Social Media RoI: Stop. Don't Run Away! (Debjani Deb speaks at IIR Measure Up Conference, 6-8 Jun 11, Boston)

www.empowerresearch.com

Social Media ROI: Stop. Don’t Run Away!

Debjani Deb
Managing Partner

EmPower Research LLC. 2011 Listen. Learn. EmPower Listen. Learn. EmPower
1
Tuesday, June 07, All Rights Reserved.

Your Consumers are Online Today

14% 21% 31%
66%

Of online 14% either publish 21% post ratings 31% update
Americans now a blog/ web page or comments in social
use social media or upload video online forums networking sites

HOW MANY TURN TO SOCIAL MEDIA WHEN MAKING PURCHASES
Travel Apparels Personal Care Food/Beverages Groceries

28% 26% 18% 26% 17%

Sources: www.sanfranciscosentinel.com, www.blogs.forrester.com, Knowledge Networks – May 2010

EmPower Research LLC. All Rights Reserved. Listen. Learn. EmPower 2

CONSUMERS ARE EXPRESSING
OPINIONS ON
BRANDS/PRODUCTS/SERVICES
AND LEARNING ABOUT THEM

Paths to success
not yet laid out

THIS RESULTS IN SEVERAL
OPTIONS FOR INVESTMENT/
SPEND

ROI is still murky

THEREBY INCREASING THE
PRESSURE TO EMBRACE THIS
NEW MEDIUM

Cause and effect
is not well
thought out


IN NEXT

MINUTES WE WILL DISCUSS
DISCUSS…
CURRENT ISSUES OF SOCIAL MEDIA MEASUREMENT

THE PURCHASE FUNNEL AND HOW IT RELATES TO SM

BLUEPRINT TO EFFECTIVE MEASUREMENT USING SM


The Marketing Spend Scenario Today

$$$$
Most marketing
$$$$ dollars are spent
today on the first
2 steps of the
purchase funnel

Loyalty


But measuring awareness and interest does not
g
help. The core measurement issue today…

Relevance CFOs are not convinced by absolute
measure such as these.

Leadership will not be DASHBOARDS
content when results are
conveyed as re-tweets, fans
re tweets,
or number of followers

Metrics need to reflect SITE STATISTICS
impact on purchase intent,
purchase and loyalty


Copyright Howard McWilliam. Produced with prior consent

Fact 1: External and Internal Stimuli Shaping Brand Perceptions
are Captured in Social Media

Advertisements
Advocacy
Engagement

Online Outreach

Changing brand
perceptions reflected in
ti fl t d i
social media by voice of
the consumer


Fact 2: Investments Made at the Top of Purchase Funnel are
Reflected at the Bottom of Purchase Funnel

$$$$

$$$$ 1
Higher
Purchase
Intent

2
Loyalty
Higher Sales
and Loyalty


So How Can We Use Social Media Data To Measure

BYTES + BRAINS

Aggregate
at Large

Harness Identify
Online Influencers
Opinion

1 2

Aggregation of Insights Understanding Opinion
Universe Leaders


How Does One Aggregate at Large?

Stage -1
Aggregation of unqualified chatter using
tools

Stage -2
Filter by using semantic rules as such as
proximity, NLP or sentiments etc.

Stage -3
Filter by using stratified random sampling
for sub-populations that vary considerably

Stage -4
Analysts led tagging for themes, tonality,
demographic profile etc.

Analysis


Nuts and Bolts of Purchase Intention

+ve
Price

-ve Neutral
Image
I Utility
Utilit


Case in Point: Patient Consideration in Real Time

Hi
The launch of
Product A lost some
its sheen owing to Product B
negative chatter on

areness
its price even when
it was highly
recommended by
opinion leaders.
Awa

Product
A
This resulted in
higher purchase
intent/consideration Lo
for competitor that
was still in pipeline. -Ve Interest +Ve
Size of the bubble indicative of intent


An Example of How Purchase Intent Metrics Impact Returns

Share of Voice

50

40

For a particular 30

cereal brand, it 20

was found that 10

while moms had 0

high awareness, Brand A Brand B Brand C Brand D Brand E

it did not result
in
i actual
t l Actual Purchase Intention
purchase intent 60
owing to poor 50

p
perceived 40

nutritional value 30
20
10
0
Brand A
Brand A Brand B
Brand B Brand C
Brand C Brand D
Brand D Brand E
Brand E


An Example of How Loyalty Metrics Impact Returns

Increase in Awareness Sentiment

The Greenpeace
movement
against Leading Negative
Chocolate Brand
Ch l t B d Sentiment
created a lot of
interest for the
brand.
Week 1 Week 2 Week 3 Week 4

Interestingly,
many more first Loyalist First timers

time customers
bought the brand.

Switchers


Social Media can Provide a Lead Indicator for Sales

Lag Data Marketing Data 1 Promo Data Integrated
Sales Data
g
Insights

3
Social Media Lead Data

Purchase
Awareness Interest Intent

2


Case in Point: Reasoning for Sales Fluctuations

The above result explains that negative
p g
sentiments in the previous months had
Social media some effect on sales performance.
sentiment can be
SALES
used as a lead
indicator for the
point of sale data.

Social media can
explain the drivers
and the ‘why’ of the
peaks and troughs
for sales data
Mon 1 Mon 2 Mon 3 Mon 4 Mon 5 Mon 6 Mon 7

Brand’s Negative Sentiments


Statistical Analysis Reveals Competitor’s Promotion Efforts and
Its Negative Conversation Influences Brand Sales

Competitor promotion spend
affected sales performance in
Competitor’s negative
a negative way
tonality increased sales

SALES

SALES

Mon 1 Mon 2 Mon 3 Mon 4 Mon 5 Mon 6 Mon 7

Competitor Promotion Spend Competitor Negative Tonality


The Mom’s Index a Way to Understand Intent at the Segment Level

Millennials Moms Teens

Understand Mom’s Purchase Intent
outlook towards a Sales
category including
purchase intent of
brands within the
category relative to
each other

Understand teens
perception of a
brand. This index
also lends itself to
understanding
segment based
drivers for sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6


In Conclusion

Social Media lends itself well towards learning about marketing impact

But focus on pure awareness as a measure is not enough to justify spending

True impact/ROI can be measured if purchase intent loyalty and sales can
intent, loyalty,
be measured

The voice of the stakeholder is a powerful
learning tool that brands should use to
empower and tweak marketing strategies


www.empowerresearch.com

Retail/CPG Advertising Communications/ High Tech/ Pharmaceuticals Financial
Public Relations Telecom Health Care Services

Corporate Headquarters

EmPower Research LLC
404 East 79th Street
Suite 16E
New York, NY 10075

Tel : +1 646 435 0030
Fax : +1 646 472 5806

Global Research Center

EmPower Research Knowledge Services Pvt. Ltd.
Ozone Manay Tech Park
3rd floor, Block B
Kudlu Gate, Hosur Road
Bangalore 560 068

Tel : +91 80 4020 5300
Fax : +91 80 4169 8306
EmPower Research LLC. All Rights Reserved. Listen. Learn. EmPower Listen. Learn. EmPower 21
21

Social Media RoI: Stop. Don't Run Away! (Debjani Deb speaks at IIR Measure Up Conference, 6-8 Jun 11, Boston)

Recomendados

Recomendados

Más contenido relacionado

Similar a Social Media RoI: Stop. Don't Run Away! (Debjani Deb speaks at IIR Measure Up Conference, 6-8 Jun 11, Boston)

Similar a Social Media RoI: Stop. Don't Run Away! (Debjani Deb speaks at IIR Measure Up Conference, 6-8 Jun 11, Boston) (20)

Más de EmPower Research, a Genpact company

Más de EmPower Research, a Genpact company (6)

Último

Último (20)

Social Media RoI: Stop. Don't Run Away! (Debjani Deb speaks at IIR Measure Up Conference, 6-8 Jun 11, Boston)