Posted at Oct 24, 2018 11:56:00 AM by thatagency | Share
You already know that your customers are spending an average of two hours a day on social media. You may also already know that social media advertising is one of the fastest growing and most important forms of advertising available today. What you may not know, though, is how to make sure your social advertising efforts are actually paying off for your company.
Your social media KPIs (key performance indicators) help you examine how well your campaign is performing throughout its lifecycle. It may also help you understand whether you need to change strategies.
There are lots of metrics to track when it comes to social media, so selecting the ones that truly work for you is essential. For most brands, you need to look at whether people are seeing or hearing about you, how often they're engaging with your company, how often that engagement transforms into a conversion, and the overall impact of your work on your customer base.
There are a few different ways to measure those indicators, but it all depends on your goals.
Are You Trying to Reach People?
For people in the awareness stage of the buyer’s journey, your brand positions itself as a solution to their problems and challenges. Reach is one of the most important social media KPIs here. Follower count is the most obvious metric. While you'll have plenty of followers who never interact with your brand, looking at that total number means you are connecting at some level.
Looking at your impressions can help too. Essentially, impressions show you how often your post is appearing in a given timeline. A single user can have many impressions. They might see your post on their own timeline, but they might see it six other times when friends online share it. At the heart of impressions, though, is the idea of how many people have the ability to connect with your brand, so you want that number to be fairly high.
Web traffic is another way to measure progress. If your traffic isn't up as a result of your latest campaign, you may have a bit of extra work to do.
Finally, look at share of voice. This helps you understand whether you're creating chatter - and whether you're doing that more frequently than others in your industry.
Are You Trying to Convert People?
When consumers go beyond awareness to the consideration and decision stages, it’s time to go beyond reach-related metrics.
Look at your sales revenue numbers. You want to make a profit, of course, and to do that, you have to figure out how many conversions came to you directly through social media. You will also want to consider your lead conversion rate. That tells you how many of your leads actually buy from you.
Your social media efforts should generate some social proof for your brand. Google Analytics can usually help you learn more about this number. Non-revenue conversions matter too. For example, having people sign up for your newsletter may mean a bigger email marketing list, which could lead to revenue down the road.
There are many other metrics you may want to consider if you have different goals like improving loyalty or improving customer engagement.
So, What's a Good Conversion Rate?
What really distinguishes a good conversion rate from a bad one? Naturally those numbers vary by industry, but generally a good conversion rate in the world of social media is somewhere between two and five percent. Rates may be higher or lower depending on how much value is attached to your offer.