1) Connect Your Social Media ROI Back to Your Business Goals
The first step involves setting social media goals that complement existing business and departmental goals. If we have set a specific number of leads we’re trying to attain this quarter, set the number of leads to specifically be driven by social media. If one of our goals is to increase landing page conversion by 10%, ensure that we’re tracking the conversion rate of people who land on the page through social channels. Audit existing social media performance to establish baseline targets, then set appropriate goals for improvement.
The brand awareness created by social media—seen in vanity metrics including “likes” and “+1s” and “Retweets”—is valuable, but it is not enough. only 34% of businesses feel that their social strategy is connected to business outcomes. To demonstrate social media’s value, we 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
- Revenue generated
It’s important for social data to be relevant to stakeholders within organization, not just social media practitioners. Tying social media to the big picture by linking it to organizational and departmental goals will help us achieve that.
Categories of Social Media Measurement
There are hundreds of different ways to measure social media, which makes it kind of difficult to wrap our 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 product online call it “cheap” and only 25% call it “inexpensive,” that’s a qualitative metric that has an impact on 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.
Social media now holds a place alongside print and broadcast as a major, essential marketing channel for businesses. As such, social media now should be held to the same standard as those channels: your social media ROI needs to contribute to your bottom line.
To prove that your social media investment is truly warranted, you need to track how social is influencing every interaction you have with your clients. The following explains how to measure social media ROI for your business, in 4 easy steps.
2) Select Social Media Analytics Tools To Measure ROI
Once we’ve established our social media goals, we’ll need to identify and implement the tools and processes required to measure the ROI on 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 we are after. Here are some to consider:
Google Analytics: Track website traffic, on-site conversions, and sign-ups originating from social media campaigns.
Salesforce: Add Salesforce tracking codes to the links you share on social networks. When paired with marketing automation software like Marketo, we’ll be able to track sales leads back to specific campaigns or social messages.
Hootsuite Analytics: Hootsuite offers a variety of analytics tools to help track , reach, conversions and more. A few noteworthy examples are:
- uberVU via Hootsuite will help identify share of voice within 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
3) Calculate Social Media ROI
Once we’ve set goals and chosen your social media analytics tools, it’s time to actually track social media ROI. The ability to track should be built into everything we do on social media, so we’re never left scrambling to try to prove the success of a campaign.
Creating analytics templates will allow to track desired metrics without having to build out custom reports for each campaign. These reports will also present the data in an easily digestible way, allowing us to simply and effectively share your ROI on social media with higher-ups in the organization.
Checking various social media metrics frequently, often daily, to ensure that social media goals are being met. The lifecycle of social media campaigns is often very short, so we need to stay on top of the data as it happens. Choose a timeframe that works , and stick to it..
4) Adjust to Improve
Once identified what works and what doesn’t work on social, it’s time to adjust strategy. The point of tracking social media ROI isn’t just to prove social campaigns are valuable, it’s to increase their value over time.
Due to the short lifecycle of social media campaigns, a failing campaign should be changed and improved as soon as possible. Social media is never static. To meet social media ROI goals, we need to constantly update and adapt strategy ,taking into account the analytic data we are tracking.