How to Define & Measure Social KPIs – Part -1 - Valasys Media

How to Define & Measure Social KPIs – Part -1

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Prologue

While creating & running social media campaigns, marketers have all kinds of questions in mind, whether they are relevant, whether they will appeal to the buyer persona & whether they are worth the investments made.

58% of the businesses measure ROI
in terms of engagement i.e. likes & shares & yet 56% of marketers think
they are unable to track their social media revenue (Source: socialbakers.com).

54% of social
browsers use social media to research products
(Source: GlobalWebIndex,
2018) & 74% of the customers who have had a positive experience with a
brand on social media are likely to recommend the brand to their friends &
families (Source: Forbes, 2018).  Moreover, 73% of marketers believe that
their efforts through social media marketing have been somehow or majorly
effective for their businesses (Source: Buffer, 2019). 

Over 88% of companies are now
marketing on social media & over half of social media, users interact with
brands more than once a month (Source: seoexpertbrad.com). According to a
report by Pew Research Centre, 67% of Americans report that they get at least
some of their news on social media, primarily on Facebook & Twitter.

Thus, it is crucial that businesses not only register their presence on social media & use it as a platform to promote their products or services but also figure out the ways to align the social media campaigns with their bottom-line goal of Conversion Rate Optimization (CRO). Running advertising, promotional & lead generation campaigns on social media platforms is essential as nowadays customers are the kings & they prefer to consume content in their own preferred ways. Marketers need to respect the researching habits of the customers & evolve with it.

Consider a hypothetical scenario where is a product is being promoted only on the company website & not on the social media platforms. The potential customers might research for those products on Facebook or Twitter & if they don't find any information there, they might cease to research & the marketers might lose a very good chance of optimizing their revenue by converting these customers. Thus, to build a strong & perennial sales pipeline, it is imperative for the marketers to leverage social media for various campaigns as well as to measure the success of their social endeavors, so as to align them with the ultimate goal of Return on Investment (ROI).

The importance of social media as
effective referral channels for lead generation & nurturing have been
undervalued by the marketers for a long while, particularly due to the fact
that the conventional analytical method has neglected to align social media
metrics with the Key Performance Indicators (KPIs) of the businesses. The
business KPIs have largely only been defined on the basis of website traffic
& how they generate the conversions.

The fact that social media
channels have always served as sources of referral traffic through several
referring domains leading to the increase in the website traffic was understood
long back; however, marketers realized the importance of defining &
measuring the conversions on the social channels much later.

Even today, the marketing efforts
through social media aren't commensurate with the efforts being put in – the
primary reason being that the metrics aligned with the social advertising &
promotion endeavors aren't being defined properly. Not only this, but the
marketers also need to realize that they need to define the Key Performance
Indicators (KPIs) aligned to social media campaigns & also align them with
their prime objective of achieving an optimized Return on Investment (ROI).

Apart from the direct visits on
the website URL, organic visits & display advertising ads are often two
other major drivers of the website traffic. The main question for the marketers
is how to allocate the budget for ad campaigns on each of the social media channels
& whether being on all of them at the same time serves the purpose. There
is no hard & fast answer to this question unless the marketers start with
the campaigns first.

Experiments with running small
promotional & ad campaigns on several social media channels & even
split-testing them for a while
, gives the marketers an idea of which
platforms are performing best for them in terms of bringing in more potential
buyers & keeping them engaged. User engagement is the most important matrix
to start with. Once the brands figure out which types of content are performing
the best, they can further start diving deeper into analytics & proceed
towards defining the Social KPIs
aligned with their businesses.

Well-ordered social media
advertising & promotions have the following key advantages:

  • It drives traffic
    on the main website through several referral
    channels
    & through display ads
  • It helps in building & maintaining Brand Equity
  • It helps in reputation
    building & management
    for the brand
  • Helps people interact with the brand by talking
    about
    the brand
  • Attracts,
    brand followers, evangelists & influencers
    who further help the brand
    in building its credibility as well
    as provide a platform to the existing & potential customers to spread
    positive word-of-mouth interactions

Social Media KPIs

While the KPIs for every marketer
can vary as per there business requirements & objectives, there are some
universal KPIs which need to be tracked on all the social media channels. The
main aim of the marketers is to increase their impressions through several
social channels.

Thus, it is essential that the
marketers integrate their social channel data & web analytics data to
deduce which social media channels bring the highest number of referral traffic
& how that traffic converts on the website. Identifying the percentage of
social media traffic that converts into sales is important for optimizing
conversion rates.

Furthermore, identifying
loopholes in the social media strategies with the help of measuring the metrics
such as bounce rates through the social channels, in turn, helps in improving
the social media promotional & advertising campaigns.

Following are some of the Social
KPIs that can be used by the marketers to measure the efforts of their social
marketing campaigns:

  1. Likes
  2. Engagement
  3. Number of Followers & the growth in
    their number over a period of time
  4. Traffic Conversion Rate (Visit &
    Visitors Conversion Rate)
  5. Social Interactions
  6. Social Sentiment Analysis
  7. Social Visitor Goals
  8. Social Shares
  9. Website
    traffic through social referral channels
  10. Conversion
    Rate of Social Visitors

Above are the must-have metrics for any social media
dashboard that help in calculating the Social Media Return on Investment (ROI)
or simply the Social Media ROI.

According to Social Media Examiner, "Social ROI is defined as a
measure of the efficiency of a social media marketing campaign."  Social Media ROI is monetary proof of whether
or not social marketing efforts are working.

Social Media ROI = (Social Media Return – Social Media Investment) /
(Social Media Investment) %

Investment is calculated by adding total labor cost (Time)
associated with social media tools, the monthly or weekly cost of using these
products or services & the advertising budget.

The KPIs to track the Social Media ROI are as under:

  • Lifetime
    Value
  • Average
    Sale & the
  • Pay per
    Click (PPC)

Tools to measure
Social Media Metrics

1. PostRank:

This is a great tool to measure the performance of content
with RSS feed. The platform now, however, has been purchased by Google &
cannot track Facebook data.

2. Bit.ly:

This platform provides accurate analytics for those seeking
accurate analytics about the pages they share. It is an excellent platform for
tracking Click-Through-Rates (CTRs) on content from any device or medium.
Besides serving as a tool for link shortening, Bit.ly also may help in
measuring Twitter ROI by tracking the success of links placed on Twitter.

3. Redian6:

This is arguably one of the best social media monitoring
tools with impressive social tracking, sentiment analysis & reporting
capabilities. (Services are ideally suited for enterprises & large
budgets).

4. BackType:

This marketing intelligence platform helps brands &
agencies understand the business impact of social media. It was acquired by
Twitter on Jul 5, 2011, & powers social features for companies including
The New York Times, SlideShare, Automattic & more.

5. Social Mention:

This platform enables social updates like “Google Alerts”
from social media platforms, Twitter in particular.

6. Raven Tools:

This offers help with both search & social tracking
functionality.

7. Conversion:

This social & web monitoring tool offers sentiment
analysis reports reviewed by humans.

8. Pagelever:

This tool has been designed to track Facebook interactions
& pages & provides a more in-depth analysis than native insights
functionality.

9. TwitterCounter:

This tool allows monitoring Twitter accounts over time & even provides analysis of “mentions” & “re-tweets”.

10. FollowerWonk:

This is more of a social discovery tool & allows the
analysis of the overlapping number of followers, with regard to the competitors.

11. Social Bakers:

This tool facilitates monitoring Facebook & Twitter
& unique Facebook sources like Places & Apps

12. Crowdbooster:

This tool helps in improving social reach by focusing on
providing tips such as perfect timings for posts & suggesting users for
engagement.

13. Awe.sm:

This tool helps in link & content tracking & also
has a very pretty interface.

14. TwentyFeet:

This tool has an aggregation of metrics & a data stream
from Facebook, Twitter & YouTube

15. SimplyMeasured:

This platform facilitates reporting through excel exports
& allows reporting through excel dashboards that look like cool streams of
data.

16. Most Shared Posts:

This plugin from Wordpress allows the Wordpress users to
see the most shared posts on Google+, Facebook & Twitter.

Important KPIs
for several Social Media Platforms

Analyzing each of the social media platforms, the ad &
content format at display there & aligning the metrics with the marketing
objectives of a company helps the social media marketers & managers to
achieve the bottom-line goal of increasing their revenue & therefore is an
indispensable part of Social Media Optimization (SMO).

Measuring & analyzing the efforts of social media
marketing by defining Social KPIs & metrics not only helps in improving the
ad campaigns but also helps in selectively investing only in the posts that
have the greatest potential to drive results.

Facebook KPIs

For 67% of marketers, Facebook is the most important social platform
for advertising & 70% of the marketers agree that they use Facebook to
acquire new customers (Source: 99firms.com). In fact, 93% of social media
advertisers use Facebook ads (Source: 99firms.com). 

Undoubtedly, Facebook has been a Launchpad for the promotion of
products & services. The platform claims to have a $20 average social media
ROI per user (Source: socialbakers.com) which is pretty healthy.

A Facebook key performance indicator carefully accesses
& measures specific details of Facebook Fan Page, a specific campaign or a
shared piece of content.

Unlike a Facebook metric, a Facebook KPI is well aligned
with the overall business objectives of an organization such as something that
ultimately drives revenue. The key difference between a metric & a KPI is
that all KPIs are metrics, every measurable marketing endeavor on social media
(whether or not it is directly aligned with the core business objectives of an
organization) is a metric & thus, not all metrics are KPIs.

Brian Peters, Strategic
Partnerships Manager for Buffer,
 stated
the importance of measuring Facebook KPIs as follows:

“Over the years, we’ve learned that the
best way to reach our audiences on Facebook is to study the data, experiment constantly,
be open to learning, and take a growth mindset.”

Following are some of the most
important Facebook KPIs:

1. The number of Relevant Fans:

Tracking the number of relevant fans that are actually
aligned with your marketing objectives & which in future can generate sales
conversions for a company, is extremely important. Furthermore, a Facebook
dashboard can display whether the number of audiences on the business page is
from particular demography.

The
content strategy can be framed according to the demographic preference of the
audiences
. Tracking the increase or decrease in the number of relevant fans
on the Facebook page over a period of time & aligning it with the internal
& external factors may help figure out factors that lead to increase or
decrease in the number of audiences & accordingly a more impactful content
strategy can be framed.

2. Follower Demographics:

Getting to know from where the audiences on the website are
coming from helps to understand the preference of the audiences in terms of
language. Further refining the demographic data by applying filters of gender,
technographic & firmographic helps the marketers deliver hyper-personalized
content to their audiences.

Marketers should remember that audiences are looking for
answers to their problem areas & aren’t interested in pieces of information
that a company thinks is important for them to know.

Giving information in the form of a personalized content
(story), which aligns with the “fit-data” of the audiences, after
psycho-analyzing them on the basis of their research habits, is an impactful
way for advertisers to improve their Return on Investment (ROI).

Modifications can also be made in the tone of a piece of
content to appeal to a wider group of audiences, based on their gender.

3. Page Views through several Referral Channels:

Tracking the webpages or websites that lead to the highest
number of audiences on a business' fan page is an impactful strategy to know
your audiences & further personalizing their experiences by segmenting them
into several groups.

Referral traffic from diverse social media channels on the
homepage of a business website can be tracked & it can be derived which
social media channel is the highest contributor to the referral traffic. When
applying the same strategy on Facebook, the marketers can fragment Facebook
traffic data to deduce what percentage of it is being contributed by different
websites & which of them fetch the highest percentage of traffic.

The percentage of traffic from the websites' home-page’ to
Facebook can also be tracked.

4. Conversions on Page:

One of the most important Facebook KPIs is measuring the
percentage of visitors who are performing a desired action on the website. This
metric shows what percentage of the audiences have clicked on the Hours &
Directions Page of the website, have clicked on the phone number or enquire via
an email button or have clicked any other Call-To-Action (CTA) button present
on the page.

Conversion metrics are directly aligned with the Return on
Investment for any organization & analyzing the percentage of visits or
visitors that generate conversions on the website very important.

Furthermore, the factors aligned with micro-conversions on
the site may also be tracked to further optimize the conversions through
Facebook.  Analyzing what percentage of
users engage & generate conversions on the website through local, national
& international channels helps in targeting & re-targeting the
audiences based on their demographic radii.

5. Audience Reach on the basis of Post Type:

Analyzing which types of posts perform the best for the
audiences can help in personalizing the content type as per the preference of
the audiences.

A study by BuzzSumo shows that Videos get at least 59% more engagement
than other post types & they have outperformed photos (favorite amongst
marketers) by 73%.

It’s so because people resonate more with stories than they
do with other forms of content.

However, depending on the audience base that a company has,
the most engaging content can vary from videos to links to statuses, to even
photos.

Analyzing the preferred content type helps in Conversion
Rate Optimization (CRO) by engaging the audiences better. When talking about
the content, marketers should remember that if engagement is the goal, it's
about quality & not quantity.

6. Engagement Rate per Post:

Tracking the average engagement rate is important for two
reasons, first, it helps in deciding about the preferable form of content for
your buyer persona viz. links, photos, statuses or videos & second it also
helps in quantifying the quality & relevance of the marketers' posts for
the audiences.

The KPI actually helps explore what percentage of the total
audiences who view a particular post actually prefer to like, comment or share
it.

Thus the Average Engagement Rate KPI can further act as a
signaling pathway for the marketers to modify their strategies to resonate with
the interests of the buyer persona.

7. Click-Through-Rate (CTR):

The Click-Through-Rate (CTR) is the total number of clicks
on the posts divided by the total impressions & the fraction multiplied by
100. This is one of the most important KPIs of Facebook as it gives the total
number of people who click on the links being displayed in the posts or the who
click on the promotional ads on Facebook.

Defining a standard CTR is tough as it varies for several
industries. Also, Organic posts generate greater Click-Through-Rate than the
paid ones.

So, while an organic news feed can pretty easily generate a CTR of
up-to 5%, for paid Ad campaigns an ROI between 1.5-2.0% is healthy (Source:
Hootsuite.com)

A healthy CTR is imperative to affirm the success of any
Facebook Campaign.  If the CTR starts to
drop marketers should start analyzing the reasons to make it work. Keeping
abreast with industry standards always helps. Benchmarking the industry
standards and researching about what a specific buyer persona prefers to
click-through is a useful practice to maintain a healthy CTR by sticking to the
type of content that the prospects prefer.

8. Impressions Generated through Ads & their Frequency distribution:

Impressions are a measure of how many times the ads were
served; the reach of ads is the number of times the ads were served to a unique
set of people. The frequency distribution of an ad is the total number of
impressions generated divided by the total reach of the ad.

In general, a higher frequency distribution per prospect is
aligned with lesser chances of the prospect generating conversions & is
also aligned with a lower CTR.

A post must be monitored to ensure that the same ad isn’t
served multiple times to a prospect.

9. CPM & CTR for Ads:

Deciding about the cost of social media campaigns is never
easy. It takes split testing & much experimentation & analysis before
the marketers can make out which campaigns are working for them & which
ones they should stick to in order to increase their revenue.

Cost per thousand (CPM) & Click-Through-Rate are the
two KPIs that help decide whether running a social media campaign is worth the
investment being made.

When talking about the cost of the ad campaigns, the
metrics which the marketers use to measure the success of their ad campaigns
matters a lot.

Often the marketers on social media prefer to pay for
impressions.  When paying for
impressions, the marketers prefer to have higher CTR & the CPM as this will
lessen the cost involved in generating a click.

A precognitive & highly targeted ad campaign is aligned
with high CTR & higher CPM whereas a broad targeting is often associated with
lower CPM & lower CTR.

10. Cost per Conversion:

No matter how impactful the ad campaigns on Facebook are,
they should be cost-effective for generating positive ROI.  A lower cost-per-click (CPC) may not
essentially fetch a healthy conversion on the website, depending upon the
quality of ad placement.

So, in the end, it's pointless if a lower CPC ends up
producing higher costs for traffic conversion.
Social media campaigns, therefore, need to be properly analyzed and
better should be highly targeted to generate a lower cost per conversion.

Furthermore, different marketing companies have different
ways to track conversions. So, the most evolved practices not just monitor the
conversions on Facebook but essentially what actions the converted prospects take
afterward.

Analyzing each KPI on Facebook is important. The results
deduced or trending should further be integrated with the results of website
analytics to figure out ways to achieve the bottom-line goal of Conversion Rate
Optimization (CRO) as well as fix the loopholes in Facebook Ad &
promotional campaigns to strengthen the KPIs.

Conclusion

Defining & measuring social media KPIs is imperative
for marketers to survive fierce competition within the marketplace. The social
media metrics function differently on each social media platform through their
basic motive is to engage with the relevant buyer-persona, expand their reach
to appeal to a large chunk of audiences & generating traffic through
different referral channels, generating new leads & optimizing the
endeavors of several social campaigns & ultimately Conversion Rate
Optimization (CRO), by making larger number of sales conversions which might
start with micro-conversions on the social media platforms themselves.

In the first part of
the post we have explored about marketing tactics to measure Facebook KPIs.
Stay tuned for the following sections in which we will discuss tactics to
measure other social KPIs.

The social media KPIs being selected must also be most relevant
to the social platforms that the brands are active on & the platforms must
in-turn have enough evidence of relevant audience behavior.

Social KPIs should be defined & measured in a manner
that they resonate with the ROI of the brands & must in-turn help the
brands in optimizing it. While some basic practices can help the marketers get
started with, from the scratch, the clarity is gained only after some
experimentation with alternative strategies has been done & KPIs have been
A/B tested to figure out which ones are the most relevant for a particular
market niche.

Valasys Media is sponsoring the CMO & Future of Marketing Summit,
to be held at Grosvenor House, Dubai between 23/9/2019 to 25/9/2019.

Various stalwarts from diverse areas will share their
insights on topics such as omnichannel marketing, marketing automation &
cloud, account-based marketing & agile marketing.

Measuring the efforts of social media marketing &
social media marketing endeavors, in general, will be a hot topic of discussion
for the marketers as well as the industry-experts participating in the event.
The following discussions in the conference are dedicated to social media:

  1. MARKETING LEADERS EXCHANGE

Evolve: Revaluating your ROI strategy - Are you doing it right?
(On Day 1)

  • Getting the most out of social media and how
    to measure its success

(Session reserved for
Talkwalker on Day 2)

  • The
    customer - The real MVP: From instinct to insights (On Day 1)

  • TECH TALK

Multimedia content is no more a luxury but a necessity (On Day 2)

  • TECH TALK

LinkedIn and social media ABM for improving relationships and enhancing engagement and revenues

  • PANEL DISCUSSION

Stories, Live, TV, Quizzes, Augmented Reality and what not? How has social media evolved and what does it mean for your content? (On Day Two)

  • SOCIAL MEDIA

How Social media is impacting user behavior (On Day Two)

The businesspeople can refer to the link below to register their presence at the event:

https://www.iqpc.com/events-futureofmarketing

One can also call IQPC on +971 4 360 2800 or drop them an email at partnership@iqpc.ae if one
has any queries about the event. 

Valasys Media is a well-known name in the field of B2B marketing services & we provide a wide array of services such as lead generation, account-based marketing, lead nurturing, event promotion services, list building services & content syndication services to name a few.

Our services are custom made to help our clients with their core bottom-line endeavors such as sales revenue optimization, elevating the indexes of their customers' experiences (CX-Index) & improving their returns on marketing investment (ROMI).

For revamping your B2B
marketing endeavors towards an optimized Return on Investment (ROI) and for the furtherance of perennially healthy sales pipelines, feel free to get in touch with our team of experts.

While creating & running social media campaigns, marketers have all kinds of questions in mind, whether they are relevant, whether they will appeal to the buyer persona & whether they are worth the investments made.

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