Social media measurement: three good questions

I had the pleasure this morning of interviewing Chris Frank, vice president of global marketplace insights for American Express, on his advice on how to measure and glean insights from social media. Chris’ two wise mantras:   “less counting, more evaluating” and “focus less on the means (“the buzz’) and more on the ends (outcomes like changing perceptions, intention and action.)

When you’re looking at your social media data, Chris suggests asking smart question to evalauate what’s going on and what it means to your strategy. Three questions I found especially interesting when looking at the data:

  1. What surprised us?
  2. So what?  What should we think about doing differently based on what the data shows.
  3. What is our intent with social media?  What does the data tell us about how well we’re doing (or not) in pursuit of that intent?
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Book review: Chief Culture Officer

The most important point of the excellent book “Chief Culture Officer” by Grant McCracken is this — and it’s big:   Today’s fast-changing external cultural environment presents significant opportunities and dangers for companies.  To manage risk and seize opportunities somebody needs to own culture — understanding patterns and uncovering insights,  and helping the C-suite understand how make better decisions based on this understanding.

This isn’t traditional market research, but anthropological research for business, noticing and assessing ideas, trends, emotions that make up the life of customers and employees — and determining what these cultural shifts mean to a company. This applies not just to marketing, but to leadership, HR and workplace communications.

This understanding and empathy, Grant notes, is often viewed as a “soft competency” by executives and business schools.

“To refuse empathy is a kind of managerial malpractice. It costs us essential knowledge of our colleagues and our customers…In fact empathy is frequently the blade that finds the right insight, extracts from it the real strategic and tactical opportunity, and crafts it into a final, compelling form. Is this really a ‘soft’ skill?

Value of a Chief Culture Officer

  • Better informed C-suite decisions based on opportunities and risk that come from culture, both strategic and tactical decisions.
  • Serve as internal entrepreneur, an innovation agent

What a CCO does

  • Finds patterns among chaos of cultural trends and conjure what they mean to a company
  • Insinuates cultural knowledge into the CEO

How the chief culture officer does her or his job

  • Talks to anyone who will talk with you.
  • Figures out the thing that makes a person interesting.  Find what they know best and what this means to them, how it looks to them, how it feels to them
  • Is open and guileless, never, ever “hipper than thous”
  • Treats everyone as more knowledgeable than him or herself
  • Is a fearless “noticer” or observer — “spotting things that defy expectation, that don’t compute.” Pays special attention to things that puzzle. Pays attention to any failure in attention.
  • Develops empathy, the ability to feel how another person feels, and find insights from those feelings.
  • Admits ignorance and asks naive questions.

Beware: what culture strategy is not cool hunting

Today’s Fast culture is a huge challenge for businesses: miss a trend or misread customers and your brand can quickly become irrelevant. Similarly, slow culture also  presents opportunities and risks and is perhaps more overlooked as the “cool hunters” have no interest here at all.  Grant warns us to beware of the “cool” people; they tend to be into themselves and what’s hip, not real listening, observing and empathy needed to uncover insights.

Quotes I liked

  • “We should think of our CEO as a Soviet-era Moscow audience and the CCO as Radio Free Europe. The CCO is trying to penetrate an air space constantly being “jammed” by other things.”
  • “Knowledge can stand in the way of innovation.”
  • “Without emotional sonar, there are many things an executive cannot know. This person in a sense is trapped in himself.”
  • “There is no code to “crack” culture. Just good listening.”
  • “We are not seeking perfection. We are seeking to construct and idea just robust enough to get us from confusion to clarity.”

This is a motivating, highly-readable book, chock full of insights, things that make you wonder, and motivation to make you  want to wander more in order to notice more. It’s also so refreshing in its pragmatic approach, reminding us that culture strategy is a form of anthropological science and not about what the cool people think.

Five stars for this book.

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Measurement: counting is easy, evaluating is hard

How to measure social media? Christopher Frank, vice president of global insights for American Express, shared his perspectives at this week’s Conference Board Social Media Meet Up.

“Counting is easy, evaluating the data is hard,” he emphasized.  “We don’t lack for data but we lack for asking the right questions so that the data can help us make decisions.”

Social media is like any other data stream, he said, and what you do with that data is the same as measuring other marketing programs: evaluate, assess relative to competitors and track over time. The questions are the same, too.

  1. What kind of impact are we trying to have?
  2. At what level do we hold people accountable?
  3. What time frame should we look at?
  4. What attributes should we be using, e.g., service ratios, engagement rations
  5. What do we want to track?

“Marketers spend much too much time on tracking the means — the buzz — and not enough on the ends — perceptions, intentions, advocacy.”

Frank’s ins and outs of measurment:

In’s

  • Intent
  • Input
  • Investment

Out’s

  • Output (e.g., buzz)
  • Outtake (advocacy)
  • Outcome (proactive change)
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Social media as predictive forecasting tool

As the interest heats up in understanding the business value of social media, there’s an interesting report out from HP Labs that shows the predictive forecasting potential of Twitter.

Sitaram Asur and Beranardo Huberman built two models to predict the box office sales of movies based on Twitter. The model for predicting first weekend box office sales was 97.3 percent accuraate and the prediction for second weekend performance was 94 percent accurate.

From meetings I’ve had recently with marketing scientists I’m convinced that we’ll be seeing many more mathematical models that will not only help quantitatively measure the return on social media engagement but will also link those measures to business metrics like sales, trial, leads.

MIT’s “Technology Review” article about these Twitter models raises an interesting question:

Can they change the demand for their film, product or service buy directly influencing the rate at which people tweet about it? In other words, can they change the future that tweeters predict?

To download the “Predicting the Future with Social Media” study click here.

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Social media science: what triggers sharing, retweeting

Dan Zarrella,  a social media and viral scientist, has done some interesting work in analyzing social media data to determine what triggers sharing.

In one study he analyzed Twitter data to find out what makes some Tweets more viral than others. The full “Science of Retweeting” report can be found here. Some of the things I found most interesting.:

  • Asking people to retweet works, especially when you use the  word “please”
  • People like to retweet links to blog posts.
  • Lists are big (something I have found in analyzing blog posts, as well). Approximately 69 percent of tweets that are retweeted contain links. (Maybe further proving that Twitter is a giant distribution engine, more than a social network.)
  • The peak hour for retweets is 1 p.m. EST

Video sharing Facebook TwitterJPEG

In another recent study Dan found that stories with the word “video” were shared more than the average story on Facebook, and less than average story on Twitter, implying that Facebook may be a better platform than Twitter for getting videos to go viral.

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Social business

I don’t know about you but I’m hungry for real world  stories about how companies are infusing social principles into business strategy — and measuring the results in a way that makes sense to the CEO.

Next month I’m producing a conference for The Conference Board that focuses this. The Conference Board people just told us that  there are only a limited number of seats left, so register soon. Here’s why:

  • JetBlue’s CMO  is talking about new social competencies needed to lead
  • Humana is showing how to make social part of innovation
  • Kimberly-Clark and American Express are cutting through the data and talk analytics and measurement
  • FedEx is sharing how one of the biggest companies in the world is changing customer service
  • CEO Jim Lavoie is explaining how to change a corporate culture

And we’ll have other company folks talking about essential social practices, disruptive tools, and how work with  legal to innovate while minimizing risk.

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Lessons learned

Here’s a little secret for every project summary or report: add a section about “lessons learned.”

  • What you learned
  • What you would do differently in future
  • What new processes or training needs to be put in place for the organization

This simple section is more valuable than the “results” section because it helps us to keep learning and sharing that learning with our colleagues.

A side benefit is that it can  calm down anxious bosses who think things weren’t “good enough.”  Acknowledging that you know what didn’t happen perfectly and why — and will  do differently in the future — diffuses tension and focuses on the positive nature of learning and improvement.

The more new the area,  like social media, the more important and valuable “lessons learned” is.

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Nonprofit marketing recipe: Hope + individual stories + progress

growthTree

Hopefulness and individual stories of transformation and progress. Those are the ingredients for successful marketing, particularly for non-profits and humanitarian organizations, writes New York Times columnist Nicholas Kristof  in the Outside magazine article  “How to Save the World and Influence People.”

The lessons,  derived from numerous social psychology studies as well as Kristof’s personal experiences in writing about global atrocities, are certainly compelling for NGOs. I  think these ingredients are also relevant and often overlooked for for-profit organizations.  Here’s what triggers action:

  • Hopefulness, aspirations, possibilities: we respond to stories of hope  and transformation, not stories and statistics of desperation.  Making people feel guilty or overwhelming them with statistics of despair rarely moves people to action — or donating money. Showing them what’s possible does. Look to profile heroes, not victims in marketing efforts. “All the psychological research shows that we are moved not by statistics but by fresh, wet tears, with a bit of hope glistening below,” says Kristof.
  • Individuals, not groups: people  want to help  individuals not causes.  We respond to stories about a person, not a group. “As we all know,” writes Kristof, “one death is a tragedy, a million deaths is a statistic.”   Kristof shares the example of how early movements against apartheid focused in freeing political prisoners without much success. But when the organizers refocused on one individual — Free Mandela! –  it resonated far more widely. There was a face on the movement. Paul Slovic, psychology professor at University of Oregon, has found that our empathy wanes when the number of individuals profiled reaches just two.
  • Success makes people feel good: Knowing that our money is working makes us  feel good about giving. (And we do good things, say the social scientists, because it makes us feel good.)  To keep people engaged, show progress and share stories of triumph. (Making people feel good that their donations are working.) Research also shows that people want to save a high proportion of people, not just a large number of lives. One experiment found that people were far more willing to pay for a water treatment facility to save 4,500 lives in a refugee camp with 11,000 people than they were to save lives of 4,500 people with a camp of  250,000 people. Go figure.

For marketers, the lesson is clear: find stories about individuals overcoming adversity and succeeding in ways they never thought possible — and make sure your donors  feel fortunate to be a part in that person’s success. This, says Kristof and Professor Slovic, are the often overlooked ingredients to  to non-profit marketing success.

While the tragedy in Haiti today requires no marketing to nudge people to help. Six months or a year from now, aids organizations will have to work harder to raise money. Let us hope stories of individuals who rose from the rubble to build a new Haiti are plentiful.

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Employee attitude matters more than advertising

megaphone

Companies spend so much on acquiring new customers, hiring the best talent possible, taking chances on innovative marketing concepts. But engaging employees often seems to a stepchild, loved, but in a less passionate way.

Given the influence of employees on customer loyalty, maybe the priorities need to be altered. At yesterday’s Conference Board conference Engelina Jaspers, HP’s vice president of corporate marketing, shared three stats that can help focus management’s attention on employee engagement:

  1. 68 % of customers leave a company because of poor employee attitude
  2. 41% of customers are loyal because of good employee attitude
  3. 70% of brand perception determined by experiences with people from the company

Brian Ray of McDonald’s is quantifying the value of committed employees in revenue and profitability for McDonald’s owners/operators. (85% of McDonald’s are franchises), and has just completed an project to create an employee value proposition.

(So interesting that every company seems to have a customer value proposition and mission, but not so for employees.)

To develop this “EVP” McDonald’s spent just $65,000 and asked two simple questions, which got an amazing 79% response rate from frontline workers in 33 countries:

  • What do you love about working for McDonald’s?
  • What do you love the least about working for McDonald’s?

What do your employees love the most and least about your company?  These two simple questions asked at least annually can provide the insights you need to understand how to make your employees your best marketing advocates.

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Renting eyeballs or owning the customer platform?

raisedhands

Seth Godin nails the big, big change in marketing in his post, “The platform vs. the eyeballs”: it’s not about renting customer “eyeballs” by advertising in media, whose purpose is aggregating a big volume of eyeballs. And where you might get a .5% conversion rate.

Value comes from owning your own platform, e.g., a communities, blogs, and filling it with people who people who want to hear from you, and maybe getting 90% conversion rates.

Suddenly the new media comes along and the rules are different. You’re not renting an audience, you’re building one. You’re not exhibiting at a trade show, you’re starting your own trade show.

If you still ask, “how much traffic is there,” or “what’s the CPM?” you’re not getting it. Are you buying momentary attention or are you investing in a long term asset?

The challenge we’re seeing is that marketers are measured by old metrics, so they don’t have the time or interest to build a platform of fans.  The measure of big volumes still dominates — we have  40,000 page views a month, we had 800 people register, we had 4,000 people watch the video.

But, as Godin points out, this is momentary attention. To build interest and affinity, marketers have to give to get, constantly providing value in new ways to customers and potential customers.  They have to be more interesting to get interest.  This new fan-based marketing is expensive and hard work. But those companies who do it will ultimately realize much greater ROI on their marketing investments.

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