PR News’ Social Media Measurement Conference Prove PR’s Value With Metrics That Matter to Your Organization October 2012 Katie Delahaye Paine, Chairman & Founder KDPaine & Partners Chief Marketing Officer News Group International kdpaine@kdpaine.com www.kdpaine.com http:/kdpaine.blogs.com Fellow and Board Member: Society for New Communications Research IPR Measurement Commission

What matters? Depends on your title

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!  To CMOs * !  ROI and Customer Experience is more important than

sales.* !  Relationships, not just transactions !  ROMI will be the primary measure of their effectiveness !  Bonds with customers !  Developing a clear “corporate character.”

!  To CCO !  Brand Recognition !  Reputation & Image !  Relationships

!  To CFO !  Greater efficiency !  Lower cost of sales !  Shorter sales cycle

*IBM Global CMO Study

Customer Service HR IR Sales CI R&D Mkt

Research Prod. Mktg Mktg

Conversations

Savings, shorter cycles, more renewals, better ideas, research

What doesn’t matter? Who owns it

Yes we CAN measure the ROI of Social Media

•  Sodexo saved $300K in recruitment costs via Twitter •  In 3 months, via crowdsourcing, an engineer solved a problem that Exxon spent

20 years trying to solve •  The CEO of a hospital won a union battle via blogging •  HSUS generated $650,000 in new donations from an online photo contest •  BestBuy measures 85% lower turnover as a result of its Blue Shirt social

community •  On Twitter, for free, a startup company got 100 great marketing ideas, women

raised over $6,000 in a day and a wooden toy maker in NH got a nationwide contract

•  IBM receives more leads, sales and exposure from a $500 podcast than it does from an ad

What does matter? Value

What doesn’t matter: Silos

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What Does Matter? Where people go for information !  Friends & Family –

90% !  Google !  Other Search

Engines !  Online News !  TV

What doesn’t matter? Likes

What doesn’t matter? Impressions

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Likes Impressions Followers

Trial/Consideration Purchase Advocacy

What matters? ROI

Reality: ROI may be Efficiency Need some

help with that lawn?

!  Fishing where the fish are = Greater efficiency: !  44 % of junk mail goes to landfills

unopened. Response rates <0.25% now acceptable

!  94% better SEO results * !  Greater loyalty: Listen for need,

respond with help !  Quilted Northern !  Home Depot

!  Loss prevention; risk mitigation !  Georgia Pacific *ComScore Group study

ROI = How to calculate it !  ROI = cost savings !  + Cost of program !  – Cost elimination

!  ROI = greater efficiency !  +cost of program !   – cost of doing something “the old way”

(cost per percentage point gained) !  ROI = greater revenue, improved ALP !  +cost of program !  –value of leads/sales

Reach Frequency Hits Friends Followers

What doesn’t matter: Sentiment !  There’s a reason they call it “earned” You

are what you do, not what you say !  Assumes sentiment exists !  80% of conversation is neutral, !  Majority of business doesn’t evoke

sentiment !  Requires lots of data !  After eliminating spam, content farms

and invalid mentions !  Assumes sentiment drives action, but you

need analytics to prove it !  Real time sentiment is not measurement

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!  You become what you measure !  The Perfect KBI !  Gets you where you

want to go (achieves corporate goals) !  Is actionable !  Continuously improves

your processes !  Is there when you

need it

What matters? Your Kick Butt Index

Typical KPIs !  % share of market space conversation !  % increase in traffic to product specific

URL !  % increase in downloads/requests for info

vs. prior launches !   % increase in reposts and comments !  % containing a campaign message !  % favorable positioning on key issues !  % share of quotes

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What matters? Standards !  Chasing fans and followers is insufficient !  Marketplace is demanding standards !  Common language for clients, agencies and research

firms !  Unify perspective/metrics across communications

disciplines !  Accelerate shift from low-level counting to higher-level

value !  Enable comparison across programs/brands/

organizations !  Increase reliability of data and methods !  Foster competition based on insights not “black boxes”

#1: Content Sourcing & Methods !  . Social media measurement success stands or falls on the

quality, scope and methodology of content analyzed, as well as analyst experience. !  What content is included? How is unit of content defined? !  Which channels? How deep? How is the data captured? !  Are multiple languages captured? Via native-language

queries? !  How is the data calculated? What are the formulas? !  How is irrelevant content from bots, spam blogs and

aggregators filtered? !  Are search methodologies included and search strings

disclosed?

Introducing… Interim Standard #1. Sources & Methods Transparency Table #SMMStandards – Sources & Methods Transparency Table www.smmstandards.org Timeframe Analyzed

Research Lead(s)

Channels Analyzed

Data/Content Sources

Analysis Depth ☐ Automated ☐ Manual ☐ Hybrid ☐ All Content Reviewed ☐ Rep. Sample

Source Languages

Search Languages

Sentiment Coding ☐ Automated ☐ Manual ☐ Hybrid ☐ Manual Sampling: _____________________ ☐ 3-pt scale ☐ 5-pt scale ☐ Other scale ☐ At entity level ☐ Paragraph/doc level

Spam/Bot Filtering ☐ Automated ☐ Manual ☐ Hybrid ☐ Includes news releases ☐ Excludes releases

Metrics Calculation and Sources

-- Reach

-- Engagement

-- Influence

-- Opinion/Advocacy

Proprietary Methods

Search Parameters See full search string list on page ___ of this report

#2: Reach & Impressions !  Accurate impressions data is hard to source,

especially globally !  Be transparent about sources used and clearly/

correctly label charts !  Definitional confusion across media types and disciplines !  Impressions; opportunities to see; circulation;

reach; frequency; total vs. targeted reach; visits; visitors; followers; fans; views !  Multipliers should not be used – in fact,

dividers are more appropriate !  Few of your followers “read” every tweet; only

8-12% see Facebook posts

Typical KPIs for an Event !  % share of the event Hashtag !  Ratio of owned posts to earned posts/

tweets !  Share of voice in event media !  % of mentions containing a key

message !  % message integrity – full, partial,

negative !  % favorable positioning on key issues !  % share of quotes 19

#3: Engagement !  Engagement is an action that happens after reach, beyond

consumption !  Engagement could be but is not necessarily an outcome !  Engagement manifests differently by channel, but typically

measurable at three levels – Low, Medium and High – based on effort required, inclusion of opinion and how shared with others !  Low examples = Facebook “likes” and Twitter “follows” !  Medium examples = blog/video comments and Twitter

“retweets” !  High examples = Facebook shares and original content/

video posts !  Clients prioritize differently, but engagement “levels” are

consistent

#4: Influence & Relevance !  Influence is something that takes place beyond engagement !  “You have been influenced when you have thought something

that you otherwise wouldn’t have thought or done something that you otherwise wouldn’t have done.” – Philip Sheldrake, “The Business of Influence”

!  Influence is multi-level and multi-dimensional, online and offline !  Not popularity; not a single score !  Domain & subject specific – relevance is critical

!  Influencers should be identified and rated using custom criteria via desk research, not purely on automated algorithms

#5: Opinion & Advocacy !  Sentiment is over-rated and over-used !  Not the end-all, be-all qualitative measure – other factors to

consider !  Sentiment reliability varies by vendor and approach – be

transparent !  Opinions, recommendations and other qualitative measures

are typically more valuable than raw sentiment and increasingly measurable: !  Opinions (“it’s a good product”) !  Recommendations (“try it” or “avoid it”) !  Feeling/Emotions (“That product makes me feel happy”) !  Intended action (“I’m going to buy that product tomorrow”)

!  Coding definitions, consistency and transparency are critical

#6: Impact & Value

!  Impact and value will always be dependent on client objectives

!  Need to define outcomes in advance – will likely span multiple business goals, especially for social (crosses disciplines)

!  “ROI” should be strictly limited to measurable financial impact; “total value” can be used for financial and non-financial impact combination

!  Value can be calculated in positive returns (sales, reputation, etc.) or avoided negative returns (risk mitigated, costs avoided)

!  KPIs &balanced scorecards are helpful to connect social media impact to business results/language

What matters: Insight

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Red line indicates media impressions

35,152,789 OTS

6,253,852 OTS

What matters: Asking “So What”

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What matters: Keep moving forward

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•  Monitoring/Listening

•  Establish Rules

Crawl

•  Participate •  Measure •  Tailored

content

Walk

•  Integrate into Strategy

•  Use Multiple Channels

•  Follow best practices

Run

•  Tie efforts to outcomes

•  Crowdsource •  Integrate

with all Mktg •  Continuously

improve

Fly

Thank You! !  For more information on measurement,

read my blog: http://kdpaine.blogs.com or subscribe to The Measurement Standard:

www.themeasurementstandard.com !  For a copy of this presentation go to:

http://www.kdpaine.com !  Follow me on Twitter: KDPaine !  Friend me on Facebook: Katie Paine !  Or call me at 1-603-868-1550