Managing Customers and Social Media ROI Flashcards
Social interactions take place on a one-to-one-to-many basis, meaning
the way in which the interaction is resolved can impact directly on brand sentiment.
A customer service agent dealing directly with a customer on Facebook is engaging in a personal interaction with a public audience. It’s easy and logical for customers to want to
share socially about their service experience afterward, too.
Key benefits of social CRM are that it enables a business to:
- Deliver customer support in the online platforms customers use
- Interact and engage with customers in real time
- Resolve issues speedily by monitoring social media for complaints
- Find and reward brand advocates and customers who help others
- Get greater exposure in the places where audiences spend their time
- Increase engagement and deepen relationships with customers
Create a dedicated customer service channel on social media
For example, create a Twitter account specifically for customer
service
Add an option to your FB Messenger chatbot
Use social listening to monitor brand buzz and to act on it
Build an online brand community and invite your customers
to participate
Present the social media intervention as a way to help
the customer service department meet its objectives
Customer service objectives
Call volume, call time, calls handled, cost per call, resolution
rate, and hold times for a call center
Time to resolution, response rate, time to response, and the
number of interactions before a resolution for other
organizations
How to Measure ROI for SMM?
What you’ve spent
The sales that resulted (or business outcomes that
can be quantified)
Barriers for ROI Measurement
No industry standard
Confusion between measurement and monitoring tools
Social media silos
Path to conversion with many touch points
Attribution
Your (disintegrated) software systems
There is No Standard ROI Measurement
The measurement changes from company to company, and
even from campaign to campaign
Manager-level metrics vs. executive-level metrics
Inertia to learn new metrics
What is easy to track versus what is linked to sales
Correlate the trackable social media metrics with measures
that executives care about: sales volume, revenue, and costs
A tool can measure ROI only if
it actually connects to the system that
can track revenue.
Monitoring tools are platforms for
scanning social media networks and
websites for related conversations
Engagement tools are platforms for
publishing and replying to status
updates
Measuring tools are
platforms for tracking the success of your social
media efforts that tie into conversions and provide reporting
Social Media Silos
A starting point: to present social media alongside other marketing channels including Online advertising Offline advertising Search engine optimization Public relations Events Direct mail Email marketing
The roles played by different channels
Initiate
Assist
Complete
Difference between ROI and Attribution
ROI is a measure of how much you earn based on how much
you spend
A dollars-and-cents measure of the return per unit investment
Attribution assigns value to the channels/venues/campaigns
that drove an outcome, whether it is revenue-related or not.
Often involves working backwards from an event and figure out
what channel(s) get the credit for that event, and how much
Software packages marketers use are
separate and do not talk
to each other
Create measures that take a bird’s-eye view
Can’t pass data back and forth across systems easily
Integration is needed to tie actions at individual customer
level
To understand what the path to conversion might look like
List all the marketing communication vehicles a prospect could
touch during the path to conversion into a customer
List all the marketing communication vehicles a customer could
take throughout the customer life cycle
How do we track full campaign history for prospects and
customers?
Identify possible touch points in the campaign
Integrate the campaign history into the CRM
The best way to do that is through a trackable URL
Track URLs that drive to your own web properties and determine whether
those URLs will enable you to understand users’ downstream activities
Collecting campaign data
UTM in Google Analytics: Urchin Traffic Monitor (UTM) fields are added to
the end of the URL, UTM parameters are recognized within Google Analytics,
and passed through the reporting.
5 UTM parameters you can add:
Source: identify the advertiser, site, publication, etc.
Medium: the advertising or marketing medium, for example, banner, email
etc.
Campaign: the individual campaign name, slogan, promo code, etc.
Term: identify paid search keywords
Content: used to differentiate similar content, or links within the same ad
Social Reports feature in Google Analytics
When SM is a top-of-funnel contributor, it would be identified
as a “social assist” in this reporting
Tracking traffic you sent to third-party websites
Intercept them before they get there and put your tracking
parameters in place
Build a custom URL shortener that intercepts this process and
drops in the tracking code before they go to the third-party site.
For example, append Google’s custom URL parameters before
the link is shortened
Rule Attribution Model
Adopted by most Web Analytics Providers – IBM, Adobe, and Google
first touch
last touch
even
time decay
weighted model
algorithmic
Credit of channels for the path:
display → referral → email → search → purchase
Rule-Based Attribution Model
Advantages:
Easy to apply;
Can be powerful when combined with big data
Rule-Based Attribution Model
Disadvantages:
Disregard paths that do not lead to conversion
Inconsistent and inconclusive
Using your complete campaign history data
- Build a model considering all conversion and non-conversion paths
and estimate the contribution of each touch point - Based on the parameter estimate optimize the touch point deployment
Li, Xie and Zheng 2019, MIS Quarterly
Customers are targeted by multiple firms.
Their interactions with competitors will affect your ad effectiveness.
Single-firm model versus competitive model
A purchase funnel view
Customers narrow consideration set.
Channels play different roles in the customer journey.
Loyalty affects repeat purchase.
Panel data from a leading Internet analytics company
19,003 purchase related search sessions in flight ticket booking
Browsing behavior within 7-day window
4,897 sessions ended with a flight ticket purchase
4 channels
Search engine, email, display ads/referrals, direct
10 competing (sets of) websites
5 major online agents (cheaptickets.com, expedia.com,
priceline.com, orbitz.com, travelocity.com) + small agents + 3
top airline companies’ direct websites + other airlines
Data Pattern
Limited search
Limited search: 34.3% of consumers only visited one website.
Being the entry website is important: 59.6% of all transactions were made
on the first website visited during a session.
Multichannel Advertising
Awareness :
Which websites do I know?
Alternative evaluation stage:
Which websites should I visit?
–Entry Website–>Visit Decision on Remaining
Websites
Transaction stage:
Which website should I buy
from?
Two sources of heterogeneity
Preference for different websites
Consideration set
The Model – Visit Stage
Choice of entry site
Out of all websites in the awareness set
Model: Multinomial Logit with random coefficients
• Whether to search other websites in the awareness set or not
Model: s-1 independent binary Logit with random coefficients
Covariates (for both sub-decisions)
Number of channel specific clicks in the previous purchase session
Advertising channels: search engine, email, display ads/referrals
State dependence
Lag search
Lag purchase
Past experience
Cumulative pages browsed on the website
Cumulative money spent on purchases through the website
The Model – Purchase Stage
Choice of conversion website
Out of all searched websites
Model: Conditional Logit with random coefficients
Covariates
Number of advertising clicks in the current purchase session
Advertising channels: search engine, email, display ads, referrals
State dependence
Past Experience
Cumulative pages browsed on the website
Cumulative money spent on purchases through the website
Position in search sequence (purchase stage only): first / last
The information stock (interactions) from all channels have
significant positive effects at both the visit stage and the purchase stage.
Direct > search > email > display/referral
Return metrics for social media: if not
directly lead to sales
Return on
impressions
model
Return on
social media
impact model
Return on
target influence
model
Return on
earned media
model
Using these alternative return metrics
Cost-benefit analysis
