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The importance of social media in regards to building a company’s relationship with customers was implied in the previous article “Live Interactions and Social Media”. However it needs to be also emphasized the invaluable role this tool plays in increasing company’s revenue, reach and ROI ‘Return of Investment’.
The Social Interaction KPI (Key Performance Indicators) measures the effectiveness of your social media campaigns, trails communication between company and audience, and helps to determine the social media ROI.
How to track and monitor social media KPIs and what are the main questions you should consider to be asking?
1. How to pick the right and most relevant KPIs for your business?
2. What are the social interaction metrics?
3. How do you measure social media ROI?
How to choose the right KPIs for your business?
There are many different metrics on social media that you can measure; however, the most important ones to nourish are the ones that answer these questions: Are you reaching and engaging qualified people? How many of your fans on social media are inquiring about your product or service? How many of them actually become customers?
To select and measure the right social media KPIs, you need to be paying close attention to four main areas:
Engagement basically measures the amount of likes, shares and comments that your social posts receive. If your audience is engaged, it will generate more leads. KPIs that are typically used to measure engagement are clicks, likes, shares, comments, and tags.
Reach is a metric that tracks and estimates how many people viewed your post and how far you were able to reach your audience. You can measure it by tracking the KPIs of Followers/Fans, Impressions, and Traffic data source.
KPIs of Leads are the most important ones to focus on to get the best ROI from your social media. It is nice to have many fans but main question remains: How many of these active followers are actually interested to make purchase from your company?
Customers are the final measurement of your success in social media marketing that you use to improve your revenue.
Choose social interactions metrics that make the most sense for your business and lead you to success, and once you make your choice, establish processes to monitor their KPIs.
One of the most utilized monitoring tools is social media dashboard that provides unified metric reports of data gained from multiple social platforms, and helps you to track all your social media accounts and campaigns.
What are the social interaction metrics?
Among the top social media metrics belong a number of blog subscribers, comments, forwards to a friend, inbound links, social bookmarks, positive sentiment, Web traffic form social sites, number of likes and followers. has summarized the list of many others that can play significant role.
How do you measure social media ROI?
Social media ROI is the return on investment a company expects to make from the time, effort and resources the company commits to social media marketing.
The key elements to tract ROI are: 1. Determine what your goals and investment in social media consists, and 2. Attach a monetary amount to your social media goals.
The formula to measure Social Media ROI:
SM ROI=(SM return- SM investment)/SM investment %
Return = you need to choose and track unique goals for the specific social media metrics (new followers, online purchases signups for newsletter etc.).
Investment = labor cost (time) associated with your social media tools + cost of using these tools/services + advertisement cost
You might find this article very helpful to measure your social media metrics.
Keep in mind that your main goal with social media is to find out what you know about your customers by actively listening, engaging and responding to them.
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