Measuring the ROI

of Social Media
How is Social Media used?
Use a results-focused
measurement framework 2

1
Positioning
• What’s the exposed
Reach
audience’s perception of
• What’s the total the brand?
size of the
audience
exposed to the Preference
message?
• What’s the exposed
• What’s the target audience’s preference
audience for brand?
exposed to the
message?
Action
• What bottom line
actions did the exposed
audience take, e.g.
purchase?
KPIs vs. diagnostic
metrics
KPIs • KPIs should align to the brand’s business objectives
Are we winning or • Are our social media efforts affecting behavior as we want?
losing?

Diagnostic Metrics • Identify what changes need to be made to engagement

Which levers do we strategy in order to improve KPI performance
need to pull? • Are we executing our messaging strategy properly?
• Is our content resonating?
 How we
measure
Reach and Positioning Preference Action
KPIs

Impressions, Share of Relevant Sentiment, Share of Positive

Voice Voice

Survey-based Brand Survey-based Brand Survey-based Sales/Behaviors

Positioning Preference

Attributable
Leads/Sales/Behaviors

Number of New Fans/Likes Likes Per Post Link Shares

Diagnostic Metrics

Number of Wall Posts Link Click-throughs

Media Uploads
Video Views
(videos, photos)
Exercise: KPI or
Diagnostic Metric?
Objective: Find John Mayer a wife

Reach Positioning Preference Action

1. Number of women who hear about the program

2. Percentage of women surveyed who said they would marry John
3. Listening to hallway gossip to find the percentage of women who
think thinks John is more husband material than Irfan
4. Number of marriage proposals John gets pre “Date Doctor” program
and post program
5. Number of women/guys who friend John on Facebook
6. Number of times a women views John’s “I want to get married video”
7. Number of people who enter the “I want to marry John contest”
Incorporate measurement at
every stage
Strategy and
Activation
Planning
• Administer
pre-launch Checkpoints
Client pitch surveys and Program
• Budget • Start Adjustments
• Measurement monitoring every 1-3
expert program months

Setting Launch Measurement

Objectives Program and Evaluation
• Development • Interim • Measurement
of benchmarks surveys and expert
and goals metric • Final survey
• Development analysis • Analysis
of surveys
• Measurement
expert
Always-on cross media
attribution tracking
 ROI methodology

Benefits Benefits
● Quantified value
● Defined metrics (Impact on business) R
Total
Cost Costs I Economic
People
●

● Process
(Impact on budget) S Impact
Technology
●

Flexibility
K
(Options)

“Options” created Uncertainty

● Are there new opportunities ● Impact of “assumptions”
the future?
Assumptions
• Multiple customer service goals
• Attracts super users
• Engages community to be honest about their opinions
• Company is interested in community’s opinions…
• Small to medium sized call center
• Three year time frame for analysis
• Has federated search
• Allows agents to have access to the community
Examples of benefits

• Cost savings
● Reduce call volume

● Reduce email volume

● Increase agent productivity
● Increase in FCR

Benefits
●
Reduce SEO costs
(Impact on business) • Revenue improvements
●
Increase customer lifetime
value
●
Increase product ideation
●
Increase lead conversion rates
There are many benefits of Customer
Service Online Communities…
 The answers are in the community

•Customers solve each other’s problems

•Less or no interaction from a company.
● Customers read posts

● Fewer call to the contact center

•And agents use the community-enhanced

KM database
● Reduces their call time

● Provides more satisfying answers.

DSL
provide r
 First Contact Resolution (FCR) goes up

• FCR affects
● Customer satisfaction
● Purchase reprobability
● Good word of mouth…

My
question
was
answered
!!!!!!!!
Customer advocates create more value
“Bad word of mouth” gets handled!

• Do the “ostrich” or…

• Handle it…
● Alert executives
● Quickly post a resolution to the community
● Avoid
● Brand damage and

● Increased call volume…

Invest in turning customer informants

• Even informants can be turned into advocates:

●Use a built-in system to
recognize, rank, and reward
users

●Acknowledge their
suggestions

●Thank them for helping

customers
 What about the rest of the company?

•Product Development
New ideas coming from
●

communities can save

product development millions

•Product Q&A
●Get solutions that can’t be
found any other way

•Marketing and Sales

●Now promoting a product that
was designed with customer
input.
What is Social Media?

Social media is media

designed to be
disseminated through
social interaction,
created using highly
accessible and scalable
publishing techniques.
- wikipedia.org
What is Social Media?
Social Media Platforms
Social Media Platforms
Social Media Platforms
How is Social Media used?
Step 1 – Preplanning
Step 1 – Preplanning

Email Direct Mail

Websites/Online Ads Newsletters

Step 1 – Preplanning
Preplanning
Step 2 – Listen to the Conversation
Step 2 – Listen to the Conversation
Listen to the Conversation
Step 3 – Create Your Target Profile
Step 3 – Create Your Target Profile
Create Your Target Profile
Step 4 – Set Specific Goals
Set Specific Goals
Step 5 – Join the Conversation
Step 5 – Join the Conversation
Step 5 – Join the Conversation
Step 5 – Join the Conversation
Step 5 – Join the Conversation
Join the Conversation
The ROI of Social Media:
Customer Service
Communities
 The #1 Customer Service
initiative should be
social media.

2
E ntirecontents © 2008 Forrester Research, Inc. All rights reserved.
• Why is social media important to customer service?
• To Calculate ROI What are the benefits of online
communities?
• What are the costs of online communities?
• What is the ROI of customer service social media?
Why is social media important to
customer service?
• It’s…
– Twitter
– Online communities- Lithium, Helpstream, Jive…
– Facebook, LinkedIn, MySpace
– RightNow, Parature and nGenera
• It’s not just a…
– Forum
– A wiki
– A blog…
• It’s a community that interacts with each other on an
ongoing basis
Customer disdain, social media and customer
service have…
•… formed a perfect storm that is super charging change
What is a Customer Service Online
Community?
•Online communities have
evolved from “bulletin boards”

•Today they are “posts” in the

form of forums, blogs, and
chats.

•Updated “posts” sent via email

or RSS syndication
subscriptions

•This instantly distribute new

information to EVERYONE
Who’s got an online community? B2C…
Who’s got an online community? B2B…
Verizon…
iRobot…
myFICO…
Intel…
• Why is social media important to customer
service?
• Using Forrester’s TEI Methodology to Calculate ROI
• What are the benefits of online communities?
• What are the costs of online communities?
• What is the ROI of customer service social media?
Agenda
• Why is social media important to customer service?
• Using Forrester’s TEI methodology to calculate ROI
• What are the benefits of online communities?
• What are the costs of online communities?
• What is the ROI of customer service social media?
Examples of customer service online
community costs
• People
● Training

● Staff
• Process
●
Marketing of community
• Technology
● Community website design
Costs
(Impact on budget) ● Single Sign-on
● Integration to contact center
● Platform subscription fee
● Analytics
●
Reporting
Start-up costs of customer service online
communities…
Recurring costs of customer service online
communities…
Agenda
• Why is social media important to customer service?
• Using Forrester’s TEI Methodology to Calculate ROI
• What are the benefits of online communities?
• What are the costs of online communities?
• What is the ROI of customer service social media?
The ROI of online customer service
community is…
The TEI of online customer service
community is…
Where to begin?

• Take the self-assessment

• Evaluate your organization
• Compare to best practices
• Get alignment

3E2ntire contents © 2008 Forrester Research, Inc. All rights reserved.

Join the social media revolution

Source: April 6, 2009, “How to Win Funding for Your Customer Service Project ” Forrester report
Join the Conversation
Step 6 – Measure ROI
Step 6 – Measure ROI
Step 6 – Measure ROI
Step 6 – Measure ROI
Step 6 – Measure ROI
Step 6 – Measure ROI
Step 6 – Measure ROI
Step 6 – Measure ROI
Measure ROI
Determining SM Budget
Budgeting for Social Media
Levels of Social Media Engagement
Tips to get started