In a recent survey conducted, a staggering 86 per cent of brand managers revealed that they do not know how to effectively measure ROI in the social space. What’s more, they called this the single most significant obstacle to using social media effectively. Additionally, a recent study stated that nearly 2/3rds of CMOs think return on marketing investment will be the primary measure of their effectiveness by 2015. This raises a critical issue - most marketing heads and brand owners don’t know what marketing success looks like in the social web. They have no way to benchmark if they’re winning, and are unable to course correct if things get off track.
Social analytics help optimise the use of social media.
Limitations of social analytics
Social media dashboards prioritises the things that are easy to report, not the things that are actually important to a brand. It’s no surprise that brand managers can’t make sense of reports full of click through rates, fan counts, downloads and page views. None of these numbers align or even correlate with a brand’s objectives--driving sales, increasing affinity, and building brand value.
Marketing managers recognise this disconnect but assume that results-focused analytics are both expensive and complicated. Actually, measuring what matters doesn’t have to be either. The secret lies in identifying the handful of key metrics that truly propel your brand, and never losing sight of them throughout the measurement process. Often, these metrics can be analysed through the platforms you already have.
The Happiest Minds Social Computing Console has been developed based on the Brand Dynamics Pyramid. This enables a company to build as large a group as possible of truly loyal consumers by sustaining a suitable relationship with them. In addition, by assimilating customer activity in the social web with internal customer and sales data, it helps brands increase customer loyalty and advocacy.
Purchasing loyalty increases at higher levels of the Pyramid - consumers at the level of bonding are likely to be active advocates of the brand. There is also an increase in share of wallet - the proportion of consumer expenditure within the category on that brand - as you ascend the Pyramid. Some key performance indicators (KPIs) are highlighted below:
The important rule is to focus on just a few metrics for each business objective so that program evaluation remains simple and one does not end up in “analysis paralysis.” The process should force the prioritisation of only key performance indicators – in addition to clicks, # of fans, page views, etc. Another attribute of the Console is the mix of both qualitative measures (discussion topics and sentiment) and quantitative measures (counts of reach, chatter mentions, site engagement events).
Social media is unique in bringing both types of insight together to characterise performance and the value derived from social media efforts.
The authors are Rupa Shankar, Associate Director, Social Computing, Happiest Minds Technologies and Shahnawaz Khan, Head Knowledge Management & Global Practice Head - Social Computing at Happiest Minds Technologies.
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