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May 18, 2011 By Erik Deckers

Measure the Three Most Important Business Metrics With Social Media

Jason Falls is currently rocking the Exploring Social Media Business Summit in Toledo, Ohio, talking about measuring social media marketing, and making sure that businesses are making money from it. There are three Very Important Questions every business manager will ask of their social media manager, and you’d better be able to answer them.

How much did we make?
How much did we save?
Are our customers happy?

Jason Falls rocks his talk about social media measurement at #ESMToledo

That’s right, social media hippies. Social media, just like every other part of marketing, is about making money. It’s not about conversations, friends, followers, Likes, fans, connections, comments, or Google ranking. It’s about sales and conversions, and customer service and satisfaction.

This is why social media monitoring and analytics is so crucial. You need to be able to show your boss that your social media campaign was not $20,000 thrown down the toilet, because you thought it would be cool to sell your bulldozers on Facebook.

Use Google Analytics to Measure How Much You Make

Google Analytics can tell you how people came to your website, what pages they visited, and whether they went to your sales page and placed an order. If 300 people visit your website because of a tweet, 30 people went to your sales information page, and 3 people placed an order, you have a close rate of 1%. If your social media campaign costs $1,000 per month, but those 3 sales are worth $4,500, your ROI is $3,500.

Use Your Accountant to Tell You How Much You Saved.

Social media is a great way to handle customer service complaints, reducing the amount of troubleshooting calls that take 20 minutes, reduce technician visits, or even the total number of calls coming in to your service center. Ask your accountant to tell you how much you saved from month-to-month. Calculate the average cost of troubleshooting calls, technician visits, and the monthly salary of a call center rep. Get with your Google Analytics person and social media monitoring person (#3) to see if you have seen an increase in social media activity. Chances are, the latter had an effect on the former, so count these savings as a win. If you spent $1,000, but saved $3,000 in a month, your ROI is $2,000.

Or, more importantly, if we combine the two, you spent $1,000, and made/saved $6,500, your ROI is $5,500.

Use Social Media Monitoring Services to Measure How Happy Your Customers Are

Radian6, Lithium Technologies, Sysomos, are some of the biggest social media monitoring services around (they’re all subscription-based services, so expect to pay a fee), and if you’re a larger brand, it’s worth doing. If you have a small company, set up a free listening post with tools like a Twitter search (like a TweetDeck column), SocialMention.com and/or Google Analytics to see what people are saying about you. Quickly respond to any complaints or queries, and make sure you’re keeping people happy (see #2 above).

Happy customers are returning customers. Measure the sales of returning customers, especially those who have complained in the past, but you managed to keep by solving their problems, and compare that to the amount you paid for the social media monitoring service, and you’ve got your ROI.

We’re hopefully moving beyond the “social media is all about the conversations” way of thinking, at least in the business world. While this was cool and froody back in 2008, businesses are starting to use this as a new marketing channel. For those companies who want to make money this way, it’s real simple: just measure how much you made, how much you saved, and whether your customers like you.

If you can’t answer these questions, quit playing Farmville and go find someone who can answer it for you.

May 17, 2011 By Erik Deckers

Who Would You Hire, the Rookie or the Veteran?

I’m occasionally asked by clients whether we have a writer with a specific background. Are/were they in IT, in finance, in animal husbandry?

I can usually find someone with a skill set that matches what the client is looking for, but it’s not always possible. But, it’s not always necessary either. We have two things going for us that make it unnecessary to have a solid background in the client’s industry:

The client provides us with all the information first, and then they approve the final post. If anything is incorrect, they find it before it gets published.
Our writers are smart enough and spend enough time working with a client that they get pretty good at the client’s issues, their value to the client’s, and the features that make the client’s business so awesome. They become marketing copywriters for that company.

So this presents an interesting problem for us. Do we hire a good writer who is smart and can learn the product, or do we hire someone from the industry and fix their writing?

Think of it this way: You’re a baseball coach, and you need to sign a hitter to your team. You have a choice between a rookie who can run from home to 1st in 3.5 seconds, and a veteran who run the same distance in the same time. Who do you pick?

Most people will pick the veteran, because he knows the game and is a proven talent. But the best pick is going to be the rookie. If he can run to 1st in 3.5 seconds right now, think of how great he’ll be if you can hone his technique and teach him a couple tricks to make him run faster.

That’s how we choose our writers. I prefer to work with writers who don’t have the industry skills, because I can teach them about the industry, and help them become better “runners.” But hiring the industry veterans who have reached their writing peak is problematic. I can’t teach them anything new. They’ve gone as far as they’re going to go as writers, unless they dedicate themselves to becoming better writers. (That’s not to say that these adults can’t become writers. It’s just that they have to make a major commitment to improving and becoming better, but I don’t have time to wait for that.)

Who would you choose? Would you go for the industry rookie and teach him or her the ropes, or would you get the industry veteran who has a wealth of knowledge on the topic? Leave a comment and let me hear from you.

May 4, 2011 By Erik Deckers

What Will Twitter Do With TweetDeck?

The news that Twitter just bought TweetDeck for a reported $50 million has me a little worried, because Twitter has a history of killing its acquisitions, sort of like Lennie and soft things in Of Mice and Men.

It got worse after Mrinal Desai gave his five reasons why they were going to do it. It made me wonder, would Twitter really spend $50 million to kill a program that makes Twitter work better than their clunky interface?

If they were smart, Twitter would use TweetDeck as a way to win new users, not kill it to force people to use Twitter.com.

I use TweetDeck to keep up with different groups of people, making my Twitter stream easier to manage and follow.

TweetDeck makes using Twitter easy

I don’t know how many people I’ve talked to who didn’t get Twitter. They stared at Twitter.com and tried to keep up with the 50 people they were following. “Everything keeps going by so fast, I can’t even read it all.” TweetDeck lets you divide your Twitter stream into columns, either based on search terms or groups of people, and tweets are easier to read and follow.

Twitter.com is about as clunky as an old Edsel with square wheels, and is a pain to use. I hate having to click to see different tabs If they want people to use Twitter, they’ll keep TweetDeck around.

Twitter can feed ads into TweetDeck more easily.

Imagine if you’re forced to use Twitter.com for your Twitter stream. My tweets go by so fast on there, I’ll get a couple hundred in 10 minutes. If Twitter wants to slip in an ad, it will be easier for me to miss. While Twitter may be able to sell ads based on how often they’re served, “served” does not equal “seen.”

TweetDeck, on the other hand, makes it easier to see the ads. If I have a hashtag search column up while I’m watching a Colts game, I am more likely to see an ad that is not only slipped into that stream, but it can be targeted to me because I’m talking about the Colts. There are already enough bot programmers in the world, Twitter should be able to figure out how to serve targeted ads to people based on their conversations, and should be able to slide them into searches and lists that meet certain requirements.

For example, put a sporting goods ad in a sports hashtag discussion. Slide a restaurant ad in any list labeled with a city name, or even based on a conference hashtag.

TweetDeck is Just Awesome

I like TweetDeck for any number of reasons (to be fair, there are plenty of people who think HootSuite and Seesmic are awesome too. They’re wrong, but I support their beliefs.).

TweetDeck lets me communicate with my Facebook, LinkedIn, and FourSquare accounts.
I can support more than one Twitter account, which is important since I manage Twitter accounts for several clients.
It lets me view pictures and watch videos in little pop-up windows, rather than just visiting the original website.
I can schedule tweets for any minute, not in 5 minute increments like HootSuite used to do (they changed it, but when I had to make the decision, HootSuite was still only doing 10:15, 10:20 etc.)

There are a lot of Twitter clients out there. If they want to kill any apps, they need to look at some of the smaller ones that don’t do very much and kill them instead. It would clean up the market a bit, it would prevent future problems by saving them from accessibility and interface problems, and could give them a preferred client to send people to in order to help them use Twitter better.

My hope is that Twitter is taking all of this into account, and will keep TweetDeck as the official Twitter client. If not, I’m hanging on to mine as long as I can, and will use it for as long as it can send and receive tweets.

April 28, 2011 By Erik Deckers

Why Is Klout Important?

My post about three secrets to improve your Klout score generated a lot of discussion, partly about other techniques, but also wondering why Klout is even important.

Billy Kirsch asked how it would influence him on Twitter. Brooke Randolph wanted to know how it would help her, and why she would want to improve her score beyond bragging rights. And Ivan Torres said it was just an artificial number that didn’t affect the experience.

To answer these questions, let’s take a look at what your Klout score means.

Your Klout score is basically the best way we have to quantify whether you’re doing a good job on social media. While it measures mostly Twitter, it also looks at your activity on Facebook and LinkedIn. It’s a measurement of your social media influence — your clout — and whether people like and trust you enough to respond to the things you do. In other words, if your social media footprint were a sales letter, would your readers respond to your call to action?

Your Twitter “call to action” includes things like:

Do people click on the links you send out. If it’s to a new blog post or an interesting article, do they follow the link, or ignore it? If you typically write and tweet interesting stuff, they’re more likely to follow it.
Do people retweet the interesting tweets you send out? Do they respond and share it with their networks, or do they just go “meh” and let it rot at the bottom of their Twitter barrel? If you’re engaging, witty, or really smart, then you’re probably tweeting interesting stuff that other people want to share.
Are people talking to or about you directly? Are they asking you questions, pointing out interesting articles to you, or inviting you to stuff? Or are you an unknown quantity like that weird kid in high school no one really paid attention to? If people know who you are, you’ll be top-of-mind when it comes time to write original tweets to specific people.

Klout measures things like this and compiles your score, based on a scale of 1 – 100. However, it’s different from your traditional grading scale: 60 is not a D, and you have to be an international star to get 100. Chris Brogan has one of the highest Twitter scores, and he has a 81. Ashton Kutcher has 81, and Justin Bieber has 100. (I also have a higher score than Helio Castroneves, even though he has more followers and more Indy 500 wins than I do, so being a celebrity is no guarantee you have a high Klout score.)

So what does a good Klout score do for you?

Truthfully, not much. You don’t win prizes, you don’t gain fame or fortune, and you don’t get book deals. Beyond bragging rights, there’s not a lot that Klout will do for you.

Except…

Except people with higher Klout scores are considered influencers. People with high Klout scores have worked hard to grow and polish their reputation, and become the kind of person other people want to click through, retweet, and talk to. And these people get some benefits from marketers who want to reach people with good reputations.

I received some swag and DVDs from the makers of the TV shows Lone Star and Southland. Lone Star sent me a t-shirt, some beer and martini glasses, a cooler, and a tin of popcorn. Southland sent me similar stuff. Both shows wanted me to watch their show and tell all my followers about it in the hopes that they would watch it to. (Sadly, Lone Star was canceled after two episodes.)
Audi asked influential designers, technology pros, and luxury lifestyle thinkers with high Klout scores to test drive their new A8 model at an exclusive San Francisco event. The hope, other than finding that Klout influencer with 100,000 bucks laying around, was that people would talk about the A8 to their friends via Twitter, their blog, YouTube, and Flickr. For the price of a what is normally an automotive journalists’ trip, Audi was able to get some word of mouth advertising and reaching a non-automotive audience who might not normally consider an Audi.
Bottlenotes Chicago offered tickets to the Around the World in 8 Sips Chicago free wine and cheese tasting to wine influencers. Restaurants and special events always give away free meals or passes, but by reaching out to Klout influencers, they are able to get some digital ink from the social media influencers for their food costs, without spending any more money on print advertising, or TV or radio commercials.
Movie studios have offered free passes to fans in the hopes that they’ll tell their friends about the movie, again providing word of mouth marketing for a fraction of the cost of traditional marketing and advertising. Rather than putting together a special screening for people, they give away free passes and reap the same benefit as the screening.

So what is the benefit to you to having a decent Klout score? Right now, not much. Free movies, free swag from TV shows, free meals, and a chance to drive a car that costs more than the average national salary. Plus, you get to dog on your friends who may have a score lower than yours.

But, and this is what’s most important, you’re getting a good indication of how your social media efforts are working out. Think of this as analytics for your social media influence. It may be an artificial number, but it’s the closest thing we’ve got to a quantitative indication about how well we’re doing. And while people are still debating the efficacy of the Klout score, it’s the best indicator out there.

So use it, take it with a grain of salt, but don’t ignore it or dismiss it out of hand. If you care about whether you’re actually making progress in your social media efforts — or you just want some cool swag — pay attention to Klout until something better comes along, or until they improve.

April 26, 2011 By Erik Deckers

Three Secrets to Improve Your Klout Score

I was checking out Klout’s new beta layout, and liked how easy it was to see and understand. It really helped me get an understanding on how the whole system worked. And it made me realize I was on the right track with some of my strategies to improve my Klout.

I’m sure some people wonder why Klout is even important, or will dismiss it as nothing more than a popularity contest. But think of it as a way to show off your social media chops — quantifiable proof that you are awesome. Some marketers are even using Klout as a way to reach special influencers with their promotions. I’ve personally gotten some cool swag from TV studios that want me to watch their shows. Audi asked several Klouters to test drive their new A8, and TBS gave Sony PSP 3000s to key influencers. Plus, right or wrong, some employers are basing hiring decisions on Klout scores.

So here are three secrets you can use to improve your Klout score.

1. Reduce the number of followers.

This seems counter-intuitive at first, but it makes sense when you realize that one of Klout’s scores is your Amplification Probability, or “the likelihood that your content will be acted upon.” The more followers you have who are not acting on your tweets, the lower this score will be.

Think of it this way: if you have 2,000 followers, and 20 of them retweet something you send, you have a 1% retweet rate. But let’s say you drop that to 1,000 followers — eliminating people who haven’t used Twitter in a few months, spammers, and abandoned accounts — and you still get those 20 retweets, you now have a 2% retweet rate. Your Amplification Probability rate has doubled.

Tactic: Use ManageFlitter.com to find all people who have not tweeted within the last 2 months or longer, and unfollow them. This will get rid of the people who aren’t contributing anything to you, and cut out all the deadwood. They’re adding to your Following count, but aren’t doing anything at all, except dragging the value of your network down.

Tactic #2: Make sure you’re actually creating interesting stuff that people want to act on. See Secret #3 for more on that.

2. Engage mostly with people who are likely to engage with you.

Klout measures your True Reach, which is an indication of how engaged your network is. If they’re engaged with their own networks and are talking with people, not blasting and broadcasting, this adds value to your network, especially if they respond to you. It means they’re real people, not bots, not spammers, and not celebrities.

This doesn’t mean you should only follow people who are following you. There are some people who may have valuable information you want to get, and if you ignore them, you could be missing some important stuff. But it means you need to be selective about those people you follow. Don’t just follow people because you think they might be interesting. Be sure.

Tactic: I hate to say it, but drop all the celebrities you’re following (keep your favorite one or two). Also drop the news networks you’re not paying attention to. Block & Report for Spam anyone who is spamming out junk. And unfollow anyone whose sole Twitter contribution is nothing but motivational quotes. One or two quotes a day is fine, but when there are 10 a day, and nothing else, they don’t need to be in your Twitter stream.

Tactic #2: Use ManageFlitter to identify those people, and then use Formulists.com to keep that list clean. Formulists will show you people who have unfollowed you. Use the “Recently Unfollowed Me” list a few times a week to identify those spammers. It’s also a common tactic of spammers to follow a bunch of people, get those people to follow back, and then unfollow everyone. This lets them artificially boost their number. But Formulists lets you spot those people

Tactic #3: Pay close attention to your new followers. Don’t automatically follow everyone back. Ignore people who don’t have an avatar, a bio, or talk about helping people make money in their bio.

3. Make an impression on influencers.

I once asked Jason Falls what the secret was to getting a lot of readers on a blog, and he said, “Write good shit.” If you read his Social Media Explorer blog, you get a daily dose of good stuff, sometimes two or three articles in a single day. Doug Karr does the same thing with his Marketing Tech blog.

If you want to reach influencers — people with high Klout scores — you need to be innovative. Write about new ideas, new tools, new strategies, new ways of thinking. You can’t just aggregate the same old stuff that everyone else has seen.

Strategy: (This point is a whole strategy, not just a simple tactic). Your blog is the hub of your personal branding campaign. It needs to rock. You need to write your own good shit, and get a lot of people to notice it. If you get a lot of people interested in what you’re talking about, it will eventually catch the interest of the other influencers. As they catch on, your stuff will spread, and your Network Influence will grow.

Tactic: Get to know the influencers, offline if possible. Attend conferences and networking events. Have coffee or lunch with them. Interact with them online too. Set up your TweetDeck or Hootsuite app with columns and lists so you can keep track of your industry’s influencers. When you read their tweets, respond where appropriate.

Tactic #2: Don’t be afraid to ask your influencers to retweet your stuff once in a while. Don’t make it a regular thing. Once a week is probably too much. Once a month is okay. But — and this is a big one — make sure you’re retweeting their stuff a whole lot more. It shows that you have an interest in them and believe in what they say. While they don’t have to do it for you in return, it shows that you’re a giving person, which means other people will do it for you too. This is another reason you need to retweet those up-and-comers too — the people who have a lower score and less popularity than you.

This is not about gaming the system. This is about being a good social media citizen. If you tweet and write interesting stuff, maintain a strong network, make valuable contributions, and don’t feed the jackasses, your Klout score will naturally rise.

But if you engage in bad behavior like trying to artificially gain followers, tricking people into retweeting your stuff, or contributing nothing whatsoever of value (looking at you, random motivational quote generators!), then your Klout score will sink like a stone.