How to measure
the effect of
Social Media Marketing
on your business?
Sales? Growth of sales? Margin? Customer life time value? Other?
Gain from investment – cost of investment
ROI = Cost of investment
Cost of work? + Cost of media? + Cost of agency? + Cost of tools?
What is the ROI of your relationships?
1. Purpose. What are we trying to achieve? Different point of views.
Product / service development
Processes (delivery, marketing etc.)
People (customers, partners, personel, recruiting)
Promotion = sales
We are creating more development ideas and new innovations
We are improving our delivery and marketing processes
We are activating people, including our customers, partners and staff
We are growing our sales in different sales channels
We are trying to improve our profit by testing different kind of pricing
3. Key performance indicators about product, processes & people
Number of new development ideas and innovations (by channel, e.g. Facebook)
Number of feedback regarding to our current products / services
Quality and the tone of voice from customers
Task completion rate (by channel)
Number of recommendations (yes, likes too)
Number of product / service evaluations
Number of complaints regarding to our delivery process
Number of posts (by channel, by content type)
Number of fans, followers, subscribers (by channel)
Number of people involved
3. Key performance indicators about pricing & promotion
Number of promotions (by channel, by content type)
Number of reach: visits, fans, followers, subscribers etc. (by channel)
Engagement (bounce rate, number of shares, retweets etc.)
Number of pricing tests (by channel)
Sales, growth of sales, sales margin (by channel)
Return on investment
Return on ad spent
So what test?
Continuous action model
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