Eight years ago, my old boss, CEO of a largish software company told me, “Craig if you can’t measure it online, it doesn’t exist.” At the time, I was a hotshot marketer, managing PR and advertising. I thought he was wrong, a bit full of himself, and seeing the world through too narrow of a keyhole. He was an engineer with a PhD in computer science that just didn’t get what marketing was about.

Although my old boss made his statement at the end of the dot-com bust, a recession in distant memory, it still resonates with me as I navigate the current economy.

Many firms that are slashing their PR and advertising budgets are boosting their social media spend. Our social media business continues to grow rapidly, far outpacing the growth of our traditional PR services. In fact, the funding for social media projects rarely even comes from the PR budget anymore. Money often comes from product marketing, business development, or a general marketing fund for a project. After speaking to Cisco, Google, HP, Palm, and dozens of venture-funded startups about social media, I realized that in a recession, money follows measurement.

If the CFO puts an axe in a marketer’s hand and forces some chops to the marketing budget, where’s the blade going to strike first? The most vulnerable things are either difficult to measure or are delivering weak results. If there is no life in advertising click-through metrics, a good marketer views the activity as deadwood and chops away.

Here is what I have learned in the last year about metrics and social media.

An effective social media process starts with a definition of business goals and ends with a continual assessment of metrics to support these goals. I’ve found that goals generally fall into three categories:

1. Increase web site traffic – usually to a specific section like the product page, community portal, or blog
2. Increase product downloads – this is usually a key goal if there is a free or community version of the product
3. Increase registrations – companies usually require registration to access support information, participate in a contest or survey, download white papers, access documentation, or get access to product demos.

Marketers are tracking customer behavior on their website more accurately with lead nurturing systems sold by firms such as Eloqua, LoopFuse, or Marketo. They combine these systems with web site analysis tools such as Google Analytics to make decisions on which marketing programs deliver results they care about.

When we roll out a social media campaign, we generally manage five to ten channels of information simultaneously. A typical process involves blog comment management, community blogs outreach, corporate blog promotion, Twitter, YouTube, Facebook group management, and several other message channels. The information in all the channels is cross-linked. For each channel, the metrics are tracked in real-time. For example, on the day of the launch, we look at Google Analytics and social media monitoring tools to make constant adjustments to how the resources are used.

An example of the metrics we track on Twitter include:

• direct referral traffic using Google Analytics;
• number of followers;
• number of @replies by community;
• number of #hashtag uses by community;

• number of keyword mentions by community;
• number of posts by Twitter channel manager (to show we’re working);
• number of retweets.

Using this data, we are able to fine-tune messages to resonate with the target audience.

In the eight years since our discussion, my old boss has made several hundred millions of dollars in his businesses. In the midst of the current recession, I’m just starting to believe that maybe he was right.

If you can’t measure it, it doesn’t matter.

Tags: Google Analytics, marketing, metrics, product download, registration, social media, Twitter, web traffic

This entry was posted on Wednesday, March 4th, 2009 at 5:30 pm and is filed under blog. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.