Social Analytics How to measure and monetize Social Media

June 2013

Social Analytics
Table of Contents 1. Definition 2. Structure and Market Sizing
Social Media, Social Analytics, Social CRM Social media user segmentation, disrupting trends, Western world vs. China, Social Media market sizing, Facebook growth, Social CRM market sizing, Social Analytics market sizing Six key metrics to measure Social media: Description and examples Eight vendor profiles for Facebook analytics, Twitter analytics, Social media monitoring, Social CRM analytics Application across six industries including outcomes Eight business goals in order to introduce social analytics Perceived benefits and underlying challenges

3. Metrics 4. Key Players

5. Case Studies 6. Introductory Framework 7. Benefits and Challenges

1. CRM has evolved from one-to-one communication to customerfocused collaborative interactions

Timelines of Social CRM
1990 Pre-Web Era

2006 Internet Era

Social Media Era

Non-web channels: Radio, TV and newspaper ads One-way communication to promote products and services

Internet as a global network connects users and enables new forms of interactions Two-way communication with the adoption of web technologies

Social media provide tools and services to create and exchange user-generated content High consumer engagement with rich media and and novel forms of communication

Traditional Analytics

Web Analytics

Social Media Analytics

Customer interaction is one-to-one and on a transactional basis Telephone interview, paperbased questionnaire, faceto-face focus group, letters and service centers

Collection and analysis of internet data allows to optimise web channels and increase sales Log files and embedded scripts (mostly JavaScript) on web pages are the main forms of data collection

Measure and analyze interactions between brands and consumers or businesses across digital channels Use Web 2.0-based platforms such as social networks, photo and video sharing, forums, blogs, etc. as information sources

Sources: University of Twente, CRM Search, Pininterest

2. 28% of US Social Media Users actively participate and share information.

Social Media User Segmentation
Six social media types represent the entire spectrum of social media usage within the United States, according to a 2011 survey by Aimia. The following types describe the main behavioural patterns and their distribution across the Social Media population: 1. Sparks (3%): The most active and deeply engaged users of social media. They use social media as a means of selfexpression in creative and engaging ways. They engage with brands frequently and will serve as enthusiastic ambassadors for their favourites. 2. Mix-n-Minglers (19%): They actively participate on multiple social networking platforms, understand the importance of data privacy and are influential within their networks of friends. High Exposure 5. New Comers (15%) 6. No Shows (41%) Passive Participation 3. Cliquers (6%): Active, single-network users who congregate primarily on Facebook, most likely to be influential women who share photos, status updates and comments within the small network of close friends and family 4. On Lookers (16%): Lurk on several social media networks but post infrequently to control their online information, who primarily keep up on the online lives of others but reluctant to share details about themselves 5. New Comers (15%): Passive users of a single social media network who primarily use social media to enhance offline relationships 6. No Shows (41%): Not logged on to a social network in the last 30 days, most likely a 65-plus male that shows low degrees of trust and has no interest in broadcasting activities or interests

Active Participation 1. Sparks (3%) 3. Cliquers (6%) 2. Mix-nMinglers (19%)

Low Exposure

4. On Lookers (16%)

Sources: Aimia Inc

2. By the end of 2016, 3 out of 10 people worldwide will actively engage in Social Media replacing traditional online communication.
Social Media Market Sizing: Number of Users
Number of Internet and Social Media Users Worldwide from 2007 to 2016 Number of Users, Forecast billion 3 CAGR 9.08% 2.5 2 1.5 1 0.5 0 CAGR 20.8% Total Internet Social Media
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Time Spent on Social Networking and other Internet activities from 2007 to 2011 Hours per Month Retail 35 Search/ 30 Navigation 4.9 25 Communication 6.5 20 4 Social Media 15 2 10 18 Other Content 13.5 5 0 2007 2008 2009 2010 2011

In 2011, Social Media sites reached 82% of the worlds online population - that is 1.2 billion users worldwide The number of worldwide Social Media users will rise to 2.3 billion by the end of 2016, nearly 32% of the total population The adoption of Social Media is likely to grow proportionately at a CAGR of 20.8% from 2007 to 2016 Sources: Areppim, Comscore, The Radicati Group

The time people spent on Social Networking tripled in the last five years from 6% in 2007 to nearly 19% in 2011 Time spent on social networking sites gained ground by taking share predominantly from online communications, as another primary communication channel for users

2. Social analytics and CRM may reach to a sizable of 30% share of the total CRM market
Market Size of Social CRM
Worldwide CRM Software Revenue Forecasts 20 15 Revenue in USD, 10 billions 5 CAGR 10% 5.7 4.2 3.1 6 4.5 3.5 6.5 5 4 7.2 5.6 4.2 8 90% 70% CRM Applications: Analytics grows in Application Mix 1% 9% 10% 20%

5 3.8 2.5

5.5 3.7 2.8

5.8 4.7

0 2009 2010 2011 2012 2013 2014 2015 2016 Sales Customer Service and Support Marketing Automation CRM Software Growth

2000

2013 Traditional CRM Social CRM Analytics

Social CRM and Analytics

Worldwide CRM software sales enjoy a steady rise and will reach $18.5 billion in 2016, up from $9.5 billion in 2009. at a CAGR of approximately 10% Sales and Marketing Automation represent the key areas of growth as technological advances introduce game-changing effects. Sources: Gartner

Social CRM technologies are expected to grow a market share of 10% in 2013, up from 4% in 2010. Spending on analytics and social CRM is expected to rise, up to a point where social CRM alone accounts for 20% of the total CRM market

3. Customer experience perfection leads to multiple additional benefits

Six Metrics: Customer Experience (5/6)
Metric

Purpose Immediate impacts on customer experiences, which lead to multiple additional benefits such as brand health, cost savings and increased revenue Insights: How people talk about a brand and product Momentum of a topic or issue Sentiment and emotion drivers Blind spots identification and satisfaction scores

Action Service improvement by setting service levels and indentifying issues Align content and service focus to top issues in social channels Directly engage with and address both positive and negative service issues Management of issues and crisis intelligently

Example Dell evolves a set of service levels for acknowledgement of issues online. This ensures accountability across the organization for how customer issues are handled.

Customer Experience

[Visible Technologies] Doughnuts for how people feel Sources: Altimeter Group, Social Media Explorer

[Spiral16] Bar Charts for Peoples Attitude

4. Social media monitoring tracked all sorts of social media to extend social reach and maximize efficiencies mainly for large enterprises
Key Players: Social Media Monitoring (5/8)
Radian6

Integration: Software platform for webbased data listening analytics Tracked Media: Cross-platform Functions: Comprehensive reporting, text analytics, engagement workflow Key Customers: Volvo, Cisco, Wiley Publishing, Pizza Hut, Frontier Airlines

Features Social brand monitors and measures buzz around the brand, competitors and industry; analyzes trends and evaluate reactions Expand social reach by building connections between employees and customers Create customer experiences to acquire and qualify social leads through purchase signals and point-of-need conversations Discover and drive sales opportunities through social channels Sources: Salesforce

5. Telcos use social media as a new channel to take care of their customers
Case Study: Social Analytics in Telecom (1/6)

Brand Name

Description Situation: TELUS saw an increased number of customers using new channels to obtain customer service, voice opinions and connect with other customers to share ideas and solutions Action: TELUS trained a group of care agents using Salesforce Marketing Cloud to monitor social media and launch @TELUSsupport on Twitter to monitor conversations that matter to them and connect with customers who have questions or concerns

Results @TELUSsupport became the first account in Canada verified by Twitter solely for customer support TELUS achieved a huge milestone with 30+ specially trained agents and 20,000+ followers to resolve 13,000+ client care issues and sent 32,000+ tweets

TELUS (Canada)

Sources: Salesforce

The complete market overview contains a 41 page Powerpoint presentation and a comprehensive Excel research sheet

Social Analytics How to measure and monetize Social Media

June 2013

Presentation

Research sheet

41 page Powerpoint/ PDF presentation Social Media market segmentations and trends 6 Social Core Metrics, 8 Key Vendor profiles, 6 Case studies Fully reusable Source URLs are embedded on each slide Embedded charts & figures are easily accessible

Excel sheets for market segmentation, sizing & growth figures, 42 Vendor Profiles, 26 Case studies across all major industries Links URLs to 100+ sources: Whitepapers, Studies, Presentations, News releases, Blogs, Twitter, Academic papers

Buy the full market overview with flexible license models for individuals, small teams and corporate customers

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Social Analytics

Table of Contents

1. Social Media nourish communities with user-generated content that drives stickiness and communication

Definitions and Categories
Social Media, Social Analytics, Social CRM Social media user segmentation, disrupting trends, Western world vs. China, Social Media market sizing, Facebook growth, Social CRM market sizing, Social Analytics market sizing Six key metrics to measure Social media: Description and examples Eight vendor profiles for Facebook analytics, Twitter analytics, Social media monitoring, Social CRM analytics Application across six industries including outcomes Eight business goals in order to introduce social analytics Perceived benefits and underlying challenges Social Media are Internet-based applications that allow the creation and exchange of user-generated content. It can be defined as a supply chain indicating the low barriers to participation, where users can be both media producer and media consumer.
Creation

!

Social Analytics How to measure and monetize Social Media

June 2013

1. Definition 2. Structure and Market Sizing

Aggregation

! ! !

Distribution

! !

Consumption

!

3. Metrics 4. Key Players

Media (Text, Music, Photos, Movies) Relations Links

Video/ music/ photo sharing Wiki, Blogs Social Networks

Internet Mobile platforms

Classic Web Browser Mobile Web & Applications

Six types of Social Media

!

Social Networks connect people of similar interest and background. Personal profiles, groups and messaging allow users to interact and establish structures. Social News post news items or links to 3rd party articles. Voting mechanisms on items determine the prominence of items. Bookmarking Sites: Users save, organize and manage links to any web resource. Tagging makes links easy to search and share Media Sharing: Users upload and share media such as pictures and video with additional social features like profiles and comments etc Microblogging focuses on short news or updates that are pushed out to subscribers Blog Comments and Forums facilitate conversations and contributions from readers
Sources: University of Applied Sciences Utrecht, Out: think Group

5. Case Studies 6. Introductory Framework 7. Benefits and Challenges

! !

1. Social media triggers a new form of business analysis insights to manage customer relationship

Social Analytics: From Social Data to Business Strategy Insights
!

1. CRM has evolved from one-to-one communication to customerfocused collaborative interactions

Timelines of Social CRM
1990 2006
Internet Era
!

1. Social CRM extends traditional CRM. It requires both proactive and reactive approaches

Social Customer Relationship Management (Social CRM)
CRM: A strategic approach to manage customer relationships to create business value

Decision making process with Social Analytics( 1. Extract Data from Social Media
2. Segment Data
3. Mix Internal and External Data

Definition and Purpose of Social Analytics

! !

Social Analytics measure the impact of Social Media on business Identify and understand relevant conversations in online communities Influence business performance and drive conversations with experts, competitors, prospects, customers, social marketing teams.

Pre-Web Era

!

Social Media Era

!

Non-web channels: Radio, TV and newspaper ads One-way communication to promote products and services

Improve Marketing and Sales by measuring and influencing:

!

Internet as a global network connects users and enables new forms of interactions Two-way communication with the adoption of web technologies

Brand Awareness and Reputation Share of Voice = # of brand conversations / # of industry conversations

Social media provide tools and services to create and exchange user-generated content High consumer engagement with rich media and and novel forms of communication

Social Media: Internetbased applications, tools and services that facilitate two-way interactions

Social CRM: A business strategy to manage customer relationships through social media with the goal of improving business value

Social CRM is an extension for traditional CRM processes and tools. There are real costs involved from the enterprise in generating required capabilities and the return on investment should be clearly understood and measured Social CRM involves both proactive marketing, sales, service (lead generation and social sales, social marketing and promotions, brand and product awareness, loyalty and VIP customer treatment) and reactive preemption and mitigation (market and product insights, social support, complaints management, public relationship crisis reaction) from monitoring and analyzing social media data The key to a successful social CRM effort lies in extending traditional CRM strategies and processes to a companys entire extended social network a dynamic, constantly evolving organism that encompasses customers and suppliers

Social Analytics

Marketing Program Effectiveness Social Reach = # of followers, Engagement Level

!

Goals and Sample Metrics of Social Analytics

Lead Generation Effectiveness Lead Generation Effectiveness = # of new leads / # of total leads

4. Identify Business Metrics

!

Traditional Analytics
Customer interaction is one-to-one and on a transactional basis Telephone interview, paperbased questionnaire, faceto-face focus group, letters and service centers
!

Web Analytics Collection and analysis of internet data allows to optimise web channels and increase sales Log files and embedded scripts (mostly JavaScript) on web pages are the main forms of data collection
!

Social Media Analytics Measure and analyze interactions between brands and consumers or businesses across digital channels Use Web 2.0-based platforms such as social networks, photo and video sharing, forums, blogs, etc. as information sources

Increased Sales and Shorter Sales Cycles Effectiveness = # of sales from social channels / # total sales 5. Create New Business Insights

Customer Satisfaction and Reduced Churn Complaint Visibility and Feedback, Sentimental Analysis 6. Inform Future Business Strategies

Sources: Awareness Networks

Sources: University of Twente, CRM Search, Pininterest

Sources: University of Twente, Booz

2. 28% of US Social Media Users actively participate and share information.

Social Media User Segmentation
Six social media types represent the entire spectrum of social media usage within the United States, according to a 2011 survey by Aimia. The following types describe the main behavioural patterns and their distribution across the Social Media population: 1. Sparks (3%): The most active and deeply engaged users of social media. They use social media as a means of selfexpression in creative and engaging ways. They engage with brands frequently and will serve as enthusiastic ambassadors for their favourites. 2. Mix-n-Minglers (19%): They actively participate on multiple social networking platforms, understand the importance of data privacy and are influential within their networks of friends. High Exposure
5. New Comers (15%) 6. No Shows (41%) Passive Participation
3. Cliquers (6%): Active, single-network users who congregate primarily on Facebook, most likely to be influential women who share photos, status updates and comments within the small network of close friends and family 4. On Lookers (16%): Lurk on several social media networks but post infrequently to control their online information, who primarily keep up on the online lives of others but reluctant to share details about themselves 5. New Comers (15%): Passive users of a single social media network who primarily use social media to enhance offline relationships 6. No Shows (41%): Not logged on to a social network in the last 30 days, most likely a 65-plus male that shows low degrees of trust and has no interest in broadcasting activities or interests

1. Microblogging is a disruptive force in Social Media, affecting society and commerce. Social Media usage is accelerated by mobile devices.

Disrupting Trends (1/2)
Microblogging as a way to communicate through short-form content has emerged as a disruptive new force in social media. Twitter saw the eruption of its audience in the spring of 2009 and showed an impressive growth rate of 59% over 2012. In 2013, Twitter reaches 1 in10 Internet users worldwide. Taking Arab Spring activists as an example, Twitter itself offers a platform to connect and share information - effectively bypassing government restrictions. Sina Weibo is the leading Chinese microblogging site that ranks as the 10th largest social network globally and enjoyed an increase of 181% in 2012. Weibo is considered a mainstream media for people to express and amplify their opinions such as sensitive political issues, environmental problems and daily emergencies. Tumblr (acquired by Yahoo in May 2013) is ranked as the 12th largest social network globally and exhibits a strong annual growth rate of 172% in 2012. Specifically in Southeast Asia, Tumblr has become one of the top blogshops for mass participation in online retailing as a unique way to do socially-oriented approach to e-commerce.

1. Social networks are no longer for kids. The fastest growing user segment is people over at the age 55 or older.

Disrupting Trends (2/2)
Everyone is using social networks, not just young people. In fact, users 55 and older represent the fastest growing segment in social networking usage, especially in North and Latin American where the penetration rate reach more than 90%.
Social Networking Penetration Among Worldwide Demographic Groups 90% 85% 80% 75% 70% 65% 60% Age 15-24 Age 25-34 Age 35-44 Age 45-54 Age 55+ Males Females Social Networking Engagement (Average Hours Per Visitor Per Week) Age 55+ Age 45-54 Age 35-44 2.7 4.9 3.9 3.9 Social Networking Penetration Among Users Age 55+ Worldwide 6.4 Asia Pacific Males Females 7.5 8.6 Europe Latin America North America 59.8% 86.0% 93.0% 94.7% 79.9% 79% 75% 72% +5.0%
84% +8.0%
83% +8.4%
80% 75% 71% +8.4%
83% +9.4%
80% 72% +9.3%
81% +5.3%
84% 79% Jul-10 Oct-11

Active Participation
1. Sparks (3%) 3. Cliquers (6%) 2. Mix-nMinglers (19%)

Low Exposure

4. On Lookers (16%)

Mobile accounts for 40% of time spent on social media. -- BI Intelligence Mobile devices are fueling the social as they allow to connect on-the-go and facilitate real-time interaction amongst users. Most mobile social networkers using their mobile phones to post a status update and read posts.

U.S. Share of time spent on Social Media by device (Nov 2012) Instagram Twitter Facebook Pinterest LinkedIn Tumblr 99% 70% 50% 48% 19% 13% 0% 20% 40% Mobile 60% PC 80% 100%

Age 25-34 Age 15-24 Sources: comScore

5.6 4.9 5.8

Sources: Aimia Inc

Sources: BBC, comScore

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2. The Western world and China have developed two complementary ecosystems of influential Social Media networks

Social Media: Western world vs. China
TOP 5 Popular Social Networking Sites Worldwide (May 2013)
1,110M users 40% Male 60% Female
1. Facebook, a social network to share photos, interests, check-ins and posts with friends. 2. Twitter, a microblogging service to share posts and stay updated on news and comments 3. LinkedIn, a social network used for finding jobs, people and business opportunities 4. Google+, a social network that integrates Facebook and Twitter- like features 5. Pinterest, a social photo sharing site to keep an online pinboard with photo collections

2. By the end of 2016, 3 out of 10 people worldwide will actively engage in Social Media replacing traditional online communication.

Social Media Market Sizing: Number of Users
Number of Users, billion 3 2.5 2 1.5 1 0.5 0 CAGR 20.8%
Total Internet Social Media
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

2. Social Media is about to grow into a $34 billion industry by 2016. Advertising revenues will contribute more than 50%.

Social Media Market Sizing: Financials
Growth and Revenue drivers Global Social Media Revenue by segments 34 Advertising Social Gaming Subscriptions 2011 Year
US
2011
2012
5.26
6.97
2012 Social Media Revenues ($US, billions)
Europe
2.88
3.97
other
3.66
5.96

! !

Number of Internet and Social Media Users Worldwide from 2007 to 2016 Forecast CAGR 9.08%

Time Spent on Social Networking and other Internet activities from 2007 to 2011 Hours per Month 35 30 25 20 15 10 5 4 2 13.5 billion, USD 4.9 6.5 18

Total Global Social Media Revenue CAGR 23.5%
16.9 Forecast

5.7 3.1 0.3 0.2 1.6 0.0 2.0 2.8 4.0 6.0 2012 8.0 6.2

8.8

555M users 43% Male 57% Female
225M users 55% Male 45% Female LinkedIn

Search/ Navigation

Retail

11.8

343M users 63% Male 37% Female Twitter
Facebook
Google+

Communication Social Media Other Content

48.7M users 32% Male 68% Female Pinterest

2016 Others

2011 10.0

TOP 5 Popular Social Networking Sites in China (March 2013)
1. QZone, a social networking website for blogging, photo & media sharing and more 2. Tencent Weibo, a Chinese microblogging site 3. Sina Weibo, a Chinese microblogging site with hybrid functionality of Twitter and Facebook 4. WeChat, mobile messaging app 5. RenRen, Facebook of China

0 2007

billion, USD Advertising is the biggest contributor, accounting for 52.1% of the total revenue. In 2012, social media ad revenue is $8.8 billion, a YOY growth rate of 60%. Social Gaming is the other major source of revenue. By selling virtual goods, it grossed $6.2 billion in 2012 or 36.7% of total Social Media revenues. Subscriptions from monthly or annual service access fees generated $278 million in 2013 Others include traffic diversion to affiliated sites and premium services fee. With $1.6 billion, others accounted for 9.6% of total revenue in 2012

2008

2009

2010

2011

712M users 507M users 300M users WeChat
Tencent Weibo
QZone

In 2011, Social Media sites reached 82% of the worlds online population - that is 1.2 billion users worldwide The number of worldwide Social Media users will rise to 2.3 billion by the end of 2016, nearly 32% of the total population The adoption of Social Media is likely to grow proportionately at a CAGR of 20.8% from 2007 to 2016 Sources: Areppim, Comscore, The Radicati Group

500M users

The time people spent on Social Networking tripled in the last five years from 6% in 2007 to nearly 19% in 2011 Time spent on social networking sites gained ground by taking share predominantly from online communications, as another primary communication channel for users

Sina Weibo

172M users RenRen

Social Media Market growth ! Gartner forecasts that global social media revenues will increase by 43% from $11.8 billion in 2011 to $16.9 billion in 2012. ! By 2016, total social media revenues worldwide is likely to reach $34 billion. ! In terms of market share, the rest of the world is catching up while Europe and the US are growing at comparable pace Sources: Gartner, Mashable, Brandastic

Sources: TweetSmarter, TechInAsia

2. Facebook overtook U.S as the third largest country in 2010 and may be the largest country on earth by 2016

Focus on Facebook
Facebook Users vs. Number of Population of China/ India people, billion 6%
YoY
1.6 China
1.4 1.2 India
1 0.8 0.6 0.4 0.2 0
07 08 20 20 20 20

2. Social analytics and CRM may reach to a sizable of 30% share of the total CRM market

Market Size of Social CRM
Worldwide CRM Software Revenue Forecasts 20 CRM Applications: Analytics grows in Application Mix 1% 9% CAGR 10%
5.7 6 4.5 6.5 5 7.2 5.6 8 90% 70% 10% 20%

2. The total revenue of social analytics is likely to reach $2 billion by the end of 2013, doubled from 2011

Market Size of Social Analytics
Estimated Global Market Size of Social Analytics

10%
YoY

USD, billion 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 3.2

Facebook and Social Network Ad Revenue 11.9 10.2 7.7 5.2 5.1 6.7 7.6

15 Revenue in USD, 10 billions 5

Social Analytics

$1.1 billion

2 1.5 1 0.5 0 0.4

$1.6 billion

$2.2 billion

0.9 (54% of Text Analytics)
1.3 (20% of total CRM)

5.5

=

Social Media Analytics and Monitoring

5.8

09 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19

2011 2012 2013 2014 Facebook Social Network Social Advertising Revenue
!

4.2 3.7 3.8 4.7 4.2 4 3.5 3.1 2.8 2.5 0 2009 2010 2011 2012 2013 2014 2015 2016 Sales Customer Service and Support Marketing Automation CRM Software Growth
!

0.6

2000

2013 Traditional CRM Social CRM Analytics

+

Social CRM

1.0 0.7

Facebook key growth figures

!

1.11 billion users in May 2013, up from 58 million users in Dec 2007 42% of all Internet users worldwide (2.4bn) are also Facebook users Facebook as a country may become larger than China & India by 2016/ 2018 (at 10%/ 6% YoY growth) Facebook is still blocked in China. If this changes in the future, the worlds largest online market will further stimulate its penetration rate. Sources: Pingdom, eMarketer, World Bank

Social network advertising includes paid advertising on social site, applications and games As social advertising grew ~50% in 2012, it is expected to become a $11.87 billion worldwide market by 2014. Facebook owns roughly two thirds of the total social network advertisement market Facebook may increase its market share and achieve $7.64 billion in ad revenues by 2014

Revenues in USD, billions

!

2011

2012

2013

Social CRM and Analytics

!

Worldwide CRM software sales enjoy a steady rise and will reach $18.5 billion in 2016, up from $9.5 billion in 2009. at a CAGR of approximately 10% Sales and Marketing Automation represent the key areas of growth as technological advances introduce game-changing effects. Sources: Gartner

Social CRM technologies are expected to grow a market share of 10% in 2013, up from 4% in 2010. Spending on analytics and social CRM is expected to rise, up to a point where social CRM alone accounts for 20% of the total CRM market

Uniqloud estimates the total market size for Social Analytics at $2.2 billion. Its main components are Social CRM and Social Media Analytics and Monitoring. In Social Analytics and Monitoring, the relative market share has expanded since 2011 from 35% to 54% in 2013. Social CRM also enjoys considerable growth compared to the total CRM market, contributing 20% of the total CRM revenue. Sources: Forbes, Information Week, Report Linker

3. Social media measurement compass specifies the direction of the business journey to realize the final objective

Six Metrics
Brand building today is so different than what it was 50 years ago. 50 years ago you could get a few marketing people in a small room and decide, this is what our brand will be, and then spend a lot of money on TV advertising and that was your brand. Today, whether it is an employee or a customer, if they have a good or bad experience with your company they can blog about it or Twitter about it and it can be seen by millions of people. Its what they say now that is your brand. - Tony Hsieh, CEO and Founder of Zappos

3. Brand health examination can discover opportunities and mitigate crisis

Six Metrics: Brand Health (1/6)
Metric

!

3. Market optimization facilitates learning and improvement process

Six Metrics: Market Optimization (2/6)

Purpose
Add richness to market research efforts, prevent or mitigate crisis and uncover threats and opportunities Insights ! How people feel about the brand ! Sentiment variation by channels ! Advocate or detract influencers ! Competitive position in industry ! Emerging issues

!

Action
Conduct real-time market research and scenario planning Use as a support for business decisions Identify and develop relationship with advocates and detractors

Example
American Express tracks social media metrics as a part of the overall brand health data, viewing sentiment metrics as a complement part to NPS (Net Promoter Score).

Metric

! !

Purpose
Facilitate learning, accountability and continuous improvement Insights: ! Compare with traditional advertising campaigns ! How many people viewed, shared and liked the content ! Channel and timing effectiveness

! ! !

Action
Focus on highest potential markets or groups Develop future campaigns based on insights Plan social channel investment, timing to engage and strategies

Example
American Express partnered with YouTube and VEVO to live-stream a concert and incorporated with Google chat to better understand how people thought about the concert in order to influence purchase intent and brand perception.

Brand Health

! !

Market Optimization

Innovation Collaborating with customers to drive future products and services

Brand Health A measure of attitudes, conversation and behavior toward your brand

Customer Experiences Improve your relationship with customers and their experience with your brand

Business Goal

Market Optimization Improve the effectiveness of marketing programs

[StatsMix]
Data Statistics of how many people clicked Like, viewed and shared the content across a certain timeframe
[Xcelsius]
Bar Charts for Brand Awareness
Line Charts for Brand Commitment
Radar Charts for Brand Attributes
Sources: Altimeter Group, Capture the Conversation

Operational Efficiency Where and how your company reduces expenses
Sources: Altimeter Group

Revenue Generation Where and how your company generates revenue

Sources: Altimeter Group, Dashboard Spy

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3. Revenue generation is directly linked to conversion rate and social referral

Six Metrics: Revenue Generation (3/6)
Metric

!

3. Operational efficiency can be greatly improved through media monitoring

Six Metrics: Operational Efficiency (4/6)

3. Customer experience perfection leads to multiple additional benefits

Six Metrics: Customer Experience (5/6)

Purpose
Have demonstrable impact on lead generation and conversion in a relationship manner Insights: ! Whether social experience influences purchase behaviour ! Impact on search results ! Manage customer loyalty
! ! !

Action
Focus on highest-impact products and services Develop programs for highest-value customers Make investment decisions based on social channel performance

Example
PETCO takes a holistic approach to social media. Its Facebook and Twitter pages have little product information, but more conversation with customers, which drives conversion sales.

Metric

!

Purpose
Deliver both hard and soft cost containment benefits to organizations over time through public brand advocacy and one-toone interactions Insights: ! Potential cost saving from contained calls ! Identification of advocates and super fans ! Best answered services issues
!

Action
Identify efficiencies by aligning web content to customer questions and issues and moving into knowledge based Extend advocate reach by developing advocacy network to accelerate the impact

Example
Best Buy created a video in Spanish to demonstrate the ordering process on the landing page of its Spanishlanguage website to instruct their customers, which effectively decreased calls on this topic to a toll-free number by half.

Metric

!

Purpose
Immediate impacts on customer experiences, which lead to multiple additional benefits such as brand health, cost savings and increased revenue Insights: ! How people talk about a brand and product ! Momentum of a topic or issue ! Sentiment and emotion drivers ! Blind spots identification and satisfaction scores
!

Action
Service improvement by setting service levels and indentifying issues Align content and service focus to top issues in social channels Directly engage with and address both positive and negative service issues Management of issues and crisis intelligently

Example
Dell evolves a set of service levels for acknowledgement of issues online. This ensures accountability across the organization for how customer issues are handled.

Revenue Generation

Operational Efficiency

Customer Experience

[Google Analytics]
Pie Charts for Social Conversion

Line Charts for Social Referral

[Crowdbooster]
Bubble Charts for followers activeness
Sources: Altimeter Group, Cirruslabs

[TweetStats]

Bubble Charts for Tweeting Efficiency

[Visible Technologies]
Doughnuts for how people feel
Sources: Altimeter Group, Social Media Explorer

[Spiral16]
Bar Charts for Peoples Attitude

Sources: Altimeter Group, Marketo

3. Innovation process is motivated and improved by customers feedback

Six Metrics: Innovation (6/6)
Metric

!

4. Twitter analytics targets potential customers to improve the level of engagement and monitor competitors behavior

Key Players: Twitter Analytics (1/8) Social Bro
!

4. Twitter analytics mainly target potential customers to improve the level of engagement and monitor competitors behavior

Key Players: Twitter Analytics (2/8) Topsy
!

Purpose
Listen and respond to product feedback and incorporate product innovation Insights: ! Products and services opportunities and threats ! Customer requests in context ! Perspective on the popularity of ideas ! Idea impacts over time
!

Action
Add products and service innovation from customer requirements to roadmaps Trend spotting and evaluation against corporate criteria Monitor competitors innovation and community response

Example
Starbucks has pioneered the idea of crowdsourced innovation on sites such as MyStarbucksIdeas.com. This site serves as a purpose-built innovation platform.

Functions: Twitter dashboard, Comprehensive reporting, Text analysis Tracked Media: Twitter only Integration: Add-on for Chrome or a desktop application (the most comprehensive tool for analyzing Twitter data) Key Customers: MasterCard, HP, Walmart, Cisco, Google, Mercedes Benz

Functions: Twitter dashboard, Comprehensive reporting, Text analysis and web URL analysis Tracked Media: Twitter only Integration: Web-based data enrichment system with real-time count and metrics

Innovation

! !

! !

[Corasworks]

Pie Charts for Product Ideas

Key Features Targeting potential customers and influencers using filter and search tools, analyzing competitors, monitoring keywords ! Helps to find optimal times and content to engage with contacts ! Analytics dashboard shows basic statistics about what is happening in the community ! Manages presence and interactions with contacts
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Key Customers: Yahoo, The New York Times, NFL, Nielson, IDG
Key Features ! Comprehensive counts on the numbers of any term, phrase, username, link or hashtag ! Relevance ranking surfaces the most important content on the social web ! Geo-Inference to landmarks or events ! Sentiment analysis is tailored to information and abbreviated language ! Related terms discovery helps to discover new terms related to own topic
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Sources: Altimeter Group, Corasworks

Sources: Social Bro

Sources: Topsy,

4. Facebook analytics focuses on in-depth analysis to determine the next move through trend predictions

Key Players: Facebook Analytics (3/8)
Simply Measured
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4. Facebook analytics focuses on in-depth analysis to determine the next move through trend predictions

Key Players: Facebook Analytics (4/8)
SEOmoz
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4. Social media monitoring tracked all sorts of social media to extend social reach and maximize efficiencies mainly for large enterprises

Key Players: Social Media Monitoring (5/8)
Radian6
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Integration: Web-based analytics over a dozen data sources Tracked Media: Facebook, Twitter, Instagram, Google+, YouTube, Pinterest, LinkedIn Functions: Analytics insights for Facebook with excel-based reports and web views

Integration: Open site explorer or web browser toolbar to access unparalleled link data Tracked Media: Facebook Functions: Offer comprehensive web crawl and data-services API with valuable link and site intelligence data Customers: Over 15,000 PRO members and 250,000 free members

Integration: Software platform for webbased data listening analytics Tracked Media: Cross-platform Functions: Comprehensive reporting, text analytics, engagement workflow Key Customers: Volvo, Cisco, Wiley Publishing, Pizza Hut, Frontier Airlines

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Key Customers: American Express, Microsoft, Samsung, IPG, Aol

Features ! Cross-channel profile analysis from one central location ! Competitive analysis and benchmarking performance to report with context ! In-depth analysis and insights to inform the next move by monitoring and research

Features ! Weekly crawls and rank tracking to notify about issues that might impact your performance and monitor rankings for all keywords ! On-Page recommendations gives instructions on what to fix in order to see immediate improvement results ! Competitive analysis monitors competitors rankings and link metrics so as to gain an edge on search results

Features ! Social brand monitors and measures buzz around the brand, competitors and industry; analyzes trends and evaluate reactions ! Expand social reach by building connections between employees and customers ! Create customer experiences to acquire and qualify social leads through purchase signals and point-of-need conversations ! Discover and drive sales opportunities through social channels Sources: Salesforce

Sources: Simply Measured

Sources: SEOmoz

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4. Social media monitoring tracked all sorts of social media to extend social reach and maximize efficiencies mainly for large enterprises

Key Players: Social CRM (6/8)
Spredfast
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4. Social CRM maintains the relationship between customers and companies and explore targeted potential markets

Key Players: Social CRM (7/8)
Bazaar Voice
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4. Social CRM maintains the relationship between customers and companies and explore targeted potential markets

Key Players: Social CRM (8/8)

Integration: Social media management software system as a platform Tracked Media: Cross-Platform Functions: Comprehensive reporting, text analytics, engagement workflow, search and translate content Key Customers: Weight Watchers, Warner Bros, WCG, T.Rowe Price Group
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Integration: Plug into existing systems and workflow, website plugins and application software Tracked Media: Cross-Platform Functions: Comprehensive reporting, text analytics, engagement workflow, search and translation Key Customers: Lenovo, HP, Lexus, Toshiba, The North Face, P&G, Argos

Visible Technologies
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Integration: Software platform to do web-based data analytics Tracked Media: Cross-Plattform Functions: Comprehensive reporting, text analytics, engagement workflow, search and translation Key Customers: Xerox, Microsoft, FedEx, American Express

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Features ! Scalable social media management systems integrates engagement and reporting across all major social platforms ! Multichannel publishing allows to manage day-to-day social engagement ! Shared enterprise content library for content and audit trails ! Integrated analytics and reporting from brand to message level, integrating common analytics tools, customer care and content effectiveness analysis

Features ! Conversations are the core of Bazaarvoice. Collect and leverage ratings /reviews, generate sales etc. ! Connections with retail sites to drive sales and loyalty and bring credible brand voices to shoppers ! Intelligence system analyses conversations and yields a visual dashboard ! Media networks target shoppers on retail sites with relevant brand media and advertising Sources: Bazaar Voice
Sources: Visible Technologies

Features ! Establish the online-offline relationship to lift the potential value of the market and social data integration to ensure an effective outcome ! For enterprises: corporate brand monitoring, product analysis, tracking and performance evaluation ! For agencies: trending data to clients, internal research support

Sources:

5. Case Studies: Social analytics are not constrained within niche markets but span across multiple industries

Case Studies: Overview
If only HP knew what HP knows, we would be three times more productive. - Former Hewlett-Packard CEO Lew Platt

5. Telcos use social media as a new channel to take care of their customers

Case Study: Social Analytics in Telecom (1/6)

5. Enterprises take advantage of social media to introduce and broadcast new products and services

Case Study: Social Analytics in Enterprise (2/6)

Brand Name
( (
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Description
Situation: TELUS saw an increased number of customers using new channels to obtain customer service, voice opinions and connect with other customers to share ideas and solutions Action: TELUS trained a group of care agents using Salesforce Marketing Cloud to monitor social media and launch @TELUSsupport on Twitter to monitor conversations that matter to them and connect with customers who have questions or concerns

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Results
@TELUSsupport became the first account in Canada verified by Twitter solely for customer support TELUS achieved a huge milestone with 30+ specially trained agents and 20,000+ followers to resolve 13,000+ client care issues and sent 32,000+ tweets
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Brand Name

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Description
Situation: To help drive adoption of Windows 7, Microsoft needed a solution to broadcast the impact and focus on the most influential voices and content Action: Microsoft turned to Visible Intelligence in order to identify, filter and score a targeted list of highly relevant blog and forum posts, addressing the needs to find and engage the most influential voices, respond rapidly and effectively to questions and collect highly targeted content within the community

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Results
Scale community engagements from dozens to hundreds each week Reduce the time needed to indentify and respond to highly relevant posts from hours to minutes Identify 250 influential subject matter experts in 29 countries

Industries
Telecom
Enterprise
Health Care

Case Studies
TELUS (Canada)

( TELUS (Canada)
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( Microsoft (USA)
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Microsoft (USA) University of Texas M.D. Anderson Cancer Center (USA) Yahoo! Music (USA) Best Buy (USA)

Social Analytics

Entertainment

Retail

Financial Sector

American Automobile Association (USA)

Sources:

Sources: Salesforce

Sources: Visible Technologies, Iwick

5. Social analytics are used by healthcare institutions to drive ROI

Case Study: Social Analytics in Healthcare (3/6)

5. The entertainment industry uses social media to react fast to customer feedback and fix product issues

Case Study: Social Analytics in Entertainment (4/6)

5. Retailers use social media to build 1-on-1 relationships with customers

Case Study: Social Analytics in Retail (5/6)
Brand Name
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Brand Name
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Description
Situation: One of the largest cancer hospitals in USA treats over 90,000 patients every years Action: Started using social media in 2007, its initial focus were Twitter, Facebook and blogosphere to monitor both the brand and cancer-related topics. Turned to Alterian SM2 in order to set up a structured monitoring process and measuring the benefit of campaigns

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Results
Sufficient visibility into message boards allows to identify which ones should be watched or joined Link ROI to social media efforts: the amount of registered physician in turn increases the number of patients referred to the hospital Social activity was responsible for 9.5% increase in patient referrals in a three month period ( (

Brand Name

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Description
Situation: Yahoo! Music is one of Yahoos content-driven business units and provides subscription-based premium and software product releases Action: Yahoo! Music began working with Overton to collect and analyse customer feedback. Goal was to improve overall products and services by uncovering hidden themes and sentiment among online conversations

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Results
Given access to a multi-channel, multi-dimensional and multifaceted view of customer experiences Early warning system allowed to identify a critical product issue through analysis of customer comments and fix bugs from software in near real time

Description
Situation: Best Buy was an American multinational consumer electronics corporation offering both online and in-store services Action: Worked with Barn Raisers to build companys reputation and benefit customer experiences with social media. They examined comments from both Twitter and websites and responded quickly to requirements

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Results
Employee communities grew to 2,200 employees within 3 months and responded to over 13,000 customers @twelpforce counts over 29,000 followers, the number of questions averages 100-125 per day and is considered a key value-add by customers

University of Texas M.D. Anderson Cancer Center (USA)

Yahoo! Music (USA)

Best Buy (USA)

Sources: Alterian

Sources: CMS Wire

Sources: Barn Raisers

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5. Social analytics help financial institutions with finding potential customer and monitoring issues

Case Study: Social Analytics in Financial Sectors (6/6)
Brand Name
( ( American Automobile Association (USA)
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6. What, why, when and how can social analytics be introduced in a targeted, intelligent and effective manner

Proposed Framework: 8 Business Goals to apply Social Analytics
GOALS
WHY

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7. 79% of enterprises use social media, mostly in order to create awareness and to drive more traffic to their website

Impact survey about social media benefits

HOW

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Description
Situation: AAA is a non-profit insurance company providing emergency roadside service, maps and other travel services. AAA wanted to learn about customer issues via social media and be as responsive as possible to avoid public relations disasters Action: Using Radian6s listening platform, AAA began monitoring what is being said about brand, industry and competitors online

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Results
An average of about 8,500 AAA mentions per month using social media Daily alerts for certain keywords allows the company to see what people were saying and devise appropriate response AAA responds to 100 to 200 of the total mentions generated

Gauge the Brand Health
Flag Service Opportunities

Complement existing brand metrics (NPS) Be aware and responsive to issues
Find customers complaints on social media and catch emergence issues Pay attention to responsiveness Respond quickly to the right issue Preserve and improve brands reputation in a crisis Do the sales pitch, connection or outreach at the point of need Find chances without sales pressure Uncover market insights Gain competitive intelligence from new dimensions (social media) Supply voluntary feedback and product reviews without cost of focus groups Figure out how to satisfy customers Listen to the level above and understand the share of conversation Learn about emerging trends and issues Foster strong connections with advocates Know detractors as well

Search for terms related to business Develop a stack of keywords and phrases
Determine who is the customer Crosscheck with CRM data Observe feedback and earn trust Early warning system before issue erupts Adjust priorities Create awareness and fix unsolved issues Think about the wording used in inquiries Monitor recommendation keywords Collect and reflect Save marketing efforts Enhance products Keep customer interactions Monitor keywords implying room for improvement Establish comments management
Listen what the larger community is saying about your company Identify and locate conversations that arent about your company
Listen to conversations along the sales funnel and rank a list

Conventional marketing wisdom long held that a dissatisfied customer tells ten people. But!in the new age of social media, he or she has the tools to tell ten million. - Paul Gillin, author of The New Influencers

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Top 10 perceived benefits of Social Media engagement
According to an HBR survey, 79% of businesses are using social media channels. Respondents mentioned the following as key benefits of social media (% reflects the # of mentions): 50% Increased awareness of the organization 30% Increased traffic to website 26% Greater favorable perceptions of the brand 23% Able to monitor conversations about the organization 21% Able to develop targeted marketing activities 20% Better understanding of customers perceptions of their brand 19% Improved insights about targeted markets 18% Identification of positive and negative comments 11% 11% Increase in new business Identification of new product or service opportunities

Handle Next Crisis

Generate Leads

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Keep Tabs on Competition

Collect Product Feedback

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Track Industry Trends

Identify Advocates
Sources: CMS Wire
Sources: Salesforce

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Sources: Harvard Business Review, IBM

Social analytics market overview covers definitions, market sizing, metrics, key players, use cases, frameworks and impacts
Abstract
Social Media Definitions, Type of Users, Potential Trends, and Social Analytics Definitions
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Appendix. Enterprise Social Media usage grows at similar rates as Consumer Social Media

Enterprise vs. Consumer Social Media

Market sizing Social Media, Social CRM, Social Analytics and Key Metrics
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Enterprise Social Media Usage Forecast Enterprise Social Media
Create internal and external networks for organizations Create and support user collaboration through private or public communities Key Vendors: Atlassian, Broadvision, IBM, Jive, Microsoft, Salesforce, Social Text, Telligent, Yammer 50 40 30 Minutes Per Day 20 10 0 2012 2013 2014 2015 2016 35 37 40 43 45

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Social media are Internet-based applications that allow the creation and exchange of user-generated content Microblogging, mobile devices and older people further stimulate the growth of social media Social media analytics is triggered by social media as a new form of business analysis insights to manage customer relationship

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There will be 3 out of 10 people actively engaging in social media and total revenue may reach to $34 billion worldwide by the end of 2016 Social analytics and social CRM may reach a sizable of 30% share of the total CRM market Brand health, market optimization, revenue generation, operational efficiency, customer experiences and innovation are the six core metrics

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Key Players and Case Studies across various industries

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Proposed Framework, Benefits and Challenges Consumer Social Media

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Consumer Social Media Usage Forecast 60 50 40 Minutes Per Day 30 20 10 0 2012 2013 2014 2015 2016 40 43 46 50 55

Key players across four main disciplines: Twitter analytics, Facebook analytics, social media monitoring and social CRM Social analytics has been widely used in Telecom, Enterprise, Health, Entertainment, Retail and Financial sectors.

8 Business goals help to apply social analytics in a targeted, intelligent and effective manner Increasing the organizations awareness is regarded as the top benefit of using social media analytics Social media analytics should be used with care in order to deal with underlying challenges at different times

Collaborative space to network and form communities for consumers with broad or specialized interests Key features include user profiles, blogs, forums, message boards, instant messaging, private messaging, photo and video sharing, status updates etc Key Vendors: Facebook, Googe+, LinkedIn, Twitter etc

Sources: The Radicati Group

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