Do you know your user-generated content quantity and coverage?
In a previous column, I outlined the reasons why the business case for social is unclear. One of the top reasons is the confusion around which social tool to apply to achieve the desired business outcome (brand, marketing, sales, service, or insight). While many CMOs can rattle off how many Facebook fans one has, very few can cite the following stats, which drive traffic, conversion, and therefore, sales in social.
Social is the creation and exchange of user-generated content (UGC). Consumers have consistently indicated that the UGC with the greatest impact on their buying behavior is customer reviews. Therefore, social programs designed to drive sales must be fueled by customer reviews. Do you know your UGC quantity and coverage?
If you're not measuring and driving the performance to generate, display, and distribute UGC, you're not driving social commerce results.
Here's a range of UGC quantity and coverage for Internet Retailer Top 100 businesses (online revenue above $180 million).
Calculating the impact of social commerce is straightforward when you know this data. The following is an illustrative example for a business that has 100 million visits annually, 75,000 SKUs, generates content at 0.62 percent of transactions, and has 10 percent coverage. Increasing UGC generation to 5 percent of transactions, and coverage to 35 percent on the same traffic yields a $5 million increase in sales.
UGC quantity and coverage are core to social commerce performance. The following are best practices to increase your UGC quantity and coverage:
This column was originally published on August 9, 2011.
Join the Industry's Leading eCommerce & Direct Marketing Experts in Chicago
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 4 days and 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda and register by Friday, Oct 3 to take advantage of Early Bird Rates!
Cathy has over 20 years of experience in both multichannel and online retail and a deep understanding of consumer needs and goals. Cathy's proven track record spans a range of industries and companies, from start-up ventures to multibillion dollar operations. Cathy is currently a Board Member at Ulta Beauty (ULTA), the largest beauty retailer that provides one-stop shopping for prestige, mass, and salon products and salon services in the United States. She has served as SVP, marketing & sales at PowerReviews, the world's most widely deployed social commerce platform, where she was responsible for overseeing the company's rapid customer and revenue growth. Prior to PowerReviews, Cathy held executive-level positions at Walmart: chief marketing officer Walmart.com, vice president of market development, global e-commerce, and vice president of product management and multichannel integration. Ms. Halligan has also held executive positions with leading retailers Williams-Sonoma, Gymboree, and Blue Nile, and was an associate partner at Prophet, a leading management consulting firm. She started her career as a marketing coordinator at Lands' End.
For real-time social commerce news and updates, follow Cathy on Twitter at @CathyHalligan.
IBM Social Analytics: The Science Behind Social Media Marketing
80% of internet users say they prefer to connect with brands via Facebook. 65% of social media users say they use it to learn more about brands, products and services. Learn about how to find more about customers' attitudes, preferences and buying habits from what they say on social media channels.
An Introduction to Marketing Attribution: Selecting the Right Model for Search, Display & Social Advertising
If you're considering implementing a marketing attribution model to measure and optimize your programs, this paper is a great introduction. It also includes real-life tips from marketers who have successfully implemented attribution in their organizations.
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