DS Lesson 2 - Subsets, Supersets and Power Set.pdf
Social Media KPIs
1. Social Media KPIs
Basic framework for measuring performance
Coeus Solutions GmbH
Munich | Berlin
Email: sales@coeus-solutions.de
Web: www.coeus-solutions.de
2. Social Media Advertising
The CPC and CPM rates are rising. Our customers ask us the following
questions all the time:
1. How much should we spend on social media ad campaigns?
2. How should we track our ROI objectively?
3. What is the value of each “fan” or “like” on your Facebook page?
This document answers these questions to some extent.
Coeus Solutions GmbH
Munich | Berlin
Email: sales@coeus-solutions.de
Web: www.coeus-solutions.de
3. Social Media ROI Framework
number of fans = f
percentage of fans that click out on posts (per month) = t%
number of visits from fan page per month = n = 0.01tf
conversion rate from visitors = c%
per conversion value = €V
Revenue = R = € 0.01cnV
value of each fan per month = F = R/f
Note: ROI is not same for everyone. A publisher’s ROI would be different from a
multi-brand merchant which would be different from a well-known brand.
Coeus Solutions GmbH
Munich | Berlin
Email: sales@coeus-solutions.de
Web: www.coeus-solutions.de
4. Real world example: skincare.pk
1. Total Fans: 22.6k
2. Traffic per month: 3457
3. Unique visitors: 3236
- No activity on the page. So these are
bare-minimum visitors.
f=22653
t=15%
n=0.01*15*22652 = 3390
Assumptions if we were to calculate “ecommerce value of
these fans”:
c = 0.5%
V = €20 (beauty products)
R = 0.01cnV = 0.01*0.5*3390*20 = €339
Value of each fan per month = F = €0.01
Coeus Solutions GmbH
Munich | Berlin
Email: sales@coeus-solutions.de
Web: www.coeus-solutions.de
5. Other reports on “fan value”
1. Fans spend an additional $71.84 on products for which they are fans.
2. Fans are 28% more likely than non-fans to continue using the brand.
3. Fans are 41% more likely than non-fans to recommend a product.
Source: http://bit.ly/jXNpmT
In our view, this report covers only known brands and so is not applicable to all “fan
pages”. Furthermore, users become fan for different reasons - e.g. skincare.pk fans are
there for tips and exchanging ideas.
Coeus Solutions GmbH
Munich | Berlin
Email: sales@coeus-solutions.de
Web: www.coeus-solutions.de
6. Increasing value of each “fan”
1. Increase click thru rate of fans (t): post frequently and things that make users
click out. Increase engagement. Measure effectiveness of posts.
2. Measure and increase conversion rates on the landing pages. This will be done
over time, as Facebook traffic is in a different “buying funnel” than the traffic from
search engines.
3. Measure viral coefficient of fans (if possible) i.e. how many fans actively
recommend and “recruit” more fans.
Coeus Solutions GmbH
Munich | Berlin
Email: sales@coeus-solutions.de
Web: www.coeus-solutions.de
7. About Us
Coeus Solutions GmbH is based in Munich, Berlin and Lahore.
Developing eCommerce and Internet applications on web, social and mobile
at very competitive prices.
Provide consulting services for planning, conceptualizing and implementing
social media, eCommerce and mobile strategies.
Coeus Solutions GmbH
Munich | Berlin
Email: sales@coeus-solutions.de
Web: www.coeus-solutions.de