Posted by Robbyn Brooks
It’s important to monitor social media ROI
We’ve explored the importance of using social media on this blog. We’ve talked about how companies should respond to crisis and when. We’ve talked about being present where consumers are. We’ve talked about monitoring the brand’s page to make sure to curb negative comments in a timely fashion. But, there is another aspect of social media that companies and strategic communications professionals must pay attention to – monitoring the success of social media use.
Taking stock of social media return on investment (ROI) is a good way to decide what efforts work and what efforts should be kicked to the curb. “Half the money I spend on advertising is wasted; the trouble is I don’t know which half,” said department store mogul John Wanamaker. Wanamaker died in 1922, so the concept of tracking ROI isn’t a new one.
In order to successfully measure ROI, companies should not only focus on how many followers and likes they receive, but also the impact that social media conversations and efforts have on overall sales and product image. That certainly means taking a step back and looking at the big picture when it’s so easy to see immediate gratification through clicks and views. The thought is to not solely rely on clicks and views, but to try and quantify what those mean in terms of increased sales.
The CMO Survey took a look at metrics that companies use to measure the impact of social media efforts. They asked companies to share numbers in August 2010 and February 2013 to watch the change in results. Some of the categories were hits/visits/page views, number of followers or friends, sales levels and online product ratings. The results showed that while there was a 14 percent drop in website views, there was a 27 percent increase in the number of followers or friends as reported by the participating companies. An odd category, abandoned shopping carts, leads survey readers to believe that an increase in web mentions and social media followers trended 26 percent fewer shopping carts left abandoned in stores.
A May 2013 Forbes article analyzed the survey results and reported that social media impact has “first-order effects” when it comes to non-purchase behaviors. That includes people talking about companies and brands. That talk generates exposure, shapes attitudes and eventually leads to increased (or decreased) purchases.
We know that consumer talk about brands is a great way to boost brand loyalty and positive feelings about companies. However, strategic communicators and marketing professionals can’t simply stop at tracking how many mentions a company has on Twitter. That number means little to nothing if a company can’t tell what the sentiment behind the numbers is. Is the conversation positive or negative? Companies such as Viral Heat, Twendz, Tweet Feel, and Sentiment Metrics all provide sentiment analytics for Twitter mentions. The old addage “any publicity is good” doesn’t ring true for brands. All it takes is one negative comment on Twitter to be retweeted to friends and by celebrities to send a company in a downward brand spiral.
While companies might not understand the intangibles behind social media marketing, tangibles can be measured that prove the technique can be successful or detrimental. Social Media Today suggests that results achieved by social media come from some intangibles created by social media efforts, including:
- A positive or negative emotional reaction from brand communications.
- The acknowledgement of being heard.
- The feeling of not being just a dollar sign to a brand, rather than a valuable person.
- The feeling that the brand is trustworthy, transparent and open to dialogue from consumers.
- The sense of recognition for contributing to the value of a brand.
- The ability to influence others who share similar sentiments about anything, everything and anyone.
- The connectivity people feel from human, rather than institutional, communications.
BFG Communications content manager Hal Thomas spoke to a portion of the DMA2011 conference and said, although social media ROI may be “fuzzy,” there are things companies can keep in mind to help measure social media success.
- Social media is the vehicle, not the destination, according to Thomas. He further explained that marketing professionals mistakenly think that having a media presence on Twitter or Facebook is “the destination,” when it is really a communications tool that carries a company to a larger goal – profit.
- Listen and apply what you learn. Thomas said the number of likes and comments generated on social media sites is great, but what do they mean. Take time to see what posts and thoughts receive the most interaction on social media sites. If more consumers comment on one product over another, it could be a way to notice how consumer preference is trending. That offers companies a direction point when it comes to how they might invest dollars in the future.
- Understand how social media is used in an organization. Thomas notes that different departments within a group measure success in different ways and social media metrics will mean different things to different departments. Each measure of success should be based on a department’s specific goals.
Trying to measure the success of social media efforts isn’t for the impatient. Brands must be built on social media networks over time and kept up with constant updates and interactive features that enable a consumer’s voice to be heard. It is only when working ahead for a positive brand image that companies can be prepared to battle the negative that could arise – as a result of anything from a poor customer service experience to a product recall. Over time, companies should be able to track the effects of their social media interaction through a boost in sales, a shift in brand image and an increase in overal popularity.
Are their any brands you believe are monitoring the ROI of social media? For me, just based on the efforts exerted by the social media team and perceived popularity, I believe Starbucks is. They have a reputation for customer service and that extends to their efforts on Facebook, Twitter, Pinterest and Google+. And the company listens. Did you know the stirrer/stopper you get at Starbucks was actually the creation and suggestion of a loyal customer? Can you think of any other companies who use social media to their benefit?