At Last, A Framework for Social Marketing Analytics

April 29, 2010

Thanks to the Altime­ter Group and Web Ana­lyt­ics Demys­ti­fied, we now have a frame­work for decid­ing how to mea­sure progress with social media mar­ket­ing — a draft model that’s worth talk­ing about. Both firms have intro­duced this frame­work with an explana­tory white paper on the co-authors’ respec­tive blogs. Coura­geously, they’ve done so under the “Open Research” model to gal­va­nize industry-wide com­men­tary and col­lab­o­ra­tion so the frame­work can be refined and extended.

Social Marketing Analytics Framework

Put It in Context

Their paper advo­cates posi­tion­ing this frame­work within a larger plan­ning con­text, so the social mar­ket­ing objec­tives align with the organization’s broader goals and KPIs. To me this is a key point, and one that’s often over­looked in the euphoric hype that tends to sur­round “social.”

If you nar­rowly mea­sure social media tac­tics with­out align­ing them to a larger strate­gic con­text, you’re just mea­sur­ing activ­ity. (That’s like mea­sur­ing reach and fre­quency in the old realm of adver­tis­ing.) The ques­tion is, how will those activ­i­ties help drive busi­ness results? How do they link to your most valu­able cus­tomers or prospects? Which influ­encers have the most impact on the peo­ple you care the most about?

Which are lead­ing indi­ca­tors, and which are trail­ing? Which mea­sures will drive action­able insights, given your strate­gies and key busi­ness drivers?

The authors of this frame­work are well aware of these issues; how­ever, the frame­work won’t achieve its intended pur­pose if it’s not set in the right con­text. That’s the job of the social mar­ket­ing team, with poten­tial help from their advi­sors; and it must be nego­ti­ated with the busi­ness– and line man­agers inside the enterprise.

Where This Frame­work Will Be Most Effec­tive, And Where It Won’t Be

Like the social media mon­i­tor­ing tech­nolo­gies them­selves, this model is best suited for larger, estab­lished orga­ni­za­tions, ide­ally those serv­ing gazil­lions of con­sumers; com­pa­nies blessed with house­hold brand names — or exist­ing mar­ket­places where con­ver­sa­tions among con­sumers or a company’s part­ner base are fre­quent, volu­mi­nous and well underway.

At their core these tech­nolo­gies require sig­nif­i­cant activ­ity vol­umes before under­ly­ing trends start to become appar­ent or pre­dic­tive. Sadly, if you work for most start-ups or new ven­tures, there’s less out there to be mea­sured and analyzed.

Sim­i­larly, if you’re in a highly spe­cial­ized B2B niche, you may find your­self strug­gling to find those nee­dles in the prover­bial haystack. Or worse yet, you may not know where the con­ver­sa­tions (sparse as they may be) are tak­ing place. Where the heck is that haystack, any way?

You’ll be chal­lenged when the most impor­tant con­ver­sa­tions take place behind “pay walls” that are inac­ces­si­ble to most of the mon­i­tor­ing plat­forms, unless (a) you own the pay wall and have the where­withal to help the plat­forms’ devel­op­ers troll your con­tent, and (b) their busi­ness model and tech­nol­ogy strat­egy enable them to do so. That said, this sort of cus­tomiza­tion tends to be costly.

Case In Point: SMB

Here’s what con­fronts a cer­tain 3-year-old B2B tech­nol­ogy start-up with rev­enues mea­sured in the tens of mil­lions. Before begin­ning a coher­ent social plan, this firm’s brand name (their com­pany name) aver­ages only 3 men­tions a day — and that’s before fil­ter­ing out the men­tions that have orig­i­nated from the com­pany itself or its employ­ees. No one is talk­ing about them, online at least. And yet, they’re gen­er­at­ing rev­enues. (There are other indi­ca­tors of mar­ket­ing fragility, which the com­pany has dis­cov­ered by ana­lyz­ing inter­nal data sources, such as cus­tomer spend­ing pat­terns and churn rates.)

b2b-startup-volumes

To be fair, this should be viewed as a bench­mark: the sit­u­a­tion pro ante, before they begin any social mar­ket­ing pro­grams. This com­pany has func­tioned with­out a mar­ket­ing depart­ment (or mar­ket­ing bud­get) for most of its his­tory, as you might sur­mise from this chart. (And yes, they’ve just hired a mar­keter, so hope­fully this pic­ture will look a lot more attrac­tive a year from now.)

It’s obvi­ous that one of their first chal­lenges will be fig­ur­ing out what their cus­tomers want to talk about, the issues on their mind, and where those con­ver­sa­tions are already tak­ing place — the con­ver­sa­tions out of “ear shot,” as it were. For­tu­nately, they have begun a real-world dia­log (by phone) to hear what’s on their cus­tomers’ mind.

But they’re not alone.

New Busi­ness Objec­tive: Discovery

This is an area where I see recur­ring lim­i­ta­tions in today’s plat­forms for social media mon­i­tor­ing: the early dis­cov­ery process for B2B markets.

This a painful and highly fraught phase: when you don’t know what you don’t know. And as most strate­gists rec­og­nize, it’s the things you didn’t know that you should have known that are most likely to kill the company.

So my per­sonal addi­tion to this frame­work would be a new row linked to a busi­ness objec­tive called “Discovery.”

The pur­pose of the “Dis­cov­ery” phase, which should pre­cede the “Fos­ter Dia­log” phase, is to uncover what peo­ple want to talk about, what’s on their minds, etc. This could help reveal unmet needs or latent oppor­tu­ni­ties that could be ripe for the right com­pa­nies, value propo­si­tions, ven­tures, non­prof­its, what have you.

A related goal is to dis­cover who is talk­ing or blog­ging, where and when, and what the gen­eral “social techno­graph­ics” pro­files are for peo­ple in this arena, as described on in Groundswell by Josh Bernoff and Char­lene Li, and on Forrester’s groundswell blog. (Char­lene is now a part­ner at Altime­ter Group, one of the two firms that spon­sored the research that resulted in this pro­posed social mar­ket­ing ana­lyt­ics framework).

And because this phase gen­er­ally occurs dur­ing the unfunded, or under-funded stage of a com­pany or prod­uct life­cy­cle, the tools and tech­nolo­gies avail­able here will have to be afford­able — or they will remain out of reach and under-utilized by the start-up com­mu­nity, cat­e­gory pio­neers, and other entre­pre­neur­ial innovators.

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Revised on June 4, 2010

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