Social Media Monitoring
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Marius Alexander Premium Member16 Aug 2011, 9:20 pm
last week Susan Etlinger and Charlene Li published a new Altimeter-Report called:
==> "A Framework for Social Analytics":
In their mind, strategy and business objectives have to be focused first. After that one should think about Social Media Analytics, Metrics and KPIs. I support this view.
Moreover, I´m actually researching on the topic how to manage brands according to strategy by using Social Media Monitoring. Therewith, a theoretical foundation is laid for a further discussion. So, the basis of my Master-Thesis is a brand-related Balanced Scorecard. This gives us several advice how to measure business objectives. These brand-related marketing performance metrics are:
brand awareness, brand image, competitive positioning, price-performance ratio, consumer satisfaction, active and passive recommendation, number of complaints, conquest rate, brand loyality, churn rate, cross-selling-rate, rebut rate, share of wallet, number of customers, market share, customer value, price premium
What do you think, can we measure these metrics by using Social Media and Web Monitoring? Think about tourism and hotel brands!
I look forward to hearing from you!
You will find more information about my thesis here:
Prof. Dr. Urs E. Gattiker Premium Member Group moderator19 Aug 2011, 09:19 am
When I looked at the presentation I wondered, however, if a smaller company could manage such an extensive framework.
Put differently, we can measure anything and everything but should we.
I tried to simplify this a while back using a cost-benefit pyramid (graphic, video, etc.)
The presentation by Susan Etlinger and Charlene Li provides a lot of charts and talks amongst many other things (e.g., p. 5) about:
top = business objective
middle = business metric
bottom = social media metric
2009 Anthony Jan wrote a good one about the financial metrics challenge blog entry on the HBS blog:
He suggested that management must understand the difference between operating metrics and financial metrics - operating inputs versus financial ratios.
I then took this to develop it for social media analytics by saying:
Which key operating inputs are influenced by social media activities (e.g., Facebook Likes, pageviews)?
To relate this to Ettinger and Li's work we would focus on how do blog posts or webpage entries with FAQ or a customer online community help in reducing calls to the customer support line.
The operating inputs address the cost-benefit issue of the customer hotline but social media can:
- reduce number of calls to the hotline = operating metric
- increase customer satisfaction - when I need an answer I get help quick online... problem resolved
In conclusion, we do not have to re-invent the world (something consultants do so well) because the financial folks have already taught us a while back (after the financial crisis :-) ) that operating inputs and developing the right metrics will help to make better sense out of social media marketing issues.
For me this means that my company needs to focus on 3-5 metrics that represent the most important drivers of value creation. Once I have identified these (e.g., customer retention) then I need to focus on how social media can help improve these numbers.
The drivers affect financial outcomes and, thereby help me to better understand how to score!
What you think?
Marius Alexander Premium Member23 Aug 2011, 10:47 am
You´re right, I agree - this framework doesn't fit needs of an SME. Moreover, I think that this approach isn´t even capable for every multinational and every branch. Why? I link social media monitoring with brand management/controlling. So, my paper puts the brand strategy at the centre of consideration and focuses on brand vision, brand core, brand personality, brand values etc. From my experience as a designer many SMEs and some big companies do not provide these information. In addition it´s obvious that I have to focus on companies, products and services whose buying processes are largely affected by the Internet and eCommerce. Tourism and Hotel brands is a good example. User generated content like comments and ratings in travel review platforms (trip advisor, holidaycheck etc.) have influence on the choice of the consumer. It´s a brand-centric, customer based view.
As you said, we "must understand the difference between operating metrics and financial metrics" - I completely agree with that statement. That´s why I focused on an balanced scorecard approach. Strategy affects operations, operations affect finance. By that operating inputs are divided in six processes: product innovation, product maintenance, communication, price management, distribution and service and crm. Measured by brand metrics like brand awareness, brand image, consumer satisfaction etc. "What gets measured gets done": http://2.bp.blogspot.com/-XJw4oSgjpG8/Tkz7SV51kQI/AAAAAAAAAB....
Prof. Dr. Urs E. Gattiker Premium Member Group moderator24 Aug 2011, 07:43 am
Great to read your answer. I got thinking. Maybe you need to also make a separation between:
- quantitative monitoring (some call this social media monitoring)
- qualitative monitoring (some say this is netnography)
Robert Kozinets - Netnography - is a book addressing the qualitative stuff here:
WHAT DOES THIS MEAN
For me social media monitoring is both qualitative and quantitative and, therefore may include netnography. However, in your discussions I see primarily quantitative measures. Do I understand this correctly?
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