How to Make a Business Case for #Socialmedia Gain Social Media ROI with Crimson-Hexagon

1. How To Make A Business Case for Social Media Dr. Natalie L. Petouhoﬀ @drnatalie www.DrNatalieNews.com

2. We are going to explore the 4 KEY Steps to Making a Business Case Step 1: Define Business Benefits & Social Strategy – Start with one simple sentence – Determine ways that social analysis would help – Do the math with help from department heads Step 2: Examine Project Benefits, Costs and ROI Step 3: Determine AddiIonal Benefits Step 4: Define Risks and UncertainIes Using A Business Case Template:

3. >3.5 Billion pieces of content Shared / Week By 2020 à 450 Billion business transacIons / day How can we make sense of all this?

4. People are Acting on Content

5. Aren’t the Beneﬁts obvious? CLEARLY, PEOPLE ARE SHARING MORE THAN EVER SOCIAL IS HERE TO STAY. SO WHY DO WE NEED A BUSINESS CASE FOR THE INVESTMENT IN SOCIAL MEDIA ANALYSIS?

6. •  The first 2 phases driven by Innovators & Early Adopters •  They don’t need business cases to adopt something WHAT’S SHIFTING THE NEED FOR A SOCIAL MEDIA BUSINESS CASE? We’re in the “third wave” of social media. 6

7. The Third Wave is Dominated by The Early Majority Who Are PragmaMsts – •  They want proof •  Love business cases

8. –  Now deep insights are needed –  Based on proprietary market research technology to: •  Know More •  Know Why •  Know How Social Media Analysis has Evolved

9. To make sound business decisions… Businesses need deep insights to drive business acIons –  Who’s talking about the brand? –  What’s being said about the products & services? –  How are those online and oﬄine conversaIons between customers aﬀecIng the business? –  What can the business learn from these conversaIons? –  What can the business learn from monitoring their compeIIon?

10. The Business Case Creation Process: How to Justify an Initiative Define Gather IdenMfy Analyze Choose Implement Measure Define Project IdenIfy Align Stakeholders Set Goals, Metrics Gather Financial Data Document current state Define Problems to Solve IdenIfy benefits IdenIfy costs IdenIfy risks Create business case Analyze Create ROI Create selecIon criteria Produce RFP Evaluate vendors Select soluIon Measure baseline before Measure acer for ROI Refine opImize Gain consensus

11. The components of a quality business case – a template Table of Contents 1.  ExecuIve Summary •  Background 2.  Current Business •  Business Problem To be Solved 3.  Proposed Project •  DescripIon/SoluIon to the Business Problem 4.  OpIons EvaluaIon Approach •  Proposed opIons 5.  Investment Analysis •  Costs, Beneﬁts, ROI •  QuanIfy / Sell the Beneﬁts 6.  Risk Analysis MiIgaIon •  Change Management / Governance

12. Poorly communicaIng the anIcipated payback / beneﬁts of a project to your stakeholders—CxO’s, Finance, IT, etc… Is a sure bet to stop your projects from being funded… Even projects you know would strongly beneﬁt the company.

13. BEGIN BY DISTILLING THE BUSINESS CASE INTO A SINGLE SENTENCE: 13 “We will ___(DO SOMETHING = Project)_____ to improve __(A Business SituaFon)________, and our success will be measured by _____(Beneﬁts as Measure by Metrics)____, which is worth ___(A Dollar Value)________.”

14. Example: “We will use social media monitoring analysis to gain strategic insights, And our success will be measured by averFng a PR crisis, Which is worth, on average, $2M for each PR crisis averted.” 14

15. IN ALL SINGLE SENTENCE EXAMPLES… This is the foundation of your business case and keeps the effort focused! AND -- You may find that you can garner benefits in other departments You can add additional sentences to your business case YOU PUT A STAKE IN THE GROUND: i.e. – you say how you intend to use the social media analysis to produce specific business results… 15

16. Example: “We will use social media monitoring analysis to gain real-‐Fme market research insights, and our success will be measured by increased consumpFon (sales) marketshare, which is worth 5% increase in sales equaling $2M.” 16

17. BENEFITS FIT INTO “5” BUCKETS: To get more benefit, make friends in other departments! 17 Revenue Tech investment leads to incremental revenue Sales, Mktng Measured in incremental gross margin User ProducMvity Tech investment leads to streamlined efficiencies Department Head, and End User; Customer Service, Product Development… Increased worker output, cost saving Asset ProtecMon Tech investment protects against potenMal for loss or exposure PR, Risk Mgt, Security, IT Measured as potenMal direct / indirect cost avoidance Compliance Tech investment complies with gov't regulaMons Legal Affairs, Regulatory Measured as direct cost avoidance Capital Efficiency Tech investment allows for reuse increased output for exisMng capital Finance, IT, Dept. Heads Measured as increased output per capital investment, direct cost avoidance Benefit Bucket Value Depts. Measurement

18. HERE’S THE HARD PART… DO THE MATH -‐-‐-‐-‐ QuanMfy each benefit idenMfied! 18 What’s necessary? •  Understanding actual departmental funcIons, costs and their benefit(s) •  Make friends with Finance and Quality •  Can’t get to the math for ROI without it •  Get input from departmental head(s) to discuss operaIonal costs and social analysis opportuniIes •  Vet with other departments – part of the change management process – so down the line you don’t get resistance

19. HOW TO QUANTIFY A BENEFIT 19 Example quesMons to ask yourself / Dept. Heads when quanMfying a benefit: Q: What’s the benefit of having social media analysis in PR? A: Geong deep insights on brewing issues could help to prevent the need to have PR damage control Q: What were the costs associated with PR damage control? A: Decreased shareholder value, cost of effort to restore brand equity, resource/ PR agency overIme costs, irreparable damage to brand Q: What benefit bucket does averted PR damage control belong to? A: Cost avoidance fits into Asset ProtecIon benefit bucket Therefore, Social Media monitoring analysis, from a PR perspecIve, is protecIng assets: i.e. earnings shareholder value …

20. PR Crisis Recovery ROI CALCULATION •  What is the cost of a PR Crisis Recovery? •  Impact to annual revenue /shareholder value? •  Revenue lost / week during PR Crisis? •  Length of PR Crisis without social media monitoring? •  Length of PR Crisis with social media monitoring? •  Cost to restore corporate brand reputaIon / equity? = – x 100 •  People: Staﬀ Salary (exisIng) •  Process: Training to use the system (3 days) •  Technology: Social Analysis Plarorm ROI On average research shows: Beneﬁt: $2M to restore the brand’s reputaIon Investment: (1 year) = $5,000/mo x 12 = $60K ROI = $2M – $60K x 100 = 566% ROI $60K

21. 4 KEY Steps to Making a Business Case Step 1: Define Business Benefits Social Strategy – Start with one simple sentence – Determine ways that social analysis would help – Do the math with help from department heads Step 2: Examine Project Benefits, Costs and ROI Step 3: Determine AddiIonal Benefits Step 4: Define Risks and UncertainIes Using the Business Case Template:

22. Examples: Use Cases For Social Media Monitoring Analysis 22

23. Consumer Brands: Measuring Intent Use Case: How does consumer behavior respond to corporate actions or other events? Business Application: Change activities based on impact; investigate correlations with other data sources.

24. Advertisers: Campaign Effectiveness Use Case: To what extent did a specific campaign meet its objectives? Business Application: Design future campaigns accordingly; gain visibility into elements of ROI.

25. B2B: Consumer Views on Industry Trends Use Case: What risks or opportunities exist in industry-level conversations? Business Application: Determine whether / how to participate in high profile issues.

26. TV Media: Fine Tune Promotional Content Use Case: What programming elements drive passion from fans online? Business Application: Design or tweak promotional content in order to highlight most engaging topics to audiences.

27. Brand Audit - PR Use Case SAMPLE CLIENT: A $200B global innovator that puts “imagination to work” to make a better world (Crimson Hexagon serves 16 divisions) QUESTION: What is happening to our brand? Develop a framework for social media crisis analyses communications by analyzing three crisis affecting the brand over a 9-month period: 1 OFFSHORING JOBS TO CHINA TAX BREAKS IN A BAD ECONOMY 2 NUCLEAR ENERGY SAFETY CONCERNS 3

28. INSIGHTS and ANSWERS ANALYTIC FINDINGS: A.  Meaningful negative sentiment over horizon B.  Greater negativity toward tax issues vs. outsourcing vs. nuclear energy concerns C.  Bigger crisis was one of politics, not a single event, impacting brand perception relative to competition “I don’t think there is any question that the audit had a real impact on how people understand the brand… It’s fair to suggest that Crimson Hexagon has had a hand to play in our re-positioning. CLIENT FEEDBACK: A C B UNEXPECTED UNEXPECTED, UNINTENDED

29. How to make a business case for Social Media Monitoring Analysis Dr. Natalie L. Petouhoﬀ @drnatalie www.DrNatalieNews.com THANK YOU

How to Make a Business Case for #Socialmedia Gain Social Media ROI with Crimson-Hexagon

How to Make a Business Case for #Socialmedia Gain Social Media ROI with Crimson-Hexagon

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How to Make a Business Case for #Socialmedia Gain Social Media ROI with Crimson-Hexagon