A very recent report from the CMO survey states, only about 15% of the companies who use social media marketing can measure their returns objectively. Social media is the most recent integration in the realm of digital marketing. This makes the low percentage less surprising and more concerning. This calls for a crucial need of monitoring technology that will enable the webmasters to collect data, store and organise data.
The most amount of activity in a social media oriented campaign hits a limit at the upper end of the sales funnel. Most companies among the 15% can only measure the standard metrics including hits, likes, shares and page views. These are the engagement metrics of any business or campaign. There are multiple challenges in the way of measuring the impact of social media metrics.
Using Social Media As A Marketing Platform
Customer loyalty is a big deal for any brand. You can use social media for tracking your customer behaviour. If you already have social media accounts on the leading platforms including Facebook, Twitter, LinkedIn, Pinterest and Instagram, you are sitting on a goldmine of data. Data from social media is the best example of big data. Big data needs big management. Every successful company needs an expert team of DBAs, who can collect, curate and classify the data each social media account or campaign sends.
What Tools Are You Using?
Do you already have a complete social media-marketing plan? Do you know what tools you are using? Does your DBA help you in identifying leading metrics and measuring them? If the answer to all these questions is a resounding, “Yes!” then you are on the right track.
Vendors try to keep pushing new tools and algorithms for measuring social media metrics. In reality, real time analysis of social media metrics is almost impossible. You need reliable tools that can show comparative analysis between social media ROIs and conversion rates for your campaigns. Instead of going for the bulk, focus on a few user-friendly tools that will help you understand the sales and returns of your company.
Here are seven insights that will help you correlate the increase in profit and sales with your marketing ventures:
1. Go For Goal-Driven Metrics
Each of your social media campaigns should have a goal. For better impact measurement, you should take a short-term goal driven approach. Social media generates brand awareness, this calls for specific metric measurement techniques. In case, your campaign’s goal is to increase the sales; then your conversion rate will be a more suitable metric.
2. Uncover Your Lead Indicators
Your social media engagement depends upon page views, CTR, shares, likes, and comments. These are your lead indicators of the business. For measuring your metrics, identify and track the lead indicators of your campaign. If your campaign’s only aim is to increase brand awareness, your KPIs will be page views, clicks, likes and shares. You will not have to worry about conversion rates.
3. Maintain A Dashboard
If you are a big company, you will possibly have more than one social media presence. You need to track all your sources of social media metrics and unify the outcomes. Tracking all shares and likes from Facebook, keeping a tab on your reTweets on Twitter and shares on Instagram can become cumbersome if you do not have a dashboard. Your database management team should be able to give you an easy access dashboard with consolidated results. With this, comparing results from several sources will become a breeze.
4. Experimentation Is Important
Social media is evolving just like Google. To understand the impact of social media and measure the metrics accurately, you need to conduct small experiments. Divide your experiments into pre- and post- tests to measure the impacts of a new campaign. This will help you measure consumer activity after a campaign is over. For instance, always include a consumer group that matches all observable characteristics. Do not expose them to your social media campaigns. This will be your control group.
5. You Need To Invest For Impact Measurement
Only about 2.3% of company funds go into the measurement of social media marketing ROI. According to The CMO Survey, more companies need to invest more in database management. Curating a proper database will solve more than half the problem that arises from scattered data from a plethora of sources. You should also invest in better agency partnerships, models, tools and new technology to stay ahead of the competition.
6. Build A Predictive Prototype
While building metrics detecting tools, always make sure to follow a predictable model. Design a prototype, which you can use later to determine spending levels and media placement. This way, you can simply plug in different outputs later on and simulate all the possible outcomes. Your model should also include a feedback mechanism. You need to capture the information you will need to correct your course in the future.
7. Do Not Ignore Social Media
Ignoring social media is a fallacy. All social media experts and digital marketers are of the opinion that social media will evolve further in the next couple of years. You can reach the whole world through social media. You can never realise your brand’s full potential unless you tap into the resources of social networking. There is an effortless way to understand this – most companies only consider ROI while running a campaign of any kind. Now, start considering COI or Cost of Ignoring, while you think about omitting social media as an advertising or campaigning platform.
Your social media database should be scalable. Your company will grow and expand with your database. This entails feeding information into your database from sales, surveys, and subscriptions. Your social media DB will link with your main company database.It also calls for security management. There are thousands of ways hackers will try and gain access to your core data. You need a strong team to withstand the attacks and keep your consumer data safe.