This is a guest post from Michael Brito, and the fourth and final installment in the Internal Social Media series. Michael is here to share with us some of his actual, real-life experiences with implementing social media inside organizations. Special thanks to Michael for sharing his experiences from the trenches. You can follow Michael on Twitter or check out his social media blog.
Most of my professional career, I have been fortunate enough to work for some fantastic global brands; Hewlett Packard, Yahoo! and Intel. Within these organizations, my core focus has been driving consumer engagement using tools and strategies of the social web. And even though HP, Yahoo! and Intel are completely different organizations, many of the same challenges and conversations have arisen quite consistently.
Here are some things I have learned a long that way that I hope you can start thinking about within your organizations or small business:
Measuring Social ROI
A few years ago, it was the standard to measure growth rates in Twitter followers, Facebook fans and RSS subscribers. Couple that data with a few slides from Omniture and management was all good; they rarely asked any questions. Even today, these are still very important metrics to analyze and report on but the bar has been raised.
The question we need to start asking ourselves is “how do we go about quantifying these numbers to show how they drive true business value and/or revenue?” Some have done a really good job, like Dell and the Dell Outlet Twitter account; but even then, there are several unknowns like the whether or not the sales from that program cannibalized higher margin sales on Dell.com or elsewhere.
I have read post after post that talks about “100 ways to measure social media”; and while these may be really good ideas, I think that having 100 ways to measure social media is contributing to the problem. There is a lack of focus and specificity; like having metrics A-D-D. If I am leading a marketing organization, all I have time to look at is 2- 3 metrics max.
So, these metrics should give me the insight to determine if the amount of financial investment I contribute to social media is actually driving sales, retaining customers or cutting costs. I don’t have the magic formula because there isn’t one. It will be different for every organization. And driving brand awareness won’t cut it anymore.
Research
There was a time in my life when I hated research; especially since I spent three years in grad school, yes three. But research is a valuable asset if you do more than just talk about it.
The Forrester Social Technographic Latter of Participation is a great resource that allows marketers to understand how their users interact and behave on the social web. At Intel, we hired Forrester to map our internal audience segments to the technographic profile and the insights we learned were eye opening. Since then and during my tenure at Intel, we used that data (which was not public) to drive many of our social media engagements; some of which are still in existent.
For example, last year at Intel we launched Digital Drag Race as a part of the Core i7 product launch. Digital Drag Race was a contest that focused on user generated video. We knew from the research that a high percentage of our segment was considered content creators (i.e. those who create content and share it on the web) so we built the entire program around that specific behavior. The results were fantastic and we exceeded the metrics goals we decided upon prior to launch.
Top-Down Organizational Support
If an organization is not ready to embrace social media 100% internally from their leaders, they will not succeed in driving effective customer relationships externally. Embracing social media is more than simply saying “we want to join the conversation” and then investing a couple hundred thousand on a Facebook app promoting the next product. It’s a cultural shift that starts at the core of the organization; with the very people who represent the brand.
It is critical that management empower their organizations to work collaboratively. Building communities from behind the firewall is no easy task. There are a lot of things to consider; and collaboration across the organization (marketing, legal, PR, business units, customer support) is imperative. Decisions can take months and sometime years. Having adequate support and empowerment from senior management is important, especially during the budget planning process.
Full scale integration with other marketing channels: launching a blog, twitter account and Facebook page is useless unless there is tight integration across the board with retail, online, search, channel partners, resellers, paid media and the list goes on. I don’t think it’s realistic that every piece of external communication has “social” built into it but it should at least be explored. In my experience, social media is usually an afterthought and this needs to change. Social media is an excellent way to humanize a brand; and adoption of it is growing exponentially across the globe. It’s important that brands think about integration from the beginning to prevent themselves from having disjointed, irrelevant communications.
Seeking Participation Across the Organization
A blog is good, but a blog without a solid editorial calendar, a human voice and a subject matter expert is not good. Too many times, marketing and PR departments launch blogs and expect for people to actually read them. I am sure it happens in some cases, but the true value in social media is when you have subject matter experts engaged with consumers on the social web answering product relates questions and/or offering customer support.
This brings up a whole new set of challenges, especially if the organizational culture has not fully embraced social media. Usually marketing and PR departments have to seek out “volunteers” in the organizations or find the employees that are already active in the space. And even then, most employees who are interested in volunteering and are passionate about their products have other responsibilities so bandwidth becomes an issue.
The last thing you want to happen is for an employee to build up a solid reputation online and become a “trusted advisor”; to then have to abandon the community because of bandwidth. One solution would be to hire dedicated “technical advisors” where their sole responsibility would be to engage online; or seek management support in adding in “social participation” related job responsibilities within various job roles across the organization (i.e. a network engineer would code 80% of the time; and blog/tweet/whatever for 20% of the time). It would be part of their job and they would be measured on it.
Global Social Media Programs
This was part of my responsibility at Intel and it’s not easy. What may work in the US, Canada and maybe the UK will not necessarily work in India. For global brands, this nut has yet to been cracked but there are some good learning and best practices that can help brands manage this.
At Intel, there was a team that launched and managed a “social media integration forum” conference call once a month. Marketing leads from across the world attended and shared a little about any past or present campaigns or promotions. The calls were excellent but the challenge was that they were rarely actionable. It was more about sharing and less about planning.
Marketing departments must not only share what’s going on in their regions; but they should also work together on integration with these various programs. It’s going to be a challenge because social media is culturally driven. However, there are certain things that US teams can do to help other regions succeed in the social web like providing digital assets (videos, widgets) that can be translated in various languages. Also providing a tool set or framework that will help global teams to create blogs/communities; and then consistent sharing of best practices and key insights.
Your Turn…
Thanks again, Michael, for sharing your practical and tangible experience around internal social media! What do you say folks? What questions might you have for Michael, and what experiences have you had that might be similar or different? Let’s continue the conversation in the comments.
Interesting post. A few questions:
1) I’m curious as to why the social media integration forum would a) choose the telephone and conference call model to discuss matters of social media integration instead of, say… a social technology platform, and b) why only once a month. Wouldn’t it had made sense to use another medium? Something more… social? If only to accelerate the discussion and make it more of a process than a monthly phone call? Was there a reason why the social media mavens across your organization couldn’t use a more effective collaboration tool?
2) You say “A few years ago, it was the standard to measure growth rates in Twitter followers, Facebook fans and RSS subscribers.” A few years ago, most companies weren’t even aware of Twitter. (It’s only been around since mid 2007 and didn’t really start its path to mass adoption until late 2008 – barely over a year ago.) Since most companies are still just now getting to blogs, Facebook and Twitter – and don’t seem to be able to make heads or tails about how to measure success, I am trying to wrap my mind around that statement. Don’t you mean “a few months ago?” 😉
3) I like what you have to say about ROI: “how do we go about quantifying these numbers to show how they drive true business value and/or revenue?” and “Having 100 ways to measure social media is contributing to the problem. There is a lack of focus and specificity; like having metrics A-D-D. If I am leading a marketing organization, all I have time to look at is 2- 3 metrics max. So, these metrics should give me the insight to determine if the amount of financial investment I contribute to social media is actually driving sales, retaining customers or cutting costs. I don’t have the magic formula because there isn’t one. It will be different for every organization. And driving brand awareness won’t cut it anymore.”
I’m glad you understand ROI for what it is, and see the danger of measurement ADD. From the trenches, then: Can you give us any examples of how you approached the ROI question while at Intel? (Or anywhere.) Not to put you on the spot, but stories and anecdotes would be really helpful to the some of the folks reading this who – like you – work in organizations that don’t regard Social Media as a natural next step in their business model’s evolution. Any advice as to how to address the ROI question? How to use it to get funding for an SM program? How to use ROI to tweak results and improve on the model? 😉
Good post. Thanks for writing it. Cheers.
.-= olivier blanchard´s last blog ..Gaspedal’s “Word Of Mouth SuperGenius” conference is this Wednesday in Chicago =-.
Interesting post. A few questions:
1) I’m curious as to why the social media integration forum would a) choose the telephone and conference call model to discuss matters of social media integration instead of, say… a social technology platform, and b) why only once a month. Wouldn’t it had made sense to use another medium? Something more… social? If only to accelerate the discussion and make it more of a process than a monthly phone call? Was there a reason why the social media mavens across your organization couldn’t use a more effective collaboration tool?
2) You say “A few years ago, it was the standard to measure growth rates in Twitter followers, Facebook fans and RSS subscribers.” A few years ago, most companies weren’t even aware of Twitter. (It’s only been around since mid 2007 and didn’t really start its path to mass adoption until late 2008 – barely over a year ago.) Since most companies are still just now getting to blogs, Facebook and Twitter – and don’t seem to be able to make heads or tails about how to measure success, I am trying to wrap my mind around that statement. Don’t you mean “a few months ago?” 😉
3) I like what you have to say about ROI: “how do we go about quantifying these numbers to show how they drive true business value and/or revenue?” and “Having 100 ways to measure social media is contributing to the problem. There is a lack of focus and specificity; like having metrics A-D-D. If I am leading a marketing organization, all I have time to look at is 2- 3 metrics max. So, these metrics should give me the insight to determine if the amount of financial investment I contribute to social media is actually driving sales, retaining customers or cutting costs. I don’t have the magic formula because there isn’t one. It will be different for every organization. And driving brand awareness won’t cut it anymore.”
I’m glad you understand ROI for what it is, and see the danger of measurement ADD. From the trenches, then: Can you give us any examples of how you approached the ROI question while at Intel? (Or anywhere.) Not to put you on the spot, but stories and anecdotes would be really helpful to the some of the folks reading this who – like you – work in organizations that don’t regard Social Media as a natural next step in their business model’s evolution. Any advice as to how to address the ROI question? How to use it to get funding for an SM program? How to use ROI to tweak results and improve on the model? 😉
Good post. Thanks for writing it. Cheers.
.-= olivier blanchard´s last blog ..Gaspedal’s “Word Of Mouth SuperGenius” conference is this Wednesday in Chicago =-.
I’m with you on measurement. I would love find 2 or 3 great metrics for measuring Social Media effectiveness. It’s hard when a lot of the evidence I find is anecdotal, but that just won’t fly in most cases. I think part of the problem is that Social Media is a longer term process than traditional ideas of marketing.
I’m excited to see how Social Media marketing pans out over the next year or two.
.-= Ken´s last blog ..13 Useful Twitter Tips For Small Business (or anyone!) =-.
I’m with you on measurement. I would love find 2 or 3 great metrics for measuring Social Media effectiveness. It’s hard when a lot of the evidence I find is anecdotal, but that just won’t fly in most cases. I think part of the problem is that Social Media is a longer term process than traditional ideas of marketing.
I’m excited to see how Social Media marketing pans out over the next year or two.
.-= Ken´s last blog ..13 Useful Twitter Tips For Small Business (or anyone!) =-.
@Ken
thanks for your feedback. With Intel, measuring ROI was extremely difficult being an ingredient brand so a lot of what we measured was based on assumptions (as is w/most ROI models).
@olivier
Working on your responding to your comment. may take some time. ; )
.-= Michael Brito´s last blog ..Social Media Snake Oil from Brito’s Perspective =-.
No worries. 🙂
.-= olivier blanchard´s last blog ..Gaspedal’s “Word Of Mouth SuperGenius” conference is this Wednesday in Chicago =-.
@Ken
thanks for your feedback. With Intel, measuring ROI was extremely difficult being an ingredient brand so a lot of what we measured was based on assumptions (as is w/most ROI models).
@olivier
Working on your responding to your comment. may take some time. ; )
.-= Michael Brito´s last blog ..Social Media Snake Oil from Brito’s Perspective =-.
No worries. 🙂
.-= olivier blanchard´s last blog ..Gaspedal’s “Word Of Mouth SuperGenius” conference is this Wednesday in Chicago =-.
Thanks for the post Michael, and thank you Amber for sharing it.
You definitely brought up some good points in the post. I had the same thought as Olivier regarding the ‘few years ago’ comment on measurement. Even a couple of years ago would be early adoption for Facebook and Twitter (for business certainly).
One of the things that comes to mind in the ROI discussion is that the ability to accurately measure success sometimes depends on the ability to integrate the disparate systems and databases within an organization. For instance, if Point of Sale systems at retail connected with customer databases, Twitter followers, Facebook fans, etc., there would be a better way of tracking sales through social channels. Not to mention it would provide a basis for continuing the conversation in the brick & mortar world. Imagine showing your mobile device with a promotional offer and the retail clerk looking up your profile and noting something you mentioned in a tweet or a Facebook comment on the brand’s fan page. Do you know of anyone doing this kind of integration?
In the absence of fancy technology to track consumer behavior, sometimes it’s really about being smart about what we are asking people to do and making sure we have a way to measure it. And this isn’t ‘become a fan or follower,’ but might be things like re-tweet an offer, attend an event, invite others to attend an event or become a fan of the brand, redeem a special offer at retail, place an order online, etc. The question about how to measure should come up in the beginning of the ideation process, not at the end.
I definitely agree with the points about seeking participation across the organization. I think this will continue to increase in importance as time goes on. And that means across the ENTIRE organization. Every department can participate and provide value to the overall social efforts of the company.
Regarding global programs, this is definitely a challenge, but again I agree with Olivier that it seems a more ‘social’ approach to collaboration might prove more fruitful with teams spread across multiple regions. Tools like Yammer could be used for internal microblogging, and a robust intranet and/or extranet with good sharing tools and other resources (relevant articles, white papers, etc.) would keep the teams more connected in between monthly calls or meetings.
Thanks again for the post – it’s great to hear from people who have been in the trenches at the enterprise level.
@brandon101
.-= Brandon Sutton´s last blog ..Are You Reliant? =-.
Thanks for the post Michael, and thank you Amber for sharing it.
You definitely brought up some good points in the post. I had the same thought as Olivier regarding the ‘few years ago’ comment on measurement. Even a couple of years ago would be early adoption for Facebook and Twitter (for business certainly).
One of the things that comes to mind in the ROI discussion is that the ability to accurately measure success sometimes depends on the ability to integrate the disparate systems and databases within an organization. For instance, if Point of Sale systems at retail connected with customer databases, Twitter followers, Facebook fans, etc., there would be a better way of tracking sales through social channels. Not to mention it would provide a basis for continuing the conversation in the brick & mortar world. Imagine showing your mobile device with a promotional offer and the retail clerk looking up your profile and noting something you mentioned in a tweet or a Facebook comment on the brand’s fan page. Do you know of anyone doing this kind of integration?
In the absence of fancy technology to track consumer behavior, sometimes it’s really about being smart about what we are asking people to do and making sure we have a way to measure it. And this isn’t ‘become a fan or follower,’ but might be things like re-tweet an offer, attend an event, invite others to attend an event or become a fan of the brand, redeem a special offer at retail, place an order online, etc. The question about how to measure should come up in the beginning of the ideation process, not at the end.
I definitely agree with the points about seeking participation across the organization. I think this will continue to increase in importance as time goes on. And that means across the ENTIRE organization. Every department can participate and provide value to the overall social efforts of the company.
Regarding global programs, this is definitely a challenge, but again I agree with Olivier that it seems a more ‘social’ approach to collaboration might prove more fruitful with teams spread across multiple regions. Tools like Yammer could be used for internal microblogging, and a robust intranet and/or extranet with good sharing tools and other resources (relevant articles, white papers, etc.) would keep the teams more connected in between monthly calls or meetings.
Thanks again for the post – it’s great to hear from people who have been in the trenches at the enterprise level.
@brandon101
.-= Brandon Sutton´s last blog ..Are You Reliant? =-.
Olivier,
1. Oh, we used internal social networking tools as well. This call just happened to be over the phone; and there is nothing more social than actually talking to people over the phone, if not in person
2. Okay, I was over exaggerating on the few years…but many companies were indeed blogging in 2006; and today its almost been 4 years now.
3. The challenge with Intel is that it’s an ingredient brand, so unless consumers actually say “hey, thanks for that piece of advice, I am going to go upgrade my computer because of your blog post”, we can only speculate. Other, more common, ways we looked at ROI is frequency and sentiment of the conversations (even though those are only indicators).
ROI for social media is not an exact science; but one can look at external studies like the one Charlene Li did with Wetpaint; whereby she measured the breath and depth of brands engaging online and then also looked at the financial performance of the same brands. The results (which were just a correlation) showed that the brands who engaged more were seeing increases in revenue.
ROI is still a long way (even in traditional marketing) from being a perfect science, with the exception of say search and/or other forms of direct marketing.
Olivier,
1. Oh, we used internal social networking tools as well. This call just happened to be over the phone; and there is nothing more social than actually talking to people over the phone, if not in person
2. Okay, I was over exaggerating on the few years…but many companies were indeed blogging in 2006; and today its almost been 4 years now.
3. The challenge with Intel is that it’s an ingredient brand, so unless consumers actually say “hey, thanks for that piece of advice, I am going to go upgrade my computer because of your blog post”, we can only speculate. Other, more common, ways we looked at ROI is frequency and sentiment of the conversations (even though those are only indicators).
ROI for social media is not an exact science; but one can look at external studies like the one Charlene Li did with Wetpaint; whereby she measured the breath and depth of brands engaging online and then also looked at the financial performance of the same brands. The results (which were just a correlation) showed that the brands who engaged more were seeing increases in revenue.
ROI is still a long way (even in traditional marketing) from being a perfect science, with the exception of say search and/or other forms of direct marketing.
Michael – thanks for writing this post. Enjoyed it very much. Especially the ROI section. I wrote a similar thing for the Radian6 blog last week, and in a presentation to PRSA made the point that providing a laundry list of metrics doesn’t help anyone because there’s no allegiance to goals, or any mechanism to calculate said metrics.
Frankly, it’s my view that we need to get back to basics. How do we conduct benchmark research? How do we write measurable goals and objectives? How do those flow into strategy and then tactics? Ultimately, then, how do we ensure that what we set out to do is happening, and if it isn’t how do we tweak?
.-= Chuck Hemann´s last blog ..Case Studies Shouldn’t Be The Basis Of Your Social Media Program =-.
Michael – thanks for writing this post. Enjoyed it very much. Especially the ROI section. I wrote a similar thing for the Radian6 blog last week, and in a presentation to PRSA made the point that providing a laundry list of metrics doesn’t help anyone because there’s no allegiance to goals, or any mechanism to calculate said metrics.
Frankly, it’s my view that we need to get back to basics. How do we conduct benchmark research? How do we write measurable goals and objectives? How do those flow into strategy and then tactics? Ultimately, then, how do we ensure that what we set out to do is happening, and if it isn’t how do we tweak?
.-= Chuck Hemann´s last blog ..Case Studies Shouldn’t Be The Basis Of Your Social Media Program =-.
As the former Director of Operations for Intel Inside, I worked extensively on measuring ROI for indirect Marketing activities (some of these ROI insights will be addressed in a book that will be released in January 2010). So take my thoughts with a grain of salt, if you think they are too Intel-centric…
To me, Social ROI is very comparable to ROI derived from sponsorships. There were certain aspects of Intel’s F1 sponsorship we could measure accurately, such as brand impressions on TV. Thus, we could assign a value to it and compare it to other Marketing executions. The equivalent in Social Media would be ReTweets or Discussions around your brand. Similar to sponsorships, that exposure can be negative or positive.
However, the actual business impact of a sponsorship is very hard to measure. People defended the ROI of hospitality suites by pointing out how many contracts got signed in a hospitality suite, but reality is these contracts would have been signed anyway. It was just the opportunity to create some buzz that often delayed or accelerated the signing of a contract based on when F1 stopped in a city nearby. Ditto for the business impact of social networking. If you would not have had that Twitter exchange with a potential buyer, would that buyer have communicated with you through a different medium anyway? Maybe you accelerated a purchase, but would you not have gotten the deal, if you hadn’t tweeted?
There are some ways how to measure some very dedicated activities. Have Social Media only Marketing promotions and use special micro-sites to gauge the ROI of sales promotions. Use special SKUs that are promoted through social media to measure sales ROI across multiple channels. That is very doable today and provides you with comparable data.
However, in many cases, life is not that easy. There are other ways to measure social ROI, but it typically requires research, which is expensive and time-consuming. We developed a research-program at Intel to measure ROI of all kinds of partner activities, where, among other parameters, we looked at how a particular Marketing campaign influenced purchase intent and what percentage of people whose purchase intent was lifted by that campaign actually purchased within a certain timeframe after the campaign ended. The same would work for Social Media, but again, it is a question of timeliness and money to get such research done.
I’m not sure whether this was too high-level for you. If you need some examples of actual research methodologies, I can dig these up, if you are interested. Or simply ask some very specific questions and I will try to answer them.
As the former Director of Operations for Intel Inside, I worked extensively on measuring ROI for indirect Marketing activities (some of these ROI insights will be addressed in a book that will be released in January 2010). So take my thoughts with a grain of salt, if you think they are too Intel-centric…
To me, Social ROI is very comparable to ROI derived from sponsorships. There were certain aspects of Intel’s F1 sponsorship we could measure accurately, such as brand impressions on TV. Thus, we could assign a value to it and compare it to other Marketing executions. The equivalent in Social Media would be ReTweets or Discussions around your brand. Similar to sponsorships, that exposure can be negative or positive.
However, the actual business impact of a sponsorship is very hard to measure. People defended the ROI of hospitality suites by pointing out how many contracts got signed in a hospitality suite, but reality is these contracts would have been signed anyway. It was just the opportunity to create some buzz that often delayed or accelerated the signing of a contract based on when F1 stopped in a city nearby. Ditto for the business impact of social networking. If you would not have had that Twitter exchange with a potential buyer, would that buyer have communicated with you through a different medium anyway? Maybe you accelerated a purchase, but would you not have gotten the deal, if you hadn’t tweeted?
There are some ways how to measure some very dedicated activities. Have Social Media only Marketing promotions and use special micro-sites to gauge the ROI of sales promotions. Use special SKUs that are promoted through social media to measure sales ROI across multiple channels. That is very doable today and provides you with comparable data.
However, in many cases, life is not that easy. There are other ways to measure social ROI, but it typically requires research, which is expensive and time-consuming. We developed a research-program at Intel to measure ROI of all kinds of partner activities, where, among other parameters, we looked at how a particular Marketing campaign influenced purchase intent and what percentage of people whose purchase intent was lifted by that campaign actually purchased within a certain timeframe after the campaign ended. The same would work for Social Media, but again, it is a question of timeliness and money to get such research done.
I’m not sure whether this was too high-level for you. If you need some examples of actual research methodologies, I can dig these up, if you are interested. Or simply ask some very specific questions and I will try to answer them.
i love to see new product launches because i am addicted to shopping both online and offline.`’-
i love to see new product launches because i am addicted to shopping both online and offline.`’-
The post of content is very ugg boots interesting and exciting. I learned a lot from here.The content from simple to complex, so all of you can come in . No matter you want to see what can be found.By the way ,there are some websites is also very wonderful,you can go and see.such asXXXXX.