Before we start let’s learn the definitions of 3 key words/concepts you will or already have come across in the world of Digital Marketing and social media marketing.
KPI’s (Key Performance Indicator)
A KPI is a measurable value that demonstrates how effectively a company is achieving key business objectives.
a detailed description of someone who represents your target audience. This is not a real customer, but a fictional person who embodies the characteristics of your best potential customers. You’ll give this customer persona a name, demographic details, interests, and behavioral traits.
Social Media platforms
There is plenty of social media platforms nowadays, Facebook, Instagram, Twitter, Pinterest and these days Clubhouse…
The list just goes on and on, finding the right platform for your niche is not an easy process and requires a lot of trial and error and testing, but we will discuss this in a future article!
SMART goals; Specific, Measurable, Attainable, Relevant, Time-based
So let’s talk about setting social media KPIs. Once you’ve created a buyer persona and mapped out some S-M-A-R-T goals, you can do a deeper dive and determine what key performance indicators, or KPIs, you should be targeting in your social media strategy.
Knowing what your KPIs are from the start will help you make crucial decisions on content, advertising, budget, and other resources you may need.The main thing to consider is how you can develop actionable goals instead of goals of merely reporting a high result on a vanity metric .
And what’s a vanity metric? Simply put, a vanity metric is a surface-level metric made up of numbers or statistics that seem great when viewed in a presentation but don’t correlate to business success. For example, follower count is probably one of the fluffiest of the various KPIs.
Having as many followers as possible may look impressive, but if they aren’t the right people following you —the ones who will buy your products and services —then that follower count is essentially only a vanity metric.
Having followers and likes on social media are great but the real key here is having the right size. For example, Pizza Hut is going to have a lot more followers than a local pizza chain, but that doesn’t tell you anything about a metric kind of beyond that awareness piece.
And so the key is to have the right number of followers and make sure that you’re giving them lots of ways to engage, lots of ways to create some user-generated content, lots of ways to share, and lots of ways to engage with the brand and make a purchase. To set the right KPIs, you need to go back to your business goals.
If your goal is to increase sales through social media then vanity metrics such as numbers of likes, shares, retweets, followers, and page views are not going to be the most important metrics for you to measure
But, if your goal is awareness, then those metrics may not just be vanity metrics. Followers, reach, and page views may be more important for you. Let’s break this down a bit further.
There are four categories of social media KPIs, and most of your targets should fall within those areas;
●Return on investment (ROI)
●Retention and Loyalty
These KPIs tend to be the most fluffy and they veer toward what many think are vanity metrics, but if your business goals are tied to company awareness and reaching as many qualified users as possible, then these may be the KPIs you want to measure; 1) Follower count: how many individuals follow your social channels.2) Impressions: how often your content is viewed. 3) Mentions: how many times your brand is mentioned across social channels. 4) Share of voice: how many people are talking about your brand vs. the competition.
These KPIs demonstrate how engaged your audience is and how they may be interacting with your content, which is usually a better indicator than reach when it comes to measuring the success of your campaigns. The following KPIs measure how people are taking action in relation to your brand;
1)Likes or favorites indicate that your viewers appreciate the content. This is a simple action and often one of the biggest vanity measures but useful to measure to determine if the content is of interest.
2) Comments indicate direct engagement with your content.
3) Sharing and retweets demonstrate that your audience cares enough about the content that they want to let others know. This also increases reach and awareness.
4) Customer ratings and reviews demonstrate strong engagement and opinion. They are also one of the biggest indicators to other people that a product or a service is worth buying.
5) Inbound website links from social media show that your content is interesting enough for your audience to click through to your site.
Measuring social media ROI
and garnering leads are goals that many sales people and executives will gravitate towards. While often harder to drive, these are the types of KPIs that can directly affect the business’s bottom line. This means that executives may be more open to listening to proposals from your social team when it comes to asking for additional budget or headcount to meet these business goals. Some of these KPIs include;
1) Direct sales revenue from social media, such as orders that come in from a coupon or links into your website that lead to purchase.
2) Lead conversions from social media campaigns.This may vary from company to company but could include email signups, downloads of materials like an e-book, or activation’s of trial software.
3) Support costs per customer. If your business goal is to reduce customer support call costs, for example, you may want to set KPIs for how many calls you can offset by helping them on your social media channels instead.
4) Lifetime value. This is the projected revenue a customer will generate in their lifetime. There are a variety of ways to calculate this number, and how you acquire the customer, in this case, through social media, especially acquisition plays and customer touch points will affect the lifetime value.
Retention and Loyalty
If your business goals are centered around customer service excellence or on retaining customers, then your social KPIs should be aligned to reflect this. Consider the following:
1) Customer reviews and ratings- these are a fantastic measure of how your customers think about your brand and products.
2) Issues resolved demonstrates how well you’re doing (or not doing) taking care of your customers through social media.
3) Another metric to consider in tandem is your SLA (service-level agreement). In the social space the SLA usually refers to how long time passes between when a customer reaches out and when there is a response. Note that a response doesn’t always mean the issue is resolved–that might be another KPI to consider.
4) Time to resolution: How long it takes for a question that comes in from social media to receive not just a reply, but a resolution.
5) Customer satisfaction -it’s often tracked with a net promoter score (NPS), this gives you a sense of whether or not your social customer service efforts are working.
6) Sentiment is a tricky metric to measure, but it’s important because sentiment tells you what people are thinking and feeling about your brand. Is it negative?
Perhaps your KPI should be set to shift that balance to positive. Lastly, make sure to revisit your social media KPIs on a six month to yearly basis. Not only does the world of social media change fast and constantly but your business changes too.
If your business goals change, then your KPIs probably need to be reworked as well. Now you have the foundation for developing KPIs that will help you prove the value of your social media efforts. Good Luck from the team at Colabz!