The Value of Social Media. What is the value & why care about social media? The value of social media is defined by how well it helps to create buzz and help a brand manage its reputation directly with the consumer. Companies are building and growing out their social infrastructure (e.g. platform software, CMS tools) to be able to measure the direct revenue impact on their social media efforts. However, if there is value in defining social media, then what challenges does it represent to a brand? â€˘ Measuring direct ROI impact (solution: Paid/Owned/Earned model) â€˘ Increasing business integration with social media through marketing efforts (solution: case study follows)
Seizing the value of social media Social media can be used for many purposes and to support a broad range of corporate activities. There is value creation in all of these aspects. Following the paid/earned/owned model which will be described on the next slide helps to deliver an amplified ROI as opposed to just a top-down marketing planning model alone. Moreover, Facebook Sponsored Engagements (includes FB Ads, Stories, Offers, etc.) allows marketers to determine their ROI and yields a positive ROI for a variety of marketers. Case studies examples follow. Promotions
Reputation management Generate Buzz
Drive Online Traffic
Relationship Building Competitive Intelligence
Online Marketing Customer Service Human Resources
Source: http://blog.hubspot.com/blog/tabid/6307/bid/32712/New-Facebook-Coupon-Feature-Helps-Local-Businesses-DetermineSocial-ROI.aspx. 2
CASE STUDY: Etrade Slashes Ad Budget but Digital Drives ROI Leverage Paid Interactions
TV Online Search
YouTube Facebook Twitter
Etrade used its digital and social challenges to support their Superbowl TV ad push. According to CMO “Online is a critical piece of our marketing mix....over 40% of our marketing spend is online.” In general,17% of people who use social media have purchased a financial services product through content seen on social channels.*
Grow Owned Interactions EARNED Interaction s • TV ad appeared on social channels (Facebook, Twitter, YouTube) • 3 million YouTube views of outtakes • 2 million combined YouTube views of the “Wings” and “401(k)” spots in the week following • 5,000% increase YOY in visits to the E*Trade TV Webpage with an average of 4.8 minutes spent viewing the page.
In terms of what Etrade calls “soft” ROI metrics, they saw a 1,000 increase in searches for E*Trade on YouTube from one hour before the game through the middle of the broadcast. Integratied all owned channels together during promotions – TV, email, website, social,, etc. to reach customer at all touch points with messaging. Etrade saw an 86% increase in unique prospect visitors to etrade.com in the week following the game, and a 19% increase in online brokerage applications the week after the game
Facilitate Earned Interactions Content from paid and owned interactions from Etrade’s efforts built organic growth, conversions and engagement. See stats to the left. In general, of users who talk about purchases on social channels, 66% talk about financial service purchases.* People trust other people more than they trust you •90% of consumers online trust recommendations from people they know • 70% trust opinions of unknown users
Case study: eMarketer.: " E*TRADE Slashes Ad Budget, But Digital Drives ROI “Feburary 2009. *Source: ROI Research Inc., "S-Net: A Study in Social Media Usage & Behavior" sponsored by Performics, Aug 2011. 3
Examples: Investing In Social Media Yields Business Results Other brands/companies large & small have effectively seen the upside to investing in social media: •
Sweet Frog Frozen Yogurt
Citizens TruFit Student Loans
ASOS.com is a leading fashion online retailer based in the UK. They saw 131 percent uplift in purchase behavior on the ASOS website in the four weeks following Facebook paid media exposure. Using paid media to leverage the potential of earned properties such as the Facebook Brand Page yields positive ROI.
Coastal.com, an online eyewear company sees a 3X increase in conversions for its first-pair-free promotion after running an Offer on Facebook and supporting it with Facebook Ads.
The offer generated 433,000+ claims of the offer, with 74% of them coming from friends of fans leveraging earned media exposure.
Sweet Frog leverages paid media to drive in-store foot traffic and sales via a Facebook Offer. They used their Facebook page (owned channle) to host a corresponding sweepstakes to win free yogurt.
Over 9,200 people claimed offer, 3,747 people entered contest on their mobile phone, and 344 redeemed the Offer via phone in one weekend. There were 144 in-store redemptions
Citizens Bank leverages its owned Facebook channel to create a tab dedicated to Education Finance and the TruFit Good Citizens Scholarship™ to drive engagement and drive TruFit Student Loan applications.
Over 13,000 tab views for Citizens and Charter One. Of the people who visited the tab, we’ve had 68 completed TruFit Student Loans applications from Facebook alone. 4
Case Studies Case study: “E*TRADE Slashes Ad Budget, But Digital Drives ROI.“ eMarketer.. Case Study: “Online eyewear company sees a 3X increase in conversions for its first-pair-free promotion after running an Offer on Facebook and supporting it with Facebook Ads.” http://www.facebook-studio.com/fbassets/media/5315/Coastal_CaseStudy.pdf Case study: “ASOS online retailer see 131 percent uplift in purchase behavior on the ASOS website in the four weeks following ad exposure.” http://www.comscoredatamine.com/2012/07/asos-experiences-the-facebook-effect/ Case Study: “Florida Blue Drives 5X Increase in Daily Brand Mentions” Twitter. https://business.twitter.com/en/optimize/case-studies/floridablue/ Case Study: “Coke’s Polar Bowl Drives Second-Screen Engagement” eMarketer. 25 September 2012 Gaudio, Micah: “Facebook Small Business Case Studies – Sweet Frog Premium Frozen Yogurt” Facebook Case Studies Spotlight: “Jackson Hewitt Boosts Engagement with Facebook Marketplace Ads” eMarketer. 22 June 2012 5
Additional Resources and Reading Eilliot, Nate: ‘The ROI of Social Marketing” Forrester. 20 June 2012 Petouhoff, Natalie L., PhD: “Adding Social Media To Customer Service Initiatives Can Break Down Barriers To Change” Forrester. 11 February 2010 Petrock, Victoria: “The US Financial Services Industry: Digital Ad Spending Forecast and Key Trends” eMarketer. April 2012 Petrock, Victoria: “Social Media for Industries Assessing Opportunities in Automotive, Travel, Financial Services and Pharmaceuticals” eMarketer. January 2012 Tavilla, Elisa: “Banking Online: Multichannel Engagement Deepens Customer Loyalty” eMarketer. March 2011
**ARTICLES ARE INCLUDED IN SEPARATE ZIP FILE**
How will we measure it? • • •
At the onset, social media is primarily a brand investment and an infrastructure build. We envision a balanced scorecard approach which pulls together various metrics for a 360 degree view of the overall benefit. Some categories include: • • • • • • • • •
Marketing web site metrics (visitors, clickthroughs) Product and Program App Starts/Conversions Community Engagement (fans/followers, conversations) Brand Metrics (amount of comments, exposure) Customer Service (number of problems resolved) Customer Satisfaction (satisfaction with sites) Innovation (number of ideas generated) Organizational Utilization (number of product lines engaged) Cost savings (shift in spending)
More examples of how social media is driving results • A recent Wetpaint/Altimeter Group (former Forrester analysts) study found companies that widely engage in social media surpass their peers in both revenue and profit • 37% of Generation Y heard about the Ford Fiesta via social media BEFORE its launch in the US and currently 25% of Ford’s marketing budget is spent on digital/social media • Dell has already made over $7 million in sales via Twitter • Lenovo has experienced a 20% reduction in activity to their call center since they launched their community website for customers • Blendtec quintupled sales with its “Will it Blend” series on YouTube • Naked Pizza set a one-day sales record using social media: 68% of their sales and 85% of their new customers came via Twitter • Software company Genius.com reports 24% of social media leads convert to sales opportunities (Sources for Statistics: meyersreport.com lenovosocial.com, George Wright, Blendtec, Mashable.com econsultancy.com businessweek.com ) 9
More than ever before, people rely on their social networks for information and recommendations I think we use some of this on the second slide in our section. I moved some of it there now.
Peer recommendations are the most important source of information for purchase decisions Consumer generated ratings and reviews are another very important source In addition, customers are increasingly turning to peers in social outlets to help select banking products Bottom Line: People trust other people more than they trust you • 90% of consumers online trust recommendations from people they know • 70% trust opinions of unknown users
If you had to choose only one source of information to find out about a product what would it be?
Source: Forrester’s NA Technographics; Technology, Media And Marketing Benchmark Survey, Q3 2007
Other sources: Econsultancy, July 2009 ; iModerate Research Technologies and Chadwick Martin Bailey 2010
In fact, today’s “customer journey” is heavily punctuated by social media .This should probably go in the upfront to set the stage, but I’m not sure if this can be distilled down somehow.