1

Measuring and Monetizing the Customer Experience using

Voice-of-the-Customer Social Media DataNew Developments in Measurement and Analytics

2

The Premise and Measurement Raw Material

• Public Relations ….. The professional maintenance of a

favorable public image

Brand Image &

Reputation (PR)

Social Media

Voice-of-the Customer

(VOC)Customer-

Brand Experience

3

Let’s Get Started

4Measuring the customer experience is imperative

“You’ve got to start with the customer experience

and work back toward the technology – not the other way around.”

~ Steve Jobs

5Customer Experience Leaders Outperform the Market

CX Leaders101.5%

S&P 500 Index72.3%

CX Laggards27.6%

0%

20%

40%

60%

80%

100%

120%

Cum

ula

tive T

ota

l Retu

rn

Eight-year Stock Performance of Customer Experience Leaders vs. Laggards vs. S&P 500 (2007-

2014)

CX Laggards

In addition to posting a total return

that was 74 points lower than CX

leaders, laggards also had higher

customer frustration, increased

attrition, more negative word-of

mouth, and higher operating

expenses

CX Leaders

Over 8 years, the leaders of

Forrester’s CX Index enjoyed a higher

total return, higher revenues from

better retention, less price sensitivity,

greater wallet share and positive

word-of-mouth) and lower expenses

from reduced acquisition costs, and

fewer complaints,

6

4%

27.6%

11.8%

23.7%

31.6%

What does your company's executive leadership think about the ROI of CX?

Doesn't believe there's an ROI of CX

Unsure there's an ROI of CX

Believes there's a small ROI of CX

Believes there's a moderate ROI of CX

Believes there's a large ROI of CX

Most Companies Understand that There Is a Sizable

ROI in Customer Experience

7

18.9%

28.4%35.1%

12.2%

5.4%

How effective is your company at measuring the business impact of CX?

Very ineffective

Ineffective

Somewhat effective

Mostly effective

Very effective

But They Aren’t Sure How To Measure It

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The Answer Is with Social Media

United Airlines is

never on-time, and

their service sucks.

9

The Answer Is with Social Media

United Airlines is

never on-time, and

their service sucks.

Your brand is what people say

about you when you’re not in the room.

~ Jeff Bezos

10But Most Social Media Sentiment Ratings

Are Not Very Accurate

"Sentiment analysis is a very complex task for a machine because

of the multiple and often unpredictable soft and hard variables

that come into play when interpreting it. The main problem

being that the sentiment of a sentence only rarely lies in the

sentence itself and is instead rooted in the cultural context

around that sentence.”

~ Francesco D'Orazio, CIO at FACE Group

"Companies are making decisions based on data

that is just 6% accurate."

~ Carol Haney, SVP at Toluna

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And They Fall Short In Measuring ROI

21.2%

11.2%

8.8%

8.2%

3.1%

-2.3%

-10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Correlation to sales of $6B client with the sentiment metrics of the six leading social data vendors

Sentiment Metric 1

Sentiment Metric 2

Sentiment Metric 3

Sentiment Metric 4

Sentiment Metric 5

Sentiment Metric 6

SEI Pos/Neg Ratio

12One Exception Is Ours:

The Social Engagement Index, a.k.a., The SEITM

83.1%

21.2%

11.2%

8.8%

8.2%

3.1%

-2.3%

-10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Correlation to sales of $6B client with the sentiment metrics of the six leading social data vendors

Sentiment Metric 1

Sentiment Metric 2

Sentiment Metric 3

Sentiment Metric 4

Sentiment Metric 5

Sentiment Metric 6

SEI Pos/Neg Ratio

13The BLA Social Insights, Analytics, And ROI Framework

Fuse SEITM with

advanced analytics to

understand brand

positioning, content

drivers, reputation and

critical elements of

customer experienceLeverage known

tools to listen and

monitor high-level

brand-experience

conversations

Measure language

based on

engagement and

importance via the

Social Engagement

Index, or SEITM

Listening,

monitoring and

basic sentiment

Measuring

language for

brand insights

Social media

advanced analyticsSocial

monetization

Apply a trended SEITM

within media mix

modelling to monetize

customer experience

(earned social media)

alongside all other

media and quantify

any synergistic effects

BLA extends the value of social media insights

We will focus on this

specific application of

SEI today

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SEITMStance Shift

Syntax & Structure

Tonality & Sentiment

Context

Custom Dictionary

A More Accurate Way To Mine Social Conversations

• Measures value of

customer experience

• Links closely to sales

• Indicates brand health

• Uncovers “why’s” and

underlying drivers, both

positive and negative

Experiential Statement on Social

Media

Ex

Rx

Pr

Customer

Experience &

EngagementRational

15The Difference Is Stance-shift Analysis,

A Method That Measures What Really Matters In Language

• Stance-shift analysis, published and peer-reviewed, reveals what really matters to the consumer:

– Stance-shift measures consumers’ verbal shifts in positioning as they talk.

– When these shifts occur, we know that something is being communicated that is very important and relevant to the topic at hand (the brand)

– We capture the emotion, intensity, appraisal, and commitment in the context of the conversations to uncover the deep subtleties and what is said.

• It enables us to solve what others miss: Size, Trend and New Concepts

– Focusing only on what matters: We filter for relative importance through engagement–far superior to simple words/comment frequency.

– Consumertrends: We capture the shifts and prioritize getting the trendright, validated through the independent measure of our metrics vs. sales.

– Stance is tuned to detect topicsand concepts (content-themes), which we link to quantified opinions, evaluations and endorsements through adaptive tonality, allowing us to map strengths, weaknesses, opportunities & threats.

• Semantic Engagement Index: SEITM integrates our stance-shift measurement to power our consumer insights.

16The Correlation to Sales Over Time

Shows the SEI™ Has Strong Predictive Power

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Correlation = 84%

Note: Lead-lag analysis has confirmed that causation is only one way. The SEI™ to a large degree is capable of driving hard commercial metrics.

86%

Telecom Brand

81%

Soft Drink Brand

84%

Food & Bev

Brand

83%

Hospitality

Brand

17The SEITM Has Been Validated Across a Diverse Set of Brands in the US and Internationally

Validated more than any other social metric

18The SEITM Has Broad-based Application

$Monitor and manage

consumer conversationsthat are impacting your

brand reputation

Apply deep understanding to consumer conversations to

develop Content and Marketing Strategy

Enhance the in-market execution of promotions, sports sponsorships, and events based on real consumer conversations

Monetize your social media campaigns andthe customer experience with our media mix models

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Case 1: Defining the Coffee

Retailer Brand Experience

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For a coffee retailer, we uncovered 26 “content drivers,” which are topical themes and components of the SEI.

We conducted CART regression analytics, which arrays these themes in order of importance for prediction of SEI.

Of these 26 drivers, 18 were beverage or food product-related, while 8 were topics related to the store experience.

Store experience was found to be a more important than the products

in terms of driving sales and defining the brand.

Key Content Drivers of Retail Sales

To meet people

188

Atmosphere

288

Atmosphere

466

Note: Separate analysis - Classification & Regression Trees (CART)

Positive Social

Engagement

100To meet people

229

Place to hang out

83

Beverage A

271

Beverage A

74

To meet people

85

To meet people

325

Insight & Outcomes

Key drivers to positive SEI™:

1. A place to hang out

2. To meet people

3. Atmosphere

4. Beverage products

Based on these findings, the client

developed a “2 for 1” promotion

to drive store-level sales.

This was the most effective

promotion run on any product over

the previous three years, generating

a lift in three weeks equal to

approximately 4% of total sales.

Place to hang out

211

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Case 2: The most important

customer experience drivers

for a hard goods retailer

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For a hard goods retailer, we evaluated 22 “retail experience” drivers, and the most critical of these are shown below.

Here, the CART regression analytics revealed five customer-experience factors were most important in driving positive

engagement towards this retail brand..

Convenience & National Brands found to be more important than low prices

Key Content Drivers of Retail Sales

Fast Checkout 96

National Brands

82

National Brands

113

Note: Separate analysis - Classification & Regression Trees (CART)

Positive Social

Engagement

100

Product Returns

54

Fast Checkout

136

Product Returns

119

Low Prices

74

Low Priices

98

Assoc. Knowhow

72

Assoc. Knowhow

91

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Case 3: Finding the right

positioning for a new instant

beverage brand

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SEITM and Marketing Contributions for “Zip”

78.6%

2.1%

6.8%

3.3%

3.0%2.5%2.4%1.9%

1.1%0.4%

23.5%

Zip Modeled Incremental ContributionsBaseline

SEI/Mktg Synergy

SEI-Social Media

Radio

POS Signage

TV

Digital Display

Sampling

Pub.Reltns

OOH

Zip’s Marketing Contributions

By modeling Zip with SEITM, BLA found

that buzz and advocacy stimulated

by its marketing efforts drove almost 7%

of its volume, and marketing efforts helped

boost a sizable synergistic dividend.

Zip’s Situation

In 2009, a beverage retailer launched “Zip”

(masked name), an “instant” beverage,

which was a deviation from its naturally

brewed products. Zip was one of the most

successful product launches in 12 years.

Previous modeling research had shown that

Zip actually generated a +3% lift to total

retail sales. The successful launch strategy

was aimed at getting maximum trial and

exposure, driven by an extensive sampling

period and early-stage price promotions.

The challenge in Year Two was to

understand how to position the brand in

order to sustain growth momentum.

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Zip Sales and SEITM Correlations Over Time

Tracking the SEITM over time

revealed a high correlation to

Zip’s first year sales.

This was clear evidence

of a powerful and effective effort

to generate strong buzz and

advocacy toward the brand, with

a strong linkage to sales.

Note: Plotted metric is ratio of Positive to Negative SEITM

The SEITM proved to have

a leading-indicator relationship

with Zip sales.

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188

3,516

103 128300

301350

491

724

930

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Base

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et

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tive

SEI

Gre

at

Aro

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Yum

my F

lavors

Gre

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Gif

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Convenie

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Tast

es

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at

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Tast

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for

Takin

g t

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Posi

tive S

EI

Zip Powder All Social Channels Engagement Content Drivers

Content Motivation Drivers of Sales Conversion

for Zip Powder

Further analytics of Zip’s “content

drivers” of SEITM consumer

engagement revealed key drivers

to be “tasted like the real thing”

and was great for “taking to the

office” and enjoying that original

taste of the parent brand.

Current

Positioning

Optimized

Positioning

By focusing its communications toward

these benefits, Zip managed to continue

a strong 11% growth in Year Two.

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Case 4: Scoring and Evaluating

Sports Sponsorships

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Assessing the ROI of Sport SponsorshipsThis client spent 65% of its total

marketing budget on sports

marketing without understanding

what they were getting back they

were getting for any of the sports

they sponsored.

We used the SEI for each sponsorship

to determine the ROI, which showed

that the NFL

could provide high returns

and high growth.

By investing more in NFL Football

and less on NASCAR and NCAA

Basketball, this client managed to

accelerate YOY growth from 3% to +8%

the following year.

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Bangalore, IN Office:No. 141, 2nd Cross, 2nd Main,Domlur, 2nd Stage, Bangalore 560071Phone: +91 80 40917572, +91 80 40916116info@therainman.com

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Atlanta, USA

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