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Does Engagement Equal Roi



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Does Engagement Equal Roi

  1. 1. Does Engagement Equal ROI? MeasureUp: Social Media Value & Measurement Summit March 10, 2010 Matt Moog Founder & CEO Viewpoints Network 312-447-6111 [email_address]
  2. 2. How do you define engagement? <ul><li>It has been four years since the Advertising Research Foundation first promoted the concept of measuring &quot;engagement“ to deal with the fact that media clutter is eroding the impact of a single exposure. </li></ul><ul><ul><li>http://www.clickz.com/3522616 </li></ul></ul><ul><li>Agencies & Media companies talk about engagement as a metric for how consumers interact with ads or what they do as a result of ads </li></ul><ul><li>For example: </li></ul><ul><ul><li>&quot;any action reflecting an experience or touch point with a brand, product, group, or message” </li></ul></ul><ul><ul><li>&quot;take into account the people who seem to be actively requesting information from others, specifically those who are imploring actual companies for help.” </li></ul></ul>
  3. 3. Marketer Initiated Media Engagement Measures http://www.clickz.com/3522616 Source: Pete Blackshaw – EVP of Neilsen BuzzMetrics Engagement Activities Key Weighting Variables Permission or opt-in Length of relationship, open rates, calls to action Interaction with an on- or offline ad Participation, depth of involvement, length On-demand behavior (ads, RSS, etc.) Frequency, targeting method, longevity Web site visit Traffic patterns, length of stay, call to action On-demand samples or demos Actual usage, depth of involvement, follow-up Ad skipping or filtering Ad content triggers, message triggers, frequency Opinion solicitation (Web site, research) Issue triggers, depth of advocacy Cross-platform activity (TV to Web) Platform integration, frequency Propensity to search, seek, or request branded content Traffic patterns, time between ad placement and request
  4. 4. Consumer Initiated Engagement Engagement Activities Key Weighting Variables Unaided propensity to tell others To whom, in what context, total reach Aided propensity to tell others Pass-along utility measures, survey design Unsolicited feedback (email, call center) What issue, depth of emotion, or influence CGM on blogs and boards How public or searchable, how validating Propensity to offer product suggestions Depth of loyalty, consumer profile Formal brand review or opinion Positive or negative, listeners
  5. 5. The big three questions about Consumer Initiated Engagement <ul><li>#1 - Can we further refine the definition of engagement so that it is less focused on media and more focused on sales, insight and advocacy? </li></ul><ul><li>#2 - Can you create and communicate a value proposition that encourages your current and potential customers to engage with your brand outside of paid media? </li></ul><ul><li>#3 - Can you direct and shape that engagement in a way that drives your business forward in a measureable way? </li></ul>
  6. 6. Question #1 – can we refine the definition of engagement ? <ul><li>Create </li></ul><ul><ul><li>Create and upload a video </li></ul></ul><ul><ul><li>Write a product review </li></ul></ul><ul><ul><li>Contribute an idea </li></ul></ul><ul><ul><li>Write a blog post </li></ul></ul><ul><li>Critique </li></ul><ul><ul><li>Vote </li></ul></ul><ul><ul><li>Comment </li></ul></ul><ul><ul><li>Tagging </li></ul></ul><ul><li>Share </li></ul><ul><ul><li>E-mail </li></ul></ul><ul><ul><li>Social Networks </li></ul></ul>
  7. 7. Question #2 – What is your value proposition for engagement? <ul><li>Make your voice heard </li></ul><ul><li>Help other people </li></ul><ul><li>Help us improve </li></ul><ul><li>Connect with your friends </li></ul><ul><li>Connect with people like you </li></ul><ul><li>Meet new friends </li></ul><ul><li>Be recognized </li></ul><ul><li>Earn tangible rewards </li></ul><ul><li>Have fun – entertain yourself </li></ul><ul><li>Compete and win </li></ul><ul><li>Collect </li></ul><ul><li>Get advice and updates </li></ul>http://yuiblog.com/blog/2008/06/10/patterns-for-designing-a-reputation-system/
  8. 8. Question #3: Does engagement drive ROI? <ul><li>If you had more customer reviews would more browsers convert to buyers? By what rate would conversion increase? </li></ul><ul><li>If you had more reviews and other content would you be able to measure incremental SEO and social sharing traffic to quantify the value of that content? </li></ul><ul><li>If your customers completed detailed profiles of themselves, tagged themselves in the context of every review and responded to surveys at a very high rate would that insight have quantifiable value? </li></ul><ul><li>How much is it worth to you to have a customer recommend your brand to another customer? What if their recommendation was read thousands of times? </li></ul>
  9. 9. The Triple Bottom Line of Social Commerce A framework for measuring ROI of your social and community efforts
  10. 10. The power of customer reviews <ul><li>61% of people rely on user reviews for product information or research before a buying decision is made* </li></ul><ul><ul><li>http://www.internetretailer.com/dailyNews.asp?id=27095 </li></ul></ul><ul><li>90% of consumers online trust recommendations from people they know; 70% trust opinions of unknown users. </li></ul><ul><li>83% of online shoppers said they are interested in sharing information about their purchases with people they know </li></ul>
  11. 11. Organize conversations around products to promote confidence
  12. 12. Organize content & community to help decision making
  13. 13. Product Level Discussions can resolve customer service inquires
  14. 14. Soliciting ideas from your customers
  15. 15. Insight: leverage user tagging to build affinity groups
  16. 16. Brand Advocates <ul><li>Recent Deloitte study titled </li></ul><ul><ul><li>“ A new breed of brand advocates. </li></ul></ul><ul><ul><li>Social networking redefines consumer engagement” </li></ul></ul>
  17. 17. Customer Advocacy
  18. 18. Help customers track their influence
  19. 19. Matt Moog Founder & CEO Viewpoints Network 312-447-6111 [email_address] www.viewpointsnetwork.com www.viewpoints.com