Slides from CXO Keynote at Kreative.Asia 2012, Get Noticed Conference

1. Refining the
ROI Equation
in Social
Marketing
Kreative.Asia, CXO Day
April 6, 2012
Esther Lim, The Estuary
esther@theestuarysf.com
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2. “The more things change, the more they
stay the same.” ~ Alphonse Karr
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3. Perception around social media has
evolved but integration is still immature
We are
here
Social media Early business Reluctant Acceptance
emerges adoption acceptance Present
2000 - 2004 2005 - 2007 2008 - 2011
Source: Radian6 Report: ROI on Social Media 3

4. In 2012, more than 1.4 billion people will
use social networks
eMarketer: Worldwide Social Network Usage/Market Size and Growth, March 2012 4

5. Customers
are willing
to interact
with
brands on
social
networks
eMarketer: Jack Morton Worldwide Report, New Realities 2012 5

6. Social sharing influences purchase
decisions
Source: Socialable Labs, Social Impact Studies, How Consumers See It, March 2012 6

7. Social is not a technology, tool, or trend — it’s a new way for
consumers to connect with the people, things they care about
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8. 93% of marketers agree brands
must participate in an ongoing
conversation with customers
49% agree brands are defined
by customers conversing online
Source: eConsultancy Quarterly Digital Intelligence Briefing 8

9. Companies acknowledge social media
is vital to their marketing efforts
“To what extent do you agree with the following statements?”
Strongly Disagree Disagree Agree Strongly Agree
Social media enables businesses to be more successful 13% 28% 42% 18%
Companies can gain competitive advantage by leveraging social media 13% 17% 36% 35%
Companies that don’t embrace social media will not survive 16% 26% 39% 20%
0% 25% 50% 75% 100%
Source: Forrester Consulting/Facebook: Organize for Success Report, February 2012 9

10. Social media is one of the top six areas
marketers are focusing on in 2012
39%
Social Media
39%
Content Optimization
34%
Brand Building/Viral Marketing
32%
Conversion Optimization
29%
Mobile Optimization
29%
Content Marketing
0 0.1 0.2 0.3 0.4
Source: eConsultancy and Adobe: Digital Trends 2012 Report 10

11. Brands are putting
more money behind
social media
How much do brands
allocate to social
media budgets today?
• B2C Product: 9.6%
• B2C Service: 8.4%
• B2B Service: 7.4%
• B2B Product: 6.2%
Source: Forrester Consulting/Facebook: Organize for Success Report, February 2012 11

12. Marketers feel their social media
strategies are weak or not working
55% of marketers agree
that measuring the
impact of social media
marketing is very difficult
Source: Forrester Consulting/Facebook: Organize for Success Report, February 2012 12

13. Company executives
struggle with customer
intelligence
Source: Columbia University’s Center on Global Brand Leadership and the New York American Marketing Association (NYAMA) 13

14. Reasons for not collecting customer insight creates
a vicious cycle for securing budget/support
‣ Budget limitations
‣ Resource limitations
‣ Lack of the right tools
‣ Lack of Executive support
‣ Lack of access to data
(silos)
‣ Lack of knowledge to
extract insights from data
Source: Columbia University’s Center on Global Brand Leadership and the New York American Marketing Association (NYAMA) 14

15. “An organization’s ability to learn,
and translate that learning into
action rapidly, is the ultimate
competitive advantage.”
~Jack Welch, Chairman and CEO of General Electric
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16. Most brands can’t differentiate between metrics
and ROI resulting in poor or irrelevant learnings
Source: eConsultancy Quarterly Digital Intelligence Briefing 16

17. Likes
Followers/Fans Web Traffic Mentions
Today, the leading social media marketing metrics
is social presence
Source: eConsultancy Quarterly Digital Intelligence Briefing

18. Likes
⧣
Engagement
Followers/Fans Web Traffic
Mentions
⧣ ⧣ ⧣
Influence Awareness
Fan
Metrics without context can be meaningless
Source: eConsultancy Quarterly Digital Intelligence Briefing

19. Narrative from data isn’t always as it
appears. Look closer
‣ Quality from the right
audience wins over
quantity of engagement
‣ Quantity is easy to get
today especially on
Twitter
‣ Quality engagement is
earned
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20. How do we get the right insights?
Consider these questions:
‣ What do I want to learn? In what areas? (Marketing, PR, Product)
‣ Do I know my audience? Who are my loyal most valued customers?
‣ What do customers want from my brand, product, service, event,
offering?
‣ How do customers feel about our brand, product, service, event or
offering? What are they saying? To whom?
‣ What are they doing online, on what device, when and with whom?
‣ What behaviors do I want to drive? How does that map to specific
actions?
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21. Redefine your metrics to be more
specific
‣ SEO & Page Rank = Likelihood of being found
‣ Influence = The power or ability to affect someone’s actions.
‣ Engagement = Some action beyond zero
‣ Relationships = Long term engagement leading to trust
‣ Advocacy = engagement driven by an agenda
‣ Sentiment = contextual expression of opinion – regardless of
tone
Source: KD Paine and Partners 21

22. Choose the right monitoring tools
‣ If you want to measure messaging, positioning, themes,
sentiment: Content analysis
‣ If you want to measure awareness, perception, relationships,
preference: Survey research
‣ If you want to measure engagement, action, purchase: Web
analytics
‣ If you want predictions and correlations you need two out of
three
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23. Package your findings as stories to show
a successful use case to executives
Connect the dots between audience, metrics,
actions and tools to provide context around your
customer’s stories
With context and supporting data, you can create a
solid business case to executive management to
gain support, resource and budget.
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24. Thank You
For more information or inquiries visit:
Esther Lim
www.theestuarysf.com
Or email: esther@theestarysf.com
Follow me on Twitter: @geekgrl
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