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As valuable as it may be to peel back the layers of a poorly put-together list of social business ROI examples, let’s now talk about how to do it right. Below is a quick 5-step guide in case you ever want to publish your own report or list of social business ROI examples:

1. Do your research.

This means talking directly with the company or agency involved with the campaign or program, not just bookmarking Mashable  articles and collecting a few white papers. Actually talk with the program or campaign lead. Have a discussion about what worked and what didn’t, what was done and why, etc. Obtain financial data, not just digital and marketing metrics. Without this data, you will not be able to add this campaign or program to your list.

2. Know the difference between writing a list of social business case studies and a list of social business ROI examples.

– Case studies may focus on a breadth of criteria for success or failure. Some may focus on the impact a campaign had on consumer perceptions while others may focus on customer acquisition or nipping a PR crisis or any number of things.

Case studies can focus on ROI but they don’t have to.

Case studies tend to be written in sections: Objective/problem to solve, theory, strategy/plan, tactics/execution, what happened, what we learned. The formula isn’t rigid but for a case study to be written properly, it has to actually study a case, hence the name. It has to have a beginning, a middle and an end. It has to show the connection between intent and outcomes.

Case studies can’t only be about what worked. They also have to be about what didn’t work. There’s value to that as well. Report on both.

– A list of social business ROI examples focuses on just one thing: Listing social business programs or activities with quantifiable ROI.

There are three parts to a social business ROI report: An explanation of the activity’s purpose and nature, the cost of that activity, and the ultimate financial benefit to the company.

The focus here is much more specific than that of a case study.

3. Format your reporting properly. 

Here is an example of how not to format an example of social business ROI:

Electronic Arts. EA was 2nd UK brand to use promoted tweets and trends to promote FIFA 12 video game. Trend engagement level was 11%, well above Twitter’s average ‘benchmark’ for trends, of 3% to 6%. Promoted tweet engagement averaged 8.3% over two-week campaign vs. Twitter benchmark of 1.5%. (Marketing Magazine, 2011) Source: Peter Kim.

Note that in spite of the short formatting the above example does not  include any ROI data whatsoever. It focuses instead on trend engagement levels and promoted tweet engagement. This not what you want your ROI reporting to look like.

Here is an example of how to properly format an example of social business ROI:

Joe’s Pie Factory. JPF wanted to increase QoQ sales of carrot cakes by 25% by the end of Q4-2011. Leveraging its Facebook page, Twitter account, Youtube channel and blog, JPF launched an awareness campaign for its carrot cakes at the start of Q4-2011. Total cost of campaign: $27,391 (for video production and content & community management). Outcome: A 23% boost in QoQ sales resulting in $59,782 in net new revenue. (Add link to case study in case readers want to learn more.)

Note that this example focuses on campaign objectives and includes both cost and net revenue data for the activity. These are the three ingredients needed to properly qualify an example for a social business ROI list or report. (See item 4.)

You could stop there or you could do the math for your readers:

Joe’s Pie Factory. JPF wanted to increase QoQ sales of carrot cakes by 25% by the end of Q4-2011. Leveraging its Facebook page, Twitter account, Youtube channel and blog, JPF launched an awareness campaign for its carrot cakes at the start of Q4-2011. Total cost of campaign: $27,391 (for video production and content & community management). Outcome: A 23% boost in QoQ sales resulting in $59,782 in net new revenue. ROI of campaign: 118%. (Add link to case study in case readers want to learn more.)

4. Make sure that all of your social business ROI examples always contain these four pieces of information:

  1. A brief synopsis of the campaign or program.
  2. The cost of that program.
  3. The financial outcome of that program.
  4. A link to the case study / your source for the ROI data.

Anything other than those three pieces of information is unnecessary. Remember that you are writing a list of social business ROI examples and not a list of social business case studies.

Failure to include all four of these pieces of information will result in incomplete reporting.

5. Make sure that your documentation is in order.

Do not rely on anecdotal information to compile your list or report. Ever.

This means: do not assume that because a social business program was in place during a period of lift in sales revenue, the social media program was the cause of that lift. Don’t assume that if a digital marketing manager tells you that he knows customers responded positively to a campaign, they actually did. In fact, don’t assume anything. Back up every hypothesis and assertion with data. Disprove alternative cause-and-effect relationships where they may exist. Make sure you aren’t being sold a big fat lie.

If you cannot prove that a company’s social business program or campaign resulted in positive ROI, do not include that program or campaign in your list or report. Period.

Just to be sure, always document the source of your data so the rest of us can check it for potential errors or foul play.

Three more tips:

Don’t worry about gimmicks. If your list only gets to 23 examples, then that’s fine. Don’t try to stretch it to 25 or 75 or 101 just to have a catchy number that will score good SEO. Just stick to the facts. Everyone would much rather have 23 solid examples of social business ROI than 101 bad ones. Substance before flash. Always.

If you don’t understand how ROI and social business fit, you might not be the best person to compile and publish reports on the subject. If that’s the case, don’t feel bad. Life goes on. Publish stuff you actually understand for now. Someday, when the ROI thing isn’t such a mystery anymore, you can come back to it and give it another shot. Until then, just do yourself (and all of us a favor) and do your homework. Come prepared. Lead with what you know.

If you want to get better at this though, here is a primer on how to calculate ROI in 4 easy steps:

What you’ll need:

  • Campaign cost data and financial outcome data.
  • The ROI equation.

Here is the ROI equation in its most user-friendly format:

ROI = [(Financial outcome of program – Cost of program) ÷ Cost of program] x 100

Step 1: Calculate the financial outcome of the program – the cost of program.

Step 2: Divide that number by the cost of the program/campaign.

Step 3: Multiply that number by 100.

Step 4: Add a % at the end.

That’s it. So simple an 8-year-old at a lemonade stand can do it.

Now go forth and be a force for good and credible business reporting in the world.

Cheers,

Olivier

*          *          *

In case you haven’t yet, you might want to pick up a copy of #smROI. 300 pages worth of stuff like this in there. A full pound of knowledge.

And if your favorite social business “expert” doesn’t seem to get this stuff yet, don’t feel bad about sending them a copy. Knowledge is never a bad gift.

CEO-Read  –  Amazon.com  –  www.smroi.net  –  Barnes & Noble  –  Que

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Read Part 1: Assholes are bad for business.

I know what you are going to say: “Olivier, what’s up with the poopy-words all of a sudden? The other week, it was “assholes”. This week, it’s this. Didn’t your mom raise you to be a polite young man?” Answer: She tried. But sometimes, the polite version of a word just doesn’t do the job. Case in point: I could say “care.” Care about your customers. Care about designing the best products. Care about giving it your all every day. Care about taking your business into the stratosphere.

Care.

Except no. This isn’t about caring. This is about giving a shit, and yes, there is a difference.

When the word “care” no longer actually means caring.

“Caring” about something can mean a lot of different things. I can care about matching my shoes to my belt. I can care about the way my rainbow sprinkles touch the peanut butter ice cream but not the ball of Nutella ice cream underneath. I can care about maybe watching Curb Your Enthusiasm tonight, or waiting until tomorrow or next week. I can care about trying to sound pleasant on the phone, or maybe not so much. I can care about something if the conditions are right, and care less about it if circumstances change. Caring lives along a broad scale, as demonstrated by this awesome home-made graph:

But when you give a shit, that isn’t any kind of passive caring. Giving a shit means caring to the max. It means committing heart and soul to caring about something. Giving a shit is to caring what running a full-on sprint is to jogging. It is the storm to the light drizzle, the bazooka to the cork gun and the bear hug to the friendly nod. Giving a shit means you won’t sleep tonight if you screwed it up. It means you are going to take it all the way to the line. It means you are going to excel rather than settle for average… or mediocre. Giving a shit means you are driven by something more than a paycheck. It means you are driven by passion. And that, boys and girls, is some mighty strong secret sauce. Nothing can crush that. Nothing can get in its way.

When I walk into a store and talk to one of the salespeople there, I don’t want them to “care.” I want them to give a shit. The chef in the kitchen, I don’t just want him to “care”. The customer service guy on the phone, “care” is just the price of entry. You want to make your company kick ass? You have to take it a step further. That politician I just voted for? Guess what: He needs to do more than just “care.” The surgeon operating on my kids, yeah, her too, what I want her to do is actually give a shit.

When you give a shit, excuses don’t work anymore. Falling short (failing) becomes less of an option, if at all. Giving a shit means you’re invested, and that is when I know you are bringing your A-game. You aren’t just there for a paycheck, the dental plan or the free tickets to Wally World every summer. You are there because you want to be. Because you give a shit.

Look, everyone acts like they care when you interview them. “Oh yes, Mr. Jones, I really want to work here!” Right. In six months, that new hire will be spending half his day complaining to their office-mates about you, about pesky customers and their temperamental complaints, about having to work late, and about how poorly he gets paid. When you walk by his desk, you won’t even catch a glimpse of the Facebook tab or the game of computer solitaire you just interrupted. That’s what “care” will get you. And you know what? You’ll be to blame. Here’s why: Because your company culture made them that way.

When I call a company’s phone number and get an automated message telling me “… we care about your call,” what that company has just told me it doesn’t give a shit. And since companies don’t think – people do, namely executives making decisions (like having a computer answer my call instead of a human being), I know that this wasn’t an oversight. Someone made a deliberate decision to communicate to me and everyone else who calls them that the people in charge of building the company’s internal culture don’t give a shit. Way to get things off on the right foot.

The importance of creating “I give a shit” cultures.

None of this is rocket science. If you hire people who aren’t passionate about what you do, about what your company is about, or even people who don’t particularly care about their profession save getting a big fat check at the end of the week, you are going to create a culture of mediocrity. If instead you hire people who love your company, who were fans long before the job ever opened up, you will get a completely different result. Likewise, if you hire someone who is passionate about what they do, they will probably not disappoint.

A few years ago, one of my then employees admitted to me (when her bonus didn’t seem as guaranteed as she would have liked it to be) that she was considering transferring to HR. Puzzled by that admission, I asked her to elaborate. She told me “they just make straight salary over there.” I studied her for a moment, and asked her “Don’t you want to do this? If HR is something you’re interested in, why are you here?” She sighed and told me “I don’t really care what I do. I just want a steady paycheck.”

This is someone whom, if asked, would have told the CEO that she cared about her job, that she was passionate about it, that she loved it. That’s the average value of “care.”

Nb: I made sure my team hit its targets that month and the one after that, and she did, in fact, hit her bonus.

People like this are everywhere. It isn’t that they are necessarily lazy. Some are, but some are just apathetic. Doing what they do is a job. A paycheck. Nothing more. They spend their day watching the clock. They are out the door as soon as their work day is over and not a minute more. This is not the kind of employee you want. I don’t care if you are managing a hospital, a restaurant or a global brand, people like this are poison. They are engines of mediocrity, lackluster service, and lousy customer experiences. And god forbid they should become managers, or worse yet, SVPs or C-suite executives.

Imagine a CEO who doesn’t give a shit, for example. Or one who at least gives the impression, through their actions or words, that they perhaps don’t give a shit? What would that look like? What would be the impact of that type of “leadership” on the entire organization? On the brand’s reputation? On decisions being made up and down the corporate ladder inside its four walls? What kinds of ripples would this create?

Ken Lay of Enron

BP's Tony "I'd like my life back" Hayward

Now imagine a CEO who does give a shit. What would that look like? What kind of company culture would that generate? What kind of profitability and customer experience excellence would that drive?

Tony Hsieh of Zappos

Sir Richard Branson, of all things Virgin

Company cultures don’t grow from a random churn of interactions. They are engineered and designed from the inside out, deliberately, by people who give a shit. Or by people who don’t. The difference in outcomes between the two is typically fairly spectacular. We have all seen amazing companies falter under the direction of this CEO or that, solely based on their degree of giving a shit.

Why am I emphasizing that company cultures are engineered? Three reasons:

1. People who give a shit tend to hire people who also give a shit, and so on. Companies like this tend to hire carefully because they understand the importance of only hiring what you might call kindred spirits. Fans. Like-minds. They aren’t hiring as much as letting the right people into their little tribe of believers. When your entire company gives a shit, customers notice and become loyal. Why? Because they like that you give a shit, and they respect that. Besides, since you give a shit, you treat them well, which is more than anyone can say about companies that don’t give a shit about either their employees or their customers.

2. When customers like you (see 1. above), they tend to do a number of things: a) They love doing business with you, b) they do business with you as long as you keep giving a shit (which could be their own lives), and c) they recommend you to everyone they know, which in turn helps drive your business.

3. One CEO can make or break a company. Just one. Remember what happened to Apple when Steve Jobs left, back in the day? Should I mention some of Home Depot’s ups and downs? Show me a company whose CEO gives a shit, and I will show you a company about to bloom like a flower in sunlight. Show me a company whose CEO doesn’t, and I will show you a company about to race headlong into a very rough patch.

More than anything, customers instinctively know that they will eventually get screwed by someone who doesn’t really give a shit. They also instinctively know they will never get screwed by someone who does. This is important.

Even if giving a shit didn’t generate better design departments, better products, better service, better customer relations and generally healthier businesses, this point alone should catch the attention of CEOs, boards or directors, and investors alike: Consumer perceptions, trust, loyalty, these things matter in the mid-to-long term. Heck, they matter today. This very minute. Every single consumer making a purchasing decision right now is weighing one company against another. One will win. The others will lose. How are you feeling about your chances?

Leadership isn’t all about skills and experience. It’s also about attitude. And giving a shit, boys and girls, is a pretty important component of the sort of attitude we are talking about today.

The reciprocal effect of giving a shit.

Hiring people who give a shit, but not those who don't.

The above diagram illustrates the process of engineering loyalty and positive WOM (word of mouth) by sticking to a no asshole policy (see Part 1) and making sure you hire people who actually give a shit.

Note the jokers in red ink who didn’t really give a shit and are therefore not hired. The fact that they are not invited to spread their apathy and inevitable passive aggressive disdain to their coworkers and customers like a CSTD (Customer Service Transmitted Disease) ensures that your company maintains its edge.

Now let’s look at another kind of organization – one which doesn’t discriminate quite so much:

Hiring people who give a shit, and those who don't.

Note how in this alternate version, a company having allowed such individuals to breach its inner sanctum begin to spread mediocrity across their entire business, and how that trickles down into customer experiences and perceptions.

In short, giving a shit is contagious. From the CEO on down to everyone in the company and outwardly to customers. Positive attitudes and perceptions spread virally through recommendations, discussions and general perception. In the same way, not giving a shit is contagious as well, and it too spreads like a virus across departments, front-line employees, customers, and to their social and professional networks.

This is how reputations are both made and unmade, depending on what kind of culture you decide to engineer.

What are some of the obvious symptoms that a company doesn’t give a shit?

This is important, because these are common red flags. When consumers spot any of these (or several,) they know that perhaps your company doesn’t really care a whole lot about you, your loyalty, or your affection for their products or brands.

1. Customer service is outsourced. (Because nothing says “We care” like handing you off to total strangers working under contract for less than minimum wage.)

2. The recording says “your call is important to us…” which is kind of funny coming from a recording.

3. The company’s employees look at the clock more than they look at you.

4. The CEO, in the middle of a crisis, says things like “I’d like my life back.”

5. Outsourced social media accounts, especially when it comes to customer service functions.

6. When the product fails, technicians will be happy to “look at it,” and repair it for about 70% or more of the value of the product in about 6-12 weeks. This is usually followed by “you could just buy another one” type of “caring” advice.

7. False or misleading advertising.

8. The company spams your inbox, twitter feed, phone, or otherwise valuable channel.

9. The average customer has no idea who the CEO of the company is. Until they see him or her on TV, defending pretty bad decisions.

10. After several interactions with company employees or management, you begin to suspect that everyone who works there might actually be some kind of asshole.

11. Poor product design, characterized by lousy user UI/UX.

12. The manager, in an empty store or restaurant, still manages to blow off his only customers… assuming he is even there.

13. The company sells your personal information to third parties.

14. The CEO’s Twitter account, blog and/or Facebook page – all proof that he “cares,” wants to “engage” customers and feels that social media is “important” – are all managed and fed by a proxy, (or ghost writer) preferably working for an outside firm or agency. (Sorry Mr. Pandit, but you have been advised improperly on this one.)

15. More excuses than solutions, followed by buzzwords and lip service.

16. The CEO spends more time on the golf course than he does listening to customers.

And there you have it.

Three questions.

So the three questions you have to ask yourself are these:

1. What kind of company culture are my customers experiencing whenever they interact with one of my employees, colleagues, bosses, products and services? The kind that gives a shit, or the kind that clearly doesn’t?

2. What kind of company culture should I be building?

3. Once I cast aside the propaganda, tag lines, mission statements and sycophantic reports, what kind of company culture am I really building?

Be honest.  Are you setting the right example? Are you hiring the right people? Are you teaching them to give a shit? Are you rewarding them accordingly?

… Or are you banking on a mission statement to communicate to your employees that they should “care”?

Giving a shit is hard. So is kicking ass. So what?

Yeah, giving a shit is hard. It’s expensive too. It requires all sorts of investments: Financial, cultural, temporal, even emotional. (Perhaps especially the latter.) Giving a shit means that your business isn’t just about balance sheets and incremental basis points of change. It’s about creating something special for and with your customers. It’s about building the foundations of a lovebrand – like Apple, Harley Davidson, Virgin Airlines and BMW. It’s about investing in market leadership, in customer loyalty and evangelism, in your own reputation, and in the strength of your own brand. In short, it means investing in long term success, in stability in tough economic time, and in a demand vs. supply ratio that will always be in your favor. Giving a shit is an investment, yes, and not one that might immediately make sense to financial analysts, but one that pays off every time. It is the genesis of everything that ultimately makes a business successful: Professionalism. The endless pursuit of quality, of great design, of remarkable user/customer experiences.

The moment you lose that, the moment you start giving a shit a little bit less, the moment you start cutting corners, that’s when you start to screw up. When you lose that competitive edge. When you start sinking into the fat middle with everyone else. That’s when you start to lose. Before you know it, you’re stuck picking between BOGO pitches and worrying about price wars with foreign imports. I’ve worked with companies like this. You don’t want to go there, trust me. It’s ugly. It’s stressful. You wake up one morning and realize that even if you tried to give a shit anymore, you couldn’t. There wouldn’t be enough time. It wouldn’t make a difference. It might even get you fired. Everything you’ve worked for all your life is hanging on the edge, and it’s a long, hard road back too the top. Most companies never make it back. I can tell you that it’s a lot easier to never fall than to have to climb back up again, but either way, it’s a daily battle.

In fact, giving a shit is so hard that very few companies do anymore. It isn’t how the game is played any longer. “The customer is always right” is a relic of the past, isn’t it?

Or is it?

Have you listened to what people are saying about your company on Twitter and Facebook lately? Do you know what they are saying about your competitors? In a year or two, do you think companies whose leaders don’t give a shit are going to be able to compete against companies whose leaders do? If you don’t see giving a shit as a competitive advantage yet, as a differentiator, even as a normalizing agent, then at the very least see it as a matter of survival. The age of the “I don’t give a shit” CEO is done. Game over.

Time to make a change or two?

*          *          *

Since it’s June, here are this month’s three quick little announcements:

One – If you haven’t read “Social Media ROI: Managing and measuring social media efforts in your organization” yet, you will find 300 pages of insights with which to complement this article. It won’t answer all of your questions, but it will answer many of them. If anything, the book is a pretty solid reference guide for anyone responsible for a social media program or campaign. It also makes a great gift to your boss if you want him or her to finally understand how this social media stuff works for companies.

You can sample a free chapter and find out where to buy the book by checking out www.smroi.net.

Two – If you, your agency or your client plan on attending the Cannes Lionsfrom June 19-25, I am planning something a little… “unofficial” during the festival. If you are interested in being part of it, let me know.

You can send me an email, a note via LinkedIn, a Twitter DM, or a facebook message if you want to find out more. (The right hand side of the screen should provide you with my contact information.)

Three – If the book isn’t enough and you can’t make it to Cannes later this month, you can sign up for a half day of workshops in Antwerp (Belgium) on 30 June. (Right after the Lions.) The 5 one-hour sessions will begin with an executive briefing on social media strategy and integration, followed by a best practices session on building a social media-ready marketing program, followed by a PR-friendly session on digital brand management, digital reputation management and real-time crisis management, followed by a session on social media and business measurement (half R.O.I., half not R.O.I.). We will cap off the afternoon with a full hour of open Q&A. As much as like rushing through questions in 5-10 minutes at the end of a presentation, wouldn’t it be nice to devote an entire hour to an audience’s questions? Of course it would. We’re going to give it a try. Find out more program details here. Think of it as a miniRed Chair.

The cool thing about this structure is that you are free to attend the sessions that are of interest to you, and go check your emails or make a few phone if one or two of the sessions aren’t as important. The price is the same whether you attend one or all five, and we will have a 15 minute break between each one.

The afternoon of workshops is part of Social Media Day Antwerp (the Belgian arm of Mashable’s global Social Media Day event), and I can’t help but notice that the price of tickets is ridiculously low for what is being offered. Anyone can afford to come, which is a rare thing these days. (Big props to the organizers for making the event so accessible.)

The event is divided into 2 parts: The workshop in the afternoon, and the big Belgian style party in the evening. You can register for one or both (do both).

Register here: Social Media Day – Antwerp

My advice: Sign up while there are still seats available, and before #smdaybe organizers realize they forgot to add a zero at the end of the ticket prices. :D

Cheers,

Olivier.

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Today’s article was prompted by The Now Revolution co-author Jay Baer’s blog post entitled The 6 Step Process for Measuring Social Media. Consider the following 5 sections a complement to the social media measurement discussion in the business world. Bookmark it, pass it on, and feel free to ask questions in the comment area if something isn’t clear.

Let me explain, for anyone who is still confused about it, how to properly think about the integration of social media measurement into business measurement. This applies to the way social media measurement is applied to every business activity social media touches,  from short-term product awareness campaigns to long term customer retention programs.

To make things simple, I will make use of a few diagrams to illustrate key concepts everyone who touches social media in the business world absolutely needs to understand.

Ready? Here we go:

1. Measuring Social Media: Activity and outcomes.

The above image shows the relationship between an activity and the measurable impact of that activity on social media channels. The ripples represent every type of outcome – or effect – produced by that activity, which can be measured by observing, then quantifying certain key behaviors on social media channels. A few examples:

  • Retweets
  • Likes
  • Follows
  • Shares
  • Comments
  • Mentions
  • Sentiment

When social media “experts” and digital agencies that provide social media services talk about social media measurement, this is what they are talking about.

So far so good. The trick is to not stop there.

2. Measuring Social Media: Activity and outcomes beyond social media channels

Now that we have looked at basic “social media measurement,” let us look at it side-by-side with business measurement – that is to say, with metrics that existed long before social media ever came on the scene. A few examples:

  • Net new customers
  • Changes in buy rate
  • Loyalty metrics
  • Word of mouth
  • New product sales
  • Customer satisfaction
  • Increased operational efficiency
  • New online orders
  • Traffic to brick & mortar stores
  • R.O.I. (you knew it was coming.)

In other words, the types of metrics that indicate to a business unit or executive team whether or not the activities they have funded and are currently managing are having an effect on the business. These types of metrics are represented in the above diagram by the black ripples.

To some extent, you can also include a sub-category of metrics not directly related to business measurement but that also exist outside of the realm of social media measurement. These types of metrics typically relate to other types of marketing & communications media such as print, TV, radio and even the traditional web. A few examples:

  • Impressions
  • Unique visitors
  • Bounce rate
  • Cost Per Impression (CPI)

These types of metrics, for the sake of this post – which aims to clarify the difference between social media measurement and social media measurement within the broader context of business measurement – would also be represented by some of the black ripples in the above diagram.

3. Understanding that “measuring social media” is a terribly limited digital play.

 If you remember only one thing from this article, let it be this: Only measuring “social media” metrics, as if in a vacuum, leads absolutely nowhere. Sure, if your objective is to build a “personal brand,” boost your “influence” rankings in order to score more goodies from buzz marketing firms that do “blogger outreach,” then those social media metrics are everything. Chasing those followers, collecting likes and retweets, meeting that 500 comments quota of comments on Quora every day, and religiously checking your Klout score and Twittergrader ranking every twenty minutes is your life.

But if you are a business, that is to say, a company with employees, products, payroll, a receptionist and a parking lot, the role that social media measurement plays in your universe is not exactly the same as that of a semi-professional blogger trying to tweak their SEO and game blogger outreach programs. These two universes are completely different. Their objectives are completely different. Their relationships with measurement are completely different.

Understanding this is critical. Bloggers with no real business management experience tend to have a very difficult time bridging the strategic gap between their limited digital endeavors and the operational needs and wants of organizations whose KPIs are not rooted in Facebook, Twitter and Youtube.

It should come as no surprise that the vast majority of social media “experts” and “gurus” – being first and foremost bloggers with experience in navigating affiliate marketing programs, and a commensurate focus on SEO and social media “influence” gaming models in support of their “personal brand” – tend to see the world through that specific prism. The problem however is this: Their focus on social media measurement may be spot on when advising other would-be bloggers, but it is completely off target when advising business clients whose business models are not entirely based on selling advertising on a website and scoring goodies from advertisers in exchange for positive reviews and buzz.

In other words, when social media “experts” keep telling you how to “properly” measure social media – as if your measurement software didn’t already do this for you automatically – consider this an indication that they have absolutely nothing else to talk about when it comes to social media integration into your business. Their understanding of social media activity and measurement is entirely founded on their own experience as a blogger, and not – unfortunately – on the experience of the business managers they aim to advise, whose objectives and targets have little to do with how many fans and followers and likes they manage to collect from month to month.

One of my biggest areas of frustration for the last few years – and one of the principal reasons why social media has been so poorly integrated into the business world until now – has been the ease with which bloggers with little to no business management experience have hijacked the social media “thought leadership” world. Many of them would not be qualified to run an IT department for the average medium-sized business, much less help direct the strategy of a digital marketing department, customer loyalty program or business development group. Their understanding of the most basic, rudimentary business principles (like R.O.I.) is as painfully lacking as their dangerous lack of practical operational experience – in change management, for example – without which social media theory cannot be aptly put into practice. Yet here we are, or rather here companies are – many of which are listed in the Fortune 500, listening to bad advice from the most inexperienced business “strategists” on the planet, and trying to apply it – in vain – to their businesses.

If you are still wondering why your social media program is not bearing fruit, or if you are still confused by social media measurement, this is the reason why.

A metaphor lost in a hyperbole.

The tragic irony of the general state of confusion created by this army of so-called experts is that in spite of everything, social media measurement is not complicated. If you can type a password into a box, navigate a multiple-choice questionnaire and use your mouse to click on a “generate report” button, you too can measure social media. All you need is the right piece of measurement software, an internet connection and a pulse. You don’t even need to know how to send a tweet to do it.

I am not kidding. A monkey could do this.

The sooner business managers, company executives and agency principals stop listening to social media douchebags, the faster social media will be integrated (smoothly and effectively) into everyone’s business models. Don’t limit yourself to measuring social media. Stop listening to business advice from bloggers with no business experience. And don’t buy into the notion that because social media is new and digital, it is complicated. Social media is easy. Social media measurement – by itself – is easy. It takes work and diligence and clear vision, but all in all, it doesn’t take a brain surgeon to figure it out.

4. Once you get rid of the monkey noises, you make room for the simplicity of the (social) business measurement model.

The above diagram illustrates both the measurable social media outcomes (in orange) and the measurable business outcomes (in black), based on an activity (the solid orange ball). We have covered this earlier in this article. By now, you should understand two key principles:

1. Measuring only social media outcomes (or measuring them separately from business outcomes) won’t get you very far. It’s what you do your first month. Then what?

2. Only by establishing a relationship between social media metrics and business metrics will you be able to gauge both the impact and value (including but not limited to R.O.I.) of social media on your campaigns, programs and overall business.

How you connect social media outcomes/metrics to business outcomes/metrics is covered elsewhere on this blog and of course in the Social Media ROI book, but if this diagram doesn’t confuse you, try to conceptualize the relationship between social media outcomes with business outcomes by observing the intersect points between the orange ripples and black ripples. (See above diagram.) Your investigation of the correlation between the two will always begin there.

5. One final tip: Turning your integrated measurement model into a social media tactical plan.

These diagrams only serve to illustrate how you should think about social media measurement in conjunction with business measurement. That’s it. But if you take a step back and look at the interaction between social media outcomes (measurable behaviors in social media channels resulting from a specific activity or event) and measurable business outcomes (measurable behaviors resulting from a series of activities and events), you can start to work your way backwards from outcome to activity, which is to say from measurable behavior to behavioral trigger.

By looking at the impact that certain activities (triggers) affect consumer behaviors (mentions, retweets, purchasing habits, word-of-mouth, etc.) you can begin to gauge what works and what doesn’t. Integrated measurement of both social media and business metrics in this context – as a tactical real-time diagnostic tool – is far more valuable to an organization than a measurement practice that solely focuses on reporting changes in followers, shares and likes. This illustrates the difference in value between a truly integrated measurement model and a “social media measurement” model. One produces important insights while the other merely reports the obvious.

I hope that helps.

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Three quick little announcements in case you are hungry for more:

One – If you haven’t read “Social Media ROI: Managing and measuring social media efforts in your organization” yet, you will find 300 pages of insights with which to complement this article. It won’t answer all of your questions, but it will answer many of them. If anything, the book is a pretty solid reference guide for anyone responsible for a social media program or campaign. It also makes a great gift to your boss if you want him or her to finally understand how this social media stuff works for companies.

You can sample a free chapter and find out where to buy the book by checking out www.smroi.net.

Two – If you, your agency or your client plan on attending the Cannes Lions from June 19-25 and want to participate in a small but informative 2-hour session about social media integration, measurement, strategy, etc. let me know. I just found out that I will be in Cannes during the festivals, so we can set something up – either a private session, or a small informal discussion with no more than 6-7 people. First come, first served.

You can send me an email, a note via LinkedIn, a Twitter DM, or a facebook message if you want to find out more. (The right hand side of the screen should provide you with my contact information.)

Three – If the book isn’t enough and you can’t make it to Cannes later this month, you can sign up for a half day of workshops in Antwerp (Belgium) on 30 June. (Right after the Lions.) The 5 one-hour sessions will begin with an executive briefing on social media strategy and integration, followed by a best practices session on building a social media-ready marketing program, followed by a PR-friendly session on digital brand management, digital reputation management and real-time crisis management, followed by a session on social media and business measurement (half R.O.I., half not R.O.I.). We will cap off the afternoon with a full hour of open Q&A. As much as like rushing through questions in 5-10 minutes at the end of a presentation, wouldn’t it be nice to devote an entire hour to an audience’s questions? Of course it would. We’re going to give it a try. Find out more program details here. Think of it as a mini Red Chair.

The cool thing about this structure is that you are free to attend the sessions that are of interest to you, and go check your emails or make a few phone if one or two of the sessions aren’t as important. The price is the same whether you attend one or all five, and we will have a 15 minute break between each one.

The afternoon of workshops is part of Social Media Day Antwerp (the Belgian arm of Mashable’s global Social Media Day event), and I can’t help but notice that the price of tickets is ridiculously low for what is being offered. The early bird pricing is… well, nuts. Anyone can afford to come, which is a rare thing these days. (Big props to the organizers for making the event so accessible.)

The event is divided into 2 parts: The workshop in the afternoon, and the big Belgian style party in the evening. You can register for one or both (do both).

Register here: Social Media Day – Antwerp

My advice: Sign up while there are still seats available, and before #smdaybe organizers realize they forgot to add a zero at the end of the ticket prices. 😀

Cheers,

Olivier.

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