Proving the ROI of social media

Proving the ROI of Social Media Proving the ROI of Social Media Marketing to the C-SuiteMarketing to the C-Suite

Jake WengroffJake WengroffGlobal Director, Corporate CommunicationsGlobal Director, Corporate Communications

Frost & SullivanFrost & Sullivan

October 21, 2010October 21, 2010

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Where To Find Me

Jake WengroffGlobal DirectorCorporate Communications(210) 247-3806mobile (917) [email protected]


Follow Frost & Sullivan on Twitter @Frost_Sullivan@JakeWengroff

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Got Content?

Every minute: 24 hours of video are uploaded to YouTube 36,000 messages are tweeted on Twitter 600,000 pieces of content (links, news, photos, etc.) are shared

on Facebook

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Got Content?

In two years, the content on the Internet will double every 72 hours.

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The Evolution of Media

PaidPaid

EarnedEarned

OwnedOwned

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Owned Media Example

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Do you need a social media strategy, or a content strategy?

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What’s the ROI?

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How Do Companies Use Social Media?

Gain New Productand Service Ideas

Brand/CorporatePositioning

Engage with Customersand Receive Feedback

Generate NewConnections

and Grow Business

Use for Internal Communications and Training

Key Uses

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Why We Hate Social Media (Why We Hate Creating Content)

“Free” isn’t really free Time, time, time! Damage control (or rather, how about any control in general?)

Who will be the voice? (and who will be the voice when the voice resigns?)

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Potential Risks of Social Networking Sites to Your Organization(N=1166)

29%

26%

24%

20%

17%

14%

28%

28%

30%

26%

27% 32%

31%

31%

25%

26%

25%

21% 8%

9%

9%

12%

12%

14%

11%

12%

12%

12%

14%

14%

0% 20% 40% 60% 80% 100%

Wasted Time by Employees/Loss of Productivity

Allow Malware (Viruses, etc.) to get onto Computer orNetwork

Confidential Information Going to Unintended Outsiders

Slow Down the Computer Network Due to increased Use

Incur Legal Liability/Financial Penalty

Increase IT Support Cost

High Risk Moderate Low No Risk Don’t know / No opinion Mean Scores

2.9

2.8

2.8

2.7

2.6

2.5

Source: Frost & SullivanQ15.Please rate the following potential risks of Social Networking Sites to your organization?

Perceived Risks of Social Networking Sites

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Perceived Values of Social Networking (N=952)

54%

54%

53%

53%

52%

51%

51%

50%

45%

42%

35%

35%

35%

35%

36%

38%

38%

42%

41%

7%

7%

7%

7%

9%

9%

6%

7%

10%

13%

34%

0% 20% 40% 60% 80% 100%

Gain Additional Customers

Increase Customer Satisfaction

Get Consumer/Customer/Client Feedback

Get Low-Cost Exposure/Public Relations

Reduce Operating Costs

Increase Revenues Per Customer

Increased Collaboration

Increase Staff Satisfaction

Reduce Staff Turnover

Recruit New Staff

Highly Valuable Moderately Valuable Low Value No Value At All Don’t KnowMean Scores

3.4

3.5

3.4

3.4

3.4

3.4

3.4

3.4

3.3

3.4

Source: Frost & SullivanNote: Proportions less than five percent not shown in above chart.

Q14. Please indicate the value you perceive your organization receives from any of the following benefit(s).

Perceived Value of Social Networking

Among Those Who Believe Corporate Social Networking Beneficial (Highly or Moderately)

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Corporate Roles within Social Networking Communities by Total Sample and Enterprise Size

49%

44%

44%

43%

34%

17%

2%

14%

45%

41%

40%

36%

30%

12%

2%

15%

61%

47%

53%

53%

43%

23%

1%

9%

47%

45%

41%

45%

33%

19%

2%

17%

0% 10% 20% 30% 40% 50% 60% 70%

Customer Support

Energizing

Formal Marketing

Market Research

Growth Platform

Sponsor Agreements

Other

None of the above

Total Sample (N=870) Small Enterprise (N=351) Medium Enterprise (N=190) Large Enterprise (N=329)

Source: Frost & Sullivan

Q9. Which of the following best describes the role(s) for the social networking communities that you use for corporate purposes with regard to client relations? (Multiple mention question)

Among Those Using Web 2.0 Tools for Client Relations

Corporate Roles in Social Networking Communities by Total Sample and Enterprise Size

/ Indicates significantly higher/lower than comparison group at the 95% level.

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Anticipated Change in Organization’s Future Use of Social Networking

30%

28%

2%

15%

22%

29%

28%

3%

17%

30%

36%

23%

2%

1%

8%

23%

28%

30%

1%

1%

16%

1%

24%

1%

0% 10% 20% 30% 40% 50%

Significantly Increase Use Compared to the Last 12Months (>25%)

Somewhat Increase Use Compared to the Last 12Months (1%-25%)

Usage Will Remain About the Same

Somewhat Decrease Use Compared to the Last 12Months

Significantly Decrease Use Compared to the Last 12Months

Don’t Know

Total Sample (N=1439) Large Enterprise (N=607) Medium Enterprise (N=270) Small Enterprise (N=562)

Source: Frost & SullivanQ16. Thinking about the next 12 months, how do you anticipate your organization’s overall usage of social networking will change?

Anticipated Change in Corporate Use of Social Networking by Total Sample and Enterprise Size

/ Indicates significantly higher/lower than comparison group at the 95% level.

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Article, press release

Video, podcast

PowerPoint presentation

Syndicate and Propagate Content

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Tracking, Measurement, Reporting

Choose Key Performance Indicators (KPIs)

Consider both free and paid tracking tools

It’s not all about sales (but it helps)

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Key Performance Indicators

What is valuable to you and your organization? (What will make you look good?) At least 100 social media indicators exist

Fans, friends, followers, likes/favorites, comments, ratings, “buzz”

Pageviews, downloads, embeds/installs Customer satisfaction, coupon redemption, job applications

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Free and Paid Tracking Tools

Why You Need Both

• Free Tools SocialMention, HowSociable, Grader.com Existing tools: Omniture, Webtrends

Paid Tools Radian 6, PR Newswire, Sysomos, Nielsen BuzzMetrics

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Screenshot of Social Mention

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Screenshot of Dashboard for PR Newswire’s SMM Tool

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Sales

Sales is the strongest indicator of social media ROI and proof of concept

Engages the sales and customer experience departments

Engages (and intrigues) the C-suite

Validates your social media programs and gets you resources (staff, budget)

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Accept that you cannot track everything

Accept that you cannot do it alone

Accept that you will make mistakes

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Are you comfortable with data and analysis? “I went into marketing because I suck at math.” “I’m in PR, I’m a people person.”

Are you a team player? “My MIS department hates me.”

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Best Practices in Social Media

• Designate a Social Media Task Force within the company to train employees, design policies, study trends, implement tactics, and measure results. Select from various departments: public relations, marketing, sales, customer service, research and development, human resources, or administration.

• Find existing content within the organization (press releases, articles, speeches, presentations) which can be repurposed for social media.

• Understand that metrics are very important to all stakeholders in order for social media programs to be nurtured, supported – and funded.

• Keep abreast of industry trends by reading as much as possible about new platforms and technologies, privacy policies (i.e., Facebook), and how other companies are effectively leveraging social media.

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Remarks

Always ask yourself, “Why is this valuable to my organization?”

Keep content organic, genuine, and authentic.

Your customers, employees, and investors will feel empowered.

Read….learn….engage!

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