The return on a share: Quantifying the monetary value of social sharing, presented by Andy Stevens
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Transcript of The return on a share: Quantifying the monetary value of social sharing, presented by Andy Stevens
SOCIALMEDIA.ORG/SUMMIT2014ORLANDOOCTOBER 27–29, 2014
The return on a share:Quantifying the monetaryvalue of social sharingANDY STEVENSSHARETHIS
Andy Stevens
VP Strategy & Research
ShareThis @AndrewStevensUK
With the growth of the social web, we turn more often to friends and strangers for recommendations on where to go, what to eat, and what to buy.
2
SHARING IS THE CONNECTIVE THREAD OF THE SOCIAL WEB
3
THE
IMPACT OF SHARING IS WELL-DOCUMENTED
73% of survey respondents process information more deeply, thoroughly, and thoughtfully when they share it.
70% of people trust consumer reviews they found online.
38% During a four-week test, Starbucks’ Facebook fans and “friends of fans” were 38% more likely to make a purchase.
4
BUT HOW DOES IT ALL TRANSLATE TO
MONETARY IMPACT?
SHARETHIS COMMISSIONED THE FIRST STUDY OF ITS KIND
TO MEASURE THE IMPACT OF SHARING ON THE
PURCHASE PROCESS
PURCHASE
INTENT
RECOM-
-MENDATION
PRICE
BRAND
PREMIUM
GENERIC
LUXURY
ECONOMY
TYPE
SOURCE
STRENGTH
Family
Friend
Acquaintance
Stranger
Professional
Excellent
Good
Moderate
Bad
In-person
Social Network
Trade Publication
BRAND
PRICE
TYPE
STRENGTH
SOURCE
REC
OM
MEN
DA
TIO
N
WHICH OF THE FOLLOWING TWO PRODUCTS ARE YOU MORE LIKELY TO PURCHASE?
6
CONJOINT METHODOLOGY USES STATISTICAL MODELING TO DETERMINE THE RELATIVE IMPORTANCE OF VARIOUS
FACTORS AFFECTING THE CONSUMER PURCHASE DECISION
x
Premium Brand
10% higher
Facebook Post
Friend
Economy Brand
10% lower
Car & Driver Review
Professional
Sample conjoint survey screen
7
RECOMMENDATIONS ARE MORE
IMPORTANT TO THE CONSUMER PURCHASE
DECISION THAN BOTH BRAND AND PRICE
Recommendations account for 57% of the consumer
purchase decision:
RECOMMENDATIONS
57%
PRICE
28%
BRAND
15%
8
SIMILAR PATTERN ACROSS DIFFERENT
VERTICALS
58%
34%
8%
56%
24%
19%
56%
25%
19%
CPG Electronics Autos
Recommendations
Price
Brand
9
6.3%
7.3%
9.5%
10.6%
ONLINE SHARES ARE NEARLY AS VALUABLE
AS IN-PERSON RECOMMENDATIONS
Consumer Ratings
Consumer Reviews
In-Person Recommendations
Online Shares
10
RETURN ON ‘EXCELLENT’
RECOMMENDATIONS
Highly positive shares yield a return of 9.5%
6.3%
7.3%
9.5%
10.6% 10.2%
Consumer Ratings Consumer Reviews Online Shares In-Person Recommendations
Professional Reviews
6.0
%
6.2
%
11
.2%
13
.2%
7.1
%
7.6
%
8.1
% 9
.3%
10
.5%
5.7
%
8.1
% 9.2
%
9.3
%
10
.0%
CPG Electronics Autos
11
NEGATIVE RETURN ON ‘BAD’
RECOMMENDATIONS
Negative shares lower purchase intent by 11.0%
(11.3%) (11.2%)
(11.0%) (11.2%)
(10.2%)
Consumer Ratings Consumer Reviews Online Shares In-Person
Recommendations Professional Reviews
(13
.1%
)
(13
.1%
)
(12
.5%
)
(12
.9%
)
(10
.6%
)
(10
.6%
)
(10
.5%
)
(10
.6%
)
(10
.5%
)
(10
.2%
)
(10
.0%
)
(9.9
%)
(10
.0%
)
(9.9
%)
CPG Electronics Autos
12
THE SOURCE OF THE SHARE IS
IMPORTANT
8.0% 7.7% 7.5%
12.7%
8.5% 9.0%
14.0%
9.6%
10.7% 10.5%
11.7%
CPG Electronics Autos
Strangers Acquaintances Close Friends / Family Professionals
13
FOR AUTO BRANDS, AN EXCELLENT
SHARE IS WORTH $3,708
Consumer Ratings
Consumer Reviews
In-Person Recommendations
Online Shares
Professional Reviews
$2,312
$3,277
$3,708
$3,766
$4,702
14
Consumer Ratings
Consumer Reviews
In-Person Recommendations
Online Shares
Professional Reviews
$22.09
$23.56
$24.91
$28.76
$32.44
FOR ELECTRONICS BRANDS, AN
EXCELLENT SHARE IS WORTH $25
$0.42
$0.44
$0.92
$1.05
15
Consumer Ratings
Consumer Reviews
In-Person Recommendations
Online Shares
FOR CPG BRANDS, AN EXCELLENT
SHARE IS WORTH $0.92 That’s how much more consumers are willing to pay for the average
supermarket product if it was positively shared about by someone in
their social network.
16
Key Findings
Recommendations have more impact on a consumer’s
decision-making process than brand or price
17
Recommendations have more impact on a consumer’s
decision-making process than brand or price
Highly positive online shares generate a 9.5% increase in
purchase intent, while negative reviews can decrease intent
by 11.0%
Key Findings
18
Recommendations have more impact on a consumer’s
decision-making process than brand or price
Highly positive online shares generate a 9.5% increase in
purchase intent, while negative reviews can decrease intent
by 11.0%
Online sharing has a measurable effect on a product’s
prices, driving incremental value by as much as $9,623.74 for
luxury automobiles
In fact, online shares are nearly as valuable as in-person
recommendations
Key Findings
19
WHAT DOES IT ALL
MEAN?
DRIVE EARNED MEDIA SUCCESS WITH
SOCIAL INSIGHTS
VIEW CURRENT CUSTOMERS AS MARKETING PARTNERS
ENABLE CUSTOMER EVANGELISM
MONITOR YOUR ONLINE PRESENCE THROUGH SHARING
ADDRESS NEGATIVE REVIEWS OPENLY AND HONESTLY
Use social signals to determine where and when to spend media dollars
UNLOCK THE VALUE OF SHARING WITH PAID MEDIA
Use social data to identify users who shared relevant content
IDENTIFY
TARGET
Align messaging with sharers’ interests and deliver media on the content
with which they engage
OPTIMIZE
Heavy-up deployment around key
events to drive conversion when
conversations are abuzz
Monitor sharing trends in real time and
capitalize on user intent as quickly as
possible throughout the purchase funnel
22
THE VIRTUOUS CIRCLE OF SHARING
SHARING
INSIGHTS
OPTIMIZATION
EARNED MEDIA
LARGER AUDIENCE
THANK YOU
SOCIALMEDIA.ORG/SUMMIT2014ORLANDOOCTOBER 27–29, 2014
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