Social Value Benchmark
Rob Blackieon 18 December, 2014 at 11:12
This research aims to answer a simple question. Do visible Social programmes undertake the fundamental Customer Engagement activities that drive sales, loyalty and advocacy?
OgilvyOne’s clients often come to us for support on social strategy, because social is underdelivering in terms of driving sustainable customer engagement. Our Social Value Navigator process helps our clients to embed their social programmes deeply in their businesses. But to assess the Total Customer Value of a social programme requires a wide range of internal data from sales and loyalty to website analytics. But there is also a need for a faster benchmark against competitors.
We have created the Social Value Benchmark to assess companies against their direct competitors and companies in other categories, based on public information. Benchmark assesses 27 companies across five categories. Our objective scoring system has created a database of 4,087 answers, categorised by journey stage, channel used and company. At any stage of the customer journey a score of 100% would indicate that the basics of a category-appropriate social programme are in place.
Total Customer Value incorporates all forms of value that a customer brings to a business: Transactional, Loyalty, Advocacy and Collaboration. Analysed to find opportunities for better customer engagement through social, we found:
Why do Social programmes seem to be disconnected from broader strategies for customer engagement?
The promise of social is, after all, simple. Social relationships are central to our lives, and by extension to how we engage customers. It’s the oldest market research finding around – that the biggest influences on us are our peers, friends and family. And social often shows good returns. For instance Target’s research with Facebook showed that social advertising drove 27% higher sales than advertising without social endorsement.
But when marketers are asked what they are doing, a dilemma becomes apparent. On the one hand they recognise the importance of social and plan to increase spending on social by 144% over the next five years.
But on the other hand they struggle to quantify whether social gives them a return. Surveys consistently show that only one in six marketers feel they have a good quantitative understanding of their returns, and only two in six even have a good qualitative view.
Why is this? After all, the internet and modern technology have given marketers more knowledge than ever before about what makes people tick.
Firstly, meaningful social media measurement is complicated. Marketers are addressing this through increased investment in analytics and data management.
Secondly, and this is the focus of our research, social programmes are badly aligned with overall business strategy. CMOs understand that social is not delivering because it is badly integrated, measured – and most of all, not strategic. Only 10% of CMOs believe that social is well integrated with their broader strategy.
Find the full report below: