INSEAD MBA class Social Media

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Measure Social Media By Lutz Finger

INSEAD MBA D12 28th May 2012

Lutz Finger ─  Quantum Physicist ─  Journalist ─  Incubator for new Media ─  MBA 04J ─  Sales Manager @ Dell ─  MBA as Partner 09D

Session Goals: ● What is the most important THING in measurements? ● What are the piValls in Data Mining Social Media?

Warm-‐up Stats

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35 clicks

23 clicks

28 clicks

8 clicks

4

0

100

200

300

400

500

600

22.5.12 0:00 23.5.12 0:00 24.5.12 0:00 25.5.12 0:00 26.5.12 0:00 27.5.12 0:00

Num

ber o

f Words

Day

on average 300 words per answer

0

1

2

3

4

1 2 5 10 11 12 13 14 16 17 18 22

Email R

eacFon

s

Hours

# of Emails by the hour of the day

Are those charts HELPFUL?

Data is only then helpful if it results

in an acFon. Otherwise it is just

noise.

Note: •  26 answers out of 49 par_cipants = 51% par_cipa_on •  “I hope” or “some_mes it surely will” = “no”

Will there be a ROI?

5

36%

44%

20%

no yes depends

Yes: 44%

No: 36%

depends: 20%

●  a very subjec_ve thing to measure (Souhail Khoury) ●  can't be a true ROI for social Media which is you cannot model the human

brain … metrics in adver_sing … are limited -‐ (EPSTEIN Jonathan) ●  Social Media ROI a bit a false discussion. Has anyone ever been able to

properly measure the return on offline adver_sement (DE JONCK Jonathan) ●  In general, no ROI would mean social media will only get investment from

hobbyists and enthusiasts. (BAJWA Fawad) ●  [Facebook] … banking on the fact that they can turn their 800+ million

subscriber base into revenue (BHATT Chinmay) ●  Social media is more of a tool, and its ROI would depend on the tool's

applica_on. (PAVLOVA Natalia) ●  It only makes sense to measure what you can achieve (Willemijn Stoffels) ●  In some cases, the results are tangible ... In other cases intangible (NANRA

Gagan)

Some arguments

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7

●  Earned ●  Owned ●  Bought

Social Media is different

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… thus it depends on the applicaFon

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QuesFon B) Please state at least 4 things one can measure in social media. But please tell me WHY an organiza_on should care about this measurement.

36%

64%

REASON why care? yes no

Whether there is an ROI depends on what one does with Social Media. There are many applica_on of social media, which have indirect effects and where it is not possible to link it to an ROI’s. For those it is important to know: The WHY someone uses social media.

You are not alone

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THE QUESTION

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One needs to define the Ques_on/Reason BEFORE one starts to Measure. ●  ACTIONABLE – be able to have an ac_on. ●  MESURABLE – be able to actual measure it.

“42 is not helpful!” -‐ “it would have been simpler of course to have know what the actual ques=on was.”

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Adver_sing & Social

commerce

Sales & Social CRM

Biz Intelligence

Product Research

PR & Risk Control

Social Cus Care

… several per department

… will there be ONE quesFon?

Awareness Purchase / Use Service Feedback Reten_on

Example: MarkeFng / Sales:

Increase Adver_sement Efficiency •  Find most effec_ve Messaging •  Find Brand Ambassadors •  Control Brand Image

Improve Customer Care and Usability •  Reputa_on Management •  Create WOW Factor •  Find dissa_sfied Clients

Grow Customer Life_me Value •  Reten_on •  Iden_fy most valued experience •  Spread the word

Also possible: HR, Product Development, Security...

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Example: Customer Care

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WHAT do you want to do? Deflect as many calls online

to WHOM? Any low profile user

with WHAT? Answers by other super-users

Till WHEN? 6 month ramp-up

through WHICH media type? Stack-Overflow

Measurement of Success is defined by:

Name of Metric Value Measured by

# of questions asked Stack-Overflow

# of questions answered 1 000 Stack-Overflow

# of Super-users internal

AssumpFons ●  A call to a call center costs 25 Euro ●  40% of people who get an answer to a ques_on online from a

super-‐user, will not call in. ●  65% of all ques_ons posted will be answered by super-‐user

●  1000 ques_ons posted each year Savings from DIRECT DEFLECTIONS (1000 x 65%)*40%*15 Euro = 6500

Social Customer Care: Example of ROI

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NOTE: No tool does offer you those measurements. Good measurement are specific for each company / department using internal data.

What shall we measure?

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Structured Data: Measure

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Metric Votes Engagement 14 Sen_ment 13 Visitors/Fans/Follower 11 Volume 9 Influencer 6 Velocity 6 Conversion 4 Reach 3 relevance 3 new customer 2 Awareness 1 Channels 1 CusCare issues 1 Frequency of Posts 1 Geography 1 Live Time Value 1 Most Popular Post 1 New Ideas 1 Site relevance 1

What is Important?

Reach View

Gaddafi

Great Dane

Slippers

Reach is the tradi_onal way of measuring.

New Measurements: ReacFons

0 20000 40000 60000 80000 100000 120000

Blind Dane

Monster Slipper

Gaddafi Social Sharing clicks (est)

FB Comments

FB Likes

FB Shares

Twi3er Shares

Buzz Shares

? No Name

No Name

Social Media Impact (SMI)

●  Any Measurement – if successful – will be lead to gaming. Examples: Klout, google rank, etc

●  Any Measurement is most of the _mes an index and not the truth.

●  Measurements can not be easily compared.

Warning… Measurements

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Measure

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Follower Count might mislead you.

Which of those two is more important?

It depends on: •  Who you want to reach? •  What you want to say? •  The average community reac_on.

… there are tools to measure this

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Company Metric Name Value

Twi3er Followers 1,556,602

Twinangulate Combined Reach 120,310,807

Klout True Reach 56,000

Twi3er Grader Rank 2,987 out of 10,997,926

How Sociable Magnitude 4,4 out of 10

Fisheye Analy_cs Influence High

Peer Index Audience 94

Twitanalyzer Effec_ve Reach 1,630,000

Twitanalyzer Poten_al Reach 3,060,000

as of Mai 2012

… thus do not compare easily

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There are 100+ social media plaVorms out there

For each Media Type there are 10+ things one can measure.

For each Measurement there are 10+ companies measuring it. 10.000+ METRICS… all different … not easy to compare

Measure

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Some words about Technology

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Telefonica – is this bad?

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C. Alierta: “It is evident that internet search engines use our networks without paying us anything, which is good for them and a disgrace for us”

… Blogs … Tweets … Facebook … 25.000 views on the video.

Alierta is “greedy”

“hypocrisy”

“Alierta contra google”

Context is key!

1) One needs to define the Ques_on BEFORE one starts to Measure ●  ACTIONABLE – be able to have an ac_on. ●  MEASURABLE – be able to actual measure it.

2) Good measurement are specific for each company / department – combining as well internal data. 3) Social Media is not Social Media. Each tool comes with a specific set of Measurements and Measurement Companies. Comparing is not easy.

4) Sen_ment is the worst measurement – context is key for it.

Summary

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Thanks… Over to you now… please measure me!