Social media strategy and ROI ... again!

A recent eMarketer study highlighted that an ROI driven social media strategy was needed before businesses can actually start to invest in and reap the rewards. It was pointed, based on the 2 facts below, that social media users are not seeing the profits as anticipated and that there was a lack of data to support investments:


*  Only 35% are reported to have profited from social media through increased leads – these are also the ones who would invest in a social strategy and have staff dedicated to analyzing social media efforts.
*  The biggest hurdle to social media strategy is the lack of data to measure the ROI and a subsequent executive buy-in for greater investments – nearly 60% cited these as primary reasons for implementing social media strategy.

These are telling facts!

I maintained in this blog that measuring social media can be challenging purely in terms of an ROI model (net of revenue and cost), simply because the scale is not there for a typical business (in my experience). Instead, we need to utilize social media as a means to other insights (users and product) that may contribute to improving ROI through more traditional media – ones where we can easily setup a model to quantify revenue and cost for a net return (my earlier post on this topic:  http://www.analyticsheaven.com/2010/03/measuring-social-media-user-vs-product.html). 


I believe the social media efforts need to be looked at as pure investment into the future. The immediate benefits can be had from sampling and testing approach I proposed in the above post. Let’s look at social media data to learn more about our products, consumers and competitors, so we can make better decisions about our current marketing efforts. Hint - the consumers may tweet about a certain product feature they don’t like; certain types/demographics of consumers may be more interested in the brand/product; there may be a buzz about the competitive offerings that may need more attention; and so on.

Building the intelligence model from social media may be a simpler way to look at the ROI than trying to build an ROI model which, as the report highlighted, may not be easily done due to lack of data and appropriate mathematical model. 


Other insights, ideas ... please share!

Higher marketing ROI with traffic source contribution

Users find multiple ways to come to our website and represent different interests. But if we are treating them equally, then we are doing ourselves a disservice by not capturing the optimum value of each of our traffic sources. I have talked about targeted landing page experience, in this blog, for traffic from search, navigation, etc., as a means to improving stickiness and engagement. However, to please our finance folks, we also need to assign a value – an ROI or contribution (revenue/visit) – to each of these traffic sources to fully understand the potential and impact of our site improvement efforts.

As an example, one of my projects was to understand the contribution value of traffic from each of our traffic sources. The biggest hurdle to achieving this objective was the fact that we did not have any tracking to follow the user from the time it entered the experience to the time it left the experience. Depending on the size and scope of your web traffic, it could be a daunting task to collect that kind of data. However, if we tag each campaign appropriately, we can come fairly close to isolating the path. Of course the analytics software we employ will be crucial to achieving the goal (we were using Omniture and an in-house tracking solution to marry traffic and revenue data and build the user path).

Once we are able to follow the user through our site, we measured the revenue points in the path and aggregated to arrive at composite revenue/visit from a particular traffic source. Consumer centric tracking is one approach that may be useful (http://www.analyticsheaven.com/2010/04/tracking-make-it-customer-centric.html).

For instance; revenue/visit from content promotion was more dependent on user navigation and hence advertising revenue. However, search driven revenue/visit was driven more by user clicks to purchase and hence CPC revenue and/or Lead Gen revenue. We found wide variation, more than 100% between the low and high contribution values, among all our promotion vehicles. But, now we were able to employ targeting and relevant cross-sell/up-sell to grow revenue and contribution from each traffic source. Imagine the possibilities for your marketing ROI, if you were equipped with traffic source level contributions as you make decisions about where to promote, how much to spend, etc., on your campaigns. Listening to our customers and utilizing continuous feedback to update our content and products should help drive a favorable trend in traffic source contribution: http://www.analyticsheaven.com/2010/01/customer-is-always-right.html). This can be a competitive differentiator and a valuable tool in marketing portfolio planning.

Tracking - make it customer centric!

Knowing what your customers want or need, I believe, is the type of intelligence that is best obtained from internal data, rather than market studies. While the latter are a good source of market intelligence and trends, a more focused “consumer centric tracking” will ensure that we are better prepared to serve our consumers’ needs. The possibilities could be endless, from right targeting of offers, to lower acquisition costs, to greater conversion and monetization. I spoke about the customer focus (http://www.analyticsheaven.com/2010/01/customer-is-always-right.html), and now we need to ensure that our tracking is helping us achieve some of the benefits identified in that approach.

Achieving this level of granularity may be tricky, given consumer privacy issues, but we can aggregate user data in the right buckets to define our unique segments, design a scorecard to monitor appropriate metrics and create a process to quickly supplement our offerings to changing user needs.

While I talked about measuring the value of web traffic by promotion source, here the theory is that we build an understanding of user segments. For instance, if we are a content site, we may want to learn about the browsing behavior of our sports readers, segmented into say, MLB/NBA/Olympics/Soccer fans, etc. Metrics such as, time spent on the site, navigation pattern to other site sections, number of pages per visit, frequency of visits per month, shopping tendencies, awareness towards brands, etc. Following these segments may yield better returns per marketing dollars spent than a wide targeting of content and offers through the generic sports page.

What this data does is that it helps define our user experience, site navigation and product offers that are truly unique to this user segment. And we need to respect the findings to an extent that if our sports readers tell us that they are not interested in shopping (hypothetically), then we make the experience richer by showing them more content and leaving out the “useless” product ads from their pages – talk of a no-frills attached user experience. How else does one define relevance and targeting?

Guide to making Web Analytics more accurate! - rewind

I felt the need to bring this up again as organizations are pushing for better returns from their online strategies and web analytics.

Understanding business imperatives, setting clear goals, defining success metrics, continuous testing and robust/agile implementation is what it all boils down to ... when it comes to effective utilization of web analytics for business improvement.

Below is an excerpt:

A recent eMarketer study identified top issues with the accuracy of analytics. Most prominently, users said they can't drill into the data (42%), and called out the issues with marketing attribution (32%), campaign tracking code (25%) and cross site analysis (20%). These factors become prominent as the business evolves over time and market driven changes are incorporated across the site. However, with some planning and framework, we can define and implement a robust analytics strategy that is flexible and adapts to the evolving business needs and site-wide changes.


Here's the link to the original post: http://www.analyticsheaven.com/2009/11/guide-to-making-web-analytics-more.html

The data is in abundance - looking at what matters and applying for business success is what matters ... happy hunting!

Key to driving leads - beyond social media

I recently spoke about how social media can be utilized to drive positive ROI for your business.

Here is one of the more direct ways to driving leads, while you define the over-arching social media strategy for your business – INVEST (if you haven't already) in creating a company blog.

According to eMarketer study, company blog drove the highest number of leads in both B2C and B2B firms, although Facebook, Twitter and LinkedIn were close second, third & fourth, respectively. Why this makes so much more sense is because there is a limit to how much can be said about your products, updates, tips, values, news, etc., on Twitter, Facebook and similar social sites, not to mention the timeliness of posts. We need to provide a more robust & permanent landing page experience (read company blog), with appropriate detail, to expand upon the 140 characters long nugget of information that you just updated on social sites.

The company blog should let your customers know more about your products/services, while encouraging participation (call-to-action). This can be through sharing knowledge about key features, competitive differentiators, upcoming changes and upgrades, issues and related solutions, user feedback, etc. Also, don’t forget to include employee comments about products, services, culture, etc., that can be valuable in promoting the company itself as having an open and transparent organization.

Interested readers (brand followers) on Twitter, Facebook, etc., can redirect themselves to the blog to read more. This approach serves 3 purposes that are critical for differentiating yourself in an over-crowded social media space. One – provides a common, yet an open platform for your customers (new and existing) to come to and learn more about your products/services. Two – provides a sense of attachment to the brand (comes from knowing and engaging more). Three - provides a forum to connect customers and employees for greater participation and transparency. Finally, maintain and nurture the company blog and its readers, and encourage participation through polls, promotions, events, tips, values, news, etc.

Measuring social media - user vs., product data

Measuring social media engagement and return on investment is an evolving science, with a lot of ideas on what is more important to track and record. I proposed an approach on “user and product metrics” in this blog a few weeks back (here’s the link: http://www.analyticsheaven.com/2010/02/social-media-can-drive-roi-now.html). While some of it may seem like a part of a marketing plan, it is still useful data for continuous monitoring and improvement.

Let’s expand on these success metrics. What metrics help us understand the user behavior and engagement on our site? Some of the obvious ones include, number of visits from social sites, followers/fans, page views (content sites) and leads, referring sites, demographic data on users commenting on your product, user segment more “prone” to conversion, loyalty based user segmentation, etc. Based on this data, we can decide how to engage our social media users; add more product information, product updates or new product ideas, engage new user bases, pamper most engaged user segments and our “net promoters,” etc.

To learn more about our products we need to monitor the features that people are tweeting about, be it our’s or our competitors’. Offline products may be impacted by, seasonality of product usage, recalls, new feature and/or product launches, etc. In case of an online product, social promotions can yield instantaneous glimpses into how we did on page design, site, navigation, layout, etc. Think of monitoring Bounce Rates, time spent on the site, pages consumed post landing, brand/product mentions and shares on social sites, etc. These will be good indicators of how well is the site performing relative to your expectations and competition. However, prior to starting a formal monitoring process, we need to set the benchmarks, so we can assess and define the deviations in tweeting behavior.

While following the social usage and consumption, don’t forget the company blog. This is where users will feel most connected and empowered to share their views and ideas about your product. Make sure it is conveniently linked from the social sites in order for the interested consumers to take that extra step.

Internet & TV - the inevitable synergies

As we see more and more user adoption of online videos and increasing TV viewership, I wanted to share some thoughts on possible synergies and trends in online and TV convergence. First let’s consider some facts:

1. Time-shifted TV viewing and online video viewing continued to grow in 2009 (according to Nielsen)
2. TV will become more social
3. Internet enabled devices, including Internet Enable Television sets (IETVs), will double by 2013 (according to Morgan Stanley), implying a more anytime/anywhere content consumption
4. Paid video content will make up 75% of US online video market (rest 25% will be ad supported)
5. Social ad spending approaches 50% of total online ad spend

What does this all mean for TV programming and online content? While internet continues to evolve in technology, engagement, user preferences, etc., TV has almost been stagnant in terms of content delivery and viewership. This is where I predict that online changes will have the greatest impact on TV viewing – something that the cable companies should take note of.

TV programs, while being available online, still are best viewed on TV from user experience perspective. As a result, paid content will be more viable and will see a larger adoption. Users will also start to “demand” more from their Video on Demand (VOD) programming. Because users like to view movies and favorite TV shows on TV for the most part, and not on an internet enabled device. VOD will need to evolve its offerings, interface and user experience to mirror more of what users are now getting used to online. The measurement of success will then closely mirror the success metrics in an online experience. On the other hand, ad supported programming, although a significant market in terms of dollar value, will be steady, and highly dependent on such metrics as, user demographic, click-through rates, completion rates, etc.

In either of the revenue models, common online success metrics such as, site navigation, content programming, time spent on a page, bounce rate, click-through rate on a title/promo, return frequency, etc., will/can be applied in some form to determine the success of a set-top experience.

The functionality offered by TIVO and its integration of streaming content from Amazon, Youtube and Netflix is already pointing to the online and TV synergies. As an example, UK market, with greater adoption of such preferences and willingness of users to pay for content, only helps to corroborate this trend. Cable companies can hence, gain a significant competitive advantage by preparing for the upcoming technological upgrades and investing in portability of online experience to set-top.