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How to Prove Your Social Media Works

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How to Prove Your Social Media Works HOW TO PROVE YOUR SOCIAL MEDIA WORKS Ariana Torres, PhD Marketing Specialist Purdue University Agenda § Is your business getting anything out of its social media engagement? § Some key words in social media ROI § Measuring your social media ROI 1. Define why you want to do social media for your business 2. Set measurable goals 3. Track goals 4. Track social media expenses (per campaign) 5. Calculate campaign-specific ROI § How to improve your ROI § An argument for using both organic and paid social media Is your business getting anything out of its social media engagement? § Measuring return on investment (ROI) is the number one challenge of social marketers § What does ROI really mean? It is brand awareness, number of followers, engagement rate, customer satisfaction, lead to conversion, or… § Not everything you do in social media has an immediate effect into $ § Yet, it is important to track impact of time and resources that go into your social media efforts § Your social media goals will determine what you will measure à metrics • Every campaign needs a goal, and every goal needs a metric § Metrics will prove if your campaign is being successful, if you have to change or pivot something § Each social media platform has its analytics • Facebook à Insights • Twitter à Twitter analytics • Instagram à Insights Some key words § Engagement: likes, shares, followers, comments § Reach: how many people have viewed your content § Impressions: how many times your posts show up in a feeds/timeline and may connect to your audience § Conversions: lead conversion rate is how many people “buy” something § Social proofing: people copy others behavior, i.e. if a friend buys this, it must be good MEASURING YOUR SOCIAL MEDIA ROI 1. Define why you want to do social media for your business § Raising brand awareness • There is more to social than just pushing products or services • Customer service (massive ROI) • Community building § Promoting good and services 2. Set measurable goals § You need to keep a close eye on your goals and your metrics § Main goals § Secondary goals: • Email list sign-ups • Shares • Fill contact form • Followers • Trials • Traffic • View video • Likes • Spend time on website • Sign up for newsletter • Online purchases • Downloads Make goals/metrics campaign-specific § Set up social media campaigns to individual links to accurately track metrics • Use the bio on Instagram to share the link of your campaign • Examples are: Bitly, Curalate, and Google’s URL builder 3. Track goals § Check how/if your visitors are taking action § An example with Google Analytics • Acquisition > Social > Conversions Google Analytics • What channels give you the most website traffic. • What content succeeds on multiple platforms. • Leads and conversions from your social media channels. Destination URL not indexed in Google Metrics 1. Brand awareness 10. Conversion rate Conversion Awareness 2. Audience growth metrics 11. Click-Through rate (CTR) metrics metrics 3. Post reach 12. Bounce rate 4. Potential reach 13. Cost-per-click (CPC) 5. Social share of voice (SSoV) 14. Cost per thousand impressions (CPM) Engagement 6. Applause rate 15. Social media conversion rate metrics 7. Average engagement rate 16. Conversation rate 8. Amplification rate 17. Customer testimonials 9. Virality rate 18. Customer satisfaction score (CSat) Customer metrics 19. Net promoter score (NPS) Audience growth rate is how quickly you gain followers counted !"# $"% &'(('%")* 1100 +'#,( ,-./"$0" +'#,( "$4,4"5"$# Avg engagement rate : likes, shares, comments 1 100 +'#,( &'(('%")* Facebook and Twitter have lower rates (<1%) compared to Instagram (>5%) 7",08 */$0" 9'*# %"$# (/:" Post reach= 1100 +'#,( &'(('%")* Use “When Fans are Online” tool on Facebook to determine optimal time to post Conversion rate: measures how valuable is the content you post and how !"#$%&'("#' compelling is for the audience /100 )"*+, -,(-.' Conversions = subscribe to newsletter, download, register, or buy. Click-through rate: how often people click on a call-to-action link on your post )"*+, -,(-.' and go to another source (website) /100 )"*+, (23&%''("#' Cost-per-click: the $ of each click in paid advertising, which is more relevant 45 '3%#5 that the total amount /100 )"*+, -,(-.' Customer testimonials: any review, assessment, comment, endorsement, or interview related to your brand. If your brand makes people happy, they will share it with others • Ask best customers to leave a review • Run a social media campaign that encourages people to create written, video, or online testimonials • Link your Google My Business review for to make leaving testimonials a seamless process Customer satisfaction score: how happy people are with your product by asking customers “How would you describe your overall satisfaction with this product?” and ask them to rate satisfaction from 1-10. You can also post a poll in your social media channels. 4. Track social media expenses (per campaign) § Time § Money invested on content • Outsourced to content creator • Professional copywriter • If it is yourself- then count as your time § Money invested on tools § Cost of paid advertising = cost-per-click 5. Calculate campaign-specific ROI Example If your average § Earnings is tricky because it can mean anything lifetime customer 1. Lifetime value X conversion rate value is $200, and • Lifetime value = you know than 1 in !"# $%&'( )*"*+,* -*) .%/-%&#+ 4 54657859 :;<58;=5 >< ?@5A@ 20 people who view !"# +,/0*) 12 ,3*)3 your video/post B1+"*)3&1+3 • Conversion rate = 4100 C1D%' .'&.E3 become customers, 2. Average sales per campaign then the value of getting a visitor is 5LAM;MN@ − 7>@8@ 4100 $10 or $200/20 HIJ = 7>@8@ Other ways to calculate earnings § Track conversions • Reach: the number of followers in each platform over a period of time • Traffic: the number of visitors to your website or another URL • Leads: the ratio of leads coming from each referring site to your website • Customers: number of social media-generated leads that become customers • Conversion rate: percentage of visitors by social media platform § Assign monetary value to each conversion • Using historical data: LTV (previous slide) • Guesstimating: How much are you willing to pay for 1,000 signups to your newsletter? How to improve your ROI § Which types of content are your top performers? § When are you getting the most engagement? § Use social media management tools to mine your data § Run test campaigns Use social media analytics tools § Hootsuite: every platform and easy reports § Buffer: similar to Hootsuite § Sprout social § UTM parameters: web traffic and conversions from social media § Brandwatch: track and analyze social networks, blogs, forums and review sites An argument for using both organic and paid social media § Recent Facebook algorithm limits the reach of organic posts, and most businesses are carrying both strategies § You need an organic strategy if you want to succeed with paid ads § Organic: promote without sales pitch spamming audience • Raising brand awareness § Sponsored: call-to-action sales-oriented posts So many brands are killing it with organic and paid campaigns § Customers nowadays expect to see social media presence • Brand awareness • Customer service • Offer products • Share information § Businesses that are using social media effectively are able to track and improve campaigns SHAREABLE INSPIRATION CALL-TO-ACTION When should you pay for a social media campaign? You will reach potential customers beyond the algorithms by putting your post front and center in their feed 1. When you target a specific demographic 2. When promoting a major project 3. Raising awareness beyond organic reach Source: Sproutsocial.com What makes a compelling CTA (call-to-action) § What actions would fit your company’s social media • Creating an account • Requesting a quote The button or • Entering a promotion link that kicks off • RSVP for an event the next step for • Registering for an event your audience • Request a trial • Purchase The CTA message § Strong action words • Sign up for your free trial • Download my guide • Get your free instant quote § Convey urgency – appeal to FOMO • Call us today! • Register before it fills up! § Keep trying CALL-TO-ACTION 10 additional examples of CTAs 1. Read the full article here 2. Don’t miss our lightning sale 3. Take the tour 4. Pre-order and receive a 10% discount 5. Download the full report 6. Get a quote 7. Start your free trial 8. Avoid these mistakes 9. Purchase our best sale of the year 10. See our new products/services THANK YOU Ariana Torres [email protected] @hortbizpurdue 1. Brand awareness is the attention your brand gets via @mentions, shares, links, and impressions over periods such as week, month, or quarter !"# $"% &'(('%")* 2. Audience growth rate is how quickly you gain followers counted 1100 +'#,( ,-./"$0" 5",06 */$0" 7'*# %"$# (/8" 3. Post reach= 1100 +'#,( &'(('%")* 4. Potential reach is 2-5% of theoretical reach à use social media analytics tool 9:;<=> ?@ ;=ABC?AD 1 @?EE?F=>D ?@ GHH?:AB BℎGB ;=ABC?A=J K?: = Lℎ=?>=BCHGE >=GHℎ 5. Social share of voice is how many people are mentioning your brand compared to competitors. use social media analytics tool • Mentions can be @hortbizpurdue or “hortbizpurdue” M'-) N"$#/'$*O0'N7"#/#') N"$#/'$* • x100 = SSoC percentage +'#,( N"$#/'$* Use “When Fans are Online” tool on Facebook to determine optimal time to post !"#$% $&&'"($% $)#*"+, 6. Applause rate: likes, favorites 0 100 !"#$% -"%%"./', !"#$% /+3$3/4/+# 7. Avg engagement rate : likes, shares, comments 0 100 !"#$% -"%%"./', • Facebook and Twitter have lower rates (<1%) compared to Instagram (>5%) !"#$% 5",# 67$'/, 8. Amplification rate: rate in which followers amplify your content 0 100 !"#$% -"%%"./', 894:/' "- ,7$'/, 9. Virality rate: the real impact of likes 0 100 894:/' "- *4&'/,,*"+, • Impressions are the number of times a post is displayed, no matter if it was clicked or not and it means that content was delivered to someone’s feed, but does not translate to engagement. 10. Conversion rate: measures how valuable is the content you post and how compelling is for the !"#$%&'("#' audience /100 )"*+, -,(-.' • Conversions = subscribe to newsletter, download, register, or buy.
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