Posts Tagged ‘ROI Measurement’

Online Contest Case Study: Affect gets an Intern

new-york-inter-project

By Patrick McCarthy, Social Media Coordinator & Blog Editor, WOMMA

Word of mouth is generated by many different sources and an effective WOM campaign should reflect that. Every facet of the endeavor needs to spark a conversation. Affect, a NY-based PR firm, produced an online contest earlier this year that did just that.

Like most PR firms, they needed a summer intern. Obtaining one is usually a banal repeat of career fairs, job postings, resume filtering and interviews. But Affect needed a really good intern and saw an opportunity to generate a flood of word of mouth in the process of finding one.

“Finding an intern was just one of the goals, but we really designed the program around other goals like raising awareness, building a use case for best practices that we could share with existing clients.” – Sandra Fathi, President, Affect

Every Step is a WOM Opportunity

Word of mouth starts with one really good product or idea and is successful through superb execution of the details. The contest broke the schema of how to find an intern, but that isn’t what made this campaign successful.

The contest was designed with three stages. The first stage required applicants to submit their pitch for hiring them. To make it to the next stage, applicants needed to get votes. This meant that they needed to persuade people to vote for them. Ample sharing ensued. The top six vote-getters made it to the next round.

Stage two brought in the big guns to pare down the six entries to three killer finalists. The judges were:

Guy Kawasaki, Partner, Garage Technology Ventures & Co-Founder, Alltopguy-kawasaki

I want to see that you understand what the company does, because you did your homework. If you don’t demonstrate that you prepared, don’t even bother applying to a contest that I’m judging.”

Erica Swallow, Associate Editor, Mashableerica-swallow

The ideal candidate would be a creative thinker with influence in his or her interest areas, whether that’s through a blog, social channels or even a Meetup or club.”

Jessica Dickler, Staff Writer, CNN Moneyjessica-dickler

I’m looking for someone who is personable and smart. From my perspective, being easy to talk to and quick to deliver results goes a long way.”

These big name judges lent a lot of validity and prestige to the contest, which in turn generated even more WOM. By the time the contest reached the third stage, conversations were growing in college cafeterias as much as in media professional circles.

Sandra and Leslie Campisi, VP and Partner at Affect, finally whittled the three finalists down to one lucky fellow, Pat Gotham of Salisbury University. He’ll keep the fire alive by blogging his entire experience.

The New York Internship Project by the Numbers

In the end, the campaign worked. They had 96 potential interns who in total generated 165 comments and 14,360 votes. Pat Gotham alone received 45 comments and 795 votes.

Affect.com saw a 60% increase in traffic and a 56% increase in page views. Their blog, Tech Affect, drew 46% more traffic and 50% more page views. The contest website drew 63,492 visits and 109,371 total views.

The story was picked up by Forbes, Crain’s New York, Yahoo! Finance, The Wall Street Journal, and PR Breakfast Club.

14

06 2011

Influence, Durkheim and… Suicide

Nan Dawkins, Founder/CEO, Serengeti Communications

Nan Dawkins, Founder/CEO, Serengeti Communications

By Nan Dawkins, Founder/CEO, Serengeti Communications

The Word of Mouth Marketing Association (WOMMA) defines an influencer as “a person who has a greater than average reach or impact through word of mouth in a relevant marketplace.”

Influencers are generally understood to be a crucial factor in creating successful WOM marketing. As a result, much has been written about where to look for influencers and how to engage them. Numerous commercial products offer some form of automated influencer identification, especially for the online environment.

Currently, many of the automated tools that identify and rank influencers rely heavily on the size of the influencer’s following. More sophisticated approaches are emerging, including:

  • Analysis of interaction dynamics (i.e., how far an influencer’s post is likely to spread across Twitter or how often, on average, an influencer’s content is shared and propagated by others),
  • Analysis of relevance (i.e., is the influencer truly relevant to a particular topic)
  • Sentiment analysis (i.e., determining the sentiment of content shared by the influencer)
  • Real-time trending of rapidly accelerating influence events (which may point to previously unidentified influencers).

This may sound grandly ambitious and very cool (and it is, in many ways) but the practical reality we face, as a group, is that influencer analysis is very much in its infancy. The companies working in this area (mine included) are facing many challenges, such as the technical issues of dealing with large amounts of data, the difficulties of asking computers to make human judgments about relevance and meaning, and the stark reality of a Black Swan Internet environment which produces influential people and scenarios that could not have been predicted based on past observations (think United Breaks Guitars or any number of other examples).

Simply put: it’s complicated. So perhaps now is a good time to put aside all our network-theory and graph-analysis tools for a moment and consider the possibility that the underlying problem is that we need to view influence in WOM settings as a social fact. Instead, we seem to be framing the concept of influence in a way that assumes it is a natural fact, like pi or Avogadro’s constant. Maybe it’s time for us to go back and read a bit of Émile Durkheim, and then consider suicide.

No, not committing suicide; I mean, suicide as a “social fact.” Durkheim was a French sociologist who made huge news in 1897 with a study that showed suicide rates were much lower in some European religious communities than in others. There was a great rush (at least among academics) to conclude that human behavior might largely be explained in terms of a small number of beliefs and values. More than a century hence, most sociologists now understand that the differences Durkheim found in suicide rates were in fact attributable mainly to the way these different religious communities defined and documented the act of suicide.

Durkheim also pioneered the acceptance of social facts as valid scientific insights, on a par intellectually with the Pythagorean Theorem and E = mc2. But he also pointed out a crucial distinction between social and natural facts: what may be an observably and demonstrably true social fact for a specific social group may not be true for any individual member of that group, and will almost certainly not be true for many in that group. If that seems counterintuitive to you, I agree entirely. But let’s have a bit closer look.

In 2009, the average US family had 3.14 members. I’m going to give the Census Bureau its props and concede that this metric is probably accurate, even though I am confident that I will never, ever find an American family that is exactly that size.

Back to influencers. Consensus on a fully quantifiable, replicable and consistent definition of influence and its impact on WOM may be an ideal worth striving for. But we would do well to consider the possibility that some or possibly all aspects of what we call “influence” may be reflective of influencers in aggregate, but rarely observed on an individual level. So, while it may be true that on an aggregate level, an influencer can be defined as any person with greater than average reach or impact within a relevant marketplace, consider the following:

  • Joe has average reach and average influence among a small network. However, Joe’s network has extremely high value to my company. Average influence in an extremely high value network is enough to put Joe on my influencer list.
  • John has high reach and influence among a very relevant marketplace of gourmet food lovers. In addition, John has mentioned my brand, (a line of gourmet nuts). Unfortunately, John has a nut allergy. Here is the context in which John mentioned my brand: “Nuts follow me wherever I go. A jar of Brandx gourmet nuts fell on my head while I was shopping in the grocery today and it very nearly killed me.” John might be an influencer in the gourmet foods category, but he probably does not belong on my influencer list.

Another inconvenient characteristic of social facts is that they are fluid. They have a shelf-life and a use-by date. The reality is that the definition of an influencer for a particular brand, product, or company probably will (and should) change based on marketing goals:

  • If the goal is to stimulate new, incremental sales (i.e., new buyers), WOM created by less loyal customers who are not opinion leaders, and occurring between acquaintances (not friends) may be more effective (see “Firm-Created-Word-of Mouth Communication: Evidence from a Field Test,” Marketing Science, Vol.28, No. 4 by David Godes and Dina Mayzlin, 2009.
  • If the goal is increased brand awareness, someone who mentions my brand often and who has high reach among a relevant audience is an influencer. Someone who has high reach among a relevant audience and mentioned my brand only once, more than a year ago (and rarely mentions competitive brands) may not belong on the target list, at least for this campaign.

These considerations oblige me to consider that, even if a given individual may qualify as an influencer in my product category, he or she might not qualify as a target. And, vice-versa. At the very least, the relative value placed on the criteria used to rank a given influencers’ value (reach, influence, relevance, etc.) may vary significantly based on audience and goals for a particular campaign.

My point? Perhaps we all need to take a breath for a moment and turn our attention to technologies and best practices that discover and incorporate the way different groups define and experience influence. On a practical level, we should at least consider the possibility that the tools are rushing to develop must be flexible — allowing marketers to adjust the dials on the criteria for defining and ranking influencers – in order to be truly useful.

Nan Dawkins is the founder and CEO of Serengeti Communications, a Washington, DC based marketing firm specializing in search, social media, web analytics, digital marketing measurement tools and training. Serengeti recently launched a new social media measurement tool, Social Snap, to provide marketers with in-depth insights into the results of social media programs.

08

03 2011

Dr. Walter Carl on Measuring Conversations

I recently listened in on a WOMMA Webinar with Dr. Walter Carl, founder and chief research officer at ChatThreads Corp. Walter is a faculty member at Northeastern University and serves as chair of WOMMA’s Measurement & Research Council. (So when it comes to measuring WOM, he knows his stuff.)

Walter shared interesting information on measuring the value of conversations. In one of the more provocative points in the webinar, Walter shared an analysis of a Premium Pet Food word-of-mouth program he was involved with. Part of his analysis included using ChatThread’s Conversation Value® Model to crank out some ROI data.

For programs they work on, Walter’s company has the ability to track person-to-person conversation ripples and then tie those conversations directly back to sales for a straight ROI analysis. From there, ChatThreads also projects a lifetime ROI measurement.

[Scroll below to jump right into the webinar snippet on measuring conversations. Or, continue reading for some background information on the numbers discussed by Walter.]

The “advocacy campaign” for a Premium Pet Food brand Walter talked about in the webinar started with an initial 5,000 participants. The initial 5,000 people engaged in conversations with people and then, those people engaged others in conversations about this pet food brand.

So, Wave 1 of this program included an initial 5,000 participants in an “advocacy campaign” for a premium pet food brand.
[Wave 1 total: 5,000 people]

The next ripple, Wave 2, saw the initial 5,000 people each carry on a conversation about this premium pet food brand with, on average, 12 other people. Thus, 61,167 people heard the advocacy message for this pet food.
[Wave 2 total: 61,167 people]

Wave 3 saw these 61,167 people pass along the pet food advocacy message to nearly 3 people each, broadening the reach to an additional 173,101 people.
[Wave 3 total: 173,101]

In total, 239,268 people heard the advocacy message about this premium pet food brand.
[5,000 + 61,167 + 173,101 = 293,268]

It’s important to note, all of the people involved in these conversations were not current customers of this pet food brand. According to the study Walter cites, these were all new potential customers.

Watch/listen to this snippet from Walter Carl’s WOMMA Webinar. Pay special attention beginning at the 4-minute mark of the webinar snippet. This is where Walter breaks down the ROI analysis of this program in two ways: (1) straight ROI and (2) lifetime ROI. The straight ROI for this program was 64% and the lifetime ROI was 220%.

All you research wonks probably have a kagillion counterpoints to make. Go for it. I’ll pass-along your rebuttals to Walter and hopefully, he’ll answer your counterpoints.

You may also be interested in reading Walter’s recent article on Measuring WOM Marketing.

30

04 2009