If you're interested in taking advantage of social media, you will probably need to convince your boss that it's a sound financial investment. Here is a list of things you should keep in mind when calculating ROI on social media initiatives.
1. Exposure & Analyze
Here are some metrics you should be looking at when applying exposure to your ROI:
- New vs Returning visitors
- Page Views
Not all visitors are created equal. So measuring and analyzing how engaged they are is very important.
- Pages viewed- how many pages did they visit during their visit.
- Assets viewed - what pages did they view? They they look at the whitepapers, videos, pictures?
- Time on site -how much time did they spend on the site.
- Participation - did they participate in a discussion. Did they leave a comment on your blog or posted in your forum?
- Sharing -did they use a sharing feature to tell friends or colleagues?
- Generated content -did they upload content or posted an article on your website?
- Registration -did they register for something?
- Enquiry -did they send you a question via email form?
- Transactions - did somebody complete the sales cycle and purchased something?
You have to determine how action equals intent, and how intent translates into revenue. For example:
- Visits - it shows brand engagement however you have to look at how long they stayed on the site.
- Registration - in the future will you be able to reach people who join the mailing list?
- Tell a friend - recommendations are the strongest sign of intent.
- Coupon downloads- Shows interest in a specific offer.
- Location clicks - Shows interest of finding your office or store.
- Define the metrics that indicate intent.
- Estimate conversion rate and the revenue each action will bring for both exiting and new customers.
- Use these rates and projected sales to predict revenue.
- Normalize by averaging expected value.
Once you have your ROI methodology you should build your business case.
- Economic impact
- Word of Mouth
- PR value
- Internal recognition and exposure
- Benefit to brand
- Ongoing value of user generated content (UGC)
Social Media Tracking Tools
Sprout Social - an affordable way to track your social media initiatives.