Moving Beyond Counts & Traffic – Social Media Measurement That Works

Lots of interesting research coming out on Social Media recently. We take note because the results and conclusions continue to demonstrate that measurement remains a high priority for executives, but what is delivered is not meeting their needs. Let’s take a look at some recent examples of companies surveyed about their social media efforts from a measurement point of view.

First a study from White Horse of 104 companies using social media shows us that when companies try to measure the success of their social media efforts, that very few (less than 15%) are able to get to an ROI for their work. They continue to use traffic and participation (we put that in our behavior metrics) to demonstrate success.

Here is another study which demonstrates a similar point, that companies are using social media traffic and behavior metrics as a measurement of success. This study completed by King Fish Media in June 2010 has great information; unfortunately, it reveals that while many companies say that they have a social media strategy in place they don’t understand how to measure its results.

Perhaps it is the way the research is presented versus the actual question asked, but when you read the measurements used for value they are not representing economic value in most cases. Rather, marketers and others measuring social media continue to focus on representing traffic as some sort of proxy for value. Worse, many still believe that the number of followers on Twitter or fans on Facebook is a valuable metric to use to demonstrate value. They couldn’t be more wrong…

Even the famed Guy Kawasaki is promoting an idea that the more followers the better during a TweetChat on MarketingProfs…but his perspective is the larger the audience from a sheer numbers perspective the better your results will be. In our experience, that is just not true. We see that the more QUALIFIED followers you have, the better your results MIGHT be.Why? Because the value of a follower is zero until they do something that brings value to the organization. If all they are doing is following and never taking action, can you assign a value to them? We think not. Have you analyzed your followers? How many are customers? How many are prospects? How many are competitors? (How many have followed your account to simply build their own counts through an auto-follow?)

So where does all this lead? Well, if you are attending theiStrategy meeting in Chicago on September 15-16, we’ll be there to address this issue. I’ll be presenting this topic on the morning of the 16th to the attendees.

I’ll demonstrate a stronger methodology for using a more integrated approach to your social media efforts which allows you to focus only on the metrics that really matter… those that lead to economic value for your organization.

For those of you who cannot attend, the presentation will be added to our social media resource center after the meeting ends. For those of you who are attending, please bring your questions!

Back to the blog

Determining Online Community ROI (Part 1: Community-Side Metrics)

by Matthew Lees

In recent months my research, writing, and client work has (happily) focused on one of the hottest topics in social media…calculating ROI. For a variety of reasons, determining quantifiable ROI of social media programs and online community initiatives presents a variety of challenges. There’s nothing new in this statement; people have been trying for years to make it easier to figure this out. But ROI keeps fighting back. It’s getting to the point, though, where business executives will be expecting a more quantified understanding of the impact customer communities, for example, are having on the bottom line. Knowing that it’s “the right thing to do” from a customer-centric perspective isn’t going to cut it much longer.

One of the challenges is the fact that some (or even most) of the information needed to measure ROI isn’t in a convenient location.

Last year in a post called “B2B Communities – What Works,” Mike Rowland discussed a handful of essential best practices for B2B communities. He wrote: “You can measure the ROI for B2B communities, but you cannot get there by using only community software metrics and/or web analytics packages like Omniture or Google Analytics. None of these provide true value metrics that have an economic value associated with them. To get to ROI, you must build relationships within your organization so you can obtain real data on customers, leads, ecommerce transactions, etc.”

Right on, Mike. To get at community ROI (whether for B2B, B2C, or any other type of community), you’ve got to track down data from several sources – particularly from sources that you probably don’t have direct control over or access to – which takes building relationships, making allies, and a bit of legwork.

Community-Side Metrics
The relatively straightforward part of the legwork compiling the data you do have direct access to. This is the information you can get from log files, your community platform database (often through an analytics dashboard), and, if you use one, a third-party analytics package (such as Google Analytics or Omniture). The types of things available from these community-side sources include:

•    Traffic and Usage. Pages served, page views, visits (and unique visits), time on site, etc.
•    Membership. Total members, new members, active members, reputation and ranks, etc.
•    Activity. Posts, comments, ideas, invitations, votes, ratings, subscriptions/notifications, downloads, views (e.g., of video clips), time between posts, etc.
•    Search. Both quantity of searches and specific search terms (such as top 20 search terms)
•    Other. Moderation (e.g., moderator touches), referrer pages, etc.

Ideally you’ll be able to break down this data based on important parameters, such as time and location within the community. For example, you’ll probably want to look at the all-time number of members, as well as the number of members over a given time period (typically week-over-week or month-over-month). And you may want to look not only at total pages served within the community, but also at pages served within particular areas (such as forums, blogs, idea sites, and so on).

Community-side metrics can be very useful, but, as Mike wrote, they don’t illustrate economic value. At least, not in and of themselves. They’re certainly useful in terms of knowing whether or not the community is healthy (three consecutive months of decreasing page views, for example, might tell you that something is wrong), but they only get you part of the way toward determining ROI.

Up next…building relationships and doing the legwork to identify the business-side metrics that get you the rest of the way there.

Back to the blog

Gaming the System – Why Follower Counts Don’t Represent Influence

In December of 2009, I wrote about Misleading Indicators – Followers and Friends after seeing a tweet from Jeremiah Owyang of Altimeter Group. In that post, I explained why follower or friend counts do not represent a metric of influence nor should they be utilized as a relevant metric of importance. After several good comments as well as several emails to Impact Interactions giving me grief for disputing one of social media’s closely held beliefs, I decided to run an experiment on gaming the system.

My basic premise was that these counts are a false statistic which like placing value on “hits” in web metrics analysis leads you to focus on the wrong metric of your activities. Want to increase “hits”? Add more photos, widgets, content blocks, etc. to each of your pages. Each one adds a hit each time the page is opened. You can make the hit count be anything you want simply by adding more items to each page. In 2000, most people didn’t understand that aspect of the measurement so they used “hits” as a proxy for visits or even for influence of their content and site. We still have companies that talk about “hits” when they approach us about measurement. It’s a lasting issue that has thrown a lot of folks away from the important issues in measurement.

There have been several blog posts written about how to game Twitter to gain followers in order to look more important than your competition.  One of my absolute favorites is from Chris Cree of Success Creeations. His blog entry “How to Game Twitter to Add Thousands of Followers Every Day” should be mandatory reading for all social media marketing professionals. It spells out how you can game Twitter, but also why that is such a bad idea. So with that advice in hand, we set up a little experiment using free tools to game the system.

The Experiment Begins

Using a tool we won’t name here, we were able to almost double our number of followers for our @impactinteract twitter account in five days. Granted we were working from a small base, but the results show how easy it was to pull off. So let’s go to our experiment.

We started last week with 143 followers who found us either from our website, our efforts on LinkedIn, our speaking engagements, or organically from our tweets. We were following 43 members who were mostly our competitors. On Monday, I signed up for a free demo of one of the many tools which advertise that they can add followers quickly. By using the key words of “Social Media” and “Online Community” the tool returned over 700 accounts on Twitter that had potential for us as followers. These accounts had either tweeted the key words “Social Media” or “Online Community” in the past ten days. Sounds good so far right?

The tool then allowed us to follow the accounts in order to grow our followers by getting their auto-follower to reciprocate.  The demo of the tool we choose allowed us to generate up to 250 new followers before we would have to buy a license. So we started the process using the tool of following 250 accounts. It was fast and painless. In the fifteen minutes it took to follow these accounts, we were able to work on other activities. Once the 250 follows had been accomplished, we waited about a day and then unfollowed any account that didn’t auto-follow us. Over the next several days, we repeated the steps. Here is the table of our activities:

 

To keep everyone who autofollowed us aware of what we were doing, we tweeted a message several times during the experiment that stated:

We are testing a few of the tools that advertise that they can build your follower base for an upcoming blog #socialmedia #Twittermarketing. 

The idea was that if the new followers actually read our tweets they would also know what we were doing. That way they could unfollow us as quickly as they auto-followed us. Incredibly only 9 new followers over the course of the week unfollowed us. None sent a direct message about what we were doing. So in a little over a business week, we came close to doubling our followers. Total time including the time to download and set up the tool was about 2 hours total.

“Ah ha, the tool worked!” you might be saying to yourself. But did it really add followers for our corporate Twitter account who might spread our message and help us grow? Let’s take a look and find out if our tweets on social media and online community news and trends, as well as our company news is really relevant to our new found followers.

Of the 136 new followers, 14 (10%) sent the same auto-messages to me about making money on my tweets:

MAKING MONEY for your Tweets? I am. Making 20 daily on autopilot. Make money too – TODAY! http://bit.ly/xxxxxx Thanks for following

Another 9 (6.7%) sent an auto-message inviting us to join their multi-level marketing scheme or affiliate marketing network:

Thank your for following me at http://bit.ly/xxxxxx. We’re looking for affiliate marketers to help us. Do you know any?

Welcome to AffilBits! Want to know how to get thousands of targeted Twitter followers and earn a 50% affiliate commission at the same time?

Two follows were from famous and semi-famous people: Emma Watson of Harry Potter fame and a porn star.

12 (9%) new followers were from two unique members who used multiple accounts, but the same photo.

So out of the 136 new followers, we found 37 (27%) were not, nor would they ever be interested in Impact Interactions.

Influence scoring of our new followers shows the truth in the fallacy of follower counts. We used a scale of 1 to 5 to rank our new followers in regards to our ability to be influential with them or in their networks. A score of 1 means Impact Interactions is not potentially influential at all, 2 means probably not potentially influential, 3 means neither potentially influential nor not influential , 4 means somewhat potentially influential, and 5 means Impact Interaction is potentially influential. (And yes, we understand that this is not scientific because we are making the judgement. But how many people on Twitter really analyze their follower base on an individual level?)

Our influence score would be 1 with the group of 37 detailed above.

But what of the other 99?

We reviewed their tweets over the past ten days to see if these would really be good followers for us or not. What we found was 65 were simply folks who had retweeted someone else’s message about a social media topic. They were neither working for companies involved in social media or online communities nor were they particularly interested in the topics based upon analysis of their tweets. In fact several of the members were serial retweeters. We went back through several weeks of tweets and never found a single tweet that they created. So our influence score for these twitterers would be a 2.

There were 7 new followers who are in the search engine optimization industry, another 20 who are potential competitors or individual consultants trying to find work in the social media industry. The influence score for these followers would be 3.

The remaining seven new followers were blog publishers creating newsletter style blogs of others’ content around social media and online communities. They were linked to content aggregation sites rather than competitors. As these sites could potentially help us to influence their readers, we gave them an influence score of 4.

There were no members of our target audience of corporate social media or online community management staff amongst our new followers.

The weighted influence score for our new members was better than we expected at 2.02 (meaning Impact Interactions is probably not potentially influential to this new group of followers).

So, does our newly increased follower count mean that we’re more influential in the social media and online community world? No, it does not. You shouldn’t be impressed with the number of your Twitter followers either. With the set of tools available today, you too can gain thousands of new followers in days. But those followers won’t buy into your view of the world or your brand. In many cases those counts have been culled from the Twitter Borg, not from an audience that cares.

Organic growth of your audience builds an audience that actually is interested in your message or company. Use your content, flair for creativity, and on-target messaging to grow your followers. Include your Twitter account information (@ImpactInteract) in your email and other outgoing communications. Your influence will be stronger, even if your follower counts are smaller. Bigger isn’t always better, but don’t buy into the myth that more followers equals more influence. If we don’t put an end to this measurement idea, we will be having the same discussion in five years that we do with “hit counts” today, more than ten years after it first came up. 

To all of you who began following us during the experiment, thank you for taking part. If you wish to unfollow us, we’ll understand.

Mike Rowland, President

Back to the blog

Misleading Indicators – Followers & Friends

Saw this on my twitter feed yesterday:

What immediately struck me was the implied assumption that the number of followers you have infers a level of influence. In our opinion that’s a risky assumption to make especially if you are going to make a business decision using this as a key metric.

Here is what I sent back to Jeremiah via DM:

Let me translate my Twitterese….

The number of followers is not a direct measure of influence. Too many ‘experts’ in the social media field believe that it is and continue to sell this notion. I can quickly and easily increase the number of my followers using hashtags and keywords that are popular. Yet that doesn’t necessarily mean that I am a stronger influencer than I was with a lower number of followers.

Those folks with a larger number of followers should not necessarily receive special treatment from brands. The number of followers or friends a person has on Twitter or Facebook really has minimal bearing on their actual influence. (I know that’s a bit heretical, but I’ll get to the why in a little bit.)

• How many people have used the various advertised services to build their followers rather than organically growing their followers by posting relevant content and ideas?
• How many people send an invite/friend request/twitter follow to every email address they have expecting the ‘polite’ return linking/friending/following behavior?
• How many of the top people in terms of followers have a large brand behind them, providing follower building support? (Example, if you only tweet about HP or Oreo Cookies you’ll develop following due to the power of the brand not necessarily because you are a thought leader in the space.)

Because these numbers can be manipulated, they are not to be trusted as a direct metrics proxy for influence.

The example that I use in our social media workshops uses a metric that everyone thought was a useful metric way back when in 2000-2003: Hits. The logic at the time was that the more hits there were in a given period of time, the better the site was in meeting its goals. But alas, this metric could be easily manipulated. Want more hits? Add more banner ads, objects, photos, etc. to the page. Voila! Higher counts so more success, right? Well, not really.

Follower counts are the same as hit counts. Look at some of the top people on Twitter with 5,000+ followers. If they are focused on a single topic, they probably do have influence. But most people are not that focused, tweeting about business, sports teams, their family, current events, pets, politics, etc. Do these folks really have a sphere of influence that marketers can embrace and attempt to cultivate through the Twitter Celebrity? Hard to tell.

The idea of identifying influencers in an easy to understand and quick manner has been a search for the holy grail since online communities started becoming more popular in 2000. At Participate.com, we hired smart people to analyze metrics and activities to develop relevant networked connections that indicated a level of influence within the community.  We used the new techniques of social mapping as well as relationship metrics of interactions. The work was never easy and it never gave a true understanding of influence. What did give some insight into influence, was looking to see how others interacted with the individual, not how many individuals read his or her content.

For marketers, a better way to measure influence is to analyze the content being added on Twitter in conjunction with analyzing who the person’s followers are. This is a tough, manual project. But in the end, you’ll have a much better understanding of whether or not a particular individual with a high following is actually an influencer.

As much as we want one, sometimes there is no holy grail. Using simple metrics as proxies is not a substitute for the hard work that data analysis takes to prove a hypothesis. Don’t fall for the trap of taking the easy way out.

Have a different opinion? Please share your thoughts with us in the comments’ section.

Back to the blog

Social Media Metrics – Driving to Value

We’re members of the Online Community Research Network and recently received the latest report on Community Metrics derived from a survey of the membership. While we’re happy to see a lot of progress in the responses about tying measurement to business objectives, we continue to see confusion about measuring value. Over the past ten years, we’ve developed a methodology that can help online community and social media managers structure their reporting in order to focus on the value their efforts produce in terms of business objectives.

Looking  at the report’s question #12 (Were your community’s metrics created in support of your organization’s broader business goals or were they created independent of a corporate business?), the following responses were given:

• 47% Created to support existing business goals
• 31% Created independently but helping refine existing business goals
• 22% Neither of the above (summarized from three additional responses)

Looking at what metrics the respondents use to support or refine existing business goals provides insight into the confusion over what constitutes value in online community and social media efforts.

Question 19 asked “What are the three most important community key performance indicators (KPIs) in the reports you send to upper level management?” The answers are a startling contrast to the answers to Question 12:

1. Number of Page Views or Clicks
2. Number of Site Visits
3. Number of Unique Visits

Why are these responses startling? Because the metrics are traffic metrics not value metrics. These are base level metrics not KPI worthy metrics for upper level managers. (In fact, three of the top five metrics measured as detailed in an earlier question were traffic metrics too: Unique Visitors, Page Views, and Visitors. Only two were not: Registrations and Posts.)

What these two questions’ responses demonstrate is that the respondents are still struggling with determining value from their community work that truly builds into measurable business objectives.

When asked about ROI, 71% of respondents confused engagement and traffic metrics with value. Only 29% correctly identified a tangible value metric to use in measuring ROI.

To provide a little clarity in reporting metrics, let’s look at how Impact Interactions’ reporting methodology can help. First, our categories are structured as follows:

• Traffic - The basic building blocks that measure “How Many?”
• Behavior – The second level of metrics measuring conversion and engagement
• Value – The highest level of community metric where the activity has an economic or dollar value associated with it (This is what management really cares about!)

Some of the actual metrics that we use for clients are as follows:

1. Traffic - Unique Visits, Unique Visitors, Page Views, etc.
2. Behavior- Page Views/Unique Visit, Page Views/Unique Visitor, Active Members/Unique Visitors, New Registrations/New Unique Visitors, Total Registrations/Total Unique Visitors, Downloads/Registered Member, Content Added/Registered Member, Content Added/Unique Visitor, Downloads/Unique Visits, Full profiles completed, Referrals from Twitter/Facebook/YouTube, etc.
3. Value – Number of successful customer support resolutions in the community, Total Contact Sales Inquiries/ Total Unique Visitors (or Registered Members), Total Leads Qualified/Generated, Product Referrals, Positive Product Reviews as a % of Total Product Reviews, Direct Revenue Generated from Community Activities, Length of Sales Cycle for community member vs non-member, Average Purchase Size/Frequency for community member vs non-member, etc. 

Take a look at those metrics again. The first two categories of Traffic and Behavior can usually be obtained using the platform’s tools (like Jive, Telligent, or Lithium) or through your web analytics’ tools (like Google Analytics, Omniture, or WebTrends). The Value metrics take a little more work. In fact, to really be able to perform a realistic ROI calculation, you will need to get help from outside the community/social media area of your organization.

To derive an ROI related to marketing objectives from a community, you’ll need to access your CRM system. For a support ROI, you’ll need to know the cost per interaction in complementary/competitive areas such as a call center. The standard tools won’t get you there, you’ll have to build relationships within your organization in order to really build a solid analysis that ties back to business objectives. An ROI model built on traffic will contain far too many holes to be useful.

We’ve been helping our clients with these issues and have developed a strong set of best practices that can help you succeed in your reporting. Please feel free to share your insights into this issue and ask questions about reporting and analyzing your community and social media efforts. We’re happy to answer them and help reduce the confusion.

Back to the blog

Social Media Monitoring – Man vs. Machine

I’ve been reading several tweets and blog posts about how social media tools such as Radian6 and Scout Labs are gaining traction in the enterprise. That’s not a surprise given the interest in protecting your brand online and uncovering loyal enthusiasts.

In our early Web 1.0 days, we used to do this manually for SAP. Back in 2003, we monitored  competitor communities for SAP related content. In 2004 when blogs started to catch on, we found information on several blogs where we could help SAP extend its online reputation.

Now in the wide open Web 2.0+ days, many folks believe that there are too many sources for an individual to keep up with from a monitoring perspective. Many attendees of the recent Online Community Unconference held in June asked our team for our thoughts on sentiment analysis, brand monitoring software, and on brand defense issues.

Our thoughts? Simple, the tools are still evolving and are not quite there yet. For example, the leading criticism of these tools that we have is that they cannot account for context in their analysis of sentiment. Sarcasm is missed. (Of course, no one is really sarcastic in their social media posting are they?)

That’s why you need someone who understands your business to help manage the sentiment analysis and the content it identifies. Social media monitoring is still a bit of an art form. The tools are and will continue to get better, but human interactions require human analysis too. This is something that all brand managers should be doing on a regular basis, even daily for larger brands.

Want to get started with social media monitoring? It’s easy and it’s free. Use Google Alerts, Technorati, Keotag, and BoardTrackerto start. These are all free applications that do a very good job in getting you the content you need to analyze.  But analyze it you must (in Yoda-speak) because it still takes a human to understand the content.

If you’d like to learn more, leave us a comment or contact us. We’re happy to help.

Back to the blog

Online Community – Moving Beyond Metrics to ROI

We gave a presentation on building ROI models for online communities at the Online Community Unconference in Mountain View, CA on June 10th. It was added because so many of the participants stated that ROI and calculating the value of their community was the most important issue they faced.  So, we didn’t have time to build a true presentation, but rather lead a workshop for participants to learn more. It was lead by our president, Mike Rowland.

Here are the summary notes taken during the session:

• Have to first identify what is the economic value of the community to the organization offering it: (Don’t confuse traffic or behavior metrics with value)
  • Cost Avoidance
  • Increased subscription rates or lower churn rate
  • More frequent purchase rates
  • Higher purchase level/amts
  • Faster close for large item sales
  • Reduce lead generation cost
• Once you’ve identified your value metrics, break down your metrics into 3 buckets to look at communities:
  • Traffic – PV, visits, visitors, etc.
  • Behavior – What they do when the get there, who they are, download/visit, contribution/member, responses by employees vs. customers
  • Value – can attach an economic value to it. Need $ to get to a true ROI model. See above list.
• You have to build relationships w/ the folks in your company. Need access to other systems. You cannot build ROI from community analytics provided by software vendors or from traffic and behavior metrics alone. 
• ROI Frameworks:
  • Cost Avoidance
    • The person who proposes the question needs to verify the answer. This is a feature needed in the platform.
    • # of community support resolutions X $ complimentary support resolution (1-800 number) = total cost avoidance -> economic value
    • Track over set period of time (e.g. quarterly or yearly)
    • ROI = (total economic value – total costs to set up and run forum) / total costs –> over one period and as a percentage
  • Increased subscription or reduced churn
    • Customer database compared to community database
    • cust. database = Average churn rate (e.g. the number of months the avg user subscribes) X price/subscription = customer value
    • Community database – look at active members and see if the churn rate is better or worse.
    • Price will be the same, so you’ll have to see if the churn rate was more or less. If subscriptions are longer, than you have a higher customer value for community members.
    • Shows you slowed the churn rate down.
  • More frequent purchase or Higher Purchase level/amts
    • Use your eCommerce DB or CRM system
    • What is the avg amt customers spend/purchase?
    • go back to comm DB and parce out active members and compare to ecommerce DB (which ones spend more/purchase?)
    • Do comm members have a higher spend/purchase? active comm users X avg $ they spend = economic value
    • Need to trend this and see how it fluctuates.
    • what is the average number of items in completed shopping activity? (e.g. 1.6 items) Do comm members buy more?
    • Avg cost/item X avg # items = economic value
  • CRM decrease cost
    • Want to find what avg value of customer is
  • Faster close of sale (Good for large purchases like software or hardware systems)
    • How fast are organizations moving through your CRM system to sale?
    • Identify active organizations in community DB to compare them to avg organizations.
    • How long does it take the avg. organization to go through sale stages? What’s the cost/sale? Do active organizations in your community go through more quickly and spend more?
  • Lead generation cost
    • Similar to above, but use cost to generate a lead for average customer versus those which originate in community/social media campaigns
• How can you tell if a user came to your comm and then bought your product through a 3rd party reseller? You can’t unless your resellers provide access to their databases which is next to impossible to get.
• Users of support communities become brand neutral after their issue becomes resolved.
• Hidden costs of community for ROI Analysis, make sure you count these:
  • Servers
  • development costs
  • customizations
  • widgets
  • maintenance
• Make sure that you are amortizing your costs across the same time period as your economic value or you will skew your results.

One point to remember is that the value of communities really is derived from active members, not all members. So define your active members with criteria that meet your behavioral key performance indicators (KPIs). For example, an active member can be someone who posted in a forum, downloaded a featured whitepaper, uploaded content, or viewed a webcast in the past month. For B2B especially, it doesn’t have to be an activity within the past week as most B2B community members average 2-3 visits per month unless they are deep into the sales cycle.

The number one issue to watch out for when building your ROI framework is the use of proxies. If you cannot get the data, don’t guess at a proxy for the value because the more proxies you utilize the bigger the house of cards that you build.

Lastly, value can be a set of different items. For a subscription based community value can be both churn rate differential and purchase levels. ROI is not a single value formula, it is a multiple value formula in most cases as there is marketing value in support communities and vice versa. So make sure that you are at least attempting to capture as much of the value drivers as possible in your analysis.

Want to learn more about online community or social media ROI? Contact us today or leave a comment.

Back to the blog

B2B Communities – What Works

We gave a presentation at last week’s Online Community Unconference (site is open to the public as of June 19th per Forum One) in Mountain View, CA on B2B Communities. We weren’t surprised by the number of attendees looking to learn more about the best practices for running a B2B Community, but were surprised a little bit by some of the misperceptions on managing them.

Top Best Practices for B2B Communities:

1. B2B Community Members have higher expectations than B2C members. You must engage with them as they want to engage with your company just as much as they want to engage with their peers.
2. B2B Communities require internal SMEs to engage early and remain committed to meeting member needs until external SMEs can compliment the internal SME efforts.
3. Third party applications like Twitter and Facebook should not be used as external competitive communities, but rather should be utilized as beacons to drive traffic to your community and key information.
4. You can measure the ROI for B2B communities, but you cannot get there by using only community software metrics and/or web analytics packages like Omniture or Google Analytics. None of these provide true value metrics that have an economic value associated with them. To get to ROI, you must build relationships within your organization so you can obtain real data on customers, leads, ecommerce transactions, etc.
5. When budgeting for B2B communities, be realistic. For example, no single vendor of software or web design or implementation services will ever come in exactly where they quote when you want additional features or customization. So build a small cushion into your budget to be safe.
6. To attract business decision makers, you must focus on how they will use the site… not how you want to market to them.
7. The higher the level within an organization your potential members have attained, the lower the amount of time they will have to spend on your site. So don’t waste their time!

In short, B2B communities can deliver impressive results when managed properly with a focus on those segments who deliver the value to your organization. Don’t be all things to all people, that strategy is doomed to fail. To learn more about the best practices for B2B communities, please download our presentation , ask questions in the comments area below, or contact us.

Back to the blog

The New Reality – What It Takes To Get Hired In Social Media

The economy is tough, but social media keeps growing. Impact Interactions is growing this year and once again is adding staff. We’re also trying to help those impacted by the economy and those coming right out of school to understand what working in social media is really like.

From our experience, here is what it takes to get hired:

• A focus on business skills like written communications, presentations, and statistics
• Understanding of how businesses operate from a financial perspective
• A basic understanding of Marketing, eCommerce, Advertising, and Sales
• Experience as a team member who’s used the power of collaboration to help everyone succeed
• A positive attitude
• A “relaxed” professional appearance (you know what business casual means)

Did you expect that?

Notice what’s missing?

That’s right, you do not have to be a Facebook addict or have 2,000 followers on Twitter or 500 connections on LinkedIn. You don’t have to know how to build a widget to update a user for when the top 20 members are on the site. If you use Tweetdeck, great. If you have no idea what it is, no problem.

Yet, when we give career talks, advice to job seekers, and interview our own candidates they focus on their Facebook or MySpace skill, the number of followers they have on Twitter, or what online community they use. What are we focused on? Simple, can the candidate learn our business while building strong relationships with our clients? Can the candidate make the client look good while understanding that he or she will be in the background?

Afterall, Social Media for all its wonderful claims of revolutionizing the world is really just another set of tools to increase the efficiency of business in meeting their goals. Direct mail, robo-calls, telemarketing, advertorials, infomercials, email campaigns, listservs, click-to-chat, click-to-call, and other marketing tactics helped businesses gain efficiency in their marketing efforts. Social Media is doing the same thing. The underlying principle is to use the correct tool set to engage your customers in a way that benefits both sides of the relationship. (It really is that simple.)

But you have to understand and like business for business sake. Because Social Media is not all about playing with the latest cool technology, it’s about getting results. No results equals no budget.

The great push right now is to find employees who can help companies understand social media and measure the results of their efforts. Think about every online community, web 2.0, or social media conference you’ve attended or read about… what is the one area that is always a topic of interest? Measurement and monetization.

Success in Social Media requires a focus on results, thinking strategically and executing tactics that achieve tangible results like additional sales, reduced marketing costs, faster velocity of sales, reduced lead generation costs, reduced support costs, etc. There are so many people who want to work in Social Media today, but few are willing to demonstrate their business acumen to get the position. We saw this in the late 1990s in the online community world, again in around 2003 with the blogosphere, and yet again in 2005 with the early social network companies. And here we are almost ten years later with the same issues.

So do you want to work in Social Media? My advice to you is brush up on your business skills first. Worry about your number of followers on Twitter later.

What do you think? What skills do you think it takes to work in Social Media?

Mike

Back to the blog

Online Community Unconference East 2009: The More Things Change, The More They Stay The Same

At last week’s unconference, I noticed that many of the questions asked throughout the day repeated one another. Veterans in the online community world noted that the questions we are asking ourselves today seem to be the same ones that we have been asking for the last 10 years. One woman who had attended last year’s Online Community Unconference brought up an old expression to describe it, saying, “The more things change, the more they stay the same.” I find this to be very true of the knowledge base in the online community industry. Even though communities and other social media are relatively new, their core elements are not so new at all. Online communities are just a new platform that allows people to build relationships and interact with each other, just like people have been doing since the dawn of time.

 

 

In order to really understand social media, you need to understand the social part of it. And while some people may tell you that the social part means just letting all of your members do whatever they want, I believe it is much deeper than that. It is about using our knowledge of human desires, feelings and behaviors in order to build a community in the truest sense. Successful “real world” communities don’t allow their members to do whatever they want, do they? To be successful, whether IRL (in real life) or online, communities need to have a specific purpose with regulations that help people to fulfill that purpose. Governments, school systems, the workplace, family, and friend groups all have specific functions and have guidelines (explicit or implied) that are built around fulfilling those functions. Prosperous online communities are no different. The people involved in online communities are the same people involved in outside communities. These people need structure, guidance, and freedom all balanced perfectly in order to make online communities as valuable as other communities and to make people want to be a part of them.

 

 

I found it very interesting when Scott Moore hosted a session called Psychology For The Community Manager. He took psychology principals on human behavior and analyzed them, explaining how these principles relate to behaviors in online communities as well. One example he gave was the Bystander Effect. This principle states that people are less willing to offer help to someone when others are present. This is because people tend to feel like someone else should be the one to do it, or because they fear that they will be judged on their actions and instead do nothing. Applied to online communities, Scott gave an example of how the degree of community moderator involvement can greatly affect the extent to which members help each other. If members feel like the moderators are ever-present and that they will do everything, then members are not as willing to solve their own or other people’s problems. The lesson here was that while your moderators are essential to communities, managers need to be aware of their impact on the member engagement and shape the community norms so that members will help each other to a reasonable extent and turn to moderators in advanced cases.

 

 

I am surprised that more people don’t connect the world’s knowledge of psychology and sociology to online community development. Oftentimes people who build online communities take the stance that social media is brand spanking new and that everybody is experimenting and learning everything from scratch. While there are aspects of social media which are a definite departure from many traditional corporate viewpoints, there is no need to start with a blank slate. That’s one of the reasons why people are always asking the same questions year after year. Instead, follow Newton’s lead and innovate by standing on the shoulders of giants. Utilize existing resources and tap into the knowledge of those who have been there before you. Then you’ll be years ahead of everyone else.

 

 

Jeremy Latimer

Back to the blog