Deriving measurable content drivers for effective Content Marketing
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The document presents a case study on a Mexican restaurant chain called Alpha, which is struggling with declining sales and relevance. It discusses the implementation of a unique marketing mix model that incorporates consumer feedback from social media to assess and enhance brand performance through 'content-driver modeling.' The study emphasizes the importance of improving menu diversity and food quality, as well as aligning marketing messages to effectively communicate these changes to consumers.
Deriving measurable content drivers for effective Content Marketing
- 1. Measuring Content-Driver ROI using Social Media Brand Conversations: A Case-Study 1
- 2. The Agenda 2 •Content-Drivers modeling is a powerful way for brands to understand what consumers value or not value about their product or service. It is based on the consumer’s own words or feedback. It becomes the raw material for Content Marketing. 3 •What is Content Marketing? 4 •Destination: Measuring Social Content Drivers, the purpose & value, the Alpha case study 5 •Modeling Brand-Content & the Marketing-Mix: Architecture 6 •Social Engagement Index: Sourcing brand-experience content from social media 7 •SEItm : The method of converting textual content to relevant & predictive metrics 8-9 •Validating the SEItm as a predictor of brand performance 10-12 •Relative importance of Alpha’s content drivers 13 •Assessing Alpha’s competitive strengths and weaknesses 14 •Monetization and the value of content-drivers for Alpha 15 •Content drivers and brand performance for Alpha 16 •Synergies between Media & Content Drivers 17 •Strategic implications for Alpha 18 •Model summary & validation
- 3. What is Content Marketing? • Content marketing is a strategic marketing approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly-defined audience — and, ultimately, to drive profitable customer action. (contentmarketinginstitute.com) • In other words, content marketing is all about finding the right message to deliver to the right customer, at the right time, for purposes of driving profitable revenue for brands • In order to develop successful content for marketing, the precise nature of that content must be discovered. There is no better place to find this content than from the actual words of consumers or customers about your brand. Social media provides a rich source of these unobtrusive and totally honest comments for finding the most relevant content insights. • This study demonstrates a unique approach in a case study of a brand called Alpha. We call this approach “content-driver modeling”. 3
- 4. The Destination • This is a case study about a Mexican restaurant chain called Alpha. Actual names and some data have been altered to mask the real identity. • Alpha is in a rather precarious situation. Its retail sales are down -5.2% for the year. The chain’s strategy has been focused on efficiency through its drive-up and online ordering system. It’s product line and menu, however, have remained basically the same for the last 10 years. • Management has a sense that the company is losing its relevance with its customers, but are not clear on the specifics of why this is the case. Alpha also competes in a category with a large array of national, regional and local units. The company is seeking answers to understand what its strengths are and what particular areas they need to improve. The work done needs to be specific and show a link between these content areas and revenue performance. • BLA was charged with implementing a unique approach. Employing advanced analytics, the company implemented a unique marketing mix model that not only quantified the effectiveness of marketing and media drivers, but also measured specific brand comments by consumers in order to measure how customers valued the Alpha brand and which elements of that value equation were in most need of repair. • To answer these questions, BLA used its proprietary approach for measuring and defining the specific value drivers for Alpha. This was accomplished by identifying the critical brand-values content expressed in social media and deriving special metrics which converted the textual brand comments to effective sales-driving metrics. The metric we construct is called the Social Engagement Index or SEItm. 4
- 5. Modeling Architecture We develop a marketing mix model for Alpha linking Digital/Traditional media, pricing and store penetration to weekly retail sales. We also include six(6) SEItm based content drivers as an indicator of customer experience within this predictive model. Digital Display SEI Content Drivers Paid Search Digital Email Competitive Media Direct Mail & Consumer Prmotion TV Media Network & Cable Radio & Magazines Economy, Store Expansion & Pricing Seasonality Weekly Restaurant Sales 5
- 6. We collect hundred of thousands of brand-experiential comments across social media channels. These are parsed into distinct content themes. These content themes define what brands mean to customers. United Airlines is never on-time, and their service sucks. Your brand is what people say about you when you’re not in the room. ~ Jeff Bezos
- 7. We use a linguistics/language-based system to “score” social media textual brand comments. The underlying method is called “stance- shift” analysis. We convert these texts to a metric called the SEItm • Stance-shift analysis, published and peer-reviewed, reveals what really matters to the consumer: – Stance-shift measures consumers’ verbal shifts in positioning as they talk or post online. – When these shifts occur, we know that something is being communicated that is very important and relevant to the topic at hand (the brand) – We capture the emotion, intensity, appraisal, and commitment in the context of the conversations to uncover the deep subtleties of what is said. • It enables us to solve what others miss: Size, Trend and New Concepts – Focusing only on what matters: We filter the relative importance through engagement – far superior to simple words/comment frequency. – Consumer trends: We capture the shifts and prioritize getting the trend right, validated through the independent measure of our metrics vs sales. – Stance is tuned to detect topics (content-themes) and concepts, which we link to quantified opinions, evaluations and endorsements through adaptive tonality, allowing us to map strengths, weaknesses, opportunities & threats over time. • Social Engagement Index: SEITM integrates our stance-shift measurement to power our consumer insights. 7
- 8. The SEItm stands out relative to other social media metrics because it shows a strong predictive power with high statistical correlations to brand sales 8 Note: Lead-laganalysishas confirmed that causation is only one way. The SEI™ to a large degree is capableof driving hard commercial metrics. 86% Telecom Brand 81% Soft Drink Brand 84% Food & Bev Brand 83% Hospitality Brand
- 9. Alpha Total Retail Sales and SEItm - 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 - 50,000 100,000 150,000 200,000 250,000 09.17.11 10.17.11 11.17.11 12.17.11 01.17.12 02.17.12 03.17.12 04.17.12 05.17.12 06.17.12 07.17.12 08.17.12 09.17.12 10.17.12 11.17.12 12.17.12 01.17.13 TotalSEI Sales Weeks Retail Sales 000 SEI Ratio Alpha’s overall SEI demonstrated strong predictive capability with a correlation to sales of 80 percent. 9
- 10. Alpha’s Content Driver Importance 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 SEI Components Service Delivery Value Food Quality Convenience The Menu • By scoring the content drivers for Alpha, we see the relative importance of key brand attributes according to what consumers say. Here, we find Value, Convenience and the Menu being the 3 most important features. These then should be the key focus for marketing content or messaging 10 Net SEI
- 11. SEItm content volume-drivers for Alpha over Time 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 09.17.11 10.01.11 10.15.11 10.29.11 11.12.11 11.26.11 12.10.11 12.24.11 01.07.12 01.21.12 02.04.12 02.18.12 03.03.12 03.17.12 03.31.12 04.14.12 04.28.12 05.12.12 05.26.12 06.09.12 06.23.12 07.07.12 07.21.12 08.04.12 08.18.12 09.01.12 09.15.12 09.29.12 10.13.12 10.27.12 11.10.12 11.24.12 12.08.12 12.22.12 01.05.13 01.19.13 02.02.13 SEI content drivers and sales impact Service Delivery Value Food Quality Convenience The Menu 11 • For Alpha, Convenience and Value are the largest content drivers and also the two values driving sales growth over time. However, all the other content drivers are showing an even larger net negative effect on sales over time. This is the source of Alpha’s challenge.
- 12. Alpha Content Drivers: Year-Over-Year Volume Trends - 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 Last-Year Current Alpha Content-Drivers Volume Contributions Service Delivery Value Food Quality Convenience The Menu 12 • While Value & Convenience increased, all other content drivers decreased: and overall SEI declined -26%
- 13. -2 -1 0 1 2 3 4 5 6 7 Menu Service Food Quality Value Convenience Delivery Negative SEI Net SEI Positive SEI 13 SEItm Ratings of Content Attributes for Alpha • SEItm also has a positive and negative component. Net is the difference. While convenience & value show Alpha’s strengths, service, food quality and the menu have the highest relative negative ratings and clearly signal an area in which Alpha needs to improve. Net SEI
- 14. Mexican Restaurants Competitive Positioning & Image Great tasting Food PersonableFriendly employees Treats you like a valued customer Authentic Mexican Food High Quality Ingredients Food from scratch Chain 4 Chain 3 Clean/comfortableatmosphere Food prepared how you want it Modern up to date Has large portions Healthy nutritious items Gets order right Chain 5 Chain 6 Chain 7 Chain 12 Chain 2 SimpleMenu Good value for money Low prices Open late night/24 hours Chain 10 Chain 11 Alpha Crave menu items Food timely/fast Convenient nearby location Varietyof menu items Chain 9 Has drive-thru Chain 8 Food Quality Service & Delivery The Menu Convenience Value • We can map detailed SEI content into a competitive map to see where Alpha compares to key competitors. We see that, in the words of customers, Alpha’s advantage is in convenience but not so much on food-quality, service and delivery. 14
- 15. Sales Contributions 52.6% 4.5% 1.3% 2.2% 0.8% 5.6% 3.1% 2.2%1.1% 0.8% 7.8% 1.0% 1.7% 5.7% 1.3% 6.3% 1.9% 18.0% Contribution Baseline Competitive.Media Digital.Display.Media Digital.Search.Media Digital.Email Direct.Mail Media.Cable.TV Media.Network.TV Media.Radio Media.Magazines Consumer.Promotion SEI.Service SEI.Delivery SEI.Value SEI.FoodQuality SEI.Convenience SEI.TheMenu • To the right, we see the contributions of each driver to total restaurant sales over the past year. • Overall, digital and traditional media drive 16% of total sales, consumer promotions add 7.8% and direct marketing accounts for 5.6% of sales. • The six SEI drivers account for 18 percent of total sales, the largest contributor among the groups. • The sales attribution and monetization of content-drivers places a monetary measure of the values consumers instill on the Alpha brand. The key and revolutionary aspect of this is that it places a monetary value on those content factors that represent the essence of the brand-customer relationship. 15
- 16. Marketing Variance Business Drivers versus Last Year -3.0% -2.2% -2.0% -1.3% -1.1% -1.0% -0.2% -0.2% -0.1% 0.0% 0.0% 0.1% 0.1% 0.1% 0.1% 0.3% 0.4% 0.4% 0.7% 3.7% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% SEI.TheMenu RetailPricing SEI.FoodQuality SEI.Service SEI.Delivery Baseline Direct.Mail Media.Network.TV Media.Magazines Digital.Email Media.Radio Digital.Search.Media Media.Cable.TV Consumer.Promotion Digital.Display.Media Economy** Competitive.Media SEI.Value SEI.Convenience Store.Penetration Alpha Marketing Variance v. YA• Alpha’s overall retail sales declined - 5.2% versus last year • The chart to the right show the specific drivers of this trend. • As you can see the six content drivers combined account for -6.3% of total growth. All other drivers combined, while having a positive impact, were insufficient to drive positive sales gains for Alpha. • While Alpha’s strong values of Convenience and Value showed positive year-over-year gains, the remaining were substantially negative. • The particular weakness in the Menu and Food Quality clearly needs to be the highest priority and Alpha needs to realign its operations and content marketing to reverse these trends. 16Total % Volume Variance v. YA
- 17. SEI Content and Media Marketing Synergy 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 Separate Activation Simultaneous Activation Measured Marketing Synergy between SEI and Total Media For Alpha Media SEI Content Total Synergy 17 • As shown below, the total impact of Media & SEI Content, when running in tandem, is significantly greater than the sum of its parts. We call this marketing synergy. This underscores the important role of linking media to the relevant content. Avg.WeeklySalesContribution
- 18. Strategic Implications • For the case study restaurant brand, analysis underscored that traditional strategies of focusing only on improving efficiencies in their drive-through and online ordering was not sufficient to drive growth. By ignoring menu diversity and improving food quality, they were driving customers to competition and generating a serious decline in sales. • The task ahead for Alpha is clear, if not daunting. The company has to focus on improving its menu and the quality of its product and let the world know about it. This will require broadening the content of its marketing messages to communicate to consumers the journey and destination that Alpha is persuing to this end. • Going forward, Alpha needs to embark on a journey and, in process, direct the content of its marketing message to telling the world about this journey. In so doing, Alpha will tell its customers that they are on a program for improving their menu and product quality. This will make the company appear vulnerable but customers will understand if Alpha comes across as both serious & sincere, and most of all, delivers on its promises. As shown, Content Marketing is all about marrying the right content with the media message. 18
- 19. Model Validation 0 50,000 100,000 150,000 200,000 250,000 Model Retail Sales 19 The model of Alpha’s retail sales demonstrated very high accuracy and predictability with an R2 fit of 97.1 percent