A01 chaf6542 06 se fm indd

Channel profitability

The profitability of the 

website, taking into 

account revenue and 

cost and discounted cash 

flow.

Figure 12.9

Multichannel performance scorecard for a retailer

Results (6)

•  Revenue

•  Multichannel contribution

•  Degree multichannel sells up

•  Costs per channel

•  Degree of sweating assets

•  Multichannel infrastructure costs

Customers & stakeholders (5)

•  Overall customer satisfaction

•  Customer propensity to defect

•  Customer propensity to purchase

•  Customer perception of added value

•  Integration of customer experience

Core processes (3)

•  Productive multichannel usage

•  Price (relative to competitors/other

  channels)

•  Quality of integrated customer view

People and knowledge (4)

•  Staff satisfaction

•  Appropriate behaviours ‘Living the brand’

•  Willingness to diversify/extend the brand

•  Knowledge of target customer

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Part 3  Implementation

 Social media marketing has its own range of specialist measures, which can appear con-

fusing, but are best understood in the context of a combination of website and PR meas-

ures. These show the volume, quality, sentiment and value of interactions. Analyst Altimeter 

(2011) has created a useful framework, shown in  Figure   12.10   , which helps map out different 

social media measures in the context of level of business management.  

 You can see that there are three levels of KPIs: 

   

● 

    Business-  level KPIs to measure contribution from social media.  Th ese KPIs include contri-

bution to revenue through direct sales attributed to social media. Soft er measures include 

reputation and customer satisfaction (CSAT).  

  

● 

   Reach and infl uence KPIs to review reach, share-of-voice and sentiment.  Th ese show the 

relative comparison of a brand’s reach.  

  

● 

   Engagement KPIs to manage social media.  Th ese are the easiest measures to collect, but the 

least valuable since they don’t directly show contribution to business value. Although easy 

to collect, data is on interaction with social sites is oft en supplied separately by the own-

ers of the diff erent social presence and tools for managing social interaction. A new class 

of social analytics tools have been created to bring this data together.  Figure   12.11    shows 

an example from the social media management tool Hootsuite where sharing of short-

ened URLs linking to diff erent social media sites has driven traffi  c back to a main website. 

Direct traffi  c is where visitors click directly through from a social media messaging appli-

cation like Hootsuite or Tweetdeck to the site.   

 A common question within social media is how to assess the value of a consumer connect-

ing with a brand, by liking on Facebook, following on Twitter or placing a brand in a circle 

on Google+. Since the tracking of social media can’t show what an individual does on the 

network, specific value is difficult to establish. Instead, what we can assess is the relative pur-

chase rates of visitors from social media sites to websites compared to other channels, using 

measures like conversion rate and revenue per visitor.  

 Measuring social media marketing 

  Focus  on 

 Figure 12.10 

 A framework for different measures used to evaluate and manage social media marketing 

        Source: Altimeter (2011) with permission (Creative Commons).  

Community managers

and agencies

Engagement

data

Clicks, fans, followers,

RTs, views, check-ins

Business

stakeholders

Social media

analytics

Share of voice, resonation, WOM,

support response, insights intake

Business

executives

Business

metrics

Revenue,

reputation, CSAT

Role

Metrics

Specific data (examples)

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Chapter 12  Digital business service implementation and optimisation

 Measuring social media marketing