Logo
BodyBGTop
The Social Media Monitoring Cheat Sheet
An Aberdeen Group study suggests it's not too late to begin tapping into social media to manage your brand reputation online. Not yet, anyway.
Posted Jun 10, 2009
Page 1



Who would've thought that a bricks-and-mortar pizza-delivery company would one day be an example for companies monitoring their online brand reputations?

It's been six weeks since Domino's Pizza made headlines with its unfortunate Youtube incident. However, the social media kerfuffle raised several interesting questions, among them:

  • How much damage can a single public-relations disaster bring to a brand?
  • How long is too long for a brand to wait before responding such a disaster?
  • What are the best channels through which to reach consumers when attempting to mitgate such a disaster?

Aberdeen Group analyst Jeff Zabin explores such issues — the use of online monitoring tools to increase brand value and to mitigate risks to a company's reputation — in his latest report, "Brand Reputation Management, Using Online Monitoring to Protect a Company's Crown Jewels." (A free download of the report can be found on the Aberdeen Group's Web site.) The report relies on the traditional Aberdeen methodology classifying companies into three categories — best-in-class, industry average, and laggards — but indicates that, regardless of category, all companies can use these online tools to boost their reputations on- and offline.
 
Just because all companies can benefit, however, doesn't mean they'll all benefit equally. The report states that best-in-class (BIC) companies are more than 12 times more likely than laggards are to experience year-over-year increases in shareholder value when using online monitoring tools. BIC companies are also twice as likely as laggards are to see year-over-year improvements in customer retention rates when taking steps to listen and respond to consumer activity on the Web -- and to improve those rates by 11 percent on average, compared to just 1 percent for laggards.

Perhaps most striking is how much more likely BIC companies are to improve year-over-year performance in return on marketing investment (ROMI) than laggards are — a whopping 400 percent more likely. 

"Consumers have more control and influence than ever," Zabin says. "They have the ability to not only drive positive word of mouth in customer advocacy, but they also have ability to do untold damage to a brand." So, in order for a brand to begin damage control, the organization must first establish a strategy for defining (and goals for achieving) social media monitoring. The report states that, once the initiative is under way, it's imperative to link results gleaned from social media monitoring to increased revenue or other financial outcomes. The content must then be integrated into business processes or customer data.

In other words: Once you've got the feedback, you better use it. 

"The Domino's story and so many others are illustrating the fact that whatever is being said in the universe of social media and peer-to-peer social networks needs to be taken seriously," Zabin says. "Companies need to really keep close tabs on what consumers are saying because their words could ultimately erode shareholder value." Although social media metrics are evolving, Zabin points to a handful of areas already known to be worth examining:

  1. Net Promoter score: The NPS has emerged as the industry standard measure of word-of-mouth advocacy.
  2. Time to brand-threat notification: Companies should measure the time lapse between the identification of a potential threat to a company's brand reputation and the notification of key decision makers. The sooner a threat is identified, the better.
  3. Incident-response time: With the advent of social media, timing is everything -- and there's no time like real time. Companies need to measure their response rates. Chances are, they're not fast enough. 

"When you think about 'What are the metrics to apply here?,' it's the ability to quickly identify any potential issues that need to be addressed and disseminate [that information] to key decision makers," Zabin says. Unfortunately, he adds, few companies today are succeeding at the task -- or even tackling it in the first place. "I don't think very many companies are measuring how quickly they are able to identify and respond to mentions of the brand very effectively or consistently," he says. "But more companies are waking up to the realization that they need to -- because that's going to be the primary indicator of whether a company is able to prevent a threat from ultimately spiraling out of control."

The Aberdeen Group provides the following steps to success for online brand reputation, in ascending order of a company's sophistication:

Laggards:

  • Define best practices for acting upon social media conversations to protect the brand.
  • Outsource resources for the management of brand reputation. Make sure that the external parties are skilled at social media monitoring.
  • Establish time-sensitive performance metrics.

Industry Average:

  • Use social media monitoring capabilities to identify and measure the value of key influencers.
  • Experiment with search engine optimization techniques to bring positive information about a brand to the top of search results (and, by extension, to help bury negative information).
  • Appoint employees to engage in online conversations with consumers.

Best in Class:

  • Conduct sentiment analysis at a granular level.
  • Correlate online brand protection to financial outcomes.

News relevant to the customer relationship management industry is posted several times a day on destinationCRM.com, in addition to the news section Insight that appears every month in the pages of CRM magazine. You may leave a public comment regarding this article by clicking on "Comments" at the top; to contact the editors, please email editor@destinationCRM.com.

 

Page 1
To contact the editors, please email editor@destinationCRM.com
Every month, CRM magazine covers the customer relationship management industry and beyond. To subscribe, please visit http://www.destinationCRM.com/subscribe/.
Learn more about the companies mentioned in this article in the destinationCRM Buyer's Guide:
{0}
Related Articles
CRM can be a tough animal to tame. We've gathered a handful of tunes that actually soothe the sometimes-savage beast.
Web 2.0, social media, customer feedback, conversations. Transparency is the new currency in CRM—but are you really ready to let your customer behind the curtain?
CRM magazine's Influential Leaders are the executives and industry pundits with the strategy, product line, or visionary thinking needed to drive the market.
A new report from Aberdeen suggests that the best time for marketers is when customers are communicating through their actions.
NRF Annual '09: Discounts are tactical, but a brand is forever. The companies that manage to balance the two will be the ones to come out of this recession alive.
Forrester Wave on Listening Platforms '09: The analyst firm listens closely to a market segment that used to be known as brand monitoring.
Using the Internet, text, and other sources for insight.
Search Engine Strategies NYC '09: In the current economic climate, even top-shelf brands need to be wary. "Marketing must move from passion to compassion," according to a presenter.
A recent report reveals what even flawed marketers might achieve with efforts involving social media.
Web 2.0 Expo '09: Social media thought leaders Charlene Li, Jeremiah Owyang, and Peter Kim discuss the barriers to social media marketing, and how to encounter them without going "over capacity."
Wireless service providers aren't listening to their loudest customers
Social media has only just taken off, says Forrester analyst Jeremiah Owyang -- and his "Future of the Social Web" report says social networks and marketers will have to change their strategies. "Bad things will happen," he says.
Only 16 of the top 100 Internet retailers -- including perennial leaders Netflix and Amazon.com -- improved their satisfaction scores, but the majority of e-commerce sites lost ground. Also, research firm Gartner offers cost-saving tips.
Internet Week '09: Brand Exposure event shows companies how to join the conversation.
Social media monitoring vendor Visible Technologies launches TruReputation and expands its search reputation management offerings.
The social Web is about to evolve — again. Are you ready to evolve, too?
Inbound marketing vendor HubSpot offers a new social media monitoring solution and gives advice to small businesses toying with Twitter.
The social media monitoring company extends its truCast Suite and segments its capabilities based on user needs.
Social business solutions company adds social monitoring to its offering and aims to enable collaboration and engagement.
Unable to connect social media to quantifiable results has made marketers wary of the investment, but this year may be the year all that changes.
It's a matter of technology and numbers.
CRM Evolution '10 — Day 1: "Social will be like air in 2011," says Altimeter Partner Ray Wang in presenting the top use cases for social CRM.
 
Search
Popular Articles
 

BodyBGRight
Home | Get CRM Magazine | CRM eWeekly | CRM Topic Centers | CRM Industry Solutions | CRM News | Viewpoints | Web Events | Events Calendar
DestinationCRM.com RSS Feeds RSS Feeds | About destinationCRM | Advertise | Getting Covered | Report Problems | Contact Us