5. Metrics and reporting – the backbone of understanding your community

RulerImage by Balakov via Flickr

We’ve touched on metrics before, and how understanding what you need to measure can help you understand how healthy your online community really is.

Metrics are vital. Understanding the who, what, where, why and how many of your online community is vital. Understanding if you’re doing your company some good (or bad), is vital. Setting KPIs is vital and knowing whether you’re hitting them, is vital. Metrics are vital.

Putting qualitative and quantitative measurements to the back of your mind – or worse, not considering them at all – is a little like setting up a restaurant, cooking a load of food, and not looking to see if anyone’s eating it.

Recording, reporting and analysing your data is as much a part of community managing as keeping the spam out and the conversation going.

But what should you record?

As ever, it’s a ‘piece of string’ subject. There are some established standards when recording any web traffic, of course:

  • Hits
  • Unique visitors
  • Page views
  • Time spent on site
  • Pages per visit
  • Entry points
  • Exit points
  • Most popular sections
  • Most popular pages
  • Referrers

And some fairly obvious community specific standards:

  • Number of members
  • Number of active members
  • Number of blogs/posts/comments/images

But here’s where it starts to get interesting. Given that all online communities are basically a similar beast (a group of people brought together in one online space and communicating in a variety of ways), you’d think the list of key metrics would be pretty defined. You’d be wrong.

Lucy McElhinney
, Community Manager at UKfamily.co.uk, has a couple of favourite stats. She tweets:

Return visitors – to gauge lurker/reader engagement, Active members (the number of members who ‘did’ something in the last month)

Ooh, and obviously advertising like the page views per visit metric as in communities it’s normally so high.

Ratios are also very telling. As well as the basics, Adam Cranfield, Digital Media Manager at CIMA likes to know the “ratio of responses to discussions,” and “ratio of comments to blogs.” He also introduces a lovely turn of phrase that I’m going to steal wholeheartedly: nuggets.

Also, I want to measure ‘nuggets’ – new knowledge, useful to the company, gained through the community.

Reporting on the current health and vitality of a community – especially when you’re community managing on behalf of a brand – is more than just a numbers game. ROI is more than just financial.

Great stories from the community can form positive PR activity; feedback (negative and positive) can inform improvements to customer services and spread learning about best practice throughout the company.

And as community manager, you are the gatekeeper to all this knowledge. Through recording it, filtering it and reporting it, you can affect real change. Frank van Gemeren, Game Producer and owner of Frag-em says you should pay attention to negative sentiment within the community:

There’s always action=reaction, so a lot of negativity means there’s something going wrong on some level, be it community involvement or policies, support, the actual product, or future expectations of your target audience.

For Frank, it’s not just about numbers:

I believe more in the qualitative arguments than in quantity. While quantity can be used to measure popularity and brand recognition, which is important for PR, you won’t build up a healthy, loyal community with a lot of hype and then failing to meet the expectations. That’s where the negativity comes in.

As with moderation and launching before it, monitoring stats and activity is not something to ‘just do’, something to just have a go at and see what sticks. If you are serious about creating a valuable, worthwhile community, you need to think about recording and reporting metrics and activity before you’ve received even one visitor.

As we’ve said before so many times, planning is the key. Really thinking about what you want from your community proposition and how you will measure if you have it, is essential.

Newsletter metrics

So what happens when you communicate with members outside of the community platform, through newsletters or mailshots?

At FreshNetworks we’re increasingly working to co-ordinate and strategically plan all newsletter communication in the most effective way for the members and the brand owners. There is a lot more fragility in the relationship here.

Why?

Mainly because unlike communicating within your community, where members have chosen to come to the space you have provided, here you are pushing your content into their domain. Their private space.

If you do it badly, intrusively, it could result not just in an unsubscribe from the mailing list, but a reaction on or an exodus from the community.

Put simply: You need to be as certain as possible how best to use newsletters. You need to know what works. And what doesn’t.

Newsletter metrics are a whole other blog post (and one we hope to bring you soon) but one lovely little formula I want to highlight is the Disaffection Index, first mooted in a 2005 MediaPost article:

Rather than unsubscribe/delivered, the Disaffection Index (DI) is calculated by dividing unsubscribes by the response rate: unsubcribes/unique clicks

Calculated this way, the DI tells you how many people either a) clicked on your email for the sole purpose of getting off your list or b) were so dissatisfied with the payoff (promise vs. delivery) that they chose to unsubscribe.

It’s simple maths but it’s packed with insight:

DI = (unsubscribes / unique click) *100

More on this to come…

Building the business case for online communities

I’m at the Communities 2.0 conference in San Francisco this week. It’s such a beautiful and diverse city and sadly not enough time to explore (sigh).

One of the hot topics raised at the ROI symposium was the thorny issue of getting internal buy in for your online community from across departments and management levels. At FreshNetworks a lot of the early work with our clients is around supporting the project sponsor to achieve this. It’s often the hardest part of getting an online community started and even when you are rolling, how do you keep the visibility of it high to ensure continued investment?

I’ve been struck by the number of passionate mavericks I’ve met who ‘just knew’ their company should be starting a dialogue with customers (or employees) and could see the benefits a mile away even if they couldn’t quantify them. Euan Semple started the BBC intranet on a box under his desk and the seasoned community practitioner Dawn Lacallade (previously Lead Stormchaser at Dell and now at solarwinds) tirelessly waded through the politics at Dell to extol the benefits of the early Dell communities. Many social media projects start as skunkworks projects and sometimes this is the only way to gather the evidence that the demand and the benefits are there. I’m all in favour of piloting, learning and evolving but there can be some pitfalls:

  • you may end up with multiple communities targeting the same people, creating real confusion for your customers
  • as social media people leave the company, community ghost towns will appear as no-one knew about all the cul-de-sacs of conversations existed and there’s no-one to carry on the conversation
  • social media enthusiasts may be good at Twitter but they may not understand how to manage risk. Online communities can impact all areas of the business and there is nothing worse for a customer who has made the effort to talk to you than getting no response back from the brand.

So here are some tips from Dawn about how she used her powers of persuasion at Dell (at solarwinds everything they do starts with ‘how do we involve customers in this’ so I gather life is less complicated for her now!). I’ve added to the list from some of our experiences at FreshNetworks too.

  1. Amongst the other skills you need as a community manager, you need to develop your sales skills! Equip yourself with loads of great case studies to convince stakeholder of the value to the business. They are unlikely to respond to words like blog, wiki – only to phrases like customer retention and cost reduction!
  2. Identify all the key stakeholders in the business (i.e. those that give you money, those that can vote on what you are about to do and those that are likely to give you grief!)
  3. Meet/call/survey these people to understand the priorities of the business and each department. At FreshNetworks we try to encourage setting up a cross-functional team to attend at least a half day workshop, including directors. It’s amazing how many epiphany moments happen when people are sharing ideas with each other and often the biggest cynics walk away as converts and later evangelize the project. Play back to the group what phase 1 is going to cover and what it’s not to set expectations.
  4. Prioritise the objectives and work out the business KPIs for the community. Use the language of your stakeholders. If the KPIs don’t contribute to departmental goals you are unlikely to get support for the project. KPIs include things like ‘reduce acquisition costs’ not ‘number of top contributors’. The latter is an essential metric for managing a community but unlikely to mean much to a management team under pressure to deliver their quarterly targets! And finally remember – value is fluid. I met Tina Card this week, another driven community manager from Scottrade who told me their community is producing benefits that hadn’t even envisaged at the outset.
  5. Test the business readiness. Is the company committed to investing in the medium term to develop the community to maturity and value? Have you thought through the internal process changes that might be required to respond to say an ideas community?
  6. Launch a beta then work hard to play back the results to your stakeholders. And never stop doing this, get in front of Execs on a regular basis. There are a lot of repetitive tasks involved in managing a community and marketing people particularly are not used to this as they live in a campaign-based world.

We’d love to hear about your experiences so we can continue to add to the list!