1. Social Media Monitoring & Measurement: Turning Data into Insights DR. NATALIE L. PETOUHOFF USC Adjunct Professor www.drnatalienews.com Curious? #SMB_LA #SMWLA @DrNatalie *Artwork by Joe Bertelli

2. #SMB_LA #SMWLA @DrNatalie Social Media is Exploding Source: www.flickr.com/photos/grundlepuck/182445397/

4. Agenda1. What to monitor and why2. Where social media ROI comes from- what to measure to get ROI 3. What happens when you don’t do social media monitoring #SMB_LA #SMWLA @DrNatalie

5. Why Monitor? Why ROI? Why Now?You have to be curious to be successful… http://www.picturesofcats4you.com

7. Pragmatists

8. They dislike unpredictability

9. They need assurances

10. SHOW THEM: what they’re going to do will work

11. They are hard to win over#SMB_LA #SMWLA @DrNatalie

13. Something concrete…

14. A business case…

15. It requires ROI…The Social Media Adoption* * Adopted from: Crossing the Chasm”, by Geoffrey A. Moore #SMB_LA #SMWLA @DrNatalie

16. SOCIAL CURRENCY is the value…

17. WHY SHOULD YOU CARE? #SMB_LA #SMWLA @DrNatalie

18. History give us perspective to see future opportunities… Dell Hell: it started with a post #SMB_LA #SMWLA @DrNatalie Source: http://www.buzzmachine.com/archives/cat_dell.html

19. DELL SUCKS. DELL LIES. PUT that in Your Google and smoke it…And it gained momentum… @DrNatalie

20. And led to dedicated haters… #SMB_LA #SMWLA @DrNatalie Source: http://www.buzzmachine.com/archives/cat_dell.html

21. What was / is social media? #SMB_LA #SMWLA @DrNatalie

22. Go back in time…People were predicting this… There would be… A place in time…. Where the customer would in charge of the message … And there would be an enabling technology…We are here now… This is your opportunity!!!! #SMB_LA #SMWLA @DrNatalie

23. Go back further…Many scholars had advocated to listen to customers, employees, partners.. "Long-term commitment to new learning and new philosophy is required of management that seeks transformation. The timid and the fainthearted are doomed to disappointment.“ -- W. Edwards Deming #SMB_LA #SMWLA @DrNatalie

24. What’s new? NOT customer upset.The customer now influences one to many… The impact? Companies must listen… Does word of mouth Matter? Ask Tony and Alfred… #SMB_LA #SMWLA @DrNatalie Source: FastCompany.com and BusinessWeek.com

25. What’s given fuel to the fire?The press has taken up the cause… #SMB_LA #SMWLA @DrNatalie Source: FastCompany.com and BusinessWeek.com

26. Customer uses social media (youtube.com) to vent their frustration… The story ends up on CNN… Wolfe Blitzer’s… The Situation Room… #SMB_LA #SMWLA @DrNatalie Source: Youtube.com and CNN.com

27. If you are going to take social media seriously… 1. Start to do social media monitoring2. Grab screenshots that tell a story about what is happening to the business3. Show executives the screenshots & ask if this is something we should pay attention to…. #SMB_LA #SMWLA @DrNatalie

28. Why is ROI so hard?It’s a complexity issue… You have to have knowledge of and hold in your mind three things at once… Your traditional business goals & metrics Social media business goals and metrics How social media affect traditional business situations when you apply it #SMB_LA #SMWLA @DrNatalie

29. #SMB_LA #SMWLA @DrNatalie PR & Marketing Research Focus Group Vs Online Community

30. Cost of a Focus Group 12 people = $15K 1 focus group/month x 12 months = $180K #SMB_LA #SMWLA @DrNatalie

31. Cost of a social media monitoring or an online community $7K=$200K Result: Continuous, ongoing, direct, authentic, genuine feedback from hundreds or thousands of people that can benefit PR and other departments #SMB_LA #SMWLA @DrNatalie

32. Product Development and Launch Insulated prod dev Vs Community co-creation prod dev #SMB_LA #SMWLA @DrNatalie

33. Cost of Engineers and Marketing Team 1 engineer costs = $80K 5 engineers x $80K = $240K + Marketing Launch costs… #SMB_LA #SMWLA @DrNatalie

34. Cost of a Community Ask your customers what they want Use social media monitoring to learn $7K=$100K Record Sales #SMB_LA #SMWLA @DrNatalie

35. Customer Service Call Center Agents Vs Online Community #SMB_LA #SMWLA @DrNatalie

36. Cost of a Agent Salary 1 agent costs = $50K-$80K 200 agents x $50K = 10M #SMB_LA #SMWLA @DrNatalie

37. Cost of a Community Engage advocates and experts $7K=$100K Happy, Loyal Customers #SMB_LA #SMWLA @DrNatalie

38. How to calculate ROI:1. Determine what department 2. Determine the goals for the department3. Decide on metrics, monitor & measure- both traditional & social media #SMB_LA #SMWLA @DrNatalie

39. What happens to brands that don’t…. Understand what the customer is saying in social networks? That don’t do social media monitoring to understand their audiences? That don’t collaborate cross functionally on social media? That don’t adopt social media? Your brand Fractures a brand’s equity… #SMB_LA #SMWLA @DrNatalie

41. Why?

42. Competition by companies like Netflix#SMB_LA #SMWLA @DrNatalie

43. What could have helped Blockbuster? Social Media Monitoring… #SMB_LA #SMWLA @DrNatalie

44. Blockbuster 2010 If Blockbuster was listening to customers, they might have been able to shift… Sentiment towards Blockbuster* 33% + 36% - *Social Media Monitoring Data from Sysomos #SMB_LA #SMWLA @DrNatalie

45. Blockbuster Demise / Netflix Rise 2010 But Blockbuster didn’t listen and had to file bankruptcy #SMB_LA #SMWLA @DrNatalie *Social Media Monitoring Data from Sysomos

46. Customer Sentiment Around Blockbuster Bankruptcy, Sept 2010 *Social Media Monitoring Data from Sysomos #SMB_LA #SMWLA @DrNatalie

47. Flash Forward to July 12, 2011 Was Netflix listening? *Social Media Monitoring Data from Sysomos #SMB_LA #SMWLA @DrNatalie

48. Example of Not Hearing…

49. What happens when you don’t listen or hear &you act without considering what customers think, feel and know. #SMB_LA #SMWLA @DrNatalie

50. Despite the >23,000 negative comments on the blog… July 12, 2011Netflix sent out a notice on the price hikeon Sept 19th, 2011 and the results were... #SMB_LA #SMWLA @DrNatalie

51. Press Coverage Qwikster (Netflix’s new offering) Sept 19th, 2011 #SMB_LA #SMWLA @DrNatalie

52. Negative Press Coverage Qwikster (Netflix’s new offering) – Sept 19th, 2011 #SMB_LA #SMWLA @DrNatalie

53. Qwikster (Netflix’s new offering) – Sept 19th, 2011 *Social Media Monitoring Data from Sysomos #SMB_LA #SMWLA @DrNatalie

55. Hastings

56. Apologize#SMB_LA #SMWLA @DrNatalie *Social Media Monitoring Data from Sysomos

57. #SMB_LA #SMWLA @DrNatalie

58. #SMB_LA #SMWLA @DrNatalie

59. #SMB_LA #SMWLA @DrNatalie

60. Now Blockbuster is listening & hearing!

61. Netflix didn’t even check the twitter handle-- @Qwikster

62. May be it’s a good idea to listen to your customers!?! #SMB_LA #SMWLA @DrNatalie

64. SHOW THEM: what they’re going to do will work

65. Show them that there is a business case & ROI can be calculated

66. That it is not rocket science

67. That the more things change, the more they stay the same…#SMB_LA #SMWLA @DrNatalie * Adopted from: Crossing the Chasm”, by Geoffrey A. Moore

68. To be a long-term leader in any industry, You’ll have to cross the chasm to social media The Social Media Adoption Chasm Early Majority 34% Early Adopters 13.5% Innovators 2.5% Late Majority 34% Laggards 16% THE CHASM Social Media Adoption Curve Social Media Adoption Curve Are you a innovator, an early adopter or an early majority? What’s it gonna take for you to cross the chasm or die….? 5 #SMB_LA #SMWLA @DrNatalie * Adopted from: Crossing the Chasm”, by Geoffrey A. Moore

69. Don’t do the ostrich… Imagine how silly you might look… #SMB_LA #SMWLA @DrNatalie

70. … take your head out of the sand… and cross the chasm…. #SMB_LA #SMWLA @DrNatalie

71. DR. NATALIE L. PETOUHOFF Thank you! @drnatalie www.drnatalienews.com 310-910-1542 Link to the Social Media ROI videos: http://www.drnatalienews.com/blog/did-u-see-the-videos-on-the-roi-of-social-media Curious about The ROI of Social Media? Link to white papers on the ROI of Social Media: http://www.drnatalienews.com/blog/roi-of-social-media-white-papers-by-dr-natalie-petouhoff #SMB_LA #SMWLA @DrNatalie *Artwork by Joe Bertelli