Tag Archives: Online reputation

Measuring The Cost of Bad or Good Online Reputation

By noblelgnoble via flickr

By noblelgnoble via flickr

I received this question from Nathalie Seoteman after she read my free ebook on using social media:

 

How [can you] calculate the value of a company’s online reputation and (marketing) PR 2.0 efforts? What did these activities produce, put in figures and – preferably – in euro’s/dollars? I would like to include both the reputation damage that has been diverted and the positive/negative/neutral online coverage that has been created.

 

This raises an interesting and very complex question. There will inevitably be tangible and intangible ways to measure the value.

 

Measuring Positive and Negative Reactions

Assuming that you’re using a tool like Trackur, Radian6 or just Google alerts to track your coverage, the first thing you have to segment the coverage by what Radian6 calls sentiment – negative, neutral or positive. Once you’ve done this for media coverage, video responses, Twitter responses, blogs postings and more, you can get a visual representation of the sentiment over time.

 

The question then is how do you assign a monetary value to this. One way is to use ad equivalence, which is how much would it have cost you to advertise in a magazine for the same space. The obvious drawback is that this will not cover a significant portion of your coverage and you have to do the time consuming research to find the ad values. But let’s assume that this works for 40% of the videos, blogs and media coverage out there. How do you measure the remaining 60%?

 

The Value of a Single Customer Won or Lost

I am assuming that you have a sense of your sales pipeline and what the average deal size (let’s keep this simple, ok? =). If you delved into the content of what is being said, how many would say they would 1) hire your company; 2) never work with your company again or 3) are neutral.

 

I’m making a huge assumption that each person is a potential customer regardless of their company affiliation and title. For example, there are over 589,000 fans on the Skittles Facebook page. If I assumed that each person bought at least one Skittles product that cost $0.75, then the potential value would be $448,500.

 

You can then do the same with your business: positive = gain average deal size, neutral = zero, negative = costs you average deal size

 

Conclusions: Not an Exact Science, Yet

I admit that I am ignoring the relative influence and weight of differing outlets, people or prominence of coverage. I also know that not everything can be easily dissected into the three sentiments I highlighted above. But frankly, I didn’t want to turn this posting into an essay 😉

 

While technology is catching up to help automate the process, I believe that there is still a very manual process involved to evaluate the coverage, put it into the appropriate bucket and then assign a value to it. Hence, I recommend that you start simply – take the most simple measurement and build upon it over time. Otherwise, you may find yourself spending more time assembling reports about your online reputation versus managing it directly.

 

In the end, there is no right answer for measuring the value of bad or good online reputation management. I hope the above provides a starting point for those seeking to calculate this value.

 

I would love to hear of how others would go about calculating the value of bad and good online reputation.

 

The “formulas”

Positive Ad Equivalence – Negative Ad equivalence = Total Ad Equivalence

Potential Customer Deal Won – Potential Customer Deal Lost = Value of Potential Customer Deal

 

Total Ad Equivalence + Potential Customer Deal = Total Value of Positive/Negative Online Reputation

 

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@csalomonlee seeks to answer the question – how to measure good/bad online reputation?: http://twurl.nl/my548k 

 

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All content copyright Cece Salomon-Lee, Creative Commons Attribution-Noncommercial-Share Alike 3.0 Unported, with the attribution: By Cece Salomon-Lee, PR Meets Marketing, and a link to the post.

 

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PR Relationships:Update on Online Reputation

ReputationOK – I previously wrote about how to manage my many online personalities here and here.  Since those posts, I’ve reversed my previous position about my online reputation. The heart of it is managing relationships through the tools available to me.

  

In the end, PR is about relationships. How do you build, nurture and maintain them. However, it is challenging with the nature of PR – reporters moves, accounts change and an unending cycle of new account folks.

I read recently that the average number of jobs that today’s workers will have throughout their lifetime is about 12-14! With that type of churn, you’re expecting only a person to be in their current job an average of less than 2 years. Developing the relationships that are key to our industry require a long-term, patient approach.

What are the tools that enable me to identify, develop and maintain these contacts? I now have four ways for managing these online relationships:

  1. Facebook – Despite my previous email about keeping my online reputation to a minimum, I realized that Facebook is another avenue for connecting with colleagues and industry contacts. By friending people, I can subscribe to a RSS feed to keep up to date on what’s happening. I still need to learn more about Facebook, but I’m starting to understand how Facebook differs from LinkedIn. Friend me and I’ll friend you back.

  2. LinkedIn – I still use LinkedIn more for business contacts as I’ve had this account the longest. LinkedIn’s strength is when you’re looking for a job or for seeking advice from peers. I use LinkedIn Answers quite a bit for a professional perspectives. View Cece Salomon-Lee's LinkedIn profileView My LinkedIn Profile

  3. Twitter – I lost wrote that Twitter is changing how news/information is being dissemated. I just started getting into Twitter via Jeremiah Owyang. In fact, I responded to some questions about my company’s solutions as Jeremiah and CenterNetworks were viewing a webcast. Like Facebook, I’m realizing that Twitter is an important tool for following trends, competitors and my own company. Follow me on Twitter and I’ll follow you. 

  4. Personal blog – And of course this blog has enabled me to make good relationships. By linking to posts and commenting on other blogs, I’ve developed new relationships that wouldn’t have been possible. Whether a corporate or personal blog, I strongly believe that a blog is key if you want to engage in “blogger” relations. It demonstrates that you’re contributing and spending the time to understand the community.

Are there other ways that you manage your online relationships? Let me know.

 

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