There is a near consensus that social mediamarketing is valuable because it allows companies to directly engage with their customers, build brand presence, and ultimately sell more products.
However, justifying the value of social has been a conundrum for brand marketers over the last 10 years. Even in the most straightforward cases of ecommerce, there’s still the attribution question. How much do you attribute to the relationship with the brand versus the last click?
What makes measuring social ROI so difficult is not a lack of data, but identifying which pieces of data matter.
The metrics for social media used to be all about likes and followers. That was the first step. Now social media enables core business objectives and provides so many different metrics and new data streams on customers and their behavior.
I wasn’t surprised to find that there are some really smart people already working to tackle this social ROI problem; in an attempt to get educated on the topic, here’s what I found.
Social media measurement shifting towards measuring conversations
The CMO Survey ran a study that asked CMOs to share the metrics that they were using to evaluate social media. You can see an interesting breakdown of the results below:
The different metrics range across the board from true financially based numbers, such as “profits per customer”, to social media specific actions like followers & friends. In addition, according to the study, ‘voice-based’ metrics such as net promoter scores and text analysis are quickly becoming strong indicators of success.
As Gary mentioned in his Inc 500 speech, word of mouth is a currency that affects your bottom line, and social media allows word of mouth to scale. Thus, it makes sense that companies want to measure conversations about their brand.
Read the full article here.