Can we quantify the benefits of Social Media?

Measurin SM

It is a fact that Social Media (SM) is among us, it arrived to  stay and  it is defining  the new course of communication with our customers…As a result of this, managers have started to ask their teams for marketing programs related to the Social Media arena….and then, what these managers are asking for is the  associated  benefit  of  these SM  strategies and  more specifically and in technical words “the associated ROI”…

So, this  is  the  reason  why I  decided  to  write  about  the  benefits  and  also  the ways of measuring  SM   strategies..….My  main  purpose:  to   provide  an  answer  to   these managers and  to engage them with this new way of communication.

Going into detail,  what  I  have  seen  is  that  there  is  not  a  set  of  established metrics to determine the effectiveness of your SM strategy, what is  clear is  that  you can gather a lot of information from  SM, the  question  here  is  what to do  with this….Now, the benefits of each strategy will depend on the objective that it was set at the moment of defining this.

What  it  is  really  important  to  understand, is  that  SM is a two-way communication with your customers, so the benefit of any  SM is  mainly related  to  the feedback received from the  customer  and   the  task  of  the  marketer  is  to  decode  this  feedback  into   relevant information from the  company  according  to  its  objectives, information that is going to be used as an element of improve in this brand-customer connection.

SM Metrics 2

In found two interesting articles which stated different views about how to measure the benefits of Social Media, so I found them worth to share:

The first one is titled “New Metrics for Social Media”, this article stated 9 possible benefits to measure which are:

Response Tracking: This is related to how many people saw your message, how many of them reacted to that and how was this reaction. So, this can be measure by the number of “likes”. The number of followers and the content sharing through the SM channel.

Audience Profile: Who is visiting you, this means, building a profile of the people who are connected with you through SM.

Monitoring: involves scanning blogs, public forums and discussion groups for mentions of the company, its products and competitors.

Content Analysis: Identification of topics and positive or negative attitudes of people.

Connections: Expose the relationships among individuals.

Traffic analysis: Focus on understanding the reason of the relationships above described.

Influence: level of impact you have on your connections.

Case Management:  if SM is used for “customer service”, so what it is important is to identify, track and interact with individuals over time

 The second is titled “Social Media and Business” and  establishes  that  the  best  Social Media Metrics are Conversation, Amplification,  Applause, Economic Value.

Conversation Rate: measured by the number of Audience Comments (or Replies) per Post. “High  conversation  rate  requires  a deeper understanding of who your audience is, what your brand  attributes  are, what  you  are  good  at, what value you can add to your followers and the ecosystem you participate in”

Amplification: “the rate at which your followers take your content and share it through their network”

Applause:  Indicating a better understanding about your customer.

On Twitter: Applause Rate = # of Favorite Clicks per Post

On Facebook: Applause Rate = # of Likes per Post

On Google Plus: Applause Rate = # of +1s per Post

On a Blog, YouTube: Applause Rate = # of +1s and Likes per Post (or video)

Economic Value: Sum of Short and Long Term Revenue and Cost Savings

Many Criteria, no?…

If you continue looking for more options about how to measure Social Media, you will find a lot!…but, do  not  feel  overwhelmed…In  the  way  I see this is like a Menu, we  have  many options available to measure the benefits of our SM strategy, but the best recommendation is “do not lose the focus of the objective of your Social Media Strategy, having clear this you will be able to decide what kind of information to gather from that menu and how to analyze it and use it.

 

 

 

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2 Responses to Can we quantify the benefits of Social Media?

  1. digital3000 says:

    Very interesting post. Thank you. One school of thought puts it all together this way: Instead of ROI it’s ROE: Return on Engagement.
    Thank you,
    Joe B

  2. heatherzocco says:

    In a recent meeting when the CEO of COCE at SNHU was speaking about new marketing positioning strategies, he referred to a trend he saw in blog posts about higher education. The information that the marketing researches see online is a reflection of SNHU in many ways. If we see a need in the market for a certain product or service, we are going to figure out what to do to cater to that need. This is the simple principle behind how an organization runs. With growing and advancing technologies, the way that this research is done has changed. However, the level of integrity remains high and other research is necessary.

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