|[June 15, 2010]
ForeSee Results Debuts Social Media Value Calculation
ANN ARBOR, Mich. --(Business Wire)--
ForeSee Results today announced that it has added a Social Media Value
Calculation to its core product offering. The Social Media Value
Calculation allows ForeSee Results' clients to understand the impact of
their social media marketing efforts on revenue.
"Most businesses have accepted the marketing value of social media
without any real proof points," said Larry Freed, president and CEO of
ForeSee Results. "We can count how many Facebook (News - Alert) fans, how many Tweets,
how many complaints, and how many people click through ads on social
sites, but we haven't had a way to calculate a tangible return on
investment for social media efforts, not to mention other marketing
initiatives. Now we can."
ForeSee Results uses a scientific methodology created at the University
of Michigan to measure customer satisfaction and assess its impact on
future behaviors. Using this proprietary methodology, ForeSee Results
has created a way to link influences on customer visits to a website,
store or call center with what they actually spend. The resulting Social
Media Value Calculation helps businesses understand how much revenue is
being influenced by social media versus traditional advertising,
marketing emails, brand awareness and other factors.
"Countless organizations are working desperately to understand the
effects of their social media activities, but most take a myopic view of
their social efforts at the campaign or channel level," said John
Lovett, senior partner at Web Analytics Demystified, a leading
international web analytics consulting and strategy firm. Lovett was
briefed last week on the new capability in advance of its public
release. "The Social Media Value Calculation from Foresee Results
empowers organizations to assess the contributions of their social media
marketing in the context of their entire business objectives. It gives
companies a comparative view of performance that enables them to
quantify the value of social media."
Using the voice of customer methodology already provided by ForeSee
Results surveys, companies can find out what influenced a customer's
viit to their store, branch, website, or call center and link it to
behavioral data tracking how much that customer did or didn't spend. A
brand website, financial institution, nonprofit, or B to B (or other
non-retailer where there is no purchase) can tie what drove the customer
visit to any other valuable, business-specific outcome such as opening a
new account, signing up for a newsletter, requesting more information,
"Linking what drove a customer to visit with what they actually spent or
did as a result allows you to actually calculate a return on social
media investment," said Drew Bennett, senior product director at ForeSee
Results. "You can accurately compare what you spend on social media
marketing against the direct revenue it generates to see if you're
investing wisely in social media."
Jim Sterne, author of Social Media Metrics
and founder of the eMetrics Marketing Optimization Summit sees ForeSee
Results' approach as a social branding investment analysis tool. "The
ability to capture which social sites prospects and customers associate
with your company and then tie that to purchases provides a fresh
perspective for directing social media investments."
Preliminary research done using this model is showing us that ideal
investments in social media vary vastly from company to company. Some
companies are spending millions in advertising their social media
presence and staffing a team to oversee it, only to discover that social
media is influencing 1% of all purchases. Meanwhile, promotional emails
have been neglected in favor of social media, and emails are influencing
32% of purchases. Other companies are seeing social media as a primary
influencer of 5-6% of all revenue with a relatively modest investment.
"The Social Media Value Calculator tells our clients what is influencing
their customers' visits, how much those customers spend, and which
marketing efforts are having the greatest return on investment," added
Freed. "Every business is going to have a different model for success,
which is why it's so critical that companies understand their customers
and not allocate marketing spending based only on hunches, industry
standards, or expert guidance."
Read more about the Social Media Value Calculation on ForeSee Results'
website at http://www.foreseeresults.com/research-white-papers/how-to-calculate-roi-on-social-media-marketing.shtml
About ForeSee Results
As the leader in customer satisfaction measurement, ForeSee Results
captures and analyzes voice of customer data to help public and private
sector organizations increase loyalty, recommendations and website
value. Using the methodology of the American Customer Satisfaction Index
(ACSI), ForeSee Results identifies improvements to websites and other
online initiatives that drive customer satisfaction. With over 48
million survey responses collected to date and benchmarks across dozens
of industries, ForeSee Results offers unparalleled expertise in customer
satisfaction measurement and management.
ForeSee Results, a privately held company, is located in Ann Arbor,
Michigan and at www.ForeSeeResults.com.
Connect with ForeSee Results at http://www.ForeSeeResults.com/Blogs-Community/
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