This document discusses measuring social media and determining return on investment (ROI). It begins with an introduction of the speaker and session goals. Various metrics for measuring social media are then presented and discussed, including numbers of likes, shares, comments, and words in posts. Participants debate whether ROI can be determined from social media and most feel it depends on the specific application. Key points are that the purpose and goals must be defined upfront to guide meaningful measurement and determine if any metrics represent a true ROI. Examples of metrics for marketing, sales, and customer care applications are also provided.

1. INSEAD
MBA
D12
28th
May
2012
Facebook
N
Online
News
Blog
Twi3er
Video
Measure
Social
Media
TV
Print
By
Lutz
Finger
Images
Forum
We
make
sense
out
of
media

2. Lutz
Finger
─
Quantum
Physicist
─
Journalist
─
Incubator
for
new
Media
─
MBA
04J
─
Sales
Manager
@
Dell
─
MBA
as
Partner
09D
Session
Goals:
● What
is
the
most
important
THING
in
measurements?
● What
are
the
piValls
in
Data
Mining
Social
Media?

3. Warm-­‐up
Stats
35
clicks
23
clicks
28
clicks
8
clicks
3

4. on
average
300
words
per
answer
600
500
Are
those
Number
of
Words
400
300
charts
200
HELPFUL?
100
0
22.5.12
0:00
23.5.12
0:00
24.5.12
0:00
25.5.12
0:00
26.5.12
0:00
27.5.12
0:00
Day
#
of
Emails
by
the
hour
of
the
day
Data
is
only
then
4
helpful
if
it
results
Email
ReacFons
3
in
an
acFon.
2
1
Otherwise
it
is
just
0
noise.
1
2
5
10
11
12
13
14
16
17
18
22
Hours
4

5. Will
there
be
a
ROI?
no
yes
depends
Yes:
44%
20%
36%
No:
36%
depends:
20%
44%
Note:
• 26
answers
out
of
49
par_cipants
=
51%
par_cipa_on
• “I
hope”
or
“some_mes
it
surely
will”
=
“no”
5

6. Some
arguments
● a
very
subjec_ve
thing
to
measure
(Souhail
Khoury)
● can't
be
a
true
ROI
for
social
Media
which
is
you
cannot
model
the
human
brain
…
metrics
in
adver_sing
…
are
limited
-­‐
(EPSTEIN
Jonathan)
● Social
Media
ROI
a
bit
a
false
discussion.
Has
anyone
ever
been
able
to
properly
measure
the
return
on
offline
adver_sement
(DE
JONCK
Jonathan)
● In
general,
no
ROI
would
mean
social
media
will
only
get
investment
from
hobbyists
and
enthusiasts.
(BAJWA
Fawad)
● [Facebook]
…
banking
on
the
fact
that
they
can
turn
their
800+
million
subscriber
base
into
revenue
(BHATT
Chinmay)
● Social
media
is
more
of
a
tool,
and
its
ROI
would
depend
on
the
tool's
applica_on.
(PAVLOVA
Natalia)
● It
only
makes
sense
to
measure
what
you
can
achieve
(Willemijn
Stoffels)
● In
some
cases,
the
results
are
tangible
...
In
other
cases
intangible
(NANRA
Gagan)
6

7. 7

8. Social
Media
is
different
● Earned
● Owned
● Bought
8

9. …
thus
it
depends
on
the
applicaFon
Whether
there
is
an
ROI
depends
on
what
one
does
with
Social
Media.
There
are
many
applica_on
of
social
media,
which
have
indirect
effects
and
where
it
is
not
possible
to
link
it
to
an
ROI’s.
For
those
it
is
important
to
know:
The
WHY
someone
uses
social
media.
REASON
why
care?
QuesFon
B)
yes
no
Please
state
at
least
4
things
one
can
measure
in
social
media.
But
36%
please
tell
me
WHY
an
64%
organiza_on
should
care
about
this
measurement.
9

10. You
are
not
alone
10

11. THE
QUESTION
“42
is
not
helpful!”
-­‐
“it
would
have
been
simpler
of
course
to
have
know
what
the
actual
ques=on
was.”
One
needs
to
define
the
Ques_on/Reason
BEFORE
one
starts
to
Measure.
● ACTIONABLE
–
be
able
to
have
an
ac_on.
● MESURABLE
–
be
able
to
actual
measure
it.
11

12. …
will
there
be
ONE
quesFon?
Sales
&
Social
CRM
Adver_sing
&
Social
Biz
commerce
Intelligence
Social
Cus
Product
Care
Research
…
several
PR
&
Risk
Control
per
department
12

13. Example:
MarkeFng
/
Sales:
Purchase
/
Awareness
Service
Feedback
Reten_on
Use
Increase
Adver_sement
Improve
Customer
Care
Grow
Customer
Life_me
Efficiency
and
Usability
Value
•
Find
most
effec_ve
•
Reputa_on
•
Reten_on
Messaging
Management
•
Iden_fy
most
valued
•
Find
Brand
•
Create
WOW
Factor
experience
Ambassadors
•
Find
dissa_sfied
Clients
•
Spread
the
word
•
Control
Brand
Image
Also
possible:
HR,
Product
Development,
Security...
13

14. Example:
Customer
Care
WHAT
do
you
want
to
do?
Deflect as many calls online
to
WHOM?
Any low profile user
with
WHAT?
Answers by other super-users
through
WHICH
media
type?
Stack-Overflow
Till
WHEN?
6 month ramp-up
Measurement
of
Success
is
defined
by:
Name
of
Metric
Value
Measured
by
# of questions asked
Stack-Overflow
# of questions answered
1 000
Stack-Overflow
# of Super-users
internal
14

15. Social
Customer
Care:
Example
of
ROI
AssumpFons
● A
call
to
a
call
center
costs
25
Euro
● 40%
of
people
who
get
an
answer
to
a
ques_on
online
from
a
super-­‐user,
will
not
call
in.
● 65%
of
all
ques_ons
posted
will
be
answered
by
super-­‐user
● 1000
ques_ons
posted
each
year
NOTE:
No
tool
does
offer
you
those
measurements.
Savings
from
DIRECT
DEFLECTIONS
(1000
x
65%)*40%*15
Euro
=
6500
Good
measurement
are
specific
for
each
company
/
department
using
internal
data.
15

16. What
shall
we
measure?
16

17. Metric
Votes
Structured
Data:
Engagement
14
Sen_ment
13
Measure
Visitors/Fans/Follower
11
Volume
9
Influencer
6
Velocity
6
Conversion
4
Reach
3
relevance
3
new
customer
2
Awareness
1
Channels
1
CusCare
issues
1
Frequency
of
Posts
1
Geography
1
Live
Time
Value
1
Most
Popular
Post
1
New
Ideas
1
Site
relevance
1
17

18. What
is
Important?

19. Reach
View
Great
Dane
Gaddafi
Slippers
Reach
is
the
tradi_onal
way
of
measuring.

20. New
Measurements:
ReacFons
No
?
Name
No
Name
Gaddafi
Social
Sharing
clicks
(est)
FB
Comments
Monster
Slipper
FB
Likes
FB
Shares
Twi3er
Shares
Blind
Dane
Buzz
Shares
0
20000
40000
60000
80000
100000
120000
Social
Media
Impact
(SMI)

21. Warning…
Measurements
● Any
Measurement
–
if
successful
–
will
be
lead
to
gaming.
Examples:
Klout,
google
rank,
etc
● Any
Measurement
is
most
of
the
_mes
an
index
and
not
the
truth.
● Measurements
can
not
be
easily
compared.
21

22. Metric
Votes
Engagement
14
Measure
Sen_ment
13
Visitors/Fans/Follower
11
Volume
9
Influencer
6
Velocity
6
Conversion
4
Reach
3
relevance
3
new
customer
2
Awareness
1
Channels
1
CusCare
issues
1
Frequency
of
Posts
1
Geography
1
Live
Time
Value
1
Most
Popular
Post
1
New
Ideas
1
Site
relevance
1
22

23. Follower
Count
might
mislead
you.
Which
of
those
two
is
more
important?
It
depends
on:
• Who
you
want
to
reach?
• What
you
want
to
say?
• The
average
community
reac_on.

24. …
there
are
tools
to
measure
this
as
of
Mai
2012
Company
Metric
Name
Value
Twi3er
Followers
1,556,602
Twinangulate
Combined
Reach
120,310,807
Klout
True
Reach
56,000
Twi3er
Grader
Rank
2,987
out
of
10,997,926
How
Sociable
Magnitude
4,4
out
of
10
Fisheye
Analy_cs
Influence
High
Peer
Index
Audience
94
Twitanalyzer
Effec_ve
Reach
1,630,000
Twitanalyzer
Poten_al
Reach
3,060,000
24

25. …
thus
do
not
compare
easily
There
are
100+
social
media
plaVorms
out
there
For
each
Media
Type
there
are
10+
things
one
can
measure.
For
each
Measurement
there
are
10+
companies
measuring
it.
10.000+
METRICS…
all
different
…
not
easy
to
compare
25

26. Metric
Votes
Engagement
14
Measure
Sen_ment
13
Visitors/Fans/Follower
11
Volume
9
Influencer
6
Velocity
6
Conversion
4
Reach
3
relevance
3
new
customer
2
Awareness
1
Channels
1
CusCare
issues
1
Frequency
of
Posts
1
Geography
1
Live
Time
Value
1
Most
Popular
Post
1
New
Ideas
1
Site
relevance
1
26

27. Some
words
about
Technology
27

28. Telefonica
–
is
this
bad?
C.
Alierta:
“It
is
evident
that
internet
search
engines
use
our
networks
without
paying
us
anything,
which
is
good
for
them
and
a
disgrace
for
us”
“hypocrisy”
Alierta
is
“Alierta
contra
google”
“greedy”
Context
is
key!
…
Blogs
…
Tweets
…
Facebook
…
25.000
views
on
the
28
video.

29. Summary
1)
One
needs
to
define
the
Ques_on
BEFORE
one
starts
to
Measure
● ACTIONABLE
–
be
able
to
have
an
ac_on.
● MEASURABLE
–
be
able
to
actual
measure
it.
2)
Good
measurement
are
specific
for
each
company
/
department
–
combining
as
well
internal
data.
3)
Social
Media
is
not
Social
Media.
Each
tool
comes
with
a
specific
set
of
Measurements
and
Measurement
Companies.
Comparing
is
not
easy.
4)
Sen_ment
is
the
worst
measurement
–
context
is
key
for
it.
29

30. Thanks…
Over
to
you
now…
please
measure
me!
30