blenderFeeling like stirring the pot a bit this week so we thought a discussion on ROI should do it.

ROI certainly can stir the pot.  But, saying that most of everyone’s conversations on this topic are not actually ROI, rather Impact on Business (IOB), takes the act of stirring and turns it into a blender.  Ahh, much better!

So let’s start by saying that just because it’s “social” does not mean it should be held up to standards typically defined by financial returns whether in business, government or non-profits.  Someone can start a blog or join twitter simply to better understand the tools or to connect with associates they just met at a conference.  This becomes truly social and may at some point have an impact on your business whether financially or some other measure but does not need to be tied into sales goals just because an employee wants to post office pictures so other offices can see how they decorated for the holiday party.  That’s a beginners first step into social computing but not what we are interested for this discussion.

What we are looking for here is to better define and understand what we sometimes mean when we refer to ROI as a verb instead of referring to ROI as a financial metric.  The real definition of Return on Investment (ROI) is: gain from investment minus cost of investment, then divided by cost of investment.  Business books are written, classes are taught, and undergrad studies are derived from this very straightforward metric.  When I talk about ROI, I try to dumb it down a bit into either: 1) increase revenues, 2) decrease costs, or 3) increase in shareholder value and that assumes a financial investment of course.  So why then, does the term ROI get thrown around so much in the context of social media when no financial gain or costs saved are referenced?

Impact on Business (IOB) is the actual term that should be used when discussing things like: # of followers, brand awareness, mentions, impact, conversations and what ever else you can think of that is not related to a financial calculation.  The impact of an employee being nice on twitter is great.  The fact that the customer decides to continue service (Retention) as an indirect effect does not make the time that employee spent on Twitter an actual case for ROI.  It is however, IOB. Olivier Blanchard actually was the first that I know of to begin this discussion a few months ago here.  Companies all over are using social media to have an impact on their business like Kodak measuring Smiles or any company promoting their Facebook fan page.

Many industries discuss IOB like fast food, IT, or big box retailing and it affects every company’s business in some way or another.   You can even consider different departments of a company and the impact of HR, Payroll, PR, Sustainability, Operations play in a company.  Although often not connected directly to revenue, a company would have a difficult time without those departments.  Impact is easier to measure if you don’t have to tie it back somehow to ROI and ROI is much easier to measure if you don’t try to include calculations of impact.  To lead our discussion this week is Jacob Morgan, a principal at Chess Media Group, who focuses on Social Media ROI.  Jacob is well versed in this type of discussion and brings a lot of expertise to the table.  The questions will attempt to progress the discussion from ROI as a catch all phrase to the differences between Impact and ROI for businesses and how to align them.  They are:

1.  Whether Impact or ROI, what “Investments” could be measured to prove out value in Social Media?

2.   How can you prove value from Impact or ROI to executives to continue or try Social Media?

3.  What are some examples of businesses attaining true ROI from Social Media?

Plan on joining in this discussion Tuesday 11/10 at noon EST.  To join either follow #sm33 on Twitter or follow our LIVE site.

How Social Media can Influence a Next Generation of Listening – Consumer Insights 2.0

Monday, September 21st, 2009

InsightsThe explosion of consumer networks like Facebook, MySpace & LinkedIn and digital platforms such as Twitter, blogs, forums and other types of social media continue their expansion across the internet at breakneck pace.  With the proliferation of these networks, consumers have almost unlimited means by which to share their brand experiences and opinions.  These opinions, whether good or bad, are readily available to other consumers for a long time…at least.  As companies of all sizes are begining to understand that many times, these opinions have more influence in the potential purchase decisions of other consumers than almost any other form of marketing or communications.   In this case, “listening” to consumers for sentiment is a purely reactive effort.

So if listening as we understand it is a reactive measure, how can we “listen” more effectively and for better results?  How can we better predict a consumer’s actions based things like the economy (pricing) and factors like age, gender, geography and more interestingly, social graphs?  How about emerging market trends, Brand and sector vulnerabilities?  The vast trove of data across the web can present more than typical quantitative and qualitative based research.  The information, if used in creative ways, can lead companies in understanding how cultures, personal networks and digital platforms can influence propensity to purchase, length of product trials needed, effect of negative influence, etc.  In the words of a leading consumer insights company, ScenarioDNA, it’s “looking for patterns and making connections that become the building blocks for better ideas”

Handling the topic this week is the leading digital consultant Ken Burbary from Ernst & Young, #3 on the Global list of accounting firms.  Ken has led digital practice teams from both the agency side and client side and is a thought leader on many digital practices being used today.  Ken will lead the the discussion in discovering new ways to listen, how to better influence your company with the results and how to coral the resources needed to be effective.  The questions this week are as follows:

Topic – How Social Media can Influence a Next Generation of Listening – Consumer Insights 2.0

Q1:  Beyond Brand Mentions – (good/bad) what should you be listening for?

Q2: What resources and people are needed?

Q3:  How can consumer insights drive actionable results throughout the organization?

Q4:   Ways to fund your SMM program?

Please tune in Tuesday 9/22 at noon EST, follow #socialmedia and share your point-of-view.