[En] social media ROI istrategy presentation
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[This transcript was made using Speech to Text, there might be a few glitches here and there] ROI isn’t a good measure for innovations when they emerge; on the contrary, when such innovations mature, measuring success becomes a must-have. There is more than one way of measuring ROI. One might try to determine, for instance, how much one earns, by using social media, but only a minority of enterprises is using social media to sell things, and there are still doubts as to whether social media is the right place to sell. Others might try and assess how much they save thanks to social media, or how much they can achieve beyond the usual boundaries of Marketing, or lastly, a combination of all of the above. Tools exist for us to measure social media; there are even a lot (too many?) of them. Yet, some of their metrics are either hard to understand for managers or they tend to be unreliable, or they might even measure activity vs. efficiency. Despite all these obstacles, 5 years after the first attempts at using social media for businesses, it is no longer possible to evade measuring social media activity and efficiency. In this session, I will show how, and what for and I will also highlight a few recommendations and warnings for those who are eager to be able to build their own social media dashboards. http://www.istrategyconference.com/events/amsterdam/#eventProgram
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[En] social media ROI istrategy presentation
- 1. Mesuring return on Engagement in social media thoughts, tools & recommendations Yann Gourvennec Visionarymarketing.com @ygourven @vismktg Visionary Marketing fait partie du groupe Effinity
- 2. picturecc2011YannGourvennec–http://bit.ly/picasayann measuring return on engagement in social media thoughts, tools & recommendations some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 2 @ygourven
- 3. 2 main publications in 2011 http://precommerce.com http://amonboss.com some rights reserved (cc) 2011 – Orange – web, digital & social media 4 English adapation on-going
- 4. agenda 1. measuring return 2. the problem with tools 3. measuring ROE not an option 4. how to measure ROE? 5. conclusion @orange @ygourven some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 5
- 5. some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 6 Some rights reserved by blumpy
- 6. picturecc2011YannGourvennec–http://bit.ly/picasayann 1. measuring return > ROI for innovation some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 7
- 7. sneering at innovations isn’t new disclaimer as per http://www.parisenimages.fr: reproduction of Paris en Image photo stock authorised in order to illustrate an educational or research project not commercialised in any form (e.g, classes, lectures, theses). some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 8
- 8. a famous ROI example > RUDOLF 1858 – 1913 some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec
- 9. another example 10 Some rights reserved by sualk61 some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec source: http://www.computing.co.uk/ctg/news/2024715/atos-aims-abolish-internal-email-2014
- 10. when innovations emerge > nih > ROI hard to prove > not all innovations sell > gain in productivity … > not all (few) human desires are rational some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 11 Some rights reserved by Joe Shlabotnik
- 11. long term credibility? Photo = Microsoft Picture Gallery some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 12
- 12. several ways of measuring return … sell engage save all of the above some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 13
- 13. picturecc2011YannGourvennec–http://bit.ly/picasayann 2. the problem with tools > a surfeit of tools and metrics some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 14
- 14. functions and scope some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 15
- 15. social media tools some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 16
- 16. picturecc2011YannGourvennec–http://bit.ly/picasayann 3. measuring ROE > no longer an option some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 17
- 17. measuring ROE no longer an option percentage of your fans that you have attracted and made them engage (like or comment) with your Wall Post source: social bakers so, what is a return on engagement graphic design: social bakers some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 18
- 18. not just a matter of fan numbers benchmark: social bakers some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 19
- 19. measuring engagement on Twitter some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 20
- 20. 6 #1 #2 #3 @Orange Group 2,397 followers @O2 53,727 followers @ATT 107,868 followers @SFR_Groupe 3,128 followers @Telefonica 3,026 followers @Vodafone_Group 8,587followers @deutschetelekom 22,900 followers @Tunisiana 2,729 followers @Orange_conseil 1,691 followers 55 @SFR_SAV 3,118 followers 50 @OrangeHelpers 7,851 followers 63 @Telekom_hilft 15,192 followers 63 74 73 61 52 40 49 57 25 +3 +1 +1 +2 +2 @BTCare 15,427 followers 68 klout.com +1 +1 +2 -1 +3 +1 +1 sample Twitter benchmark
- 21. what do all those metrics (really) mean? true reach: how many people you influence amplification: how much you influence them network impact: the influence of your network klout score: a mix of the above some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 22
- 22. what do all those metrics (really really) mean? some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 23
- 23. picturecc2011YannGourvennec–http://bit.ly/picasayann 4. how to measure ROE > 3 business cases some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 24
- 24. 4.1 business case #1: Orange Business Live some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 25
- 25. where content comes from … microblog 96% wall 1% blog 3% TWITTER* 2010 2011 Growth Bloggers 11 13 18% Contributors 47 262 457% Tweets 264 1397 429% People reached 40 503 191 501 373% Impressions served 431 943 3 576 246 728% some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 26 http://bit.ly/recapobl • 20 articles • 200 photos • 8 videos
- 26. global span > 3 nationalities generating live content (French, UK, USA) > 41 countries visited digital content platform > 10 countries engaged with Twitter content some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 27
- 27. measuring the reach note: the value isn’t in Twitter some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 28
- 28. the long tail > trends, questions … some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 29
- 29. 4.2 business case #2: ROI Spain some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 30
- 30. Spain: facebook coupon campaign generates 145K€ 5189 new likers 1237 coupons 406 new clients through eshop 406X30X12 ~ € 145k *406 clients x 30 euros ARPU x 12 months
- 31. a social shopping experience & retention mechanism E-shop tab on Orange PL fan pages Click on is mandatory to access the offer Monthly active users : 270K Interactions on the page : 39K
- 32. 4.3 exclusive: the Orange social media dashboard some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 33
- 33. picturecc2011YannGourvennec–http://bit.ly/picasayann 5. conclusion > our recommendations some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 34
- 34. a few questions > what is a fan? > how much is a fan worth? > number of fans? meaningful? > engagement rate? > response rate? > hiding/unliking pages? > reach of a live tweet? > what if new systems crop up? some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 35
- 35. recommendations > measure and show results > don’t forget about savings > don’t get trapped in sales unless … > use the right tool > know the limitations > don’t take metrics at face value > be patient > don’t get duped by numbers > long term engagement pays > think relationship, not sales some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 36
- 36. your real focus shouldn’t be your facebook page copyright © 2011 – Orange – web, digital & social media Pag e 37 social media focus see next page
- 37. thank you some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 38
- 38. suivez-nous ! @orange @orangebusiness http://www.facebook.com/orange http://www.facebook.com/orangebusiness http://youtube.com/orangebusinesshttp://live.orange.com some rights reserved - cc 2011 - orange.com - Yann A. Gourvennec 39
Editor's Notes
- the two main publications I took part in this year, but there are many more.I am Director, Web, Digital & Social Media at Orange, I have a 16-year experience in Web matters, working in e-commerce, software as a service, web communications, corporate websites and social media. I have
- There will be six parts in this presentation:first, there will be some general thoughts about measuring return and on whatsecond, I will describe the environment in terms of tools which are made available to managers who want to measure things and social mediathird, I will delve deeper into what I call our own a which is return on engagementfourth, we will focus on how to measure ROE is a number of examples taken from real life, including our very own dahboard at Orangefifth, the conclusion of this presentation, with an emphasis on the limitations and the hindsight which we have to give to this particular issue of return on investment in social media.
- a Work in progressAs Andy Sernovitz would say, creating a blog for a small company or an individual is easy – even that is debatable though – but doing social media for a large company is a lot more complex. As a consequence, we are all trying to get to grips with the measurement of what we are doing on social media because we have to be able to explain things; but at the same time we have to be able take all these metrics with a pinch of salt. Probably, the value isn’t really in – just – social media, but the real business.ROI in social media is a recurring theme and may seem trivial. Yet, there are no simple answers to all the questions which I keep hearing on this much debated subjects. Very often, what I hear is consultants – whose main merit is to be consultants and not practitioners – issue sweeping statements about retail investments showing how easy it is: you set up a Facebook page, you gather fans, you engage and you sell! End of story… It’s so easy that it is not true … most of the time. On the contrary it’s a very complex subject, not only because ROI is difficult to measure in general, but also because social media itself is a complex subject. Therefore in this current presentation I will describe and debate issues which some of you in the audience might not fully understand. Don’t panic! Everybody has to learn sometimes. It also means that with practice, everything becomes possible. If you have questions then, don’t hesitate to ask…I think that there is a benefit in trying to understand this very complex subject not only to get a better feel of what innovations, in general, are and how are they are brought to market and how they are expanding, but also because managers when they ask questions about ROI should also understand the possibilities of these new media.
- image source : Roger Viollet, Paris, 1888ROI is not an easy subject. Time and time again in human history, people have questioned innovations in various ways. Statements such as “it will never work”, “will never make money out of this”, have been heard for donkeys years. Those who built the Eiffel Tower for instance were sneered at with people belittling what they were doing, and rejoicing because the building was to be pulled down after the great exhibition of 1889.It wasn’t. Nowadays, the Eiffel Tower welcomes 1 million visitors per annum, age of them paying fees to gain entrance to the building, notwithstanding the money which is made on souvenirs and, last but not least, spent at the Michelin starred restaurant and on the top of the tower.yet, at the beginning of the project (as in this picture taken in 1888) nobody would have bet a penny on what was to become one of the most visited a successful monuments worldwide.Similarly, the same kind of people sneered at us, web pioneers, at the beginning of the 1990s, when we were saying that one day, commerce would be carried out on the World Wide Web. “It will never work”, “the web is just a fancy” etcnowadays, we hear the same kind of things about social media. Maybe too many expectations are placed on the new tools which are the focus of modern marketing nowadays. Yet, it is undeniable that new value is being created as we speak, and brands are getting to grips with the social web.
- now that we have spent a little bit of time trying to understand ROI and how difficult it is to measure, and the limitations of using ROI as a means to measure innovations in particular, we have understood that these limitations can cause serious problems in terms of interpretation. the not invented here syndrome, the difficulty to prove ROI and the fact that not all innovations sell and last but not least the fact that certain innovations produce a gain in productivity rather than a return on investment proper (that is to say that they enable you to do things differently rather than do the same things cheaper and/or faster), all of this is making the picture is a bit hazy.Above all, there are so many examples within companies on innovations being put in place or information systems being implemented etc whereas in fact no ROI has been proven, that one may even rightfully question the fact that ROI is always the preliminary measure before you implement an innovation.At the end of the day I think is just the other way round. ROI comes after you’ve implemented the innovation and proven your case as to what it enables and this is precisely what is happening with social media right now. We have proven the case in the past three or five years for some of us that we could use social media to spice up events, improve sharing capabilities on the web, make people work and collaborate together, foster co-innovation with clients, partners and employees, generate user generated content which was appealing to customers and all, but now is the time to re-open the book for return on investment once more.
- A few years ago when Andy Sernovitz from the social media business Council asked us to work on this subject then I responded immediately that return on investment was not the right measure for social media. And I was right at the time. But I’m not any more and therefore we have to delve into the details of how we measure; but the first thing we have to ask ourselves is: what should we measure and how?for the danger is great! 2012 will be a difficult year. I do not need to expatriates up, I think you get the picture very well. This will be here in which we were half to prove our case for everything we do. So I think that we should try and get started now and work on it.
- yet, there is more than one way of measuring return on investment…The first way is to measure how much you sell by using social media. This is always the example which is quoted. Usually it ends up with a great story about Dell, and strangely enough there are a few other examples for this. To be honest with you, not only do I take part in many of these events not just in Europe but also in the United States and the United Kingdom, but I’m also part of social media.org in the US and media aces, of which I am the president and founder, in France. So, I’ll had many in opportunity to talk to my peers about the subject of how much itself or social media and, the good stories have been few and far between. Let us be clear. I sold with social media. At least once, and I’m not even counting the consulting engagements either for my personal blogs on my professional blocks, a vote for me or for our consultants of orange. I’ve even seen an example at an equipment manufacturer in the Telecom locations industry in which somebody sold $170,000 deal with a tweet. yet, selling $170,000 in a multibillion companies is not really cutting the mustard.therefore I think that this kind of examples is counter-productive.Therefore, I would rather focus on the third item on the right. That is to say how much you save using social media, namely with regard to the production of user generated content. Besides, user generated content is usually more engaging than page content. And God knows we spent loads of money in big companies and small companies alike on content. Not just be to see companies, but mostly beta big companies. And this is normal! Because, Brian content generation is becoming a staple of marketing. This is the gist of what is going to enable you to sell afterwards, do lead generation and close. in business to consumer, content is king. This is how you make your website engaging, this is how you bring people to your pages, and therefore this is how you sell. And of demonstration if you have no content, I all you have is an e-commerce website, you will end up or because you will never get people to get to this website first unless you pay for them. Such economies of scale which can be managed through the use of social media in the production of user generated content can be staggering. An orange business services I was reckoning that year in year out, through the use of user generated content in our blogs out WebTV, we were actually saving approximately e5-e700,000 per annum. As a consequence, we could prove ROI through this.But more importantly, what’s is usually advertised by social media gurus and evangelists, is the part of engagement and social media. If the actual power of view to be able to engage with customers employees and partners online and do things together. Going away from the traditional way of doing marketing from the top down and therefore engaging in discussions forums procreation you name it. How do you measure this? This is what we are going to see in this presentation.
- Strangely enough, most people think that there are no tools to measure return on investment in social media. This is just the opposite that many of them.because social media is all things to all people, and therefore they are merely tools and merely tools to measure the tools etc
- My friend and colleague partner Minter Dial has put together this comprehensive list of tools which can be of use. yet, just look at the column in green showing the tools which enable you to engage! This is absolutely overwhelming. Therefore I decided to be a lot less comprehensive and just show what I think can be understood and useful to managers. Therefore I chose three different examples, which I will use to show the way for the measurement of engagement in social media, in three different can create simple to explain situations.
- First and foremost, we must define what return on engagement actually means!Most of the time it means something very vague and not very well defined, something like people doing things in the systems rather than just monitoring social media. This is true, but engagement is also a measure by which one compares this with the answer that one has attracted a whole much interaction is happening between you and your “fans”.
- Measuring engagement is a bit more complex than just the measuring of the number of fans! Indeed, with Facebook, the more fans you have, the less engagement you get. This is a bit weird.There is a big Facebook paradox in this respect. It is wrong to assume that having fewer fans is better than having more fans. Trying to pretend that the number of fans doesn’t matter and that only the level of engagement is of importance, is a mistake. Posting content on social media platforms if no one is listening to it, serves no purpose. Hence, the actual reach of a social media community actually depends on the number of people following it. This is mostly true Twitter by the way. With Facebook, it’s a little different. There is a mechanical decrease in the average rate of engagement as you increase your number of “fans”. Besides, there may be a misunderstanding of the word “fan”. A “fan” is someone who showed interest in your brand at any one time and clicked the “like” button. social metrics systems which I know of do measure likes, but fail to take “unlikes” and “hides” into account. However, there are equally important items.There is another paradox: brands are not really ‘allowed’ to publish too much content so that as you must “engage” with your fans, it is very difficult to post stuff on Facebook. On average, a brand can send 1 or 2 messages per day, but not many more than this. There are even brands which I know of which can only post 3 messages per week. This means clearly, that for engaging fans in the long term, it won’t really happen on the Fan page but on your own web platforms (websites/blogs) which will have to become “social” – hence our work on our website factory at Orange – in order for fans to post on THEIR walls, not your fan page proper. As a consequence, the aim is not the fan page – a fact acknowledged by Facebook execs I’ve been taklking to – but on the use of Facebook as a sharing capability from your own brand platforms.