Measuring Meaning, Creating Value

from data to action in social media

Jason Burby

Chief Analytics and Optimization Officer [email protected]

Ryan Turner

Social Media Lead [email protected]

© 2008 ZAAZ, Inc. All rights reserved. Confidential information.

Jason = Measurement Ryan = Social Media

Other places you can find us: www.websocialarchitecture.com

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We work at ZAAZ

Performance-Driven Design

WE BELIEVE SUCCESS DOESN’T HAPPEN BY ACCIDENT. IT REQUIRES A UNIQUE COMBINATION OF LOGIC AND CREATIVITY TO ACHIEVE YOUR ONLINE OBJECTIVE.

MORE THAN JUST A VIVID IMAGINATION, CREATIVITY IS EXPRESSED THROUGH INNOVATIVE THINKING, COMPREHENSIVE ANALYSIS TO CONTINUOUSLY IMPROVE YOUR RESULTS.

WE CALL IT PERFORMANCE DRIVE DESIGN. IT WORKS. AND, YES, WE CAN PROVE IT.

Agenda

• The Web is a social medium.

• Focus on quality, not quantity.

• Case studies.

• Social media generates business intelligence.

• Cultivate business intelligence.

• Start with the basics.

• Discussion.

THE WEB IS A SOCIAL MEDIUM

When we talk about social media, what we really mean is participation.

Some Context: Ryan’s Ten-Cent History of the Web Community-Focused Broadcast Participatory User-Generated Bottom-Up HTML High Threshold of Entry Low Bandwidth Text-Based Collaboration 1980’s-1994 Corporation-Driven Top-Down Data-Driven No entry Flash intros!

Text and Images Transaction 1994-2005 User-Generated Bottom-Up Standards-Driven Lower Threshold of Entry High Bandwidth Multimedia Interaction 2005-Now

Web 2.0 and social media are social phenomena above all.

Blogs Discussion Boards Forums Chat IM Vlogs Moblogs SMS Podcasts Microblogs Photo Blogs Prediction Markets RSS Collaboration Collective Intelligence Communities Wikis Recommender Systems Mashups User-Generated Content

VS

Social media is made up of people, relationships among people, and things people create and share

What Is Social Media

The tool-centric mentality has produced some of the worst marketing ever.

“Just because we understand tax code doesn’t mean we can’t bust mad flow.” --Intuit

People don’t want to connect with each other online.

But that’s not the whole story. People do want value.

“The purpose of a business is to create value for its customers, and the reward for doing so is profit.”

The long-term winners are the ones who create the most value, not the ones who convert the highest percentage of traffic.

The winners create meaning.

They make stuff that matters.

FOCUS ON QUALITY, NOT QUANTITY.

Not how much stuff you have, but what kind of stuff.

Not how many people show up, but how many come back.

Not how many conversations, but their inherent intelligence.

Not how many people listen to you, but how well you listen, how much you learn, and what you do about it.

“We’ve already got 100,000 registered users.”

“Our users have posted 2500 videos.”

Four Flavors of Social Media: Quality Questions

1. Monitoring and response  Where are your people, and what are they saying?

2. Social media products and services  How can you engage customers to co-create value around your core offering?

3. Integrated social tools  What doors can you open, enabling your customers to participate?

4. Intranet  What business value do your participants create?

How does this work in practice?

Quantity vs. Quality Measurements

• • •

Quantity:

Visits Members Number of Projects • • • •

Quality:

Active Members Average Rate of Participation Positive Offsite Blog Postings Return Visitor %

Quantity vs. Quality Measurements

• •

Quantity:

My Beacon Activations Learn about My Beacon Visits • • •

Quality:

Active My Beacon Users (5x/month) Avg. # of Buddies per Active User % Regular User vs. Heavy Users

Quantity vs. Quality Measurements

•

Quantity:

Number of reviews submitted • • • •

Quality:

% of Reviews “Helpful” 75%+ of the Time Review Visits per Product Visit % of Reviewers “Heavily Engaged” Conversion Rate based on Review

Quantity vs. Quality Measurements

• •

Quantity:

Visits Page Views per Visit • • •

Quality:

Total MVP Activity Total Comment Prints % Rating Experience “Helpful”

Quantity vs. Quality Measurements

• • •

Quantity:

Visits •

Quality:

Survey % Page Views Comments Expanded View of MS Office capabilities • Survey % helpful content • % Visits Downloading Templates

Quantity vs. Quality Measurements

• •

Quantity:

Raw comment counts Visits • • •

Quality:

% of Votes Over/Under 100 words % of “Recommend Comments” selected Rate of Full Page Scrolls

Quantity vs. Quality Measurements

• •

Quantity:

Visits Ideas Submitted • • • • •

Quality:

% Return Voters # of Customer Ideas Implemented # of Ideas with 20k+ votes % with Dell Status Updates # of Active Members

Quantity vs. Quality Measurements

•

Quantity:

# of Ratings • • • • •

Quality:

Clickthroughs to BlendTec Site Total Comments Video Views Active Subscriptions “Favorited” Based on Views

THE BASICS ARE THE SAME

Start with your goals.

Get the right tools, and set them up right.

Act on what you learn.

.

Traditional Best Practices Still Apply

A plethora of tools are emerging to monitor online chatter, measure sentiment, and streamline the effort of engaging with customers.

Tools. There are a bazillion of them.

Every brand should build a programmatic approach to measuring and managing customer engagement online.

And it doesn’t have to take a huge budget.

Or any budget!

SOCIAL MEDIA GENERATES BUSINESS INTELLIGENCE

Social media, unlike broadcast and transactive media, is a two-way channel. Listen, don’t just talk.

Don’t measure your social media marketing to improve your marketing— measure it to improve your business decisions.

And get ready for higher-level exposure.

Integrating Data to Understand the Full Landscape

BUSINESS INTELLIGENCE IS HUMAN INTELLIGENCE

Measurement tools can’t generate business intelligence, only data.

People translate data into intelligence.

Where to begin? The social media inventory.

Measuring the Success of Social Media in terms of Value

Defining Success – Where to Begin: • • • Create a list of key behaviors on your site. Rank them by the amount of created value they reflect. Group them into classes with scores.

Build a Value Index

KPI #1 - ENGAGEMENT INDEX

500,000 400,000 300,000 200,000 100,000 0 Sep-07 Active Participation Oct-07 Nov-07

Total Site Engagement Index [1] Active Participation Index [2] Success Events Details [Page Views]

Rating Login Registration Content Generation Tagging Comment Post

Content Consumption Index [3] Success Events Details [Page Views]

UG Doc Visit - Unqualified UG Doc Visit - Qualified Download Tier 1 Doc Visit - Qualified [4] Tier 1 Doc Visit - Unqualified [4] Forum Thread Visit Social Bookmark Email Signup RSS Signup                  

% Change

111.1% 301.4% 1083.3% 180.8% 224.6% 376.2% 366.7% 28.6% 109.3% 130.5% 75.6% 73.4% 115.8% 90.5% 61.8% -46.0% -60.0% 100.0% Content Consumption Dec-07

Jan-Feb 228,460 4,179

178 139 106 50 7 5

224,281

16,023 11,845 2,034 1,606 651 89 14 1 1 Jan-08

Nov-Dec

108,221 1,041 Feb-08

LTD Avg

213,095 4,518 15 50 33 11 2 4 107,180 93 276 78 33 4 5 208,577 6,953 6,745 1,173 744 342 55 25 3 1 16,022 9,797 2,254 1,415 1,433 98 30 5 3

Methodologies for Success How to Monetize Corporate Social Media Behavior In order to monetize site behaviors we must understand the impact to the business.

How do you translate visitor behaviors into financial benefits for the company ?

ANALYZING THE VALUE OF ENGAGEMENT ON A COMMUNITY SITE

Methodologies for Success

“MONETIZING” BRAND VALUE: A “TOKEN” EXAMPLE

But monetization doesn’t tell the whole story.

What is the ROI of a blog post that saves your business?

START WITH THE BASICS

Summary

• Focus your measurement on quality.

• Create meaningful experiences. Add value.

• Build a picture of your social media ecosystem • Build the right reporting systems • Operationalize your business intelligence • Cultivate your human intelligence

Discussion

Jason Burby

Chief Analytics and Optimization Officer, ZAAZ [email protected]

Ryan Turner

Social Media Lead, ZAAZ [email protected]