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How to Measure Social Networking ROI

Social Networking is a form of business communication that can support the establishment of a brand, help maintain brand awareness and build relationships that lead to sales.

For an organization looking to build awareness of its products or services through social networking, the cost of social networking can be easily measured.

An employee, contractor or advertising agency, will establish a Twitter page, Facebook account and/or MySpace page. Target blogs, forums and communities (those networks having the Customer demographics the business or organization wants to reach) will be identified and joined. Signatures with links, coupled with backend landing pages and tracking codes will be created. And relationship building begins, consuming time and money on an hourly or per account basis. Since time and money are easily measured, the cost of social networking is also easily measured.

What is the Value of Social Networking to a Business?

What does all of this social networking do for an organization? Does social networking increase sales? For all of the costs involved in establishing and maintaining social networking relationships as business communications, is social networking worth the cost? To answer this question, we must measure the Return on Investment.

How Does a Business Measure Social Marketing ROI?

To answer this question, we must find a metric – a number we can measure before and after some event, something quantitative like traffic, sales volume, number of telephone calls or number of responses to an advertisement.

Brand perception, a qualitative metric, can be measured with surveys, no doubt, but who out there can calculate the length of time and the social networking force required to state, in a statistically relevant manner, that social networking changed or improved an existing brand’s perception in the marketplace? Surely this effort would not be undertaken without using other media, which makes measuring the contribution of social networking to a shift in perception a bit more cumbersome. So the question remains…

How Do You Measure the Value of Social Networking to a Business?

Simon Andrews at Big Picture on Advertising says,

…all our work shows the best way to calculate the ROI on social is to look at the effect on organic search…

Excellent point. We know Google indexes tweets (Twitter posts), LinkedIn, Facebook and Plaxo profile pages. Blog posts are indexed as are comments. What metrics, other than organic search results, do we have to measure the value of online relationships?

Measuring Social Networking ROI and Affiliate Marketing

The Web Development, Advertising and Affiliate Marketing industries developed tracking tools to measure the effectiveness of ad copy and links on sales. Recommendations that result in action can be measured and tracked back to the source or referral. But spur of the moment conversations, especially SMS messages are hindered by the insertion of affiliate links.

Taking this one step further, if your business model is based on an affiliate marketing model, you will maintain a list of cloaked links to your vendors. This list also needs to be maintained in such a way that your affiliate links can be easily dropped into social networking conversation when appropriate. That takes a bit of planning! It is somewhat less-than-natural.

Since a lot of social conversation is occurring within 140 characters or less, and I have to assume these conversations are not stunted by tracking links, how do you measure the value of social networking by any means other than organic search results?

Using Google Analytics and Tracking Codes to Measure ROI

My first metric is traffic to this site. And I use Google Analytics to give me the data I want.

Using Twitter as an example, I create and embed a tracking code in my Twitter profile; just add a slash after the end of your website address, followed by a question mark and the words, “twitterSidebar” like this:

http://www.insertyourdomainhere.com/?twitterSidebar

Any click on my Twitter profile URL will carry that tracking code with it right into Google Analytics. Because that code is unique to my Twitter profile, any traffic that comes to my site using that tracking code can only come from one place: my spreadtheword social networking Twitter profile link.

Log into your Google Analytics account and under “Traffic Sources,” click on “Referring Sites.” If anyone has clicked on the link to your site from Twitter, you will see Twitter.com under the Site Usage tab for the Source dimension. Click on Twitter.com then change the Dimension to Landing Page. If you’ve embedded a tracking code, you will see that tracking code listed. And you will now have one way to measure your social networking return on investment. You now know that people on Twitter do (or don’t) click on the link you put in your profile.

You can embed just about any tracking code into the links you create on Twitter, Facebook and MySpace. Remember to keep your tracking codes unique so you can pinpoint the origin of your site visitors.

Traffic is a very generic metric. So when we talk about Return on Investment, we are usually more interested in a metric that we can associate with an action other than “visited the site.” Converting a site visitor to a Customer, an RSS Feed Subscriber or a Mailing List Subscriber is typically the goal. And we can measure these conversions, and therefore measure our social networking return on investment by creating a funnel through which visitors pass to a pre-determined goal.

For example, when a site visitor makes a purchase, most businesses display a “thank you” page. The only way a site visitor lands on the thank you page is by going through the purchasing funnel. Google Analytics has a way to measure goal conversions. You set up your tracking codes, create your landing pages and configure your goals in Google Analytics, and Google will track the conversions. Then you can measure the return on investment of your social networking activities.

Thank you for reading!

I hope you enjoyed this article about social networking ROI. Please post your comments, questions or suggestions and I will respond quickly.

How To Use Twitter to Gather Business Intelligence

Twitter, as a social messaging service, allows real-time conversations in 140 characters or less.

You sign up and from your cell phone, laptop or desktop begin telling the world what you’re doing, thinking, eating, planning, regretting, giving, taking, programming, marketing, wasting… you name it – it’s your Twitter. It’s your conversation.

But what if you wanted to make it a global conversation? What if you wanted to know what ever became of your original conversation? Would you know if your idea took flight and became popular? How can you track your ideas, tweets about your products or conversations about your company? Why, you’d use Twitter Memes!

If Twitter is completely new to you, check out this easy-to-read Twitter primer from Amazon.

Before we talk about memes or even Twitter memes, it’s helpful to understand the value of social messaging and the value of Twitter as a business tool.

Using Twitter in Your Business

Think about this: Imagine you could put your finger on the pulse of conversations worldwide, gleaning the most popular ideas and topics from the sum of all topics. Imagine you could find and connect immediately with people around the globe who share your passion for a particular idea or topic.

How Would it Help You to Know What People are Saying About Your Business, Your products or Services?

Before Twitter, if we wanted to know what the gist of the worldwide conversation about our business was, we’d have to wait for a search engine to index a blog post, comment, web page or forum post.

By that time, you could be doing major damage control! And even that, should you choose to act transparently, would take time to show up in the search engines.

Understanding that Twitter conversations are happening in real time, right now, from mobile phones, laptops and desktops worldwide, gives you an immediate, bird’s eye view of the ideas near and dear to people’s hearts. Twitter gives you the power to understand and connect with the people discussing those ideas. Right now. In real time.

And it gives you the power to respond. Right now. In real time.

What is a Meme?

My introduction to memes came in 1997 while reading the documentation for a Perl-based shopping cart unceremoniously called, “Web Store.” A Selena Sol and Gunter Birznieks application, you can still find it in its original form at Extropia.com. In the copyright info at the top of the cgi file was the following statement,

“This application was written by Selena Sol and Gunther Birznieks… Feel free to copy, cite, reference, sample, borrow, resell or plagiarize the contents. However, if you don’t mind, please let Selena know where it goes so that we can at least watch and take part in the development of the memes. Information wants to be free, support public domain freeware.”

I remember reading that word, “meme” and grabbing my dictionary. My next thought was, “What does this have to do with a Web Store?” Hindsight and the growth of Open Source software says, “Everything!” Selena Sol planted the seed of an idea – a meme – we now refer to as Open Source Software.

Essentially, the request was, “Hey, take this free perl application, build it out, change it, do whatever you want with it, but let us know where this idea, this meme, goes, so we can track its growth and its offspring.”

Selena Sol presented Glenn Grant’s formal definition of a meme with this:

“… a meme is nothing more than a pattern of information, one that happens to have evolved a form which induces people to repeat that pattern. Typical memes include individual slogan, ideas, catch-phrases, melodies, icons, inventions and fashions.”

Specific Examples of a Meme

We know now that memes are ideas or constructs – even cultural values. Following are specific examples of memes because the gestalt of memes is, well, always best understood with an example!

  • “A mother’s love” is a cultural meme representing the idea of a boundless love.
  • “Open Source” is another meme representing the idea that the code for software applications can be accessible, changeable and mutatable as oposed to closed and unavailable. Note the depth and breadth of the first meme relative to the fairly recent open source meme. We might say one meme has more “reach” than another.
  • “Spread the word” and “Spread The Word” are also memes; both represent a call to action with the former being very general and the latter rather specific. When we say, “spread the word,” we want people to pass on to others what we have just told them. When someone says, “Spread The Word,” they specifically want you to pass on the Judeo-Christian idea of forgiveness and acceptance through recognition of Jesus Christ as The Saviour promised by the Judeo-Christian God.

    Both phrases represent ideas that are culturally well-recognized.

What is a Twitter Meme?

A meme on Twitter is the same as a meme in the “real” world. It is an idea, phrase, cultural value or even a news item.

Memes on Twitter are represented by a pound sign (“#”), called a “hash tag.” The hash tag or pound sign, creates a group out of the characters that follow the hash. While characters or groupings of characters can be searched for by a program written to search for a group of characters, the intent of the user cannot be ascertained.

On Twitter, when we precede a word or phrase (with no spaces) by a hash, we are establishing intent, we are “calling out the meme.”

Putting that hash tag in front of a word is akin to saying,

“Hey, the idea represented by these characters, this word or words, it deserves recognition as an idea not just some phrase in my tweet but as a meme and it is my intention to recognize it as such. If you think the word or words deserve recognition as an idea or meme, well, then, you do the same: put a hash tag in front of those characters in your tweets!”

Put more simply, the combination of #somewordorphrase represents an #idea or #meme that you want to #trackoranalyze.

For an overview of hashtags, visit twitter.pbwiki.com/Hashtags. As a side note, some sites refer to memes as “tags.”

How Do I Create a Meme on Twitter?

On Twitter, you create or pass on a meme in a tweet by placing the pound sign in front of the word or words representing the idea.

But, if you want to track the spread of your meme, you’ll want to go about it step-by-step. Start by checking if the meme already exists; then you can group your tweets into an existing meme.

How Do You Find Out If a Twitter Meme Already Exists?

You can use Twitter Search to find out how many other people have tagged the meme you are considering. Or, you can use Hashtags.org or Twemes.com.

How Do I Search Twitter?

Searching Twitter is easy. Follow these steps to find the popularity of your meme:

  1. Log into your Twitter account.
  2. Scroll to the bottom of the page and click on the “Search” link. Alternatively, you can simply type http://search.twitter.com into your browser.
  3. To search Twitter for your meme, enter the pound sign first (remember, we call this a “hash”) followed by the word or phrase with no spaces in between.
  4. Click search!
  5. How Do I Search for a Meme using Hashtags.org?

    I like hashtags.org because the site has a running display of the most popular tags (memes), the newest tags, the most recent tags, the most updated tags, ALL tags and People tags. The memes are listed on the left with the Tweeter and tweet listed on the right. Underneath the hashtag is the number of times the meme has been called out.

    When you hover over the tweet, hashtags.org displays a line graph representing the growth and decline in the popularity of the meme along with a tooltip displaying the time of the last update.

    At Hashtags.org, there is a big search bar in the upper right corner. Type your meme without the hash and click “Search.” If the response from hashtags.org times out, try again in a few minutes.

    How Do I Search for a Meme using Twemes.com?

    I love their name, a portmanteau of “twitter” and “meme!” You’ll find a twitter meme cloud, a “Tweme Cloud” in the right sidebar of the site. Select a timeframe (1 hour, 24 hours, 7 days, 30 days or one year) and a heat map or tag cloud representing the most popular memes during that time will appear. The main portion of the page displays the twemes that have been updated in the past few minutes.

    To search for your meme (tweme!), enter your meme in the search bar in the upper right corner. It is not as prominent as the search bar on hashtags.org, but it functions similarly. Do not use the hash tag (no pound sign) in front of your meme.

    What Does it All Meme?

    If you searches return results, find the group or meme that is most closely aligned with your meme. Then use the already defined hash tag. If none of the search results fit your idea, create a new meme!

    If there are no search results, you’ve got yourself a spanking-new, fresh meme! If you want to use Hashtags.org to track your meme, first Follow @hashtags on Twitter; then use your meme. You may have to wait several hours for your meme to appear on Hashtags.org. Almost immediate results are provided by Twitter’s search function.

    Memes are ideas, cultural values, slogans, melodies, inventions and more that take up residence in people’s psyche begging for dissemination. The phrase, “spread the word” is an example of a meme; the idea of passing along information, of communicating, is, in itself, passed along and communicated, thus making the idea a meme.

    You can use Twitter to promulgate or spread your own memes. And you can use Hashtags.org, Twemes and Twitter Search to tap into the most popular memes expressed by those with access to the internet! Broaden your twitter experience, expand your social circle and use Twitter for better internet marketing!

    If you enjoyed this overview, want more or have questions, please leave a comment and follow Spread the Word on Twitter.

    Thank you for reading and Happy Tweeming!