Measuring Social Media ROI
There certainly needs to be some sort of proof or indicator showing the effectiveness of social media campaigns…even though in instances the increment in number of “followers” would suffice.
However, there’s more to it, and quite detailed too. Profit needs to be made and clients are anxiously expectant of quick results.
The article below, by Nathan Mendenhall, outlines 5 steps that can help us measure social media ROI to quite an accurate level.
“We all want to make profit selling our products and services on social media, but given the complexity of attribution modeling with social media, we often don’t get a linear picture of how people are interacting with ads from awareness to purchase. Therefore, ROI can absolutely be anything that's important to your brand - whether it’s awareness metrics, engagement metrics, conversions or revenue.
With that in mind, here are our 5 steps to better track and analyze your social efforts.
1. Identify Your Key Performance Indicators (KPIs)
As noted, ROI doesn’t necessarily have to be dollars and cents. To begin to measure social media ROI, your organization needs to define which metrics are most important to you. These key performance indicators will help you keep your focus on how you should be aligning your social media efforts and strategy. By clearly defining exactly what you're going to judge your performance by, you save yourself from getting distracted from metrics which aren't relevant to your strategic goals.
For example, if awareness is the goal of your social media strategy, you'll want to include impressions and engagements as KPIs. If sales are what you want to focus on, you'll track revenue and conversions.
One misstep that many brands make is judging social media success strictly by conversions or sales. Given the nature of user behavior, people rarely see a social post, click a link, then buy immediately.
Users interact with multiple stimuli on the path to purchase, so it’s important to define your KPIs so you can get a holistic view of how your social media efforts are helping to build your brand.”
Stay tuned as we share the second step from the 5-step plan.