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10 case studies prove the ROI of brand advocates 16

Posted on December 07, 2013 by Rob Petersen

 

 

 

Brand Advocates

brand advocate is a person, or customer who talks favorably about a brand or product, and then passes on positive word-of-mouth (WOM) messages to other people.

According to Forrester, Zuberance and an infographic from Jay Baer (below), the influence of brand advocates accounts for billions of dollars in purchases for everything from cars to computers, hotel rooms, movies, enterprise software, and more. Brand advocates are:

  • 5X more valuable than average customers
  • Spend at least 2X as much as average customers
  • Spend 3X as much as average customers over their lifetime of their relationship with a company or brand
  • Reach 150 people in social media every time they advocate for a product or service
  • 92% of consumers trust brand advocates

Do brand advocates generate return on investment for brands? Here are 10 case studies that prove the ROI of brand advocates.

  • AMERICAN EXPRESS: To promote small business credit cards, American Express created a social media community for small business owners to share, learn and grow. They also created a holiday, Small Business Saturday. The community has 2,700,000+ Likes, 195,000 Tweets and American Express saw a +23% increase in transactions to small business merchants.
  • CARS.COM: encouraged rating, reviews and sharing (versus no ratings, reviews and sharing) and it showed that pages that had ratings and reviews had a 16% higher rate of conversion and a 100% higher rate of traffic through to dealer’s sites.
  • DUANE READE: A drugstore chain with 250 location in New York and New Jersey, used a VIP Blogger Team generating content via their own social platforms, DR-QR code landing page, blogs, and Google+, in addition to traditional PR tactics. The utilization of celebrity bloggers from daytime shows and one-hour Twitter parties created over 20 million impressions. From over 2000 pieces of original content, there was a 28% lift in year-over-year sales and a 5x ROI.
  • FOLICA: A well-known retailer of health and beauty products, noticed they had many referrals to their website, but had no way of tracking and identifying these referrals. By engaging their customers and encouraging them to share the secrets of great hair, customers were able to share via Facebook, Twitter, email and personalized urls. After 30 days of running the new Social Referral Program, 6,000 brand advocates were identified. The average number of shares per advocate was four. 21,000 shares had been generated via Facebook, Twitter and email and a 16% conversion rate was driven by the program.
  • J. HILBURN: A retail brand which was receiving many referrals from existing satisfied customers. By offering customers $50 for each friend referred and encouraging the advocates to share the offer using social media, brand advocates were identified and rewarded. Any referred customer who spent over $100 received a $50 discount on their purchase. After 45 days of running the new program, 1,000 customers had made referrals. Averaging 12 shares per advocate, the referral program produced 10,000 social shares via Facebook, Twitter and email. The bottom line result was 600 transactions which created over $250,000 in sales.
  • ROKU: specializes in streaming entertainment devices for television. With 1,000,000+ units already sold, they tapped their existing and large user database into a source of acquisition. Sales increased 30% and the number of monthly referrals is now around 10,000 per month.
  • SENDGRID, a cloud-based e-mail provider, contained a simple offer for existing customers which could be shared socially. The offer was made to existing customers to share referral links. This meant that when any of their referred friends became new paying customers of SendGrid, they would receive $20 cash and the referred customer would also receive a 25% discount on their first three months. SendGrid achieved a 111% ROI after six months of running thel program and a 353% ROI projected for the first year of the program.
  • STARBUCKS: Since 2008, MyStarbuckIdea.com has been advocate-driven idea tank where Starbucks drinkers submit ideas for new products and coffee concoctions. It has worked as a hub for all Starbucks customers to share all their ideas, suggestion and even their frustration.  “We used to launch a new product and it cost millions of dollars. Now, when we launch a new product, we already have millions of fans,” say Chris Bruzzo, Vice President Brand, Content and Online at Starbucks.
  • SUBWAY: Sponsored the “Slim Down Challenge,”  a live speaking event consisting of some of America’s hottest speakers and celebrities. Its mission was to travel from city to city across America delivering powerhouse information that challenged your mind, heart, and waistline. They used social technologies and promotion apps to raise awareness of the Slim Down Challenge and recruit speakers. The strategy included a social competition. This was part of a full marketing strategy for the campaign. They found that 71% of site traffic that went to the registration page, came directly from Facebook.
  • WALMART: Has 34,000.000+ fans, more than any other brand on any social platform. They also have more than 385,000 followers. They post 6 to 7 times per day. They engage with fans, regularly. Last year, on Black Friday, Walmart received 62,000 posts from consumers, a rate of 42 per minute. The engagement with consumers who spread the work is getting a “marketing equivalent” of 10X return-on-investment (ROI) compared to other advertising spends according to CMO, Stephen Quinn.

These case studies cover brands big and small, B2C and B2B and show brand advocates can be found for any business if you look for them. Do they convince you of the ROI of brand advocates?

To learn more about the ROI of social media marketing, download the ebook, 166 Case Studies Prove ROI of Social Media Marketing  (80,000+ people have). It’s free on the sidebar or join our email list and have case studies like these delivered to you.

Did these case studies on the ROI of brand advocates teach something new.

Brand Influencers vs. Brand Advocates

 

11 case studies prove social media ROI for nonprofits 3

Posted on September 08, 2012 by Rob Petersen

 

Light at the end of the tunnelIn a tough economy, it’s especially tough to be a nonprofit because people have less to give.

But it looks like there is light at the end of the tunnel.

Although nonprofits report being “cut to the bone” in their budgets according to the Urban Institute, the American Association of Fundraising Council reports Americans gave more than $298.42 billion in 2011 to their favorite causes despite the economic conditions, up 4% from 2010 and reflective of recovering economic confidence.

Individuals who share a common interest, conviction and passion for a cause drive nonprofits and account for 73% of donations.

 

2011 Nonprofits Contributions By Source Pie-Chart

How effective is social media given these dynamics? Here are 11 case studies that prove social media ROI for nonprofits.

  1. AMERICAN HEART ASSOCIATION: Although the AHA is a large national organization, fund raising occur largely through local, grass-roots events. Even today, most donations still occur through the manual process of paper and clip boards. AHA changed the context of connecting with consumers at events from paper and clip board to text messaging.  Donations increased 5X through text messaging in just 10 minutes versus the  manual process that took days, even weeks, and costed more.
  2. AMERICAN RED CROSS: When the earthquake in Haiti occurred, American Red Cross had a flickr group with hundreds of behind the scenes pictures of their operations and a Twitter account with over 150,000 followers. Their Facebook group which incorporated media from all of their social media outlets had over 190,000 followers. American Red Cross quickly sent their text-to-donate message across their social media outlets and it became viral. Within a week, they raised $5,000,000 from texting alone. Over $20,000,000 was raised in a matter of months through social media.
  3. BREAST CANCER AWARENESS MONTH: The updating of personal status on social network pages for women with breast cancer received more media attention and impression on CNN and newspaper networks for a higher ROI than the paid efforts of numerous PR firms and built stronger advocacy.
  4. CANADIAN CANCER SOCIETY: Mark aka, “The Guy At Home In His Underwear,” is a Toronto native and a testicular cancer survivor. He was given 25 days to raise money for testicular cancer “one Facebook friend at a time”. The challenge was to get 25,000 ‘Likes’, in 25 days for Stanfield’s Clothing, an underwear manufacturer, through a photo of Mark at home in his underwear. If Mark could complete this challenge, then Stanfield’s Clothing would donate $25,000 to the Canadian Cancer Society in support of testicular cancer awareness. Mark’s consistent posting and fan support delivered 50,000 “Likes” within 25 days to overachieve the challenge and demonstrate advocacy for the cause.
  5. CARE2: 9% of Americans have texted a charitable donations from their mobile phones. The Care2 network recruited an additional 30,000 through timely text alerts and petitions with an integrated social media plan
  6. FOUNDATION ABBE PIERRE: A French based charity named after a priest who devoted his life to getting people off the street and finding them a decent home. They joined Facebook in 2010 and built up a fan base of 7,000 in their first year, but in the last 6 months they have increased this by over 200,000 fans and gathered a further 50,000 signatures on their Facebook petition. Does this translate to ROI? Yes. The organization was spending $1 per signed petition and, though a signed Facebook petition, spent 4X less plus built a very visible support network they could turn to again.
  7. HELPING HANDS: A local affiliate of the Oregon Food Bank sponsored a Thanksgiving fun run, Give N’ Gobble. The campaign goals were to increase overall donations, registered runners, volunteers and awareness in the Portland metro area. The race director hired Bonfire Social Media to create a search optimized blog, Twitter and Facebook pages. The blog served as a platform for race news, interviews, photos and easy race registration. Donations increased by almost 50% versus the previous year; runners increased by over 25%; volunteers increased 2X; web traffic increased 76%; pages indexed by search engines increased by 150%.
  8. LIVESTRONG: The Livestrong Challenge involved the purchase of yellow gel bracelet that became ubiquitous. It cost $1 and raised $10,800,000. It also occurred almost entirely through social media and a blog serving as the hub to generate awareness and tell the story. This occurred in 2009, at the height of the recession that was particularly hard on non-profits.
  9. SAVE THE CHILDRENZynga, the company behind popular social media games, called on all FarmVille players to buy more virtual radishes. Partnering with Save the Children, Zynga created “in-game” donations to raise money for all those affected by the earthquake and tsunami in Japan. Whenever players purchased virtual sweet potatoes in CityVille, radishes in FarmVille, and kobe cows in FrontierVille, they raised money; all of the proceeds went towards the Save the Children’s relief efforts. It raised $1,000,000.
  10. WORLD WILDLIFE FOUNDATION: Used social media to promote Earth Hour, an event to generate awareness of wildlife conservation and endangered species. Their YouTube channel ranked 9th for most subscribed non-profit organization). WWF also had a Facebook group which they used to engage the public in meaningful discussions and to raise awareness about their efforts. When WWF official Earth Hour began, the video was viewed every 4 seconds, and the topic appeared 56.1 million times in Google within a 24 hour time span. Earth Hour (#Earthhour) was amongst the top three Twitter trends. Their Earth Hour Canada group on Facebook had more than 100, 000 people participating. They even created a Facebook application that supporters could use to remind their friends to turn off the lights. This was significant awareness all gained as Earned Media through social media, at a fraction of the cost if it had been Paid Media.
  11. WORLD FOOD PROGRAMME: The World Food Programme (WFP) is the world’s largest humanitarian agency fighting hunger worldwide. On Facebook, they posted a photo: The photo posted here states “This is our web editor, Martin. He’s about to go shopping in a food market in Pakistan. He’s got 100 rupees (US $1.00) to spend. How much food do you think he’ll be able to buy?” This resulted in over 80 comments and 140 ‘Likes’. On YouTube, they posted a video and raised $36,000 on World Food Day. It has helped feed over 650,000 children.

When it comes to proving ROI, revenue (or donations in the case of nonprofits) is always a primary measurement. But these case studies demonstrate, in addition to revenue, social media achieves other important results – getting petitions signed, providing disaster relief, fighting hunger, protecting the planet and helping find a cure for diseases.

They also prove, when a nonprofit builds a base of support through social media, advocates are ready to jump in and help the cause.

Out of demand from nonprofits to better understand and put social media to use, this November, from the 12th through the 16th, Rutgers University is offering a Mini-MBA on Social Media for Nonprofit Leader and Public Official. One of the course will be Measurement and ROI which I teach.

In this post, it is important to give a shout out to a nonprofit founded by Seth Wohlberg, who is on a mission to cure Rasmussen Encephalitis, a rare inflammatory neurological disorder, characterized by frequent and severe seizures, loss of motor skills and speech that occurs in the brain. “RE” occurs most often in children under 10 and Seth founded RE Childrens Project. He has connected families from all over the world where someone in the household has Rasmussen’s. He has built a global brand with the help of social media. He also has discovered that a cure lies in securing tissue from children who had a hemispherectomy, a surgical procedure where one cerebral hemisphere (half of the brain) is removed or disabled.

Seth has made incredible progress. In my opinion, he has already seen ROI but I believe, to Seth, ROI won’t be achieved until a cure has been found. Please visit RE Childrens and learn what Seth is doing. It is inspiring and Seth, and his daughter, Grace, are two of the most courageous people I know.

Do these case studies prove the ROI of social media for nonprofits to you?

 

10 case studies prove ROI of social media promotions 6

Posted on December 19, 2011 by Rob Petersen

Many companies want consumers to “Like” them on Facebook but are surprised to learn the #1 reason people would be motivated to “Like” them in the first place is to receive discounts and promotions.

Of all the words to convey a discount or promotion, the word this Black Friday and Cyber Monday that generated the most engagement was “coupons.” (source: Buddy Media and Marketing Profs)

Promotions, discounts and coupons are tried-and-true ways to encourage trial and boost sales volume.When they are delivered in social media, they benefit from sharing and the efficiency of available apps, like Wildfire, that cost a small fraction of traditional methods. In our experience, social media promotions are some of the most effective, affordable and profitable ways to build business and brand advocacy simultaneously.

You don’t have to go to social promotion sites like Groupon or Living Social either. Although effective in some cases, their promotions require you discount your brand by 50%; then, they keep 50% of the remaining half leaving you with 25% of the original price.

Imagination and resourcefulness are more effective and much more profitable. Need proof? Here are 10 case studies that prove Social Media Promotions ROI.

1. DELL: Started @DellOutlet, a Twitter page where they offered products and customer service through Twitter. Then, they integrated coupons. The Twitter page, which was free to set up, generated over $3 million dollar in sales to date and, with the integrations of coupons, accelerated to $1 million dollars within 6 months.

2.  EDIBLE ARRANGEMENTS. Through their Facebook page, Edible Arrangements offered consumers a voucher for free chocolate dipped strawberries. But to redeem the coupon, fans had to visit an Edible Arrangements store providing Edible Arrangements franchisees the opportunity to promote their store to a slew of new customers. This campaign  generated 170,000 new fans and a double-digit increase in sales versus year ago.

3. HAUTELOOK:  Ran an “instand win” coupon campaign at different values. After becoming a fan of the Hautelook Facebook Fan Page, entrants were presented with a coupon but the value of each coupon was a surprise and ranged from 10% to 20%, and some had free shipping. Not only did Hautelook generate thousands of new fans they also generated tens of thousands of sales in just one day and a return on investment of more than 5x and over 20% of purchasers were first time Hautelook customers.

4. JAMBA JUICE: Gave their customers a choice with “Feel Good Bucks” and a unique coupon code generation functionality. They gave out ‘lucky’ coupons via our Facebook Connect Product and Facebook Fan Page Product that could be redeemed at Jamba Juice stores. When consumers redeemed the coupons they either received $1 off their purchase or the opportunity to win instant or cash prizes of $10,000! Plus, users could send Jamba Bucks to their friends in the form of fun, Jamba-branded virtual gifts like smoothies, bucks, and cartoons. The coupon campaign drove tens of thousands to Jamba Juice stores.

5. KRAFT MACARONI & CHEESE:  Used Twitter to encourage people, in their “Mac and Jinx” campaign, to tweet something with the phrase “mac & cheese” in it at the same time. Once those pairs were identified, Kraft sent both a link. The first one to click on the link and give Kraft her address got five free boxes of Mac & Cheese plus a t-shirt. The campaign took advantage of the real-time nature of Twitter boosting the brand’s Twitter followers by 400% and at one point gaining over 300 mentions of “Mac & Cheese” per minute on Twitter.

6. PRETZEL CRISPS: Launched a$1.00 coupon on their Facebook page. Within 36,000 hours, their fan base grew from 5,000 to 12,000. So, they launched another only coupons – Buy One, Get One Free. Only this time they didn’t tell their fans. No matter, Fans found out on their own and the “letting you in on a secret” factor had a viral effect that built the fans following from 14,000 and 29,000 and now it’s at over 62,000. But fans just tell one side of the story.  The redemption rate for the fist coupon was 87%; the redemption rate for the second was 95% and annual sales increase was 93%.

7. SARA LEE: Ran a month-long campaign to promote Jimmy Dean D-Lights sandwiches. Users were offered a $1 coupon on any one package of Jimmy Dean D-Lights 4 count sandwiches, or, if they chose to share the offer with three or more friends, they could receive a $2.50 coupon. There was also a bonus coupon for $0.50 off on Jimmy Dean Breakfast Bowls. The campaign saw over 65,000 visitors in 30 days, and the 64% was through clicks from friend referrals.  The audience reach was primary in the South-Eastern states and referrals were made to people geographically close to each other. The campaign delivers sales volumes and geo-targeting not possible with traditional coupon methods at a small fraction of their cost.

7. STEAZ: Used social media coupons, blogs and Twitter chats to generate a buzz among moms about their organic teas. The result was 250,000 coupon download at a 20% redemption rate. 6,000 blog and social media mentions. 3,000 new fans and followers. Store shelves that were emptied and sales that doubled from the effort.

8. TORTILLALAND: Fresh, uncookded tortillas from Circle Foods are different from pre-cooked tortillas that contain preservatives. Once consumers try TortillaLand, they swear by their superior fresh taste and say they’ll never go back to buying the pre-cooked kind again. But the brand has low awareness. TortillaLand created a social sweepstakes where the prize was 3 iPads (1 for you/2 for friends).   The objective was to boost the Facebook Fan base of 900 and create a database from entrant to receive additional offers and news of store availability. The sweepstakes boosted the Facebook base 7X in two month. It created 10,000 person database who now receive regular emails and show a 50% open rate . The database also serves as brand community for market research and new product ideas with a significant ROI versus traditional methods like focus groups.

10. ZAPPOS: Ran a unique sweepstakes with a chance to win a $500 voucher for use at Zappos, but only after entrants visited the online store and put together a list of the items that they would purchase with the winning money. This encouraged 1000’s to visit the Zappos site with list of their favorite items on Zappos which increased purchases (although Zappos did not release the exact sales increase).

We’re big believers in the business effectiveness of social media promotions. We did the TortillaLand program for Circle Foods and see it for ourselves.

Do these case studies prove the ROI of social media promotions to you?

12 case studies that prove Social Commerce ROI 25

Posted on July 05, 2011 by Rob Petersen

Social commerce is the merger of social media and ecommerce.

It’s a marketing combination that’s here to stay because it aligns with our buying behaviors.

  • 90 times in any given week people mention a specific brand
  • 90% of consumers trust recommendation from people they know; 70% trust recommendations from others even it they don’t know them
  • 83% of consumers share information from people they know
  • 81% says they’ve received advice on a product purchase from friends or followers on a social network site
  • 74% say that advice was influential
  • 71% claims reviews from family members and friends exert a great deal of influence on what we buy
  • 67% of consumers spend more online after receiving recommendations from friends
  • 61% of people rely on information from reviews when making a purchase decision
  • 14% of people trust advertising

Sources: Econsultancy, eMarketing, ClickZ, Internet Retailer, Bazaarvoice)

Social commerce provides strong evidence of social media ROI because direct sales occur on social sites.  In recent years and even months, the numbers of apps and vehicles to enable social commerce has skyrocketed.

The social network to show the greatest social commerce innovation is Facebook where the Like Button and plug-ins such as login-in with Facebook, recommendationsactivity feed, registrations, Live Stream, other social plug-ins and the Facebook Store create a rich customer experience where people with similar interests share brand affinities with the convenience of making purchases without ever having to leave Facebook.

As a result, there is a sub-set of social commerce called f-commerce and companies like Coca-Cola, Disney and P&G are actively involved.   There are the deal-of-the-day social networks, Groupon and Living Social and other social couponing sites.

Not to mention apps like Wildfire and Involver that, when added to social network sites like Facebook, Twitter and the company blog, provide coupons, offers and promotions to accelerate social commerce adoption.

But, if you’re still not convinced, here are 12 case studies that prove Social Commerce return on investment (ROI).

1   BEST BUY:  Discovered their core users and heaviest purchasers were Facebook users.  Merely by asking for consumers to come check them out on Facebook with no offer or coupon, their fans went from 27,000 to 163,000.  Within 9 days, sharing took the size of the community and their heavy user base from 163,000 to 900,000.  Best Buy has 3,281,961 Facebook Fans and WOMMA estimates the value of a Facebook Fan is $72.

 

2.  CARS.COM:  Does not sell directly to consumers but puts consumers in control by giving them information on cars from other consumers.  In examining the impact of other consumers’ recommendations, pages on the website that had reviews and ratings were compared to those that did not and showed:

  • +16% conversion increase for pages with reviews and ratings
  • +100% increase in traffic to locations for dealers
  • +45 increase in consumers seeking financing options

3.  DERRYNOID CENTRE:  A 40 suite conference and training center in Northern Ireland used Groupon to offer a 60% discount if a voucher was secured that day.  The Derrynoid Centre saw:

  • 426 reservations from the offer
  • 88% of people fulfilled reservations for hotel stay
  • +26% sustained increase in bar and restaurant sales resulted from the effort

The Groupon business model may not be for every business.  Here’s how it works.  Groupon insists there be at least a 50% discounts off the full rate and Groupon takes 50% of each sale.  But it does seem suited for a small business with low awareness where unfilled seats, rooms or idle workers create a financial drain that could otherwise be put to use.

4.  EVENTBRITE:  Sharing is one of Eventbrite’s most effective revenue generators.  When someone shares an event with their friends through social media, the action results in real dollars. Recent data shows that over the past 12 weeks, one share on Facebook equals $2.52, a share on Twitter equals $0.43 and a share on LinkedIn equals $0.90.  In one year Facebook went from being the 15th top driver of traffic to Eventbrite to the number one driver to the site. Eventbrite had over 17 million average monthly page views in 2010.

5.  MOVIEFONE: Executed a full scale Facebook implementation using Login with Facebook, Graph API, Events API, Like Button and the Activity Feed to enable social sharing and engagement. Consumers could connect with their Facebook friends on the Moviefone site pushing unique content and driving traffic.  The results were:

  • 300% increase in site traffic
  • 40,000 to 250,000 increase in referrals per month
  • 40% increase in click-through-rate
  • Average user click back to the Moviefone site 7X

6.  OFFICE DEPOT:  Incorporated consumer reviews into their website around specific products.  Then, they initiated paid search with the keywords consumer used in reviews.  The result were:

  • +78.5% increase in click-through rate
  • +23.8% increase in conversion
  • +196.6% gain in revenue
  • +183.3% increase in new buyers

7.  PREMIERE BEAUTY:  Beauty Salon offered 60% off through Groupon and turned beauty into a social business with:

  • 500 new customers
  • 85% of customer now come through social media because the store uses Facebook and Twitter to promote offers

8.  SHOE DAZZLE:  Leveraged Facebook Pages, Like buttons and Graph API to import friends who shared the ShoeDazzle shopping and discovery experience with other friends.  It resulted in

  • 100,000’s of Likes
  • 600% increase in Shares
  • Facebook user showed greater loyalty and bought more than non-Facebook users

9.  SPORTING NEWS:  Implemented recommendations plugin on their Facebook page to provide a simple and intuitive way for people to share articles from Sporting News back and saw:

  • 2X increase in site traffic within 3 months
  • Facebook goes from 16th to Top 3 referrer in site traffic
  • +30% increase in subscriptions

10.  STARBUCKS:  For a business that is primarily offline, Starbucks uses social commerce to gain an incremental online business with an advocacy component through their loyalty club, MyStarbuckRewards.  They offer special high-end blends to the members of luxury bounty hunter, Gilt.com.  They set up social social commerce on Facebook that enables purchases from smart phones.  The activity show Starbucks believes social commerce is a significant source of business.

11.  STUDIO PE:  Pilates Studio used LivingSocial and changed its business model from personal sales to include group buys.  Owner, Carla Vercoe, claimed, before LivingSocial, no advertisement that she or the previous owner ever tried worked.

12.  TRIP ADVISOR:  Displayed friend’s reviews and opinions on Facebook that are directly relevant to planning and conversion.  Implemented Like button and other sharing functionality to help users share their experiences with their friends and saw:

  • 2X more content contribution from Facebook users than non-Facebook users
  • 20% in site engagement
  • Trip Advisor saw a direct correction between greater site engagement and increased conversion

In addition to showing ROI, these case studies demonstrate how social media and the tools now available are transitioning businesses that traditionally operated offline to online sales at group multiples; all to the betterment of their revenue and profitability.

We’ve written quite a bit on the subject of social media return on investment using case studies.  You can also check out 34 Case Studies that Prove Social Media ROI, 67 Case Studies that Prove Social Media ROI and 16 Case Studies that Prove Social CRM ROI.

Do you think your business might benefit from Social Commerce?

7 case studies show social media analytics pay off 3

Posted on November 23, 2015 by Rob Petersen

 

Peter Drucker

If you can’t measure it, you can’t manage it – Peter Drucker

  1. 87% of marketers want to know how to measure their return on investment for social media activities (source: Social Media Examiner)
  2. 85% use social networks in some way; only 14% tie financial metrics to it. (source: AdAge)
  3. Only 8% of companies say they can determine Return on Investment (ROI) from their social media spending (source: Econsultancy)

Social media analytics is the practice of gathering data from blogs and social media websites and analyzing that data to make business decisions.

Do social media analytics help determine ROI from social media activities? Here are 7 case studies where social media analytics pay off.

  1. BARCLAY’S: Launched a mobile banking application called PingIt. In the days following the launch, Barclays made significant changes to the app as a result of real-time social media analysis. The sentiment analysis showed although  the app was very well received, a small proportion of mentions were negative. It was quickly apparent that many users were unhappy that the app didn’t work for under 18’s. It wasn’t only teenagers that were unhappy, but also parents that couldn’t transfer money to them. This could easily create a PR disaster, but the data allowed Barclays to act quickly. Within the week, 16 and 17 year-olds were given access to the app, showing that Barclays were responsive to customer feedback.
  2. KEEN: An outdoor shoe manufacturing company based in Portland, Oregon with a well-respected brand and a strong and loyal following, built a social analytics framework to help understand social media campaigns, The framework included metrics such as Aurthorship, Reach, Engagement, Sentiment, Influence and Effect. Keen established Key Performance Indicators (KPIs) that traced back to business objectives. Page Likes increased by 92%, Post Reach increased by 342% and Post Engagement increased by 137%.
  3. LIPSY LONDON: a British women’s fashion brand, used social media analytics to look for linguistic pattern on how potential customer behave online to focus on engaging the right customers at the right time in their purchase journey. This was used to shape the paid and natural search strategies as well as a display campaign. This generated a 350% increase in revenue, 1,500 new unique users and over 8,000 visits to date.
  4. ROXY THEATER: A music theater in West Hollywood, California where Bob Marley, The Clash and Bruce Springstein, among others, had played. They used TweetReach to measure the number of people their Tweets reach, as well as the number and quality of Retweets. They also used Klout, which helped them compare their efforts to similar businesses.  They used the numbers in a TweetReach report to demonstrate to a talent buyer that they could reach a larger potential audience through Twitter so they could stop advertising in certain local publications. AOL City’s Best just named The Roxy as the best live music venue in Los Angeles. They just passed 100,000 Facebook followers and have nearly 50,000 Twitter followers.
  5. SAMSUNG: Had no scalable business model for integrating social media with customer support, plus no way to track building PR crises. They identified relevant keywords and major influencers, advocacy and community involvement. They established benchmarks for content volume around keywords and sentiment levels. Within 2 months, they had 325,000+ targeted product conversations tracked to establish benchmarks and 1 PR crisis alerted, processed and managed.
  6. TOMS SHOES: On April 10th thousands of people around the world ditched their footwear for TOMS Shoes annual “One Day Without Shoes;” a campaign aimed at showing the impact a pair of shoes can have on a child’s life. It is heavily rooted in social media – supporters share experiences by Tweeting the #withoutshoes hashtag. When they broke down the data hour by hour on 4/10, they saw the support building throughout the day and then sustaining with a large spike in to the evening. Drilling down, Toms saw how the campaign drew in major celebrities, media, and influencers along with international support during this period.
  7. YALE: Started a Tumblr blog to create, preserve and disseminate knowledge through infographics, online Q&A’s and educational content. They used social analytics to improve content strategy, determine the best time to post and identify influencers who are sharing their Tumblr posts. The Tumblr campaign increased followers by +142% and achieved more than 1,200 notes with two posts.

Do these case studies prove the value of social media analytics to you? Does your company need help understanding and establishing a framework for social media analytics?

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