Now that companies are collectively spending hundreds of millions of dollars on social media marketing, advertising and earned media campaigns, more and more number crunchers are demanding marketers prove the value of all those "Likes", retweets and check-ins. Let's say a few of your clients are holding off on that social media spend until you can prove your ability to measure ROI across these popular platforms. From my perspective, challenging the efficiency of social media based on number crunching is wrongheaded, but marketers still need to demonstrate to the people controlling these budgets that there is a proper way to go about effectively measuring ROI. After participating in the OMMA Global Social Media track this week in New York City, I've gleaned a few insights from Facebook reps, Foursquare biz dev mangers and even Google engineers (among a myriad of marketing professionals anxious to share their opinions) on the best ways to measure returns on social marketing spend.
Translating Clients' Non-Monetary Goals Into Dollars"We are in a world where owned, earned and paid media is coming together more than ever before," Michael Lazerow, CEO of Buddy Media, said during an entertaining session titled 'Is Social Media ROI for Real, Or Is It a New Oxymoron?' "It's still very early but there is an ability to attach ROI to social media." In other words: The days of spray and pray are over when it comes to launching social media campaigns, and the best efforts not only engage a wide audience effectively, but provide measurable metrics for CFO's. While social media shouldn't be done only with the goal of making direct conversions, having a firm understanding of a client's bottom line before implementing any social media program is the first step in truly understanding this future ROI. First examine these basic business metrics:
- Online traffic
- Identify users that engage through social media.
- Assign the appropriate value to social media interactions.
- Determine if the social media user converted to a sale.
- Track goal conversions for your website in Google Analytics.
- Analyze only social media referral traffic in a customized segment.
- Measure the correlation between social media referral traffic and goal conversions.
Using Measurable Analytics to Improve Retention and Generate New ClientsAccording to a report released earlier this month from the Pew Internet & American Life Project, 28 percent of American adults use some form of location-based service, either on a mobile device or via a social network. That's a pretty hefty number of people checking-in and checking-out locations. So it's no wonder Foursquare Director of Business Development Eric Friedman told a packed OMMA session that "Foursquare its not just a fun play tool anymore." If you're running a digital marketing campaign consider adding mobile to the marketing mix by designing location-targeted messages. Perhaps more so than other other social media, Foursquare is demonstrating unequivocally that you can measure results in amazing, consumer focused ways. Fast Foursquare facts:
- Three million check-ins per day.
- One billion check-ins to date.
- More than 500,000 verified merchants.
- Available on all mobile devices and in 11 languages.
- RS gained 20,000 new followers by broadcasating out to social channels.
- Consumers following location-based messages bought 350% more than people coming in off the street.
- Tracked over 50,00 followers (end of last year).
- Traffic: Google Analytics,
- Leads: HubSpot
- Reach: Facebook Insights, Twitter Counter, HubSpot
- Buzz (Mentions): PostRank
- Customer Support: CRM, Salesforce.com