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How to measure the effect ofSocial Media Marketing on your business? @mertanen #socialfest2012
Simple formula Sales? Growth of sales? Margin? Customer life time value? Other? Gain from investment – cost of investmentROI = Cost of investment Cost of work? + Cost of media? + Cost of agency? + Cost of tools?
What is the ROI of your relationships? Source: http://www.flickr.com/photos/xavivix/5917616223/
Measuring framework1. Purpose. What are we trying to achieve? Different point of views. Product / service development Processes (delivery, marketing etc.) People (customers, partners, personel, recruiting) Promotion = sales Pricing
Measuring framework2. Goals We are creating more development ideas and new innovations We are improving our delivery and marketing processes We are activating people, including our customers, partners and staff We are growing our sales in different sales channels We are trying to improve our profit by testing different kind of pricing
Measuring framework3. Key performance indicators about product, processes & people Number of new development ideas and innovations (by channel, e.g. Facebook) Number of feedback regarding to our current products / services Quality and the tone of voice from customers Task completion rate (by channel) Number of recommendations (yes, likes too) Number of product / service evaluations Number of complaints regarding to our delivery process Number of posts (by channel, by content type) Number of fans, followers, subscribers (by channel) Number of people involved
Measuring framework3. Key performance indicators about pricing & promotion Number of promotions (by channel, by content type) Number of reach: visits, fans, followers, subscribers etc. (by channel) Engagement (bounce rate, number of shares, retweets etc.) Number of pricing tests (by channel) Sales, growth of sales, sales margin (by channel) Return on investment Return on ad spent
So what test?Source: http://www.kaushik.net/avinash/kill-useless-web-metrics-apply-so-what-test/