[null, {"document_url": "http://www.web-strategist.com/blog/2010/12/13/framework-the-social-media-roi-pyramid/", "unformatted_src": "http://farm5.static.flickr.com/4015/5162385321_a5707c5fbb.jpg", "src": "http://farm5.static.flickr.com/4015/5162385321_a5707c5fbb.jpg", "formatted_filename": "a c fbb", "alt_text": "figure7_blog", "rendered_width": 500, "rendered_height": 291}, null, {"document_url": "http://www.web-strategist.com/blog/2010/12/13/framework-the-social-media-roi-pyramid/", "unformatted_src": "http://farm6.static.flickr.com/5010/5256693455_df8c23405a.jpg", "src": "http://farm6.static.flickr.com/5010/5256693455_df8c23405a.jpg", "formatted_filename": "df c a", "alt_text": "The ROI Pyramid: Provide the right type of data to the right folks", "rendered_width": 500, "rendered_height": 376}, null, {"document_url": "http://www.web-strategist.com/blog/2010/12/13/framework-the-social-media-roi-pyramid/", "unformatted_src": "http://farm6.static.flickr.com/5082/5256692785_b5415247ab.jpg", "src": "http://farm6.static.flickr.com/5082/5256692785_b5415247ab.jpg", "formatted_filename": "b ab", "alt_text": "The ROI Pyramid: Metrics that are often formulas comprised of data types", "rendered_width": 500, "rendered_height": 376}, null, {"document_url": "http://www.web-strategist.com/blog/2010/12/13/framework-the-social-media-roi-pyramid/", "unformatted_src": "http://farm6.static.flickr.com/5009/5246494236_f6681b8644.jpg", "src": "http://farm6.static.flickr.com/5009/5246494236_f6681b8644.jpg", "formatted_filename": "f b", "alt_text": "The ROI Pyramid: Examples of Metrics (Note there are many more than what's listed)", "rendered_width": 500, "rendered_height": 375}, null, {"document_url": "http://www.web-strategist.com/blog/2010/12/13/framework-the-social-media-roi-pyramid/", "unformatted_src": "http://farm6.static.flickr.com/5082/5246494276_fdafb94aaa.jpg", "src": "http://farm6.static.flickr.com/5082/5246494276_fdafb94aaa.jpg", "formatted_filename": "fdafb aaa", "alt_text": "The ROI Pyramid: All Roles, Metrics, and Data Types", "rendered_width": 500, "rendered_height": 376}, null, {"document_url": "http://www.web-strategist.com/blog/2010/12/13/framework-the-social-media-roi-pyramid/", "unformatted_src": "http://www.web-strategist.com/blog/wp-content/themes/custom_pb/images/sidebar-bio-pic.jpg", "src": "http://www.web-strategist.com/blog/wp-content/themes/custom_pb/images/sidebar-bio-pic.jpg", "formatted_filename": "sidebar bio pic", "rendered_width": 122, "rendered_height": 175}, null]
Framework: The Social Media ROI Pyramid

Posted on December 13th, 2010 in: Matrix, Social Analytics, Social Media, Social Media Measurement

Often, our industry can appear complicated, and yearns for simplicity.  One such technique to glean simplicity is to develop frameworks which the corporate social strategist can then apply to achieve their business goals. I’ve been working on this “ROI Pyramid” framework for a few months now, and am ready to share in greater detail than on my keynote at LeWeb (slides and video) where I introduced this to the public for the first time.

[The novice provide executives with engagement data –causing themselves to be stuck in the churn of obtaining more followers and fans –without a clear business goal] 140 social strategists around the globe at enterprise class size companies indicated their top internal objectives for 2011 is to “Create ROI Measurements”

Measurement, the Number One Priority, Is Important to Social Business
In our recent research report on the buyer of social business, (read research report: Career Path of the Corporate Social Strategist) we learned that measurement is one of the most important aspects to social business, in fact the top priority stated by 48% of corporations was “Creating ROI Measurements” for internal programs, (see data).

[The seasoned professional provides executives with business metrics first. They know fans and followers aren’t a business goal, but what you do with them is]

Yet, Measuring Social Media Is Challenging
While we learned that measurement is the key, we found (see data in slide 20) that 65% of corporations are using engagement data as the top used metric, with only 22% using product revenue as a metric.

Apply the Social Media “ROI Pyramid” In Your Measurement Strategy (Above: First, recognize there are three types of role, all who need different types of information about your social business efforts) (Above: Secondly, understand the high level types of data they need in order to be actionable) (Above: Finally, assemble this information using the metrics and creating formulas. The above are just examples, as customization within every corporation is required)

Matrix: Understand the Social Media ROI Pyramid (Above: Here’s a single slide with all three columns of info on it which you can use as an instant reference)

Five Steps To Start Using the ROI Pyramid Now
Corporations must develop a standardized way to measure first based on business goals.  Next developing a standard way that the entire company and agency partners can think about measurement is key in 2011 as social business will fragment to every customer touchpoint.

I look forward to hearing how you implement this framework in your measurement efforts, let’s open up the discussion in the comments below, please share this with your teams, agencies, partners, and staff. Thanks to Christine Tran and Asha for design help. Feel free to use these slides, flickr images, just provide attribution to Altimeter Group.

Filed under: Matrix, Social Analytics, Social Media, Social Media Measurement