So how do you determine if the energy you and or your team members are putting into social media are proving to be beneficial to your business bottom line? Speaking with clients many (all should) want to measure ROI of their social media campaigns but just don’t know where to start.
Businesses need to be able to determine whether or not their focus on social media is generating results and making an impact to business income. However, when looking at “results” it is critical that the stakeholders in the organization all agree on your social media objectives.
With some businesses the objective might be increasing traffic to the website, where another business it might be to connect with customers to garner feedback about a new product or service. Understanding the social media goal you are trying to accomplish is critical so you know if what you are measuring social media against is actually meeting or hopefully exceeding company objectives.
Before we get into what to analyze, it is also very important to understand that social media comes in a variety of flavors, each with a very different end result. As mentioned in one of our favorite posts last year “What Results Can I Expect From My Social Media Campaign?” by Greg Finn, social media campaigns occur on social sites like Twitter, Facebook and LinkedIn where users or companies interact with others in the community. Social media news campaigns push content out onto larger social news networking sites like Digg and Reddit. While both of these are types of social media marketing, the results are anything but similar.
Keep in mind that if you are not measuring social media today you are not alone. According to a 2009 study performed by Mzinga and Babson Executive Education, 84% of professionals representing a variety of industries reported that they do not measure ROI so don’t be disappointed if you currently fall into that bucket.
When analyzing return on investment with social media here are 3 main focus areas around social media metrics to monitor:
- Establish Baseline – For each of your social media profiles start out by making note of current statistics such as number of Twitter followers, how many people like your brand on Facebook, referral traffic from social media sites in Google Analytics, what is currently the most popular content on your website and or blog, monitor number of people currently subscribing to your blog, how many views you have had on your YouTube Channel, number of bookmarks on Del.icio.us, etc.
- Record Timelines – Keep detailed notes of important dates so when you are analyzing results you can understand why spikes happened. With Google Analytics you can leverage the annotations feature by clicking on any specific date and noting an activity.
- Monitor Sales Revenue – On a month over month basis look at sales performance before you started focusing on social media and ongoing measure sales to determine ROI. When analyzing sales drill down into individual sales details as well. If you find that a certain product or certain geographic location is showing improvement after you dedicate more time and resources to social media analyze why so you can further improve upon results.
Now that you know what key metrics to monitor with your social media campaigns sit down with your team to agree on social media objectives and start tracking results today. We recommend on a monthly basis update each of the key social media metrics and meet with your team to discuss results.
If you are measuring social media ROI today what kind of results are you seeing? Are their tools you are leveraging you recommend others look into?
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Tired of hearing about this rough economy? I know we are. When things are tough the last thing you want to do is cut back on marketing; however, that is the 1st place companies look to save money.









