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
- Reach
- Leads
- Costumers
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.