Many companies and individuals are jumping in on the Social Media band wagon full of enthusiasm as a way to build their brand, acquire new customers and the marketing of their products and services. Mashable made a blog post: STATS: 84% of Social Media Programs Don’t Measure ROI where a number of online marketers aren’t measuring ROI (return on investment) on their social media marketing (SMM) campaigns.
Many companies that are measuring their social media marketing campaigns are usually watching for direct measurable results. Although this will show improvements, this won’t translate directly into the measurement of ROI.
These Social media metrics includes:
- Followers on Twitter
- Number of fans on your Facebook fan page
- Page views (overall)
- Unique visitors and page views
- Bounce rate and time spent on site
- Search rankings improvements
- Trackbacks, pingbacks and comments
Even though these are great indicators to show a social media marketing campaign success, they fail to show if the campaign is yielding results. Business owners and senior managers are looking for financial impact. Return on investment needs to be tied back to business metrics such as increased business or sales leads, decreases in expenses and profitability.
How to measure your Social Media ROI
The best way to show the success of your social media marketing campaign is to create graphs of the most important indicators that are showing results over time and then overlay these results with key financial results.
To give you an example: if you measure an increase in brand or product mentions by month for the last year against the monthly sales on the company website, you may be able to view a direct correlation to an increase in mentions with an increase in sales. The key is to overlay these results from various campaigns (social media) and channels to see which are having the best impact.
Many blog posts has been made about the measurement of Social Media. How do you measure your social media marketing campaign success?