In the previous posts, we demonstrated that, in order to use social media successfully, brands should make sure that they share good social media content and encourage all types of users to engage with this content. However, contrary to the common belief, using social media is not free. Brands must hire people to run the different platforms efficiently and invest in software and equipment (to make and edit videos for instance). This requires an important budget. Consequently, digital marketers must prove to top managers that using these platforms will create value for the company.
To do so, Avinash Kaushik identified the four best metrics marketers can use to prove the benefits of investing in social media.
- Conversation Rate
This first metric measures the number of comments or replies from the audience per post. It helps businesses assess their success in engaging in conversation with their customers. If social media users participate to the discussion online, it indicates that the brand successfully delivered additional value to them.
Users who comment or reply to brands’ posts on social media tend to have strong relationships with these brands, which can lead to brand loyalty. As a result, brands should aim to increase their conversation rate and track this metric.
- Amplification Rate
The amplification rate reflects the number of shares per post on social media platforms. Similarly to the conversation rate, this metric evaluates customer engagement. In addition, it also indicates the word of mouth created by social media users.
Indeed, when users retweet, share or repost content from brands, they are not only engaging with them but also introducing them to other users who may not know about these brands. As a result, brands gain exposure to new potential customers and enhance their brand awareness.
- Applause Rate
This metric looks at the number of likes per post. The information communicated through this metric is very useful for brands. It enables them to understand the type of content their followers / friends enjoy. Once they have established the kind of content users want to see on social media, they can make sure that their future posts will resonate with their followers and promote active engagement.
Facebook “Reactions” gives even more information about how social media users react to the content posted on the platform. Brands can know the type of content that users like, love or laugh at. In addition, clicking on a “reaction” rather than a “like” tends to show a higher involvement from the users.
These three metrics are applicable to all social media platforms and many media tools, such as True Social Metrics, are available to calculate them.
- Economic Value
The first three metrics help marketers demonstrate to top managers the benefits of social media by proving its impact on customer engagement, eWOM and brand awareness. But to truly convince a CEO to invest in social media, marketers should quantify the economic value it creates for the business.
The last metric, the economic value, is the sum of the short term and long term revenue and cost savings. If it seems much more complicated to calculate than the previous metrics, marketers can use Google Analytics, Omniture or even Webtrends to measure the economic value.
Thanks to these four metrics, brands can appraise their performance on social media platforms. Moreover, as they can quantify the impact of using social media on brand awareness, eWOM, customer engagement and even the economic value of the business, they can convince top managers to allocate part of the annual budget to digital marketing.
Do you agree with the list above? Do you know any other metric(s) that you would add to the list? Let me know in the comment section below!