Do not arbitrarily jump into the social marketing space without first setting measurable kpis (Key Performance Indicators). Define how you will measure success by selecting one primary and one secondary kpi. According to Jim Sterne in Social Media Metrics: Social media kpis are, by necessity, a little fuzzier. But even if you first have to work with a best of breed home recipe of mainly free, publicly available and often imperfect sources, it is definitely worth the effort in the long run. Sterne continues: You cant control the conversation but you can guide the conversation. You can influence the conversation. You can have an impact on the conversation. Thats the whole reason for tracking and measuring it. For your reference: Deloitte takes it up a notch by connecting social media efforts to known business KPIs like NPS, PR Value, ARPU, Media Reach/Impact, Media Spend, CPA and Churn.
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main KPIs for the Marketing. They are part of the Marketing Dashboard or Balanced Scorecard. Please see the following table.
Activity Corporate
Subject Revenue vs last year vs target Gross margin vs last year vs target Gross margin percentage Markup rate
Calculation
(Revenue-COGS) Revenue (1-[cost selling price]) x 100 Can be calculated considering the sales volume (unit market share) or the sales value (revenue market share) Total cost of marketing activities (advertising, trade fairs, PR, promotion, catalogs, product launch....) Number of new customers acquired Demographic analysis of new customers Revenue generated by segments of the customer population. Profitability by segments of customers
Market share
Existing customers
Product
Product life-cycle
% of new products % of new products revenue % of products end of life % sales due to product / services launched in previous period (e.g. the past year) Reduction in sales of existing products due to new products.
Average time-to-profitability for changes Time from the time a product change is envisioned to existing products / services or defined until it is profitable Average time-to-profitability for new products / services Time-to-market of changes to existing products / services Time from the time a new product is envisioned or defined until it is profitable Time from the time a product change is envisioned or defined until it is on store shelves
Time from the time a new product is envisioned or Time-to-market of new products / services defined until it is on store shelves Customer satisfaction with new products / services % of new customers from new products /
services Promotion Number of promotion per year vs target Sales increase during promotion vs target Cost of promotion ROI of promotion Number of advertising campaign per year vs target Sales increase during advertising campaign vs target Cost of advertising ROI of advertising Level of awareness of the product before and after Value of sales spend of campaign People who recognize the product total people gathered Number of people who bought products total number people who asked after advertising program Value of sales spend of promotion
Advertising
Number of people asked to buy products advertised after advertising program Sales of products advertised: be measured before and after the advertising program Place Merchandising
Shelf productivity
Sales number of meters of shelf space (% of sales + % gross margin) 2] * number of meter of shelf space % of sales % of used shelf space % of gross margin % of used shelf space Number of customer passing in front of the shelves number of customer coming inside the shop Number of customer buying inside the shelves area number of customer coming inside the shop Number of customer buying inside the shelves area number of customer passing in front of the shelves gross margin average inventory value (at cost of sales)
Optimal number of meter of shelf space Sales sensitivity index Gross margin sensitivity index
Purchase index
Attractivity index
Inventory profitability
E- Marketing
Number of website hits Number of new visitors Return of the old visitors Average number of page views per visitor Bounce Number of people that left web just after visiting New visitors total visitors
Public Relation PR
Awareness of the product through the public relations did Awareness of customers and the public image of the product and business Awareness of the enterprise through the public relations did
Inbound Marketing should be ideal for reaching out to your existing customers, reducing churn and expanding their lifetime value (LTV). Turning your lead nurturingcampaigns inward to reach out to existing customers presents a great opportunity to keep them engaged, inform them about new use-cases and products, and help them to get the best out of their installed base. This also represents a non-invasive way for your sales team to upsell and cross-sell. A simple calculator for LTV can be found here. For a more sophisticated approach, check out this article.
You should also break these metrics down by individual campaigns to compare tactics, content, timing, target segmentation and other more subtle factors. This data will allow your Senior Managers to judge the effectiveness of your marketing efforts and their impact on the bottom line.
#8 - Organic Searches
I'm going to break this category down into several business-related metrics. No, none of them involve Google page rank. That particular metric may be interesting, but it's very hard to translate into sales and marketing ROI.
# Lead Conversions assisted by organic search (an indication of relevance and well-tuned SEO strategy) # Customer Conversions assisted by organic search (an even more powerful indication of relevance and well-tuned SEO strategy)
Traffic associated with branded keywords (an indication of brand awareness) Traffic associated with unbranded keywords (an indication of content marketing effectiveness)
Here are some more important KPIs associated with organic search.
are things like impressions, clicks, site traffic, leads, revenue - all the things you look at now when you run banners or paid search or look at your site analytics. So let's explore some of these metrics and take a look at what it looks like to visualize this data. Data visualization and dashboarding graphics in this column are from Twitter, Facebook, YouTube, SocialEye, Radian6, and Bitly. Social Media Metrics Social connections. This is what most marketers dwell on when looking at social media. Basically it's looking at Facebook fans and Twitter followers. However, in the long run, unless you are a brand that has the budget and potential to eventually gain hundreds of thousands or even millions of fans, it may be your least valuable metric.
Social page views. This metric is just like page views to your site but instead it's how many page views you got on your Facebook page. In some cases I would consider page views on your branded Facebook page more valuable than some page views on your site. I mean, a random page view on an obscure internal site page is often worthless, right? The chart below actually plots out daily level fans and daily page views.
Video/SlideShare views. Now this one is obvious - it's how many views you got on your videos on YouTube or presentations on SlideShare. The chart below is plotting out daily levels of YouTube video views within a YouTube channel.
Engagement rate. This one is super important. The metric from the graphic below is basically the total of likes and comments divided by a total fan count. A good social media marketer needs to know when she posts something that creates reaction and engagement. It lets you take note of what you posted and, as importantly, when. Having a high engagement rate will help to build your EdgeRank! Also, take note as to whether the reaction was positive - clearly a lot of negative responses, while building your EdgeRank, are not good! (EdgeRank is the Facebook algorithm that personalizes your newsfeed and inserts posts it thinks you will be interested in based on your relationship with the poster. Want to know more about EdgeRank? Just Google it.)
Talking about this. This is like a buzz metric on Facebook. It reports on how many people are talking about you or your posts on their pages. For example, below is a snapshot from the Tabasco Facebook page - the "talking about this" number is boxed in red next to the fan count. Then the chart below that (not for Tabasco, by the way) is trending that number. It basically shows when you have things going on in the real, virtual, or social worlds that are sparking conversation on Facebook.
Facebook reach. This is a metric that Facebook generates that is based on your reach. The chart below is generated via tapping into the Facebook API and dividing it out by organic, viral, and paid. The key here is not to take it too literally. Like all online reach metrics, it is less about the accuracy of the numbers and more about scoring your previous performance. It is direction and allows you to ask, "Am I doing better than last week or last month and what did I do to improve or hurt my performance or reach?"
Retweet rates. This is a super cool metric that helps you gage the relevance and appeal of your tweets by tracking how many people retweet it.
Twitter impression reach. This metric is the cumulative individual tweets going into people's feeds based on all your tweets and retweets. Of course, this number does not represent all the people that saw your tweets - but it's the sum total of your tweets' possible impression and frequency. What's more, the Twitter API can show you who is retweeting your posts and their reach. (Also see below.)
So you can identify influencers who have a large base of followers and are likely to retweet you or post your content to their blog if they have one.
Social clicks. Are you using Bitly as a URL shortener? Well, you can use its API to see how many clicks you get and what category of posts drives the most clicks. This is important because if you're being conversational you are very likely posting links that don't always lead to your site - they may go to YouTube, Flickr, Pinterest, or blogs and media sites. So this is a good way to see how many clicks you are generating even if they are not to your site.
Chatter levels. Want to know if all that posting, tweeting, blogging, public relations, and marketing is echoing in social media? Check out your chatter levels with applications like Radian6 or simple Google Alerts. While they are imperfect numbers like many online metrics, they do represent your overall presence and groundswell in the social media space.
Socially-referred site traffic. Just like search, banners, and email, you can see how much traffic your site gets from all the posting, tweeting, and groundswell a brand gets, not just in Facebook, but in all blogs, forums, and the millions of social media sites that could be talking about you and linking to you.
Socially-referred leads. Just like socially-referred traffic described above, you can see how many leads you get from social media. So you can track social media ROI and leads!
Socially-referred revenue. Just like leads, e-commerce revenue can be sourced to social media. So you can track social media ROI for e-commerce too!
Media equivalent value. Richard Fouts described "Media Equivalent Value" as "the monetary equivalent of the impressions generated through social media that would have traditionally been acquired through paid media." Add up what you would pay for all the impressions, clicks, traffic and engagement, and leads you get from social and apply what you would pay for those clicks via banner buying or other forms of media buying in your category. By doing this you can arrive at your social program's "Media Equivalent Value."