Communities.cisco.com, on the other hand, gets it. A platform that contains more than 50 communities for Cisco’s partners, customers and employees, communities.cisco.com, also known as Cisco Communities, has almost doubled its membership and has seen a 50% increase in overall traffic in the last year. Additionally, Cisco continues to see measurable savings and efficiencies as a result of the program. Allison Johnson, Social Media and Community Manager at Cisco, who has worked with Cisco for 5 years and communities.cisco.com for the past year and a half, discusses the ingredients that make up Cisco’s recipe for success and the challenges of managing a successful global community platform.

Q: What is your role at communities.cisco.com?

A:  At Cisco I manage the communities.cisco.com platform in addition to driving social media and digital marketing across the company.

When working on the communities platform I oversee the entire program at a macro level. My team and I work on everything from identifying technical problems and scheduling the bug fixes as well as onboarding new teams and setting up the overall program structure. We work closely with the community managers to help them reach their individual goals as well as goals we have for the program.

Sometimes we joke around that in my role I’m essentially a community manager of community managers. Every day is different and I never know what hat or situation I’ll find myself in. A main focus for us is our long-term strategy. People forget that communities are a long-term commitment and it’s essential to align your long-term plan with corporate strategies and initiatives. At the end of the day, the most important thing I can do is give the community managers the tools they need to be successful.

Q: What’s your vision for communities.cisco.com and its business purpose?

A: We set both short-term and long-terms goals for the program. Our 5-year vision is to sustain and create a global community program that deepens relationships with partners, customers and employees. Getting there involves building out some of our core areas to make them more engaging and relevant. We’re in the process of a study to learn more about behaviors. Currently we added a social share functionality to the platform to encourage conversations that are happening in the social web to interact and share with our communities.

Q: Tell us about some of the success you’ve seen as you’ve worked toward that vision.

A: This past year we saw tremendous growth in registrations (more than 50% to more than 110,000). Overall that is one of our largest success metrics. Monthly, we capture metrics and do analysis on our platform. This past year we’ve seen a lot of growth. Ways we hope to continue this growth are building out case studies and best practice sharing modules from these growth spikes.

A more specific example can be seen in our Partner Community. This private space was built for our Cisco partners and we have seen it contribute to reducing travel and increasing the productivity of Cisco experts. These experts travel most of the time and have little time for face-to face interactions with our partners. Now these experts broadcast training sessions for partners on communities, which achieves the goal of deepening relationships with our partners.

The common theme here is that the Web 2.0 technology that communities use can positively impact the business by encouraging innovation, reducing travel costs, opening communication and open up resources. Another way we’re positively impacting the business is that we are capturing and sharing frequently asked questions and conversations within the community. We have a wider reach and we’re able to answer more than one person’s question online. If someone else has the same question it’s all right there with a paper trail.  Communities.cisco.com have proven to be a very transparent, authentic way to communicate so more than one person is able to benefit.

Q: Those are impressive results. What are some recent milestones you’ve reached in terms of overall traffic and membership?

A: Our membership a year ago was at about 74K. We are now at about 113K. In 2011, we saw more than a  50% increase in overall membership and traffic. And, we’re also happy about the response time we’re seeing. Support questions usually get at least one or multiple responses within 24 hours.

Q: What are a few best practices you can outline that have helped achieve these results?

A: Open and frequent communications are a must when you are working with a group this large. We have an open bi-weekly Community Manager meeting to serve as a communication platform as well as a best practice share and overall time to update one another on the various projects we have in the works. We set the agenda in advance and we have an area in our own Community Managers Community, completely dedicated to presentations delivered and communications relayed in these meetings. We encourage CMs to bring up topics they want to cover as well as set the agenda for future facing meetings. Not limiting ourselves, we also bring in our external networks.  I think it’s really valuable that we’re always willing to learn from internal and experts about how to best manage the platform.

Additionally, every community has an established and committed community manager. You must always have one point of contact for each space. This way that person can drive communications about the community and content within their space. It is also imperative that they manage the editorial calendar. This is another best practice.

Overall the CM will coordinate with campaigns in different parts of the organization to drive awareness. Some may also work with hired moderators to make sure questions are escalated to appropriate subject matter experts. They should be focused on the communities health.

Q: What is the biggest challenge ahead of you?

A: I’d say it is taking the platform to next level. As I mentioned before we recently added social share into the platform, but what else is out there? It will be a challenge making communities an easy go-to Web 2.0 tool. There are so many different ways we communicate day-to-day whether it’s Facebook, Twitter, e-mail or text messaging. It’s hard to make sure there’s one central place to go to. From a platform perspective, technology and communities will continue to evolve and it’s my job to monitor this space and help drive what will make communities a better platform and program, without losing sight of our goals.

 - Lauren Bittner, the author of this blog, is Senior Director of Client Services at Impact Interactions and has 10 years of experience with helping companies align their online community management efforts with their business goals.

HI to all the readers of the Impact Interactions blog! My name is Robert Hu and I work at Impact Interactions as a manager of client services and I will be blogging about my experiences with how we manage social media and reporting.

We have been using tool called Xcelsius for almost 2 years now and it has worked wonders for all of our clients. No more 50 slide decks which no one ever read. With Xcelsius, we can now put all those charts, graphs, and other visuals that we had to repeat in the PowerPoint deck for each category into one simple visual which the user can filter to see what they are looking for. This not only saves so much time but also gives a more coherent story about what is going on with the social media strategy. Instead of putting 15 slides of the same line graph for each region, we can have just one graph the changes depending on which region the user selects.

Another benefit of a dashboard is that it can display data from multiple sources. As shown above from our dashboard, the data from traffic, behavior, value, and listening are all congregated into one simple view. This means that if you wanted to view the number of Twitter followers for this quarter you would click on the traffic tab. You can then go to the behavior tab and analyze how many of these followers are retweeting your content and finish by calculating the worth for all these tweets, followers, and retweets in the value tab. This process does not just apply to one social media tool, all of your social media offerings can be displayed in the dashboard which allows you a easy way to compare the results of each tool.

So you might be asking with all of these tools being displayed at once how do I compare the ones i want? The great thing about a dashboard is that you can filter out data that is important to you, therefore one dashboard can be distributed to multiple levels of management. The first screenshot shows a typical graph in a PowerPoint presentation, there are so many lines that it becomes confusing which competitor is doing better. But with the filters in a dashboard you can easily display only the competitors that you want to compare your company with which makes visualization of the data much easier.

Simplistic, versatile, and aesthetically pleasing, dashboards are the future of reporting and offer an enhanced way to view your data and make decisions from all your metrics.

Click here (flash required) and see for yourself on how a social media dashboard can look like and please let me know your thoughts on your own reporting experiences.

In an earlier post, I wrote about the most frequent comments and questions that I hear from online community and social media managers when I attend events. Even though social media is a very hot topic today, many managers believe they could do better work for their companies if they had stronger internal participation, additional budget, and a stronger tie to important business objectives.

In our experience, this requires proving the value of your efforts through small wins that captivate your audience. You want your internal executive audience to say “Wow!” not “That’s nice to know, thanks.” Which gets you their attention and their support?

To get the WOW factor into your presentations, you must move beyond the “what went up and what went down” type of analysis and instead focus on the key executive level achievements for your efforts. That requires understanding business goals for the social or community project. Once you identify what you want to accomplish from a business perspective, you can build the measurement strategy to report on the achievement of the goal.

In previous blog posts, we’ve covered our measurement methodology of Traffic, Behavior, and Value. Using these categories of metrics, we develop interactive dashboards which bring the methodology to life for our clients. The idea is to make the numbers more than a spreadsheet or powerpoint chart. The first way to do that is to flip the way you present data from the building to the value style to the leading with value presentation style. If you cannot capture the executive’s attention in about 30 seconds, you’ve missed your opportunity in our opinion. That’s what makes the dashboard concept so strong. It catches the attention of your audience and encourages them to click around and learn more.

To see this in action, click on our sample dashboard: Social Media Dashboard v.2.0 (FLASH required)

Now go ahead and play. Click through the tabs, check and uncheck boxes, go to the WHAT IF link and see how changing your offering mix impacts your objectives… all of this is based upon feedback from executives as to what they want to see. We suspect that most would stay on the first executive summary slide and maybe click on the value slide.

By demonstrating a quantitative approach to social media and commmunities which helps achieve business objectives, you break through the dilemma by proving the value of your efforts. You can annotate the results with qualitative data points, user generated content which backs up your results, and plans for future projects. In the end, to achieve internal success you have to prove the value and interactive dashboards are one of the best ways to do this… just ask our clients Cisco and NetApp. We’ve built very successful dashboards that help them demonstrate the success of their efforts in social media, blogging, and online communities.

If you want to learn more about social media measurement, dashboards, or proving the value of social media and communities, please contact us or leave a comment below.

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!

by Matthew Lees

Part 1 looked at community-side metrics. This is the data you get from your community’s Web server log files, your community platform database, and any third-party analytics systems (such as Google Analytics or Omniture) that you’re using.

It’s also the data that you – as a business sponsor, community manager, or other stakeholder – likely have direct access to. And while it’s important information, it’s used primarily to help ensure the health of the community, not quantify and provide insight into business value. For that, you need to tap into business-side metrics.

Business-Side Metrics
These are the metrics that do show business value. Unfortunately, for most online community use cases, such data lives in places that you probably don’t have direct access to or control over. This is where the legwork and the relationship building that Mike Rowland referred to in the previous post come into play.

Where to look in your organization and who to build relationships with depends on what you’re after. Here are four common business cases for B2B communities, with an overview of their potential business value as well as mention of the relevant business-side metrics, location of these metrics, and people who can help you access and understand these metrics and what they mean for the bottom line.

1. Service and Support. Reducing contact center costs is one of the primary business goals of a community in which customers help answer each others’ questions and solve each others’ problems (via what’s often called “peer-to-peer support”).
Business-side metrics: number of incidents (by source, e.g., phone, email, chat, etc.), first-contact resolution, agent hours
Where the metrics live: contact center analytics system
Who to make friends with: not only the VP of Support, but also the manager who is the most fluent with the call center’s reporting and analytics

2. Product Development Feature Set and Road Map. Here you’re probably looking for (a) ideas for new products and services, (b) ideas for new features and functionality, (c) ideas around improving customer-facing processes (i.e., making it easier for customers to do business with you), and (d) the prioritization of these ideas. These ideas and their prioritization by customers can improve processes, reduce time to market, and give you higher confidence that your product road map is what your customers want.
Business-side metrics: number of customer ideas that are implemented; number of existing ideas that were validated by customers; time to market; dollar value of reduced time to market (can be a squishy number)
Where the metrics live: product tracking system; business process systems (ideally these all track the sources of ideas)
Who to make friends with: product development / R&D teams, particularly the keepers of the road map and features/capabilities lists

3. Customer Acquisition and Lead Generation. Communities are a great way for people to go beyond what they read on your Web site and in your marketing collateral, to get a sense of how people are using your products in the real world. So prospects are part of the community ecosystem as well as existing customers. A vibrant community full of helpful, engaged customers can be effective in moving prospects into your sales pipeline.
Business-side metrics: number of new accounts that came in through the community, new revenue from these accounts
Where the metrics live: CRM system or other sales tracking application
Who to make friends with: the sales team, particularly the sales operations manager who tracks sourcing

4. Customer Satisfaction and Loyalty. Numerous studies have shown that online communities can have a positive affect on customer satisfaction and loyalty. The tricky thing in demonstrating this for your own community is to separate out cause and effect. Communities can be self-selecting; your most satisfied and loyal customers are probably over-represented in your community. For them, the community didn’t cause their high level of satisfaction, for example. Any surveys you do to measure satisfaction and loyalty should take this into consideration.
Business-side metrics: survey results; customer satisfaction / loyalty methodology or system, such as Net Promoter Score (NPS)
Where the metrics live: survey results database; satisfaction, loyalty system
Who to make friends with: the marketing specialist who measures customer satisfaction and loyalty for your organization

Legwork and Relationship Building
You may have noticed that the business-side metrics are really just the ones that your organization and your colleagues are already using to identify and analyze business value. You’re just looking to apply and tune them towards quantifying their impact from the community.

Of course, while the methods may be familiar, it isn’t necessarily easy to compile metrics and estimate dollars saved and/or generated. A lot of it comes down to doing the legwork and building relationships with the right people. Ideally determining community ROI is at the top of their priority list as well as yours. It will take time and attention to come up with ROI hypotheses, test them using data you’ve tracked down from wherever it lives, analyze the results, revise your hypotheses accordingly, and iterate. Hopefully your colleagues become partners in these efforts.

So how do you build these relationships, make those allies, and get the information you need? We’ll leave that for another day. But experience shows that chocolate helps…

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.

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

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.

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.

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.