Rigorous measurement of the human element can kill the effects of social media for business

Success is a funny thing. Once establishing objectives you define standard qualitative and quantitative measurement techniques. You might monitor website traffic, phone inquiries, branding value, click through rates…

But how do you measure the value of a conversation?

You could rate it on a scale: zero means no sale, ten means sale. Is a conversation with a friend who might be a prospect more valuable than just a prospect? Who decides? How? At this rate we’re racking up a lot of subjective numbers.

Forget it. Not only are your numbers virtually useless, you’re dehumanizing the conversation. The sole reason social media marketing is effective is due to the HUMAN element. No one likes to be talked at. Social media requires speaking with your market.

Consider what it would be like, as a user, being talked at via Twitter; viewing an advertisement in the space designed for conversations among mutual followers. Consider being that same user and finding out your conversation was not considered valuable to the business you’re communicating with. Credibility is lost; resources wasted.

This isn’t a new concept. In fact, Duke University studied and consequently labeled it “The IKEA Effect”  (Norton 2009). The premise is people put a higher value on products and services that provided a personal experience. The IKEA case illustrates the product sale with the personal labor required for assembly.

“(L)abor enhances affection for its results. When people construct products themselves, from bookshelves to Build-a-Bears, they come to overvalue their (often poorly made) creations” Norton asserts.

In fact, an increasing number of businesses have found themselves relying on this vary value. Websites are constantly being redesigned and extended to speak clearly with specific markets. Meanwhile, CFOs see a sacrilegious marketing effort invested without a concrete way to measure the return.

Of course, continue monitoring the basics (web traffic, conversion rates, etc), but do not stress to measure the human element. Relax and realize social media is an extension of your product, services, and business.

_______

Citation: Norton, Michael I. The IKEA Effect: When Labor Leads to Love. March 1, 2009. March 10, 2009. http://hbr.harvardbusiness.org/web/2009/hbr-list/ikea-effect-when-labor-leads-to-love

This is Shauna’s panel position piece written for the Internet User Experience 2009 conference. Learn more here: www.iue2009.com