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Community Benchmarking and ROI

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Have you been asked to measure, benchmark or calculate the ROI of your community? This framework will help you define, baseline, compare and use community metrics to educate stakeholders and generate support for both the costs and the benefits of building community.

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Community Benchmarking and ROI

  1. 1. How to Measure, Benchmark & Calculate Community ROI Rachel Happe Principal & Co-Founder @rhappe
  2. 2. Research           Advisory       Training   Benchmarking       2! The Community Roundtable www.communityroundtable.com          TheCR                Network  
  3. 3. 3! Benchmarking Community
  4. 4. The Value of Benchmarking www.communityroundtable.com   1.  Focuses the Conversation Benchmarking provides concrete and actionable guidance that helps translate your strategic ambition into strategic reality. 2.  Injects Unbiased Perspective Data-driven analysis removes personal or political bias, providing and objective look at performance. 3.  Enables Confident Community Decision-Making Benchmarking tells you where you are and provides the data to make confident decisions about your community’s future.
  5. 5. What Do You Benchmark? www.communityroundtable.com   Management The approach to building successful communities Behavior How individual communication behavior is changing Results The value produced by the community; benefits including ROI
  6. 6. How do you benchmark? •  What’s  important?   •  How  will  you  track  it?  Define   •  What’s  the  current  state?   •  What  interval  will  you  track?  Baseline   •  Against  yourself?   •  Against  other  internal  communiFes?   •  Against  peers/idustry?   Compare   •  Educate  &  sell  execuFves   •  Planning  and  budgeFng   •  PrioriFzing  resource  uliFzaFon   Use  
  7. 7. Limits of Benchmarking www.communityroundtable.com   1.  Benchmarking is ‘dumb’ to your strategy Benchmarking provides a objective comparison, which is what makes it valuable, but because of thatit cannot indicate/evaluate where performance differences are intentional based on your unique context and strategy 2.  Trends, not specifics The best use of benchmarking is to see trends and use those to trigger deeper discussions about your approach – but it cannot define priorities unique to your organization. It is one of many great inputs to a strategic conversation.
  8. 8. 8! Benchmarking Community Management
  9. 9. The Value of Community Management www.communityroundtable.com   “Goals are for Losers” – Scott Adams
  10. 10. The Value of Community Management www.communityroundtable.com   Building Processes for Repeatable Results While you may be able to generate results without a well constructed management approach, it is difficult to maintain performance without a consistent, documented approach Can  measure  value  Gap  between  vision  and  ability  to  execute  
  11. 11. www.communityroundtable.com   Define: The Community Maturity Management
  12. 12. www.communityroundtable.com   Baseline: Document the current state
  13. 13. www.communityroundtable.com   Compare: Benchmark competencies ✔   ✔   ✔   ✔   ✔   ✔   ✔   ✔  
  14. 14. www.communityroundtable.com   Use: Define where you want to be
  15. 15. www.communityroundtable.com   Use: Build a roadmap
  16. 16. 16! Benchmarking Behavior
  17. 17. Impact! Phase 1 Hierarchy! Phase 2 Emergent Community! Phase 3 Community! Phase 4 Networke d! Pull! Grow! Transform! Behavior Change! Time! 17! Behavior change drives ROI
  18. 18. •  Information Seeking •  Content Management •  Collaborative Analysis and Decision-Making •  Co-creation of content •  Work Synchronization •  Stakeholder review •  Communication of decisions or outputs When  a  member  wants  to   ___________________________     they  will  use  the  community  to   __________________________,     instead  of  doing  _____________   __________________________.   Define: What is the existing and new behavior?
  19. 19. Define: What is the existing and new behavior? Work Out Loud Behavior: Share your priorities, ideas and current projects Value: Serendipity, discover things you didn’t know you didn’t know Ask Out Loud Behavior: Ask in a community Value: Improve the likelihood of a quick, valuable response; answer once Solve Out Loud Behavior: Brainstorm and resolve issues in a community Value: Incorporate unexpected perspectives, mentor others, increase awareness
  20. 20. Baseline: What percent of the old behavior has been replaced? Old   Behavior   New   Behavior   % %
  21. 21. Compare: Gauge your inflection points Behavior! Time!
  22. 22. Use: Adjust community management approach Impact! Phase 1 Hierarchy •  Find an internal owner! •  Identify executive sponsor! •  Align goals and capabilities! Phase 2 Emergent Community •  Identify advocates ! •  Align goals and capabilities! •  Formalize governance! Phase 3 Community •  Document processes! •  Training! •  Evolve metrics & reporting! •  Creating new roles! ! Phase 4 Networked •  Change HR processes! •  Adapt corporate strategy! •  Phase out older tools ! ! ! Pull! Grow! Transform! Behavior Change! Time! 22!
  23. 23. 23! Benchmarking Results & Getting to ROI
  24. 24. Define: When  a  member  wants  to   ___________________________     they  will  use  the  community  to   __________________________,     instead  of  doing  _____________   __________________________   __________________________.     resolve an issue ask a question emailing a ticket system (CRM, bug tracking tool, etc. Answered Questions Report •  Total Questions •  Questions with Responses •  Time to First Response •  Questions with Helpful Answers •  Time to First Helpful Answer •  Questions with Correct Answers •  Time to Correct Answer •  Total Views
  25. 25. Baseline: Gather Data   Metric     Source   Baseline  –  Other   channels   Baseline   Jive/Community     Number of members Working Out Loud #   Manual   Count   0   Percent of community working out loud %   CalculaFon   0%   Number of Questions in the Community #   Jive  &   Manual   0   Total Questions Asked #   Survey   Percent of Total Questions Asked in the community %   Calculated   100%   0%   Number of questions with helpful or correct answers #   Jive  &   Manual   Percent of Questions Answered %   Calculated   Total Views for All Questions #   Jive  
  26. 26. Compare: Assess Progress   Metric     Source   Baseline  –   other   channels   Baseline   Jive/ Community     Month  2       Month  3   Number of members Working Out Loud #   Manual   Count   0   Percent of community working out loud %   CalculaFon   0%   Number of Questions in the Community #   Jive  &   Manual   0   Total Questions Asked #   Survey   Percent of Total Questions Asked in the community %   Calculated   100%   0%   Number of questions with helpful or correct answers #   Jive  &   Manual   Percent of Questions Answered %   Calculated   Total Views for All Questions #   Jive  
  27. 27. Use: Communicate 0%   20%   40%   60%   80%   100%   August   September   October   QuesFons   Helpful  Response   Correct  Responses   Response  Rate   No  Response   Response   Helpful   Correct   Ques>on  Trends,  by  Month   670   680   690   700   710   720   730   740   Views   August   September   October   Views  Per  Ques>on,  by  Month  
  28. 28. Use: Potential Management Adjustments 1.  Engagement Approach: Close Response Gap Create a way to regularly highlight open questions like a Friday blog post or a bigger advocate initiative that encourage them to backchannel to prompt responses. 2.  Content Management Resourcing Allocating time to mark responses as helpful or correct so that reporting is more accurate. 3.  Tool Integration Consider integrating email distribution addresses to publish into the community, increasing question capture
  29. 29. Use: Constructing ROI Traditional Response Process Question -> Ticket System -> Resource time to respond Cost Per Answer = FTE / time to respond Community Response Process Question -> Community -> Percent requiring employee response * Resource time to respond Cost Per Answer =(FTE / (Percent of questions requiring employee response * time to respond)) Answers Avoided (Opportunity Cost) Per Answer: ((Views * multiplier/ confidence factor)*(FTE / (Percent requiring employee response * time to respond)))
  30. 30. 30! Community Performance Benchmark
  31. 31. 31! State of Community Management Developing the methodology www.communityroundtable.com   2010
  32. 32. Community Performance Benchmark www.communityroundtable.com   The Community Performance Benchmark Service Includes: •  Online survey for one community or network • Report •  Overall maturity score, compared to survey average and best-in-class •  Maturity score by competency, compared to survey average and best-in-class •  High level findings and recommendations •  Recommendations by competency • One review cycle • Webinar presentation Additional Options: •  More than one community •  Comparison to a different survey segment (use cases, industry, company size, etc) •  In-person presentation
  33. 33. 8| Key Observations ​ Content & Programming ​ Your community offers a variety of programs, including those for new members. You have an editorial calendar, and one way to increase the effectiveness of that calendar is to offer recurring programming, like a weekly Ask Me Anything chat, for example. Regular programming has a positive impact on member engagement. ​ Leadership ​ As your community matures, one area that you can spend time growing is your advocate program. Community leadership and advocacy programs are one way you can boost member participation in your community. ​ Your response did not indicate many executives are participating in the community. Spending time helping them understand the value of the community and how to participate will help the community mature. ​ This Community Performance Benchmark will cover your community’s performance in the eight competencies of the Community Maturity Model. We observed three key areas of opportunity for your community from your survey response: ​ Community Management ​ Your community has one full-time community manager – fewer resources than the survey average, but not uncommon. The number of responsibilities assigned to your community manager is closer to the responsibility profile of the most mature communities surveyed, which have more than five full-time resources to execute on those responsibilities. Key Observations
  34. 34. Analysis by Competency Maturity score Comparison Recommendations
  35. 35. Thank you! Rachel  Happe   Principal  &  Co-­‐Founder   The  Community  Roundtable     rachel@communityroundtable.com   617-­‐271-­‐4574   @rhappe   www.communityroundtable.com