How to Create Social Media KPIs : The Science of Indices

27 Feb

Slide1

Yesterday my nephew, who is an earnest young brand manager in a lifestyle/ accessories Indian brand, was staring at his computer. When asked why he was looking so perplexed, he said – We’ve created this really nice campaign on facebook, which is engaging as well as makes a very powerful brand statement. Its also a first of its kind we think. Problem is – I am not sure how to figure out whether it’s doing well, and my bosses – all they are saying is – have you doubled your “likes”?

220px-Holygrail

As we all know, he is not in a minority – everyone on Social Media is chasing the ROI holy grail.

But, I really think in our quest for this elusive target, we are tending to overcomplicate Social Media.

Sure, “likes” is too unilateral and limiting – especially when facebook doesn’t allow dislikes. Everyone also knows we should also measure sentiment – positive or negative. But then comes “response” which signifies “engagement”. And then there is also “relevance” – given that Social media has a) so much spam, but also b) so much that’s just random thoughts/ opinions/ rants that either don’t give you an insight into your brand, or don’t meet the objectives you have set out for your campaign.

So, what do you do? Its simple! You create metrics for each such that you can individually measure each parameter that you want to measure.

But ofcourse, there’s the C Suite who want your elevator pitch on – how are we doing? (3 seconds does NOT allow you to say – weeellll, on likes we are better than January, but on engagement we are slower…and sentiment is half positive – half negative – and the rest neutral (yah yah I know – it doesn’t add up!). Your CMO is going to walk right out of the room.

Hence, you create this snazzy sounding “Index” – you can name it ANY godd#$% thing. Integrated Performance Index (sounds even cooler as an acronym IPI ☺ )/ Social Media KPI/ Virality Index (I used that in the old days)/ Brand Health Index… / Campaign Success Index

What is the Index finally? It is a multi attribute weighted number (remember I had said that most management professionals must be grateful to BCG for the 2 by 2 matrix? So also should a lot of folks thank the guy who invented this decision making methodology. So, you take whichever parameters you think you should measure, ascribe weights to them, and derive your index out of the weighted average of these numbers.

kpi

Simple? A-ha! The complexity really resides in WHAT parameters to choose and, more importantly, WHAT weights to ascribe. (A quick google to get some actual statistical validity here brought me to this complex article called “On the convergence of multiattribute weighting methods” in the European Journal of Operational Research – for those who are so inclined, please delve into the advantages of the ratio vs. the swing weighting vs. the tradeoff vs. the pricing out method ☺ )

But statistical theory apart, this above is what is the most important factor in getting the relevance of your index or KPI. The weights of each parameter really depend on a few things:
a) The marketing objective of the campaign/ channel – Is it to spread awareness, to engender better knowledge, to direct towards trial, purchase or loyalty – different objectives will have different weights
b) The product category itself – Is it an introductory/ launch category; a growth one or a stable one – where exactly in the PLC does it stand
c) The competitive scenario – how active or inactive are competitors (both category competitors and mindshare/ walletshare competitors) in the social media space – what is the clutter out there that your campaign has to break!
d) How much effort – time/ money/ people are you investing behind the campaign – actually, this is a bit of a circular function as this will to a certain extent depend on the marketing objective – atleast in the ideal scenario

All the above will help deciding weights – the allocation is however likely to be a bit of an iterative situation.

So there you have it – your quick and easy guide to creating your perfect unified/ integrated KPI for your Social Media Campaign (or for that matter any other). Where’s my consultancy fee?

Meanwhile, lemme go see if my young nephew created the right algorithm to keep his bosses happy ☺

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7 Responses to “How to Create Social Media KPIs : The Science of Indices”

  1. Web Site July 30, 2013 at 9:09 am #

    You’ve gotten remarkable info here.

    • joshsang July 30, 2013 at 9:36 am #

      tx 🙂

    • Dr C Srinivas September 21, 2013 at 1:41 pm #

      Are you in IIM B
      What is your LinkedIn id?

      • joshsang September 23, 2013 at 4:14 pm #

        studied there > 20 yrs ago and taught there for a cple yrs some 8 yrs ago. its Sangita Joshi

  2. Modern Interior Design inspiration September 27, 2013 at 10:45 pm #

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Trackbacks/Pingbacks

  1. Social Media: More a Research/ Analytics than a Marketing Tool? | joshsang - September 2, 2013

    […] how you are measuring input and output, you will not be convinced of the ROI of your spend. (See my older post on KPIs for Social Media Measurement for a way towards metrics and […]

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