This document discusses how social media intelligence can provide value to organizations across different business functions like sales, marketing, product development, and customer service. It highlights challenges in measuring social media impact and relevance but argues that cutting through "messiness" is where value lies. Examples are given around using social data for new product ideas, advocacy measurement, and improving customer experience. The document promotes harnessing social intelligence across the entire organization.

1. Twitter: @BradleyJLittle
The Value of Social Media
Getting Down to Business
September 15, 2010

2. “Advancing Social Media Intelligence”
▪ Jointly owned by Nielsen and McKinsey;
co-developing unique software, metrics,
and analytic services Trusted Data
▪ Market leader in enterprise social Metrics & KPIs
Insights
media monitoring/analytics
(Source: Forrester)
▪ Dataset: Billions of social media
conversations per year across 145
million blogs, message boards and social
networks Strategic Consulting
Process and Organization
▪ Global: 13 markets now ; 20 by EOY Digital Marketing
2010; over 150 clients globally
▪ Quality is highest in the industry
(source: Microsoft)
▪ Proprietary technology for analyzing
social media

3. Built to deliver trusted insights
World’s largest content reservoir Slice wisely for relevant,
actionable insights
Social
Analytics
Networks
Relevance
Proprietary
Data
Local, full-
time researchers
Blogs
Boards
Groups Harvesting
Cleaning
Control the harvest to
ensure quality inputs
Filter the noise to focus
on what matters
3

4. What do we deliver?
Client Dashboard Tools & API Analyst Research Reports & Strategic Services
Use It For: Use It For:
 At a glance brand metrics • Longitudinal brand tracking
 Self-service brand monitoring • Adjusting key launches, events
 Analyst-Grade research tool • Deeper, brand Insights
 Integration with other • Informing strategy
applications
All of the above supported by our local Social Media Analysts
and/or Digital Strategic Services Consultants

5. 5

6. The “new” purchase funnel
Expression
6

7. Abundance of buzz sources
Social media (“buzz”) refers to public, online conversations
More than 2/3 of
Globally consumers global consumers 41% of Facebook
spend 6 hours a use online product users in MENA are
month on Facebook reviews to make over 30 years old
purchase decisions
More than 60% of >35% of consumers
consumers have rely on peer
visited a recommendations
consumer-driven and WOM to make
website purchase decisions
SOURCE: Nielsen 7

8. Increasingly relevant for brands
“This product made my hair frizzy, dry and
“I love this shampoo. I went through a phase worst of all, led to...HAIR LOSS! Totally not
in my life where I dyed my hair every color worth it. I will go back to my old shampoo
under the sun. This caused my hair to and conditioner.”
become dry and damaged. No matter what
product I used nothing helped. Then this
beauty came into my life and my hair is
wonderful! I suggest this to anyone with
of online discussion
dryness, split ends, or frizz.” 26% mentions brands
SOURCE: NM Incite 8

9. Amplified impact on business
Case example: TV buzz (US)
9

10. Social media drives intent…
Net sentiment and change in purchase intent from buzz exposure (case example)
Large increase
in intent
A Brand A had a 15%
Difference in lift in purchase intent
B
intent vs. 3% for Brand E
between
exposed
and control
E D
No increase C
in intent
Net sentiment
Less positive buzz More positive buzz
SOURCE: NM Incite 10

11. …and influences sales
Online word-of-mouth influence on purchases
(European example)
Percent of sales influenced
Electronics and
computer equipment
Beauty care and clothes Word-of-mouth is
the primary factor behind
Finance products/services of all purchasing
decisions
Telecom services
Travel & Entertainment
SOURCE: McKinsey 11

12. Impact spans beyond marketing and sales
Measurable impact of using social media and other web 2.0 technologies
Percent of companies
Increasing marketing effectiveness (e.g.,
awareness, consideration, conversion, loyalty)
Increasing customer satisfaction
Reducing marketing costs
Reducing customer support costs
Reducing travel costs
Increasing revenue
Reducing time to market for products/services
Increasing number of successful
product/service innovations
SOURCE: McKinsey Global Institute 12

13. 13

14. Challenges to social media strategy
14

15. Relevance: buzz can be messy
What people tweet
of tweets have
~50% “useless” information
...but cutting through
this messiness is where
the value and your
advantage lies.
In a word: Unprompted!
SOURCE: Nielsen, Google Trends, Mashable 15

16. Reach and impact: marketing effectiveness
Weekly buzz volume and reach
Campaign
Reach
Volume
4/18/10 5/2/10 5/16/10

17. Advocacy: measuring influentials
ThatKevinSmith twitter account Southwest Airlines twitter account
1.6 million followers 1.0 million followers
Kevin Smith twitpic caption:
Hey @SouthwestAir! Look how fat
I am on your plane! Quick! Throw
me off!
17

18. Challenges of social media measurement
Relevance Reach and impact Advocacy
▪ Identifying relevant ▪ Measuring the full ▪ Identifying
information reach of social media “influencers” and
and its influence measuring influence
▪ Determining the right
scope for your ▪ Quantifying the ▪ Determining the
brand/product business impact impact of online
category (marketing ROI) advocacy and
criticism
18

19. Organizing for social media transformation
Product development
Marketing
Customer care
Defensive branding
19

20. How do we get there?
20

21. It’s as global as the World Cup
6

22. And Paul the octopus
Paul the octopus generated more buzz than all players combined

23. How about the 2022 bid in Qatar?
D
A
B C
• •
A Thebid for the 2022Qatar’s Cup submission of
it’s
Buzz is around
World
official C The Buzz revolves around China desire to bid for
2026 World Cup
• •
The Buzz is driven by Australia withdrawal of 2018
B World Cup Bid D The Buzz spike isin Qatar by the arrival of FIFA
inspection team
generated

24. What is the Arab world saying about the bid?
A• Comment underlining Qatar
“ capability to host the 2022
World Cup
”
http://vb.alarabi.qa, July 28, 2010
“ B• Comment praising Qatar
infrastructure and rapid
development
C• Comment on the quality of the
http://www.z5z5z.com, September 10, 2010 stadium and interest in the
soccer by the Qatari
“ population.
”
http://www.kanzalarb.com, September 15, 2010

25. There is value in Sales/Marketing, but there is so much more!
R&D/Insight Sale/Marketing PR/Comms Service
▪ Customer Insight ▪ Brand Strengths ▪ Threats ▪ Feedback
▪ New Product Dev ▪ Bottlenecks ▪ Investors ▪ Engage
▪ Demand Forecasting ▪ Marketing Mix ▪ Reputation ▪ Advocacy
▪ Packaging ▪ Influence
▪ New Launch Tracking
How can we use social to extract
maximum value for the company?
How can we use social to transform
the organization?

26. New Product Development
“I LOVE fun food”
“I hate it when my
refrigerator is without…”
“…when I’m eating
in “I wish I could find…”
my car.”
“Mornings are
IMPOSSIBLE
Brand
without my…” “We will be focusing on developing several
Centric
concepts out of this work for further testing.”
- NPD Group, Kraft
Illustrative Verbatim

27. Asking vs. Listening
Survey Social media analysis
Attributes tested in survey questions Associated Online Attributes
Percent agreeing strongly Relative score
Environmentally Organic 42
68
friendly
Diaper rash 28
Cost effective 40 Home schooling 24
Home birthing 16
Healthier 25
Flushable 10
More comfortable 18 Cheaper 8
Cost 4
Fit well 13 Environmentally
2
friendly
Survey indicates 68% of consumers believe "envi- In authentic, online conversations, "organic" and
ronmentally friendly" is most important, however avoiding "diaper rash" are most associated concepts
unprompted consumer feedback ranks it last and attributes

28. Increasing customer lifetime value by
improving service experience
3.5
3.0
2.5
BT or
2.0 British
Telecom
1.5
1.0
0.5
15 26 10 24 07 21 5 19 02 16 30 13 27 11 25 08 22 06 20 03 17 31 14 28 14 28 11
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
2009 2010
Trended Sentiment Score

29. The Consumer Experience
Twitter – @BTCare
BT.com/help
BT.com Community Forums
You Tube BTCare Channel
BT.com Community Forums
Mobile
Live Chat UK Consumer and Technical Forums

31. We can help!
Let us help you harness the power of social media intelligence and
drive smarter and more efficient decisions across your organization.
Brad Little
Head of NM Incite, EMEA
189 Shaftsbury Avenue
London, WC2H 8TJ
United Kingdom
+44 (0)20 7014 0590
brad.little@nmincite.com
Twitter: @bradleyjlittle