4. Improving Your ROI
Offset current
expenses*
hours spent on
• Advertising
social media work • Sell more
• Lead generation
fees for social • Upgrade more
media tools • Direct mail
hours for
customer service
hours for
managing
Streamline your member groups
social media work Increase revenue
5.
6. • Social Media AMPLIFIES.
A lesson from Olivier Blanchard:
7. • Social Media AMPLIFIES.
A lesson from Olivier Blanchard:
F FREQUENCY
8. • Social Media AMPLIFIES.
A lesson from Olivier Blanchard:
F FREQUENCY
R REACH
9. • Social Media AMPLIFIES.
A lesson from Olivier Blanchard:
F FREQUENCY
R REACH
Y YIELD
10. Another truth
We’re not very good at measuring business
results for social media activity.
(Yet.)
11. Social CRM
(Social Customer Relationship Management)
helps us get to the ROI of our social
media activities.
13. “A philosophy and a business
strategy, supported by a technology
platform, business
rules, workflow, processes, and social
characteristics, designed to engage the
customer in a collaborative conversation in
order to provide mutually beneficial value in a
trusted and transparent business environment.
It’s the company’s [programmatic] response to
the customer’s ownership of the conversation.”
14. What is Social CRM?
Philosophy & business strategy
Processes
Technology platform
& workflow
Stakeholder Member Trust &
Engagement Value Transparency
15. What is Social CRM?
Philosophy & business strategy
Processes
Technology platform
& workflow
Stakeholder Member Trust &
Engagement Value Transparency
16. White papers
Originally posted in the SocialFish Think
11/7/2012
Tank. http://thinktank.socialfish.org
17. What is Social CRM?
Membership
and
customer
management
Social
CRM
Social media
18. What is Social CRM?
Membership
and
customer
management
Social
CRM
(& ROI)
Social media
20. Current state of Social CRM
• The data is hard to process What’s Possible Now?
• No buy-in, no SCRM.
• Not working smart—
spraying and praying.
• Spending too much in the
wrong areas. > 90%
• Focusing on too many small Possible Now
pieces but not the big
picture.
41. Basics of a Social CRM practice
Monitoring and Social profile
responding mapping
Outreach and Community
lead generation management
42. Myths about Social CRM
• That it’s something you buy.
• That you need a new “SCRM Platform”
to get started.
• That one department can own it.
• That you can get to ROI without it.
43. Myths about Social CRM
• That it’s something you buy.
• That you need a new “SCRM Platform”
to get started.
• That one department can own it.
• That you can get to ROI without it.
IntroWe’re a small group today, so while I have some slides to run through, I really feel like setting most of this aside and really asking you some questions on the topic of social CRM and ROI. SO I hope you’ll indulge me and share some of your thoughts about it all.I will kick off the discussion, though.
Here are some basic truths – I’m going to assume that you agree with me on these.1 - Social Media is not free – we’re spending a lot of time and energy on experimenting with social, and now in my work one of the major jobs that we do is help organizations with hiring for social media positions – meaning that associations are starting to put substantial budget behind the work of social media management. And that’s not even to mention the money we’re spending on all kinds of monitoring tools.2 – ROI is about money. It’s about the bottom line. It’s about saving money or making money. It’s not about return on impact, or return on influence, or return on relationships, or any of that stuff.3 – We’re not very good at measuring financial results through social media. Why? There are lots of reasons. On the one hand, there’s so much possible data out there – we’re bombarded with data. We don’t know what we should be measuring so we measure everything or nothing. We’re also not very good at setting measurable business goals. We think, our goal is to be where our members are on Twitter and on Facebook – but that’s not a financial objective with a deadline.
We talked about the costs. But what about the benefits? Are there areas where we’re reducing spending by using social media – for example by doing less print pieces? By having a member directory that’s only digital? Can we reduce man hours doing specific kinds of work using social media instead? How about customer service – getting the customer service team to deal with more complicated issues by phone, but everything else – all the repeatable stuff - online? What about volunteer management? Can we use a private community to consolidate volunteer committee work, so that all documents are in one place and there’s less emailing different versions of documents around?And of course can we sell more through social – by taking advantage of the word of mouth engine that it is, to sell registrations to our tradeshows and to sell memberships.
Here’s another way to look at this work – if you set up your internal social media management processes well, you’ll start to see ROI benefits both on the saving money side and on the making money side.[PAUSE FOR QUESTIONS – are any of you thinking about ROI differently than this? Or have any thoughts to share about it?]Roque – I know you’ve recently hired a community manager – how did you know it was time to allocate budget for a FTE?
I’m not going to talk about the math of ROI, but I do want to recommend this book by Olivier Blanchard. It is by far the best book out there on exactly how to measure ROI of social media activities specifically.
One of the killer lessons from this book is a simple formula that I want to share with you. Which summarizes what we’ve just been talking about.Socialmedia can help you reach your stakeholders MORE OFTEN, It can help you reach MORE PEOPLE,And it can help you get your stakeholders to buy MORE through the relationships that you build.This to me is a perfect way of translating the social media activity that you’re doing back into ROI terms.
Social media can help you reach your stakeholders MORE OFTEN, It can help you reach MORE PEOPLE,And it can help you get your stakeholders to buy MORE through the relationships that you build.This to me is a perfect way of translating the social media activity that you’re doing back into ROI terms.
Social media can help you reach your stakeholders MORE OFTEN, It can help you reach MORE PEOPLE,And it can help you get your stakeholders to buy MORE through the relationships that you build.This to me is a perfect way of translating the social media activity that you’re doing back into ROI terms.
Social media can help you reach your stakeholders MORE OFTEN, It can help you reach MORE PEOPLE,And it can help you get your stakeholders to buy MORE through the relationships that you build.This to me is a perfect way of translating the social media activity that you’re doing back into ROI terms.
Because here is the thing.We’re not very good at measuring financial results through social media. Why? There are lots of reasons. On the one hand, there’s so much possible data out there – we’re bombarded with data. We don’t know what we should be measuring so we measure everything or nothing. We’re also not very good at setting measurable business goals. We think, our goal is to be where our members are on Twitter and on Facebook – but that’s not a financial objective with a deadline. FRY is just one way to think about it.
Social CRM is a much better, more holistic way to look at it. Social Customer Relationship Management helps us get to ROI.
DEFINITION IN WHITEPAPER BY PAUL GREENBERG, wrote the book on SCRM
“A philosophy and a business strategy, supported by a technology platform, business rules, workflow, processes, and social characteristics, designed to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted and transparent business environment. It’s the company’s [programmatic] response to the customer’s ownership of the conversation.”
So I’m going to guess that even after squinting at that and rereading it a couple of times your eyes are glazing over, right? Here’s a visual representation of that definition. “A philosophy and a business strategy, supported by a technology platform, business rules, workflow, processes, and social characteristics, designed to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted and transparent business environment.
Here’s the thing. We believe that you need to spend 80% of your efforts on these outside components, and only 20% on the technology. With the most important thing being the philosophy part.
So we decided to work with Avectra to write the two white papers you have in front of you. Our goal was to take this concept of social CRM from the corporate world, and apply it to our association industry. To really boil it down to what matters for us associations.
So here is our definition. Social CRM is the discipline of applying social media data to membership management.When we talk about membership management, we’re not just talking about who’s in your database. We’re also talking about future members, prospective members, even retired members. We’re talking about influencers in the industry. We’re talking about trade press and government contacts who are your stakeholders too. And when we talk about social media, we’re talking about much more that Facebook, Twitter and LinkedIn. We’re talking about concepts like influence, and engagement. But the key is that this is the business intelligence part that will get you to ROI.
So here is our definition. Social CRM is the discipline of applying social media data to membership management.When we talk about membership management, we’re not just talking about who’s in your database. We’re also talking about future members, prospective members, even retired members. We’re talking about influencers in the industry. We’re talking about trade press and government contacts who are your stakeholders too. And when we talk about social media, we’re talking about much more that Facebook, Twitter and LinkedIn. We’re talking about concepts like influence, and engagement. But the key is that this is the business intelligence part that will get you to ROI.
Here’s a slide from Beth Kanter, a social media strategist who works with nonprofits. I’m lucky enough to find myself in a room with several executive directors, and I’d like to know if this is true. When your staff approach you to talk about social media, what is your reaction? Are you concerned about ROI? Is it a challenge?Do your staff report results of social media activity to you? What kinds of things are they reporting?
We’ve had a lot of conversations with association execs about social CRM, and here’s the general consensus: 90+% is possible, but we’re accomplishing no where near that.The data is hard to process, and without seeing how it will all come together, Social CRM is a hard sell. No buy-in, no SCRM.Not working smart—spraying and praying.Spending too much in the wrong areas.Focusing on too many small pieces but not the big picture.
This is a really important step and really the reason why I’m here talking to you about this. Social media tool talk – FB/Tw/LI and all the new fangled tools out there – that stuff feels like it’s NOT WORK. But if you can start talking about social CRM, about holistically looking at what your staff’s social media’s responsibilities are as they relate to business results, than you can get away from the idea that it’s one more thing they don’t have time to do.
Pretty much everything we do related to membership management falls into these buckets. Can you think of others?
Finding members who move jobs, change positions, forget to renew.
IMAGINE A TIME WHEN YOU WOULD GET AN ALERT ANY TIME A MEMBER UPDATED EMPLOYMENT STATUS ON A SOCIAL NETWORK.COULD YOU TURN THAT INTO ROI?
How do you do this right now? Are you using social media at all?
What do you think? Are you doing anything to track influencers?
IMAGINE A TIME WHEN EVERY MEMBER HAD AN INFLUENCE SCORE BASED ON THEIR ABILITY TO GET OTHER MEMBERS AND CUSTOMERS TO ACT.COULD YOU TURN THAT INTO ROI?
Finding members who move jobs, change positions, forget to renew.
This is our theory, that is still being tested. We believe that if you have contacts in your database that are not connected to other contacts or members, that they are at risk of dropping. Members might be extremely frustrated with an organization, but they stick around because their buddies are there.
UP TILL NOW THESE METRICS WERE BASED SOLEY ON ACTIVITY IN OUR SYSTEMS. WHAT IF THEY WERE ALSO BASED ON CONNECTEDNESS—HOW PEOPLE ARE CONNECTED IN PUBLIC SOCIAL NETWORKS?
IMAGINE A TIME WHEN YOU KNOW WHO IS ON THE FENCE ABOUT RENEWING, WITH ENOUGH TIME TO TAKE ACTION.COULD YOU TURN THAT INTO ROI?
Do you have processes in place for that?
You’ll notice all of these examples use different social media sites. When I say it’s not about the tools, that just means they change all the time.
The key is to map everything back to your AMS.
I’m not going to spend any time on this unless you want to talk about social technologies.EXPLAIN ACRONYMSSMMS “social media management systems” and SSO “social sign on”
Social CRM is DYNAMIC. There are a lot of different tools and technologies involved, and I personally believe that we’re going to start seeing a consolidation of the market for all of these tools. That’s why the idea of connecting everything to the AMS is so important – so that you’re not wasting time waiting for the one-size-fits-all tool. It’s also not about spending money on tools at all, but working with what you have. We’re in a transition phase where we’re integrating this kind of work into our daily processes – focus on that.(I will say though, do pay attention to the smart AMS companies that are evolving their products in this direction.)It’s about a holistic view of what your association is doing with social technologies – eventually everyone will be doing something with social, and that’s why we have to build the internal workflow that supports this kind of work across the organization. It’s also why the leadership needs to recognize how important this is from an organizational strategy point of view – you’re the only ones who can truly see the big picture.
Social CRM is DYNAMIC. There are a lot of different tools and technologies involved, and I personally believe that we’re going to start seeing a consolidation of the market for all of these tools. That’s why the idea of connecting everything to the AMS is so important – so that you’re not wasting time waiting for the one-size-fits-all tool. It’s also not about spending money on tools at all, but working with what you have. We’re in a transition phase where we’re integrating this kind of work into our daily processes – focus on that.(I will say though, do pay attention to the smart AMS companies that are evolving their products in this direction.)It’s about a holistic view of what your association is doing with social technologies – eventually everyone will be doing something with social, and that’s why we have to build the internal workflow that supports this kind of work across the organization. It’s also why the leadership needs to recognize how important this is from an organizational strategy point of view – you’re the only ones who can truly see the big picture.