University of Washington: Foster School of Business - Digital Marketing Measurement for Entrepreneurs

SCG proprietary & confidential

Spring Creek Group

Digital Marketing Measurement for EntrepreneursXavier Jimenez, Principal Spring Creek Group


Spring Creek Group

Disc

ussio

n» Overview

» Background

» Measuring what matters

» The measurement “Brief”

» Case studies in measurement

» Q&A


Spring Creek Group

Overview:

• My focus today is DIGITAL measurement strategy

• Discuss how to use a measurement framework that relies on process more than tools or technology


Spring Creek Group

Background


Spring Creek Group

About Me: Principal, Spring Creek Group • 12+ years of experience

building digital marketing infrastructure, analytics & measurement process and digital information systems for technology start-ups.

Background

I run the Analytics and Measurement practice for Spring Creek Group and we:

…are the largest social media marketing firm in the Pacific Northwest, and one of the leading agencies nationally focused on social media measurement.

…partnering with companies of all sizes to measure social media then identify and seize opportunities to engage target audiences online.

…specialized in three services practice areas:• Online Brand Analytics & Monitoring• Social Media Channel Strategy & Planning• Community Management & Interactive

Campaigns


Spring Creek Group

Measuring what matters


Spring Creek Group

• If you are in a hurry… the first thing you need to do is slow down… and make sure you are asking the right questions.

• Make sure everyone in the organization is “on board” with performing S.M.A.R.T. measurement

• Reliance on tools, fuels analysis paralysis…

Creating a measurement culture


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Our Point of View

Channel Strategy & Planning

Customer Engagement & Marketing Programs

Listening, Monitoring, & Analysis

Time

Let data drive Brand, Product & Marketing decision making and program management

Our methodology = ITERATIVE LEARNING CYCLE of gathering new data and turning that data into ideas and actions that drive positive business outcomes.


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Method

1. Question - the current method for achieving the organizations stated objective and determine whether additional tools and methods are needed

2. Research - the organization’s current belief system related to what is currently known about the audience

3. Hypothesis - about the "nature", "impact" and "levels" of engagement" that will happen once the audience is introduced to the campaign

4. Test - Launch Campaign 1.0 with specific and predetermined goals and track every post, tweet, comment, click, link exchange, conversation and media impression possible

5. Analyze - Categorize, classify, and order the data based on the stated goals and objectives of the campaign, as well as the actual behaviors, intentions and actions of the participants

6. Validate/Invalidate - Assess the business outcome(s) and refine the hypothesis as needed

7. Report - Publish timely and accurate dashboards, scorecards and reports that organize meaningful data into actionable insights


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Our POV : Data Should Drive Your Social Brand, Product, and Community Initiatives

Caution – Tools Ahead!

Tools – both licensed and proprietary – are only a component of effective social media programs, but are often an important way we build scale in all that we do.

People and process are what make data actionable.

At SCG:


Spring Creek Group

Measuring what matters

content

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On Site Off Site

Cont

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•Brand commentary, ratings and other UGC published on corporate website, microsite.

•Brand commentary, rants, raves and other UGC published on third-party websites, web applications and mobile.

•Traditional marketing messages/content published on corporate website or microsite.

•Traditional marketing messages/content published on third-party website or microsite.

Community Buzz

Website Audience

(Measure using web analytics tools like google analytics, omniture, webtrends, etc.)

(Measure using click-stream analytics tools like google adwords, atlas, @plan, etc.)

(Measure using CMS tools like SalesForce, wordpress stats, etc.) (Measure using tools like radian6,

Techrigy SM2, google alerts, etc.)• Cost per CS resolution• Comments/post• UGC content /total content

• Volume• Engagement• Sentiment

• Bounces, UV’s• LP conversion• Sales, CLTV

• Impressions• Video views• CTR

4 quadrants:

1 = Controlled On site Content2 = Controlled Off site Content3 = Uncontrolled On site Content4 = Uncontrolled Off site Content


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Example Measurement Campaign

ACME Organic Sunscreen


Spring Creek Group

Listen Hypothesize Track Test Re-test (Learn)

Objective = Identify Top Blogs based on volume

Goal = Identify Key metrics that can be used to evaluate engagement opportunity

Example

Area Measurement Objective Key Metric

Volume Quantify Buzz Total volume of Posts (break down by keyword & by domain)

EngagementIdentify blog conversation

engagement trendsTotal Comments/Total Posts

broken down by topic

Sentiment Track Change in Sentiment Brand Perception Index Score

Key Drivers:Blogs sending traffic to your site include mommy blogs, where site discussion is highly on topic and there are specific mentions of organic sunscreen products which are increasing in frequency over the last 30 days.

Overall Brand mentions were mostly neutral, (82%) but 16% positive and only 2% negative for the period.

Organic Sunscreen Manufacturer wants to use social media to drive new online visitors and increase brand awareness.


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Research shows that mothers have been sharing information about your chemical-free sunscreen products and conversation is highly focused on “fragrance”.

Hypothesize that a highly focused and product specific outreach campaign, on the top 20 mommy blogs, promoting your products may find success in this community.

Example Rank Blog URL Posts Comments Engagement

Rate 1 The Mommy Blog 90 680 7.56 2 MommyBlog 90 300 3.33 3 Just Another Mommy Blog 30 220 7.33 4 Blonde Mom Blog 50 100 2.00 5 Modern Mommy Blog 40 70 1.75 6 So Close 30 70 2.33 7 Kim Chi Mamas 20 60 3.00 8 News From Hawkhill Acres 20 60 3.00 9 Writing Mamas Salon 20 40 2.00

10 Joy Unexpected 20 40 2.00 11 Soapbox Mom 20 40 2.00 12 Sarcastic Mom 20 40 2.00 13 Mom101 10 30 3.00 14 June Cleaver Nirvana 10 30 3.00 15 Absolutely Bananas 10 20 2.00 16 Crunchy Domestic Goddess 10 20 2.00 17 Committed Parent 10 20 2.00

18Play Groups Are No Place For Children 10 10 1.00

19 Mom To The Screaming Masses 10 10 1.00 20 Mom’s r us 10 10 1.00



Spring Creek Group

Configure web analytics tools to track the “pass-along” and conversion of your brand’s social content via tweets, blog posts, Facebook postings etc.

Determine which content and what source is driving the most desired behaviors.

Compare earned media cost per action to paid media.

ExampleACME sunscreen


700 visits

6300 visits

1200 visits

300 visits


Spring Creek Group


• Test seeding offers of 20%-off the sunscreen on the mommy blogs where the discussions are taking place.

• Display Buys

• Personal “on-topic” and relevant engagements

Example

Buy ACME sunscreen

& win a ride on this

unicorn!


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• If you find success, re-test creative that is platform and media specific as well.

• Ex. create a Twitter promotion such as:

• Identify top Re-tweeters• Track CTR using url shorteners• Identify top LP’s • Compare cost per action to paid

media

ExampleRank Top RT's Clicks

1 Fussypants 1902 Queen of Spain 1103 CrunchyGoddess 1004 JessikaKnows 885 Type A Mom 606 Resourceful Mom 557 PhD in Parenting 548 Geek Mommy 539 Rocks In My Dryer 5210 SarcasticMom 50

Total Clicks LP Visits CONV. %

2,604

Sage 54 2.07%Lavender 63 2.42%

Melon 95 3.65%Coco Butter 29 1.11%

Fragrance Free 88 3.38%

Moms: Get 20% off the only truly chemical-free sunscreen this week only. http://bit.ly/yourtrackingcodehere

http://twitter.com/fussypants

http://twitter.com/QueenofSpain

http://twitter.com/crunchygoddess

http://twitter.com/jessicaknows

http://twitter.com/typeamom

http://twitter.com/ResourcefulMom

http://twitter.com/phdinparenting

http://twitter.com/GeekMommy

http://twitter.com/rocksinmydryer

http://www.twitter.com/SarcasticMomLC


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The measurement “Brief”


Spring Creek Group

• Start with a business question, problem, issue or opportunity

1. From that question, set clear and simple Objective(s)

2. Define Goal(s) designed to achieve objectives

3. Your Strategies must support goals

4. Your Metrics for measuring success should be (S.M.A.R.T)

1

2

3

4


Spring Creek Group

Case studies


Spring Creek Group

Examples of well executed measurement strategy• For large online-pure-play businesses, direct response measurement

principles often take precedence.– Measuring causal actions (activities, transactions) is best.– Measuring, at minimum, the change in traffic over time and whether

the ratio of “organic traffic” changes in concert with or in association w/ sustained digital/social media marketing activities is key.

– The change in traffic patterns of any social media effort should always be measured and compared to other channels.

• For small to medium sized businesses with significant offline presence focusing on achieving greater brand awareness, customer advocacy and content ‘pass-along’ often takes precedence. – For sales conversion models that don’t necessarily run through an e-

commerce enabled website, highly-correlated factors aligned with business success in the long-run, could be most important.


Spring Creek Group

Dell Outlet faces a common but difficult business challenge. A division of the giant made-to-order computer business, Dell Outlet carries refurbished equipment and other inventory that it needs to sell quickly. Because the division has to get the word out fast, it can’t rely on large/slow advertising agencies, but rather relies primarily on email marketing and search-engine marketing to raise awareness and drive sales.

It’s always looking for new, cost-effective ways to reach people.

So early in 2008 when it heard about twitter it quickly and stared… Listening -> Hypothesizing -> Testing & now Dell Outlet is a household name among the twitter elite and it has more than 80 Dell-branded twitter accounts


Spring Creek Group

• Dell established their Twitter account over two years ago

• Dell measures and “track sales using web analytics best practices

• Dell “has raked in more than $3 million from Twitter followers

Does it work?

Yep!, not only do Dell’s promotional tweets get retweeted and picked up by coupon sites—which spread the brand name and also drive sales.

Dell Outlet has booked more than $3 million in revenue attributable to its Twitter posts. In addition, the division has done research showing that awareness of the outlet has grown, too.

“The uplift has been more than we dreamed,” – so says Stefanie Nelson, manager of demand generation at Dell Outlet.


Spring Creek Group

Naked Pizza

Naked Pizza a New Orleans pizza takeout and delivery restaurant with a mission to make an unhealthy and popular fast food healthier, more nutritious, and better tasting!

Naked Pizza has annually revenues of over 1 Million and has a significant Twitter presence according to co-founder Jeff Leach.

Leach posts up to 15 times a day and said his company is primarily using Twitter to market to an area with a 3 mile radius.


Spring Creek Group

• Naked Pizza has a sustained 20 percent of sales dollars coming from its Twitter presence.

• They use Google Analytics to monitor their website activity and determine which pizza’s are best sellers to its online audience which drives a significant portion of its total business

• By aggressively measuring its most profitable channel, Twitter, it has made such a difference for Naked Pizza that they removed the “call for delivery "billboard in front of the restaurant and changed it to “twitter – follow us for specials –www.twitter.com/nakedpizza”

• Jeff himself has said, about his sign, “I didn’t do it to get TechCrunch talking, I did it to reach the 35,000 people who drive by the store every day.”

Naked Pizza

• 20% of total sales from twitter

• Set a one day sales record of 65% of sales from Twitter

• 85% of new customers from Twitter

http://www.techcrunch.com/2009/04/24/a-sign-of-things-to-come-naked-pizza-erects-twitter-billboard/

http://www.twitter.com/nakedpizza


Spring Creek Group

Pink Cake Box is a specialty baker in New Jersey that specializes in custom wedding cakes, cupcakes and cookies always made with an individual flair.

PCB has over ten talented cake decorators and bakers and employees who are committed to their ever growing community of returning customers.

In order to stay connected to their customers, PCB employees blog, post videos and images of their cakes on Twitter, Facebook, Flickr and YouTube.

As a result of very small but focused marketing budget they’ve been on the Rachel Ray show, Food Network and CNN Headline News.

Pink Cake Box


Spring Creek Group

Pink Cake Box

• Use blog to offer a constant stream of new cakes, contests, & videos.

• Over 2000 twitter followers and 4700 facebook fans.

• The blog sees about 120,000 visits per month and drives a majority of custom cake orders.

• PCB measures and manages blog performance using Google Analytics

• Initially they placed an emphasis on traffic, which worked, but they quickly reached a saturation point where high traffic started contributing to a deluge of “information seekers”.

• PCB didn’t have the capacity to handle this deluge and realized that the “more traffic the better” mantra needed to be refined.

• They began focusing content on products that lead to better order conversions and focused our measurement on traffic from our strategic focus areas.


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Q & A Session

• Questions?


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http://www.twitter.com/SpringCreekGrp

http://tinyurl.com/SCG-FB

http://www.SpringCreekGroup.com/blog

…or Join / Follow / Read at… 311 B Occidental Ave. S. Suite #200

Seattle, WA 98104206.453.1120

www.SpringCreekGroup.com

THANK YOU

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