Per a press release by Sirius Decisions, the research finds that best-in-class companies are “…rejecting a ‘defensive posture’ by still working to close deals or at least lay groundwork for future business despite buyer anxiety and retrenchment,” notes Alden Cushman, SiriusDecisions’ research director and benchmarking analyst.”
The goal is to position the company for when the economic upswing happens. Key points in the release included.
- 44 percent to reduce marketing spend for 2009
- 25 percent will report flat spending
- Spending on advertising will decline by 17 percent and events down by 12 percent
- Focus is moving from lead generation to lead maturation
Next steps for your marketing efforts
What does this mean for you?
* Be very clear about who your target audience is and what influences this audience to make a purchase decision which means
* Refine your definition of a “sales-ready” lead by communicating with your sales team
* Create an aggressive lead nurturing program to move prospects through the funnel to deliver “sales-ready” leads to your salesforce
* Take this opportunity to leapfrog your competition by investing in areas that will increase your company’s awareness and value proposition to your key audiences
What other recommendations would you make?
This morning, I was a guest on the Media Bullseye Podcast. Thanks to Jenny and Chip for having me this morning. We discussed the role of social media for finding me my job, what is true authority, and the decline of the print media industry. Listen to the podcast.
The response to my post on which PR firms hasd a social media presence was, well, more than I expected. My post received 66 comments while Jeremiah Owyang’s post had 47 comments. When reviewing the comments, you could see two audiences emerging:
- those who believe that you have to practice what you preach and
- those who believed that corporate presence wasn’t as important as much as the work that was done for clients and the individual participation within those firms
Regardless of which camp you belong to, the discussion resulted in the creationing of a wiki to allow PR firms to proactively update their profiles. To the A few firms that did proactively update their profilesm thank you. To those who haven’t yet, why not?
Overall, here is the breakdown:
- 109 firms are on the list
- 50 firms have blogs
- While 38 firms have corporate Twitter profiles, 5 firms deferred to individuals versus corporate Twitter. In total, 13 firms had individuals participating on Twitter.
- 47 firms had a Facebook presence, while 38 had LinkedIn
- 16 firms have started using Flickr, YouTube and Second Life
So, who else is missing from the list? Go to http://prfirmssocialmedia.pbwiki.com to make the udpates.
I received this question from Nathalie Seoteman after she read my free ebook on using social media:
How [can you] calculate the value of a company’s online reputation and (marketing) PR 2.0 efforts? What did these activities produce, put in figures and – preferably – in euro’s/dollars? I would like to include both the reputation damage that has been diverted and the positive/negative/neutral online coverage that has been created.
This raises an interesting and very complex question. There will inevitably be tangible and intangible ways to measure the value.
Measuring Positive and Negative Reactions
Assuming that you’re using a tool like Trackur, Radian6 or just Google alerts to track your coverage, the first thing you have to segment the coverage by what Radian6 calls sentiment – negative, neutral or positive. Once you’ve done this for media coverage, video responses, Twitter responses, blogs postings and more, you can get a visual representation of the sentiment over time.
The question then is how do you assign a monetary value to this. One way is to use ad equivalence, which is how much would it have cost you to advertise in a magazine for the same space. The obvious drawback is that this will not cover a significant portion of your coverage and you have to do the time consuming research to find the ad values. But let’s assume that this works for 40% of the videos, blogs and media coverage out there. How do you measure the remaining 60%?
The Value of a Single Customer Won or Lost
I am assuming that you have a sense of your sales pipeline and what the average deal size (let’s keep this simple, ok? =). If you delved into the content of what is being said, how many would say they would 1) hire your company; 2) never work with your company again or 3) are neutral.
I’m making a huge assumption that each person is a potential customer regardless of their company affiliation and title. For example, there are over 589,000 fans on the Skittles Facebook page. If I assumed that each person bought at least one Skittles product that cost $0.75, then the potential value would be $448,500.
You can then do the same with your business: positive = gain average deal size, neutral = zero, negative = costs you average deal size
Conclusions: Not an Exact Science, Yet
I admit that I am ignoring the relative influence and weight of differing outlets, people or prominence of coverage. I also know that not everything can be easily dissected into the three sentiments I highlighted above. But frankly, I didn’t want to turn this posting into an essay
While technology is catching up to help automate the process, I believe that there is still a very manual process involved to evaluate the coverage, put it into the appropriate bucket and then assign a value to it. Hence, I recommend that you start simply – take the most simple measurement and build upon it over time. Otherwise, you may find yourself spending more time assembling reports about your online reputation versus managing it directly.
In the end, there is no right answer for measuring the value of bad or good online reputation management. I hope the above provides a starting point for those seeking to calculate this value.
I would love to hear of how others would go about calculating the value of bad and good online reputation.
Positive Ad Equivalence – Negative Ad equivalence = Total Ad Equivalence
Potential Customer Deal Won – Potential Customer Deal Lost = Value of Potential Customer Deal
Total Ad Equivalence + Potential Customer Deal = Total Value of Positive/Negative Online Reputation
Online reputation management is an increasingly complicated process with the prevalence of online media, offline media, and social media. I previously wrote a post about Trackur and had the opportunity to see a demo of Radian6‘ solution. I was very impressed with the sophistication of what Radian6 has put together.
Radian6 seems to have a very comprehensive search capability through different types of media. The results are presented by publication date. I liked how the service provides a social profile of each media outlet, such as blogger info or Twitter followers/following/updates. You can quickly scan the results to determine “influence weight” (more on that below). You can also set up different searches to monitor your company, competitors and different topics.
Share of Conversation
I liked how Radian6 is able to pull info to create what they call share of conversation. It’s similar to “influence” but goes deeper to determine your share of voice on particular topics. Radian6 will do one time topic pull of the past 6 months to create a baseline. This way, you can track which how your marketing, PR and social media activities have impacted the company’s online reputation over time.
The basics are:
- River of news – this is all the mentions that you’ve received based on the criteria you set up for the search
- Influence widget – you have the ability to weight different criteria, for example number of inbound links, (what are other criteria).
- Trending – you can view the data in aggregate to spot trends. For example, did a free eBook create a spike on Twitter with retweets or a press release increase the online mentions through your news distribution.
- Conversation clouds – you can further drill down to see conversation clouds (similar to tag clouds), which allow you to sense keywords around a particular topic, company, etc.
- Reporting – the information can then be exported into different formats. You can send out a dashboard report and two of the widgets twice a day.
I like how Radian6 has incorporated a CRM flow to manage possible sales leads. For example, a dashboard is created to track key phrases, such as “online management tool”. Depending on the context, the lead generation manager can review and assign certain items to sales people. That is how Radian6 first identified me as a possible lead after my post about Trackur.
There is then an audit trail to determine the status of assigned items. While this isn’t linked to a larger CRM system like Salesforce, this is a nifty function to have for marketing and sales. It provides accountability and a steady source of prospective leads from multiple sources. Imagine that!
While the pricing is only a few hundred a month, it is more appropriate for larger companies or agencies (PR and marketing consultancies). The former can absorb the minimal cost while the latter will pass it on to their clients. SMBs or start-ups with tighter budgets may opp to forgo this in favor of other programs.
With all the ways the data can be viewed, I would be interested in seeing an executive dashboard that is a high-level breakdown on how a company’s share of conversation has evolved overtime. And if there was a way for a marketer to assign value to different campaigns, track the progress of “conversation” and then calculate ROI, that would be very interesting indeed.
Accuracy: As this was a demo, I cannot determine the level of accuracy. With that said, I do give Radian6 kudos for incorporating a variety of media types.
Ease of Use: 5 out of 5
Cost: Reasonable for companies, wished there was SMB Pricing. Non-profit pricing is available.
Response to Comments regarding "Would YOU Trust a PR Firm without a Social Media Presence with Your Social Media Programs"
There has been quite a bit of discussion from the original post and on a post by Jeremiah Owyang titled “Walking the Talk: Some Agencies and Vendors Demonstrate Social Media Prowess,”. I honestly didn’t think that my initial effort would generate such discussion, which I think provides a lot of fodder for thought.
I do want to provide my perspective on one aspect of Jennifer Leggio’s comment:
Client service comes first, always. Yes agencies should strive to have a presence of their own but not having a presence on Twitter or LinkedIn for their corporation is not a good measurement — at all.
When reviewing Jennifer Leggio’s post “Is ‘social PR’ for real?”, this paragraph resonated with me:
Agencies need to work hard to ease their clients’ or potential clients’ minds by showing hard metrics of how social programs have worked for other clients. There is also more justifiable pressure on marketers as a whole to demonstrate ROI from social media programs. Clients should start requiring these types of ROI metrics or case studies and not take “this is a new practice” as a valid excuse for the agencies not having proof points. The agency at the very least should be able to show how it’s built its own brand / the brand of its people through social media.
I do agree with the position that a PR agency having a social media presence is not necessarily a barometer of how that agency can deliver results for clients using social media. However, I will argue that an agency’s ability to use these tactics/strategies to build awareness and industry expertise demonstrates understanding of the pressures that clients face and their objectives. This includes increasing incoming sales leads, communicating with key customers, building thought leadership, reaching key audiences, etc.
Besides this particular point, I want to add the following:
I recognize that individual contributors are just as important as corporate brands. I will still assert that corporate brands will be just as important for establishing brand awareness and thought leadership
With that said, how one participates in social media can be dictated based on one’s audience and goals. I strongly believe that having a presence in the right avenues helps to drive an agency’s lead generation efforts
Since I was laid off, I decided to do this research out of curiousity. I knew it would take time and spent a several hours over a two week period to “research” the original list. As I was doing this myself, I acknowledge that I may have missing or incorrect information. As such, I appreciate those who have provided updates in comments or emails to me. I have updated the table accordingly.
And finally, as this endeavor is much bigger than I originally anticipated, I have set up a public wiki for agencies and the community to make updates directly.
Some 68 percent of respondents to an online poll from Special Events last week say that recent moves by corporations to cancel incentives and other meetings are PR ploys to avoid the “AIG effect.” Twenty-eight percent say the cancellations are a business decision; 2 percent of respondents say they do not know why the events are being canceled.
Cece Salomon-Lee is director of marketing for ACTIVE Network, Business Solutions division, and author of PR Meets Marketing, which explores the intersection of public relations, marketing, and social media.
This blog contains Cece's personal opinions and are not representative of her company's.
- Tooth Whitening on PRMeetsMarketing Weekly Articles: October 18, 2007
- Marylou on Going Virtual Isn’t Necessarily the Answer to Replacing Your Physical Events
- Tooth Whitening on PRMeetsMarketing Weekly Articles: October 18, 2007
- best Ventilation on Rise of Social Commerce – Nielsen and Hallmark Summaries
- canon powershot s110 review on Rise of Social Commerce – Nielsen and Hallmark Summaries