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Managing Forward:

Measuring Social Media Value and Influence

Larry Freed, President and CEO, ForeSee Results

Social Media Popularity

50%Facebook fans

Log in daily

500Million

Facebookusers

Facebook5.3

Billion fans on purpose-built

Facebook pages

Source: Econsultancy.com January 29, 2010, comScore 2010

3.5Billion contentpieces shared

weekly

3 Types of Social Media1. Controlled2. Sponsored3. Viral

Making Sense of Social Media: The Social Media Map

What do consumers want from Facebook?

Where and why do consumers engage with social media

Source: ForeSee Results Top 40 Holiday Retail Satisfaction Index, February 2010

What are you doing about it ?

71%Companies with a

social media plan aresetting up metrics &tracking methods

Source: eMarketer July 24, 2010 from Digital Brand Expression report , Social Media Without a Parachure

Fans on social sitesSocial mentionsTweetsBlog entries

Traditional Social Metrics count activity and measure impressions/buzz

What is missing ?

Who is coming to your social networking site?

What are the social media tendencies of your website visitors?

What influenced them to cometo your site?

Were they satisfied?

Was their experience successful?

What are they going to do as a result of the experience?

What is the value of a visitor from Social Media?

Success is defined by what the user does as a result of the experience: return, recommend, purchase, etc.

Success is customer/visitor satisfied, did the experience meet their needs and exceed their

Success is measured through the eyes of the customer/visitor

Measuring Success

Satisfaction drives behaviors which drive value, loyalty and word-of-mouthand cost-efficiency

Satisfaction is a combination of what you get and what you expect

Consumers have freedom of choice and will go where they are satisfied

Satisfaction

visitors

Customer Satisfaction = Key Success Metric

How Do We Measure Satisfaction

American Customer Satisfaction Index#1 Measurement of Customer SatisfactionLeading National Economic Indicator of Consumer Spending

45 industries, 200+ organizations

Satisfaction: Measurement of Success

Accurate

Reliable

PreciseValid

Sensitive

Scientific Customer Satisfaction Measurement

Accurate

Reliable

PreciseValid

Sensitive

Correct

Scientific Customer Satisfaction Measurement

Accurate

Reliable

PreciseValid

Sensitive

Consistent

Scientific Customer Satisfaction Measurement

Accurate

Reliable

PreciseValid

Sensitive

Exact

Scientific Customer Satisfaction Measurement

Accurate

Reliable

PreciseValid

SensitiveMeasuresthe rightthings

Scientific Customer Satisfaction Measurement

Accurate

Reliable

PreciseValid

SensitiveDetectschange

Scientific Customer Satisfaction Measurement

Accurate

Reliable

PreciseValid

Sensitive

Credible

Scientific Customer Satisfaction Measurement

Accurate

Reliable

PreciseValid

Sensitive AmericanCustomer

SatisfactionIndex

Scientific Customer Satisfaction Measurement

15 years of empirical evidence45 industries200+ organizationsPublished and vetted by academic research

AccuratePreciseReliable

Cause-and-effect methodology provides actionable insights

The American Customer Satisfaction Index: Unparalleled Measurement Technology

Cause and Effect

Cause-and-Effect Methodology

Customer satisfaction is a means to achieving your end goals

ForeSee Results measures the drivers of satisfaction, overall satisfaction and future behaviors

Identify and Prioritize Improvements

Low score, high impact elements are top improvement opportunities

Priority Map shows you where to focus your improvement efforts based on their impact on future behaviors

Customer Satisfaction with Social Media

ACSI  E-­‐Business  Report

Source: ForeSee Results Report on ACSI E-Business Scores, July 2010

70

77

73

72

64

63

0 10 20 30 40 50 60 70 80 90

Aggregate

Wikipedia.org

YouTube.com

All Others

Facebook.com

MySpace.com

Satisfaction (100-point scale)

Satisfaction With Social Media Sites Trail Other Segments

70

74

77

73

83

7775

60

65

70

75

80

85

Comparison  of  Online  ACSI  Scores  by  Industry

Source: ForeSee Results Report on ACSI E-Business Scores, July 2010

Social media impact on the cross-channel customer

You cannot manage what you do not measure

What you measure will determine what you do

Measuring Social Media

Understand Your Audience

Controlled Social Media

Sponsored Social Media

Viral Social Media

Value of Social Media

Measuring Social Media

Social  Media  Monitoring  ToolsOn-­‐site  surveys Posted  surveys

Social  Media  Value  Calculation

Social  Influencer  Model   Measure  Personas  of  Site  Visitors

Measuring Social Media Value and Influence

How engaged are my visitors with Social Media

What do they think of the social media experience on my social networking sites

What do they think of my participation in social media networking sites

What value does Social Media bring to my business

Social  Influencer  Model   Measure  Personas  of  Site  Visitors

Info  See

king

Info  Sharing

Customized persona survey is deployed on website in rotation with existing satisfaction measure

those who are satisfied or dissatisfied

Passive

CS    Persona

Computers & ElectronicsRetailers

High

ForeSee Results Top 100 E-Retail Satisfaction Index

Social  Influencer  Model   Measure  Personas  of  Site  Visitors

Food & DrugRetailers

Measure Controlled Social Media: On-site Surveys

CS Site Manager: Satisfaction survey on website, microsite, blog, forum

Measure Sponsored Social Media: Posted Survey

Post a shortened URL on your fan/follower page

CS Social Media

Measure Sponsored Social Media: Posted Survey

Link to Satisfaction SurveyBased on the methodology of the American Customer Satisfaction Index

Uncover Valuable Information

future behaviors

Analyzing The Effectiveness Across Social Media Efforts

Social Media Value Calculation

Link Social Media to Business Goals

Awareness (attract new customers)Conversion (sign up for email, become member, etc.)Engagement (fan sign up, word-of-mouth)Revenue generation (e-commerce, offline sales)Across channels

Social Media Value Calculation

Quantify social media influences for site visitors and link to intended and actualpurchase behaviors

Social media model included in a satisfaction survey on your website,

encompassing predictive modeling of future behaviors

Understand direct and influence impact

Answer key questions about social media initiatives:What value does social media bring to my business?

Does social media drive site visits?

Does social media drive sales/conversions?

Link social media to satisfaction, intended future behaviors and actual purchase

behavior

Social Media Value CalculationWorks across multiple industries

Satisfaction

Social  Media  InfluenceProprietary calculation:

ForeSee Results Social Media Influence Model

&Direct linkage from social media

Future  Behaviors

Revenue$

(Determined  by    actual  spend  or  purchase  intent)

Retail  Example:

Satisfaction

Social  Media  InfluenceProprietary calculation:

ForeSee Results Social Media Influence Model

&Direct linkage from social media

Future  Behaviors

Revenue$

(Determined  by  average  lifetimevalue  of  new  site  visitors)

Content  Example:

Social Media Value Calculation:One step further

Summary of Social Media Measurement Opportunities

How engaged are my visitors with Social MediaSocial Influencer Model: CS Persona

What do they think of the social media experience on my social networking sites

On-site surveys of Controlled Social Media: CS Site Manager

What do they think of my participation in social media networking sites

Posted surveys of Sponsored Social Media: CS Social Media

What is being talked about in social media networking sitesSocial Media Monitoring Tools

What value does Social Media bring to my businessSocial Media Value Calculation

A bit of background on ForeSee Results

ForeSee Results is the market leader, thought leader, and innovation leader in online customer satisfaction measurement, continuously expanding in customer experience analytics.

We apply a proven, predictive methodology to measuring customer needs and expectations online and their impact on customer behavior

Help companies measure effectiveness of online initiatives from

Prioritize investment based on ROI

Benchmark performance over time and against competitors and best-in- class companies.

Leaders and the Best: Some of the Companies We Measure

Top Takeaways

measure

What  you  measure  will  determine  what  you  do

Measure  what  matters  most   your  customers

Satisfaction  drives  conversion,  loyalty,  retention,  and  word-­‐of-­‐mouth

Turn  data  into  information  Turn  information  into  intelligence

Top Takeaways

The  consumer  is  a  cross-­‐channel  consumer

Link  social  media  to  cross-­‐channel  intent  and  actual  behavior  for  ROI

Measurement  is  

Satisfy  your  customers  and  be  fiscally  responsibleto  survive  and  thrive  in  the  years  ahead

Measure  the  success  of  your  social  media  effortsacross  Controlled,  Sponsored  and  Viral  social  networks

Larry  FreedPresident  and  CEOForeSee  Results

(734)  205-­‐2555  Larry.Freed@ForeSeeResults.comTwitter:  larryfreedBlog:  www.FreedYourMind.comwww.ForeSeeResults.com

Questions?