68. Measuring the Effectiveness of Social Media
We have already had considerable discussion about the lack of discipline and knowledge that is needed to measure traditional media. It appears that social media might provide even more of a challenge for some marketers. According to one IDC study, only 25 percent of direct marketers have a strategy for measuring social media ROI. On the other hand, some marketers report that they find it easier to track leads from social media. As marketers become more accustomed to using different types of social media, I predict they will find it much easier to track social media than traditional media.
One of the challenges of measurement is making sure you are measuring the things that matter, as well as linking measurements to the right objective. If the goal is awareness, the number of forwards can be evaluated, but they don’t necessarily shed insight on how it drives purchasing behavior.
Another measure is customer engagement, which is defined as time spent on content generated from social media, pass-along value, and how this correlates to revenue. RazorFish, a global interactive agency, studied the effects of engagement with applications and gadgets by people who discovered the application from a media source and those who accessed it from a friend. People who discovered the application via a friend are two to four times more likely to download the application, are two to eight times more likely to spend money on the client site and have an average order that is 10 to 30 percent higher than those who are exposed only through media.1
RazorFish is doing further research and development on tools that will assist businesses in understanding the key elements of social media ROI. Using a tool called the Generational Tag, RazorFish tracks how users pass viral media on to their friends, how their friends respond and forward messages, and the value of each successive group (generation) that receives and passes along the message element. The Generational Tag is a set of code that tracks the viral spread of widgets and gadgets in social network platforms (such as Facebook) and non-social network environments (such as desktop applications). To use this new measure, the SIM must have shareable elements (applications, gadgets, and so on) that are associated with people (see Table 68.1).
Table 68.1 Measuring Social Media
As more companies develop innovative solutions for tracking and measuring the effects of social media, there is little doubt that businesses will be eager to adopt them.
In the meantime, we know that one of the most important components of social media is the viral nature of the media when a message is passed among friends, family members, colleagues, associates, and other communities. Each of these people or groups of people are influencers who can raise brand awareness, add value through endorsements, and recommend or influence purchasing decisions.
Whether you are dipping your toe in social media marketing or have already jumped in with both feet, the best strategy is to experiment. The rules of the road for social media are still being written, but that doesn’t mean you should sit back and wait. Experiment and adopt strategies that are being used successfully by other companies. Keep in mind that what works for one business is different from another based on integration of other marketing programs, budget, target market, and other circumstances.
Operationalize Social Media
Social media has scaled to the point that businesses should establish both a budget and resources to oversee this important function. It should not be thought of as a poor step-child that receives whatever is left over after other marketing dollars are allocated. Remember, if social media is used to drive product development, research, and customer service, as well as add value to other areas of the business, then it would be wise for several departments to contribute budget and resources to social media strategy and execution.
The marketing department will usually drive social media strategy, and marketers should take an active role in guiding others in the organization to learn and contribute. Ongoing learning helps everyone become better marketers and in turn, the company builds a stronger brand. The marketing department can provide education and training, share best practices, provide guidelines for use, and establish systems for closed-loop communication internally and externally, as well as create the systems for reporting and measurement.
Even the CEO should have a role in social media. CEOs of companies that were early adopters to this media have been very successful in shaping and growing their brands. Comments on a blog or Twitter are much more authentic than comments made through a press release.
Content generation is another area that needs to be built into the marketing operations plan. It requires planning and development to create a library of content so it is not an afterthought after a program is launched. Who will be responsible for writing content? Will you post original content or will you pull from other sources? What types of media such as video, podcasts, webinars, and photos can be used? Use pre-established branding guidelines to guide development of the content and format.
Figure 68.1 Social media operations
Sales and marketing departments should use social networking to listen to the voice of the customer, as well as monitor what is being said about competitor’s products and services. It’s a valuable research tool that should be used collaboratively by sales and marketing teams to keep their pulse on the market. Several online tools for monitoring customer feedback such as YackTrack, Yelp, and Get Satisfaction are excellent services to monitor what is being said about your company, as well as competitors.
If your goal is to collect customer feedback dynamically tools like WuFoo, PollDaddy, and TwtPoll are good real-time research tools. SuggestionBox.com is another tool that facilitates the collection of ideas from customers. It encourages customers to rate their favorite ideas (externally on the site) and employees to rate ideas and suggestions internally. Employees can respond to customer ideas privately, and there is a mechanism to notify customers when their idea has been implemented. Download a widget and the service is featured on your company website.
If you have an online store, consider using RatePoint, a service with several customer service and feedback tools. Like some of the other services, customers can post a review, and if the review is negative, you can reach out to the customer to resolve the issue before a comment is made public. RatePoint verifies reviews to make sure they are legit, and in the process verifies contact information that you can use for ongoing customer communication. Communicating with and learning from your customers has never been easier—so no more excuses!
Make it easy for your customers to find you and your company in lots of different places. Place buttons for tools so it’s easy to share content on your Web site, blog, articles, and other areas where you post online content (Digg, Twitter, Delicious, RSS feeds). This will help others share and amplify your content. Include your social network profile link in your email signature and on business cards so people can easily find you.