- Competitive sales
- Brand performance
- Gain attention
- and Generate Sales
Given the amount of time customers spends, engaging with one another, companies are now becoming very serious about investing in Social Media marketing. According to “The CMO Survey”, currently companies are speding 8.4% of their marketing budget on Social Media Marketing and over the next 5 years it will reach to 21.6%. Also, Companies are searching for novel ways to interact with customers that will drive growth of the business.
Given this great investment in Social media, two things becomes very important for companies. One, integrate their social media efforts with marketing efforts and Second, measure ROI from social media. While, to some extent, companies have been successful in integrating their social media efforts with marketing efforts but social media analysis and ROI still remains a big question mark.
There are many metrics and performance indicators which helps to calculate ROI but they don’t have holistic approach. Social media is a platform to reach and connect with customers when they are not in the shop. So, when we are investing in Social Media, we must remember that ROI is not in just monitory terms.
To start with, Focus of Social Media ROI should be,
1. How many people you have reached?
- No. of likes on faceook, facebook page reach
- Followers on twitter
- Pinterest fans
- Blog followers
- Youtube followers
- Facebook reach
- No. of Impressions
2. How many people you have engaged through online activities?
- Facebook Page views and people talking about it
- Blog views
- How many times blogpost has been shared
- Video/slide view
- No. of mentions in user generated content
- Engagement duration
3. Becoming a conversation enabler and perception driver
Now, you have decent social media presence, likes/views and retweets. But basic rule of marketing says that word of mouth is more credible than advertising, Thus next step of focus should be giving platform to users to share their experience, tell their stories and make them your brand advocates.
- Encourage users to post their experiences with brand. – No. of customer experience shared
- Encourage users to share their content – No. of user generated content shared
- Ask for suggestion – No. of people replied to your suggestion posts, tweets, blogpost etc
- Twitter Trend
- Activity ratio: Ratio of active to inactive network members
4. How social media efforts helped to resolve customer query/problems and led to more customer satisfaction?
They say, “Axis Bank’s twitter response is faster than their customer care”. As I said earlier, Social media is a platform to reach the customer outside the shop. Thus it can be very handy and useful to resolve customer queries and clear doubts.
- Resolve customer queries – No. of queries resolved /No. of queries posted
- Clear customer doubts: No. of doubts cleared/ No. of doubts asked
- Response time to resolve query/doubt
- Customer satisfaction with the time and response
5. How many leads you generated through social media
- Click Through Rate
- No. of Referrals
- No. of people who subscribed to free news letter
- No. of people who showed intention to purchase product
- visitor to lead conversion rate
6. How much increased revenue is due to social media efforts
- No. of people who bought from your website through social media referral
- Increase in repeat purchase
- No. of paying customers (for premium services)
- Average sales volume through social media referral/ Overall average sales volume (per customer)
- Average sales social media referral/ Overall average sales ( per customer)