Social media is a game-changer for how business is conducted online by leveling the playing field for small to medium-sized businesses. Today, it’s easier for small companies to compete with large corporations. We no longer live in the days where the “big guys” have a competitive edge over the “little guys” simply because they can afford expensive advertising campaigns.
Social media has opened the door to a new marketing model. It provides a viable alternative to traditional media outlets, such as TV, radio and print. This shift allows firms with small advertising budgets to attract, convert and retain customers. Although this is an exciting time, the change in online commerce also brings with it a set of unique challenges.
Social Media Marketing Today
There are dozens of social media platforms at your disposal ranging from Facebook and Twitter to Instagram and YouTube. Each platform has its strengths and weaknesses as well as its own learning curve. Navigating this digital territory can be overwhelming. You need the right knowledge and information in order to get to where you’re going. Social media marketing is full of promise and pitfalls. You don’t want to throw everything at the wall to see what sticks. Instead, you need reliable data to make informed decisions – and that’s where key performance indicators come into play.
Why KPIs Matter
Like anything you invest in as a business owner, you want a healthy rate of return. So, how do you know whether your social media campaigns are working? How do you know if your customers prefer short videos over long text? How do you know if you should spend more time using social media to resolve customer service issues? How do you know which platforms give you the biggest bang for your buck?
These are the kinds of questions that must be answered. The best way to answer these questions is to focus on KPIs. These metrics provide the hardcore data you need for creating, running and maintaining an effective social media presence. To accomplish your business goals, you must measure your campaigns. KPI metrics allow you to dive deep into your analytics to see what moves the needle for your company’s bottom line. So, which KPIs should you focus on? Keep reading to find out.
4 Major KPIs You Need to Measure
KPIs fall into four major categories. These include engagement, reach, conversion, and customer loyalty. Under each category, there are individual metrics you can evaluate to determine the effectiveness of your social media marketing efforts. Let’s take a quick overview of these four main areas of each before diving into greater detail.
- Conversions – You’re in the business of making profits. That’s the bottom line. While you can have a massive following on Facebook, Instagram or Twitter, it means nothing if your fans aren’t buying your products or services. This KPI tracks the number of followers who become customers.
- Reach – Social media is a busy, noisy place. Getting your product or service noticed is a big challenge. When it comes to reach, the focus is on collecting data that shows how many people are discovering your company and whether you’re connecting with your target audience.
- Engagement – The heart and soul of social media is interaction, and that’s what this metric is about. It measures how much your followers respond to your updates. In this instance, the focus is on the number of comments, shares, and likes you receive.
- Customer (Brand) Loyalty – You can’t underestimate the importance of brand loyalty when it comes to social media. It’s the one thing that can really set your company apart from your competitors in the marketplace. When social media campaigns are done well, you can supersede one-off sales. Instead, you can establish a large base of loyal customers. With that said, this metric turns its attention to the way your customers feel and think about your company brand.
As you can see, using social media KPIs to track your online marketing campaigns is essential to your bottom line. The data you collect and evaluate provides you with the insights you need to take your company to greater heights of success.
Now, let’s dive deeper into more specific metrics within each category, so you can get a clear picture of how to leverage social media to your advantage.
Conversion KPIs
Is your social media converting? How many of your followers are becoming paying customers? Conversion metrics answer these questions. Use the KPIs mentioned below to measure your success in this area.
1. Direct sales
Your social media efforts require time and money. Like any business owner, you want a healthy return on your investment. After all, the end-game for using these platforms is to generate sales revenue. With that in mind, track direct sales that result from social media. The data collected helps you pinpoint how much every client is worth. It also assists you in planning future marketing efforts.
2. Indirect sales
Of course, every prospect who jumps off your social media platform onto your website doesn’t make an immediate purchase. In most cases, qualified leads end up in your lead-tracking system. This gives you the opportunity to nurture the relationship over time with the intent of turning prospects into buyers. Don’t ignore this metric. It gives you a breakdown of your lead conversion rate.
3. Leads
Are you trying to boost lead generation with your social media marketing campaign? If yes, check your number of leads. Look at how many people join your email list, download your eBook, sign up for a free course, or fill out your online questionnaire. The numbers demonstrate how well your social media efforts are panning out.
4. Sales Revenue
What business doesn’t want more sales? Make sure you track the direct relationship between your social media and your bottom line. The key here is to figure out the number of consumers who come to your site via social media. Additionally, try to calculate the value of every customer.
Reach KPIs
As we stated earlier, reach refers to how many people are discovering your brand. In other words, are you reaching your ideal buyer or target market? Well, the best way to tell is to track four major KPIs in this category.
1. Followers
Do you have hundreds, thousands or millions of followers on your social media platforms? High numbers show that your brand messaging is connecting with the right people. However, don’t rest on your laurels. Don’t sit back and kick your feet up just yet. While strong numbers in this area are good, it’s not good enough. Remember, these are real people, not just numbers. You must interact with them and keep them engaged.
2. Impressions
Impressions are a bit vague when compared to other metrics. Impressions refer to how many times your audience views posts that appear on their news feed or timeline. Although a high number of impressions is good overall, the numbers don’t always tell an accurate story. What makes this metric complicated is that one person can view one piece of content several times, which drives up the numbers. It’s still worth tracking because, for the most part, it shows your brand is connecting with your audience.
3. Influencers
Influencers are the movers and shakers in the social media world. These are the people who have a large following and a strong personal brand. The number of influencers you have who are willing to promote your company’s product or service is good for your business.
You gain immediate access to a new audience. You garner instant credibility in the eyes of prospects who can likely turn into customers. If you haven’t done so already, begin establishing relationships with influencers in your sector. Keep in mind, that these individuals are very selective about who they partner with. After all, they have a reputation to protect, so they only promote trustworthy, quality products or services.
4. Website Traffic
Your goal is to get your prospects off your social media and onto your website. Visiting your site signals they’re interested in hearing more about your company’s product or service. Of course, the more traffic you receive the better chance you have of converting these followers into paying customers.
Healthy numbers indicate that your social media marketing efforts are effective. Do you have high social reach and engagement, but low web traffic? Consider tweaking your call to action.
Engagement KPIs
Remember, engagement is what brings the “social” element into the digital media space. Are you connecting with your target audience? How well are you engaging with qualified prospects and buyers? To answer these and similar questions, take time to evaluate the metrics mentioned below.
1. Clicks
Is your audience interacting with your content? Well, monitoring clicks is the easiest way to answer that question. The link click takes people to your website landing page, blog, product page, or service page. Each click indicates that prospects have an interest in your content. This is good news because these are people who are most likely to become your buyers.
Keep in mind. You can’t always take clicks at face value. There is something called bounce rates you must also consider. A bounce rate refers to the percentage of visitors who came to your website who chose to leave without browsing. For instance, if you have a high bounce rate after people click through to your landing page, it means the content isn’t relevant. This poses a problem because you lose the chance to generate a new lead and to gain a new customer. So, if you have a high number of clicks and a high bounce rate, chances are you’re not delivering the right content to the right audience.
2. Likes
It’s part of human nature to want to follow the crowd. This is especially true in the online space. People tend to be drawn to what others consider popular, and that’s where your “likes” enter the picture. When your followers like your content, they’re giving you a sign of approval. It means your content struck a positive nerve with your audience. Generally, liked content attracts more likes.
What does this mean for your brand? It’s a form of social proof that helps establish you as a trusted authority. Additionally, it places your brand, product or service in a favorable light.
3. Shares
Likes are good, but the shares are even better. The reality is that your followers can like your content without actually consuming your content. However, shares are a next-level experience for your audience. They not only consume your content but also share information about your product or service with family, friends and others. This takes social proof to a new level because it indicates your consumers feel confident about recommending your brand. The number of shares is an indicator of just how loyal your consumers and prospects are.
4. Comments
Blues singer, Bonnie Raitt, said it best in one of her most popular songs: “Let’s give them something to talk about.” Are people talking about your brand? Specifically, are they interacting by leaving comments on your posts? If so, it means you’re making an impact and you’re on the right track. Social media is all about interacting and having conversations with your prospects and consumers. This nurtures brand loyalty and intensifies engagement.
Even negative or critical comments work in your favor. Just look at the less than favorable comments as feedback. This is more data you can use to improve your product, service or content. The only time you should be concerned is when you hear crickets after updating your social media accounts. This suggests your content is falling short. There are a few content characteristics that spark conversations. Comment-worthy posts are often:
- Relevant
- Interesting
- Informative
- Entertaining
Generally, the more comments you receive on a post suggests that readers found it highly relevant. When it comes to social media, content is king. Are you struggling to create content that your followers find irresistible? Consider working with a social media marketing agency to handle this aspect of your marketing efforts.
5. Mentions
What are people saying about your company? There are people mentioning your product or service who don’t follow your profile. In fact, roughly 96 percent of individuals don’t follow profiles of the brands they mention on social media.
Monitoring mentions gives you an opportunity to gather insights, address problems, and answer customer questions. Overall, tracking mentions helps you keep your company’s reputation intact.
Customer Loyalty KPIs
Social media is about building relationships with your prospects and customers. Customer loyalty metrics reveal how people feel about your company as well as what they think. Take a look at these social media KPIs to track how your brand impacts customers.
1. Issues Resolved
Increasingly, social media is a go-to option for consumers who have issues, complaints or questions regarding a company’s product or service. Here’s a stat that reveals the importance of online customer service: 78 percent of Twitter users who have a complaint about a company expect an answer within 60 minutes. How fast do you respond to and/or resolve your customers’ issues? Making this metric a priority adds value to your target market and helps you stand apart from your competitors.
2. Customer Lifetime Value
Loyal fans are more likely to become long-term customers. Develop connections with the right target audience and measure customer lifetime value as often as possible. This is a powerful KPI because it aligns with your overall business KPIs and provides feedback on how well your social strategies measure up.
Unleash the Power of Social Media Marketing
The heart and soul of social media is connecting with your target audience. The by-product is a boost in your profits. Accomplishing both goals boils down to monitoring key performance indicators. The data you collect empowers you to make informed decisions about your social media campaigns.
Are you ready to capitalize on your current social media efforts? Do you want to take your social media game to the next level? Contact V Digital Services now. We’re a full-service social media marketing agency that specializes in boosting brand awareness, attracting followers, generating leads and increasing sales for our clients.