Managing Forward:

Measuring Social Media Value

and Influence

Larry Freed, President and CEO, ForeSee Results

 Social Media Popularity

Facebook
500 3.5 50%
Facebook fans
5.3
Billion fans on
Million Billion content
Facebook pieces shared Log in daily purpose-built
users weekly Facebook pages

Source: Econsultancy.com January 29, 2010, comScore 2010

3 Types of Social Media
1. Controlled
2. Sponsored
3. Viral
Making Sense of Social Media: The Social Media Map
What do consumers want from Facebook?
Where and why do consumers engage with social media

Source: ForeSee Results Top 40 Holiday Retail Satisfaction Index, February 2010
 What are you
doing about it ?
 71%
Companies with a
social media plan are
setting up metrics &
tracking methods

Source: eMarketer July 24, 2010 from Digital Brand Expression report ,
Social Media Without a Parachure
Traditional Social
Metrics
count activity and
measure
impressions/buzz

‡ Fans on social sites

‡ Social mentions
‡ Tweets
‡ Blog entries
What is missing ?
Who is coming to your social networking site?

What are the social media tendencies of

your website visitors?
What influenced them to come
to your site?
Was their experience
successful?

Were they satisfied?

What are they going to do
as a result of the
experience?
What is the value of a
visitor from Social Media?
Measuring Success

Success is measured through the eyes of the customer/visitor

Success is GHILQHGDV³ZDVWKHcustomer/visitor satisfied, did the

experience meet their needs and exceed their H[SHFWDWLRQV´

Success is defined by what the user does as a result of the experience:

return, recommend, purchase, etc.
Customer Satisfaction = Key Success Metric

Satisfaction LVDPHDVXUHRIYDOXHVXFFHVVWKHFXVWRPHUV¶SHUVSHFWLYH

Satisfaction is a combination of what you get and what you expect

Consumers have freedom of choice and will go where they are satisfied

Satisfaction drives behaviors which drive value, loyalty and word-of-mouth

and cost-efficiency

7UDGLWLRQDOPHWULFVGRQ¶WDOORZ\RXWRPHDVXUHVXFFHVVLQWKHH\HVRI\RXU
visitors
How Do We Measure Satisfaction

Satisfaction: Measurement of Success

American Customer Satisfaction Index
#1 Measurement of Customer Satisfaction
Leading National Economic Indicator of Consumer Spending

‡)RXQGHGDWWKH8QLYHUVLW\RI0LFKLJDQLQSXEOLVKHGTXDUWHUO\
‡0HDVXUHVDOPRVWKDOIRIWKH86HFRQRP\45 industries, 200+ organizations
‡$GYDQFHGPHWKRGRORJ\4XDQWLILDEO\PHDVXUHV OLQNVVDWLVIDFWLRQWRILQDQFLDOSHUIRUPDQFH
Scientific Customer Satisfaction Measurement

Accurate

Sensitive Reliable

Valid Precise
Scientific Customer Satisfaction Measurement

Accurate

Sensitive Reliable

Correct

Valid Precise
Scientific Customer Satisfaction Measurement

Accurate

Sensitive Reliable

Consistent

Valid Precise
Scientific Customer Satisfaction Measurement

Accurate

Sensitive Reliable

Exact

Valid Precise
Scientific Customer Satisfaction Measurement

Accurate

Sensitive Reliable
Measures
the right
things

Valid Precise
Scientific Customer Satisfaction Measurement

Accurate

Sensitive Reliable
Detects
change

Valid Precise
Scientific Customer Satisfaction Measurement

Accurate

Sensitive Reliable

Credible

Valid Precise
Scientific Customer Satisfaction Measurement

Accurate

Sensitive Reliable
American
Customer
Satisfaction
Index

Valid Precise
 The American Customer Satisfaction Index:
Unparalleled Measurement Technology

‡ 15 years of ‡ Accurate ‡ Cause-and-effect

empirical evidence ‡ Precise methodology
‡ 45 industries ‡ Reliable provides actionable
‡ 200+ organizations insights
‡ Published and
vetted by
academic research
Cause and Effect
Cause-and-Effect Methodology

‡ Customer satisfaction is a means to achieving your end goals

‡ ForeSee Results measures the drivers of satisfaction, overall
satisfaction and future behaviors
Identify and Prioritize Improvements

Priority Map shows you where to focus your improvement efforts based
on their impact on future behaviors

Low score,
high impact
elements are top
improvement
opportunities
Customer Satisfaction with Social Media

ACSI  E-­‐Business  Report

MySpace.com 63

Facebook.com 64

All Others 72

YouTube.com 73

Wikipedia.org 77

Aggregate 70

0 10 20 30 40 50 60 70 80 90

Satisfaction (100-point scale)

Source: ForeSee Results Report on ACSI E-Business Scores, July 2010
Satisfaction With Social Media Sites Trail Other Segments

Comparison  of  Online  ACSI  Scores  by  Industry

85 83

80
77 77
75
75 74
73
70
70

65

60

Source: ForeSee Results Report on ACSI E-Business Scores, July 2010

Social media impact on the cross-channel customer
You cannot manage what you do not measure

What you measure will determine what you do

Measuring Social Media

Understand Your Audience

Social  Influencer  Model  Ȃ Measure  Personas  of  Site  Visitors

Measuring Controlled Sponsored Viral Social

Social Media Social Media Social Media Media

Social  Media  
On-­‐site  surveys Posted  surveys Monitoring  Tools

Value of Social Media

Social  Media  Value  Calculation
Measuring Social Media Value and Influence

How engaged are my visitors with Social Media

What do they think of the social media experience on my

social networking sites

What do they think of my participation in social media

networking sites

What value does Social Media bring to my business

Social  Influencer  Model  Ȃ Measure  Personas  of  Site  Visitors

CS    Persona
Customized persona survey is deployed on website in rotation with existing
satisfaction measure
8QGHUVWDQG\RXUFXVWRPHUV¶VRFLDOPHGLDEHKDYLRUV SUHIHUHQFHVLQFOXGLQJ
those who are satisfied or dissatisfied
Info  Seeking

Passive

Info  Sharing
Social  Influencer  Model  Ȃ Measure  Personas  of  Site  Visitors

Computers & Electronics Food & Drug

Retailers Retailers

High

:KDW¶VWKH6KDULQJ6HHNLQJ,QIRSURILOHRI\RXUVLWHYLVLWRUV"
ForeSee Results Top 100 E-Retail Satisfaction Index
Measure Controlled Social Media: On-site Surveys

CS Site Manager: Satisfaction survey on website, microsite, blog, forum

Measure Sponsored Social Media: Posted Survey
CS Social Media
Post a shortened URL on your fan/follower page
Measure Sponsored Social Media: Posted Survey

Link to Satisfaction Survey

Based on the methodology of the
American Customer Satisfaction Index

Uncover Valuable Information

$ERXWIROORZHUV¶VDWLVIDFWLRQZLWK\RXU
FRPSDQ\¶VVRFLDOPHGLDSODWIRUPDQG
KRZVRFLDOPHGLDLVGULYLQJIROORZHUV¶
future behaviors
Analyzing The Effectiveness Across Social Media Efforts
Social Media Value Calculation
Link Social Media to Business Goals

‡ Awareness (attract new customers)

‡ Conversion (sign up for email, become member, etc.)
‡ Engagement (fan sign up, word-of-mouth)
‡ Revenue generation (e-commerce, offline sales)
‡ Across channels
Social Media Value Calculation

Quantify social media influences for site visitors and link to intended and actual
purchase behaviors

ƒ Social media model included in a satisfaction survey on your website,

encompassing predictive modeling of future behaviors
ƒ Understand direct and influence impact
ƒ Answer key questions about social media initiatives:
ƒ What value does social media bring to my business?
ƒ Does social media drive site visits?
ƒ Does social media drive sales/conversions?
ƒ Link social media to satisfaction, intended future behaviors and actual purchase
behavior
Social Media Value Calculation
Works across multiple industries

Retail  Example:

Social  Media  Influence

Revenue
Proprietary calculation: Future  
ForeSee Results Satisfaction $
Social Media Influence Model Behaviors (Determined  by    
& actual  spend  or  
Direct linkage from social media purchase  intent)

Content  Example:
Social  Media  Influence Revenue
Proprietary calculation: Future   $
ForeSee Results Satisfaction (Determined  by  
Social Media Influence Model Behaviors average  lifetime
& value  of  new  
Direct linkage from social media site  visitors)
Social Media Value Calculation:
One step further
Summary of Social Media Measurement Opportunities

How engaged are my visitors with Social Media

‡ Social Influencer Model: CS Persona

What do they think of the social media experience on my

social networking sites
‡ On-site surveys of Controlled Social Media: CS Site Manager

What do they think of my participation in social media

networking sites
‡ Posted surveys of Sponsored Social Media: CS Social Media

What is being talked about in social media networking sites

‡ Social Media Monitoring Tools

What value does Social Media bring to my business

‡ Social Media Value Calculation
A bit of background on ForeSee Results

ForeSee Results is the market leader, thought leader, and

innovation leader in online customer satisfaction measurement,
continuously expanding in customer experience analytics.

We apply a proven, predictive methodology to measuring customer

needs and expectations online and their impact on customer behavior

Help companies measure effectiveness of online initiatives from

FXVWRPHU¶VSHUVSHFWLYH

Prioritize investment based on ROI

Benchmark performance over time and against competitors and best-

in- class companies.
Leaders and the Best: Some of the Companies We Measure
Top Takeaways

zŽƵĐĂŶ͛ƚŵĂŶĂŐĞǁŚĂƚLJŽƵĐĂŶ͛ƚmeasure

What  you  measure  will  determine  what  you  do

Measure  what  matters  most  ʹ your  customers

Satisfaction  drives  conversion,  loyalty,  retention,  

and  word-­‐of-­‐mouth
Turn  data  into  information  ʹ
Turn  information  into  intelligence
Top Takeaways

The  consumer  is  a  cross-­‐channel  consumer

Measure  the  success  of  your  social  media  efforts

across  Controlled,  Sponsored  and  Viral  social  networks

Link  social  media  to  cross-­‐channel  intent  and  

actual  behavior  for  ROI
Measurement  is  ŚĂƌĚ͙ďƵƚǁŽƌƚŚǁŚŝůĞ

Satisfy  your  customers  and  be  fiscally  responsible

to  survive  and  thrive  in  the  years  ahead
Questions?

Larry  Freed
President  and  CEO
ForeSee  Results

(734)  205-­‐2555  
Larry.Freed@ForeSeeResults.com
Twitter:  larryfreed
Blog:  www.FreedYourMind.com
www.ForeSeeResults.com