1. Conversion Rates
Everyone talks about wanting to measure the volume of leads generated for bottom line ROI of social media efforts, but don’t forget to consider the value of the conversion rate! While you may not be seeing the volume yet, the propensity to convert may be looking you right in the face.
Be sure to have a mechanism in place to know when a lead comes from social media. Most businesses use the combination of a URL shortener and “cookie” history to attach a campaign to an incoming lead. Hootsuite has now integrated Google Analytics into their URL shortener for a more seamless transition for metrics in analytics. Some companies are still using proprietary shorteners and other companies are still trying to future out how to do it at all!
An important step in understanding where your lead comes from is to know the metrics for when someone clicks on your social media link and then converts. A reliable way to do this is to put a “cookie” on your machine with a campaign name for the social media channel that generated the click. Use your campaign reporting method to track the number of leads and conversations you generate.
This number may be fairly low in the beginning but by looking at your conversions divided by your leads, you can get your conversion rate for social media leads and compare this information to the amount of time and effort used. Compare this data against other marketing channels to see if it is higher or lower.
2. Customer Acquisition Costs
Everyone states how “cheap” social media is, but this may be somewhat of a fallacy. Even though social media is cheaper than many other traditional channels, be sure you are measuring the full campaign history as stated above and then assign a cost per conversion and compare this cost against your control group. Examples of how you can do this:
• When someone clicks on a link in one of your tweets and goes to your site and converts as a new customer.
*Example: the cost to generate the customer could be less than a standard customer who comes through your website through paid advertising.
• When someone clicks on a paid advertisement on Google and does not convert. Then later decides to clock on a link in one of your tweets and goes to your website and converts to a new customer.
*Example: The cost will be higher than the standard customer who comes through the paid advertising channel. However, even if slightly higher, the incremental cost of social media will most likely be less than trying to replace the unconverted lead with a new lead.
3. Control Group
Social media has a massive impact on you’re ability to convert leads if you are using the metrics. This makes it easier to justify your budget dollars to integrate social media into a sales process.
To add a control group, use the same metrics you use to run against a group that has never interacted with social media and compare the stats. Look for how social media companies in areas such as lead conversion rates, retention rates and costs. See example of CareOne below.
4. Marketing Campaign History
Review how your company reports on “cookies” related to a sale. Look at the big picture of the first cookie the prospect received and report on the originating campaign, along with the campaigns responded to in between and the converting campaign.
This will help you know and determine all the drivers to the sale and adjust your costs related to the sale to get closer to a true ROI as well as look for the right mix in reaching your target audience. Even if your sales process is not online, you should be sure your CRM system allows you to track your marketing efforts through the entire sales cycle and your team is appropriately trained to track the information.
5. Growth Rate
When building volume, be sure to measure the growth rate over a given amount of time. Review your metrics in place to show that the volume is growing at a healthy rate to prove that your efforts are generating an impact. In reality, it takes time to build a sustainable social media channel and it is important to set proper expectations for all your efforts.
6. Retention Rates
Just as important as the ability to convert a customer is the ability to keep a customer. Compare the fondness of new customers to staying customers with and without social media interaction. You will see that those participating in social media are more engaged and likely to retain as better long term customers.
To do this, keep all leads converted in (1) Conversion Rates above and track them over time. If there is an ongoing fee, measure how long the customer stays. If your company is focused more on one time sales, measure if the customer comes back and buys something else and how often this happens. Compare this data against the control group of those who did not interact with social media and determine if there are any improvements worth noting.
7. Cross-Selling
Determining if social media customers are more or less likely to purchase additional serviced is an important element of using social media. First, determine how much revenue per customer was generated using social media compared to non-social media customers. Then, determine how much revenue was generated from additional purchases and/or additional products for social media customers. After you compile this information, compare this to your control group and you will be able to determine if social media has an impact on up-selling or even cross-selling for your company.
8. Customer Saves
Many companies are using social media to help online customers and this often includes managing complaints and being reactive in a timely manner. Measure how many times a customer is saved from cancelling or returning your products or services. This may also help you develop a great internal quality assurance program through using social media channels.
DJ Heckes, CEO & Author EXHIB-IT!
Tradeshow Marketing Experts
www.exhib-it.com
Full BRAIN Marketing
www.fullbrainmarketing.com
Everyone talks about wanting to measure the volume of leads generated for bottom line ROI of social media efforts, but don’t forget to consider the value of the conversion rate! While you may not be seeing the volume yet, the propensity to convert may be looking you right in the face.
Be sure to have a mechanism in place to know when a lead comes from social media. Most businesses use the combination of a URL shortener and “cookie” history to attach a campaign to an incoming lead. Hootsuite has now integrated Google Analytics into their URL shortener for a more seamless transition for metrics in analytics. Some companies are still using proprietary shorteners and other companies are still trying to future out how to do it at all!
An important step in understanding where your lead comes from is to know the metrics for when someone clicks on your social media link and then converts. A reliable way to do this is to put a “cookie” on your machine with a campaign name for the social media channel that generated the click. Use your campaign reporting method to track the number of leads and conversations you generate.
This number may be fairly low in the beginning but by looking at your conversions divided by your leads, you can get your conversion rate for social media leads and compare this information to the amount of time and effort used. Compare this data against other marketing channels to see if it is higher or lower.
2. Customer Acquisition Costs
Everyone states how “cheap” social media is, but this may be somewhat of a fallacy. Even though social media is cheaper than many other traditional channels, be sure you are measuring the full campaign history as stated above and then assign a cost per conversion and compare this cost against your control group. Examples of how you can do this:
• When someone clicks on a link in one of your tweets and goes to your site and converts as a new customer.
*Example: the cost to generate the customer could be less than a standard customer who comes through your website through paid advertising.
• When someone clicks on a paid advertisement on Google and does not convert. Then later decides to clock on a link in one of your tweets and goes to your website and converts to a new customer.
*Example: The cost will be higher than the standard customer who comes through the paid advertising channel. However, even if slightly higher, the incremental cost of social media will most likely be less than trying to replace the unconverted lead with a new lead.
3. Control Group
Social media has a massive impact on you’re ability to convert leads if you are using the metrics. This makes it easier to justify your budget dollars to integrate social media into a sales process.
To add a control group, use the same metrics you use to run against a group that has never interacted with social media and compare the stats. Look for how social media companies in areas such as lead conversion rates, retention rates and costs. See example of CareOne below.
4. Marketing Campaign History
Review how your company reports on “cookies” related to a sale. Look at the big picture of the first cookie the prospect received and report on the originating campaign, along with the campaigns responded to in between and the converting campaign.
This will help you know and determine all the drivers to the sale and adjust your costs related to the sale to get closer to a true ROI as well as look for the right mix in reaching your target audience. Even if your sales process is not online, you should be sure your CRM system allows you to track your marketing efforts through the entire sales cycle and your team is appropriately trained to track the information.
5. Growth Rate
When building volume, be sure to measure the growth rate over a given amount of time. Review your metrics in place to show that the volume is growing at a healthy rate to prove that your efforts are generating an impact. In reality, it takes time to build a sustainable social media channel and it is important to set proper expectations for all your efforts.
6. Retention Rates
Just as important as the ability to convert a customer is the ability to keep a customer. Compare the fondness of new customers to staying customers with and without social media interaction. You will see that those participating in social media are more engaged and likely to retain as better long term customers.
To do this, keep all leads converted in (1) Conversion Rates above and track them over time. If there is an ongoing fee, measure how long the customer stays. If your company is focused more on one time sales, measure if the customer comes back and buys something else and how often this happens. Compare this data against the control group of those who did not interact with social media and determine if there are any improvements worth noting.
7. Cross-Selling
Determining if social media customers are more or less likely to purchase additional serviced is an important element of using social media. First, determine how much revenue per customer was generated using social media compared to non-social media customers. Then, determine how much revenue was generated from additional purchases and/or additional products for social media customers. After you compile this information, compare this to your control group and you will be able to determine if social media has an impact on up-selling or even cross-selling for your company.
8. Customer Saves
Many companies are using social media to help online customers and this often includes managing complaints and being reactive in a timely manner. Measure how many times a customer is saved from cancelling or returning your products or services. This may also help you develop a great internal quality assurance program through using social media channels.
DJ Heckes, CEO & Author EXHIB-IT!
Tradeshow Marketing Experts
www.exhib-it.com
Full BRAIN Marketing
www.fullbrainmarketing.com
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