In my earlier posts, I have been talking about social media trends, different social media campaigns, some of the best and worst social media campaigns of India, but never discussed how these brands measure the success of social media campaigns. Of course there would be some ways, in which companies define their social media campaign strategies, goals and ROI.
There are hundreds of different ways to measure social media, which makes it kind of difficult to wrap your mind around. To help with that, social media metrics can be broken down into three different categories.
- Quantitative Metrics: These are the metrics that are data-intensive and number-oriented. You can really get overloaded with different metrics here, so the trick is to pick the key metrics that most influence your business and not get bogged down with the rest. Those metrics might include unique visits, page views, followers, demographics, frequency, bounce rate, length of visit or just about any other metric that’s specifically data-oriented.
- Qualitative Metrics: These are the metrics that have an emotional component to them. For example, if 75% of the people who mention your product online call it “cheap” and only 25% call it “inexpensive,” that’s a qualitative metric that has an impact on your business. There are several companies that provide in-depth analysis of the qualitative metrics online. Some of these include RapLeaf, Nielsen and Adobe Online Marketing Suite.
- ROI Metrics: In the world of social media, all roads should lead to ROI. After all, during business hours, social media isn’t just about being social, is it? We’re doing it to make money. And if you track what percentage of people you converted from a prospect to a customer on your e-commerce site, or how many people you converted from a prospect to a client on your B2B website, then you’ll be able to measure the success of your social media campaign on an ROI basis.
In any marketing campaign, first thing any business head or CFO asks from the marketing department is ROI. Let’s look at some of the ways ROI of social media campaigns is calculated.
DEFINE BUSINESS GOALS & CONNECT WITH SOCIAL MEDIA ROI
The first step involves setting social media goals that complement existing business and departmental goals. If you have set a specific number of leads you’re trying to attain this quarter, set the number of leads you want to specifically be driven by social media. For example – If one of your goals is to increase landing page conversion by 10%, ensure that you’re tracking the conversion rate of people who land on the page through social channels. If your goal is to increase unique page visits, make sure you have necessary tracking codes installed in each of your site pages.
To demonstrate social media’s value, you need to measure social media ROI as it relates to your broader business goals.
Key examples of social media metrics to track include:
- Site traffic
- Leads generated
- Sign-ups and conversions
SELECT SOCIAL MEDIA TOOLS TO MEASURE CONVERSION AS DEFINED IN BUSINESS GOALS.
Once you’ve established your social media goals, you’ll need to identify and implement the tools and processes required to measure the ROI on your social media. This may involve adding tracking codes to URLs, building custom landing pages, and more.
There are a variety of social media analytics tools which service to track the diverse metrics you are after. Here are some to consider:
Google Analytics: Track website traffic, on-site conversions, and sign-ups originating from social media campaigns.
Hootsuite Analytics: Hootsuite offers a variety of analytics tools to help you track your reach, conversions and more. A few noteworthy examples are:
- uberVU via Hootsuite will help you identify your share of voice within your industry on social media, your reach, sentiment around your brand and much more.
- Custom URL parameters allows you to track which social networks and social messaging did or did not drive traffic to your site, blog or landing page.
- Hootsuite Analytics Reports offer quick snapshots of your reach through metrics like follower growth, total daily URL click-through and per-post stats for Facebook, Twitter and more.
MONETIZE YOUR CONVERSIONS & CALCULATE ROI
Using the analysis, historical data, goals defined, and engagement level, actual conversions can be calculated by different analysis. In case of non revenue generated conversions, a monetary value can be assigned to each of the conversion. Hence, this is the most important step, as each conversion and goal has to be assigned a monetary value to calculate the return / revenue from the social media campaign.
Now use the return calculated from the above step to calculate ROI from the formula –
ROI = 100 * [ ( Revenue – Cost ) / Total Investment ]
Now, using the above formula, you can access the actual ROI of the social media campaign.