Best tips on marketing analytics to measure the ROI of your social media campaign (part One)
28 Nov
Marketing analytics reached the web 2.0 as companies and executives are beginning to use social media campaigns, there is a growing necessity to measure the ROI using marketing analytics. Without doing this, social media marketing wouldn’t work for everyone,because companies and brands need to know what are exactly doing with the money, and for this reason, the Return on Investment, or ROI, must be measured. The Marketing analytics to determine the profits of a social media campaign, aren’t easy because data is though to track, but I’m writing these two serial articles to explain how to track the pieces and measure the ROI you are getting on social media.
First of all, we need to know what is the ROI before beginning with marketing analytics around it, the formula is very simple:take the profits ( not the revenue), divide it by the expenditure, and multiply it by 100. The result is a percentage, a ROI less than zero, i.e -20%, means that we are losing money, and a positive one means the opposite. So companies love big ROIs because they want the highest profit possible.
ROI = (X – Y) / Y, where X is your final value and Y is your starting value.
Roi is usually measured in dollars and cents, but if you are using Marketing analytics to measure another kind of value, you can use this formula too. But you will also need to know what is your exact baseline. In other words, If the value wanted by the company is the number of conversations about a certain product, first you need to begin with marketing analytics to know, what is people saying before beginning the campaign, otherwise you will not have the Y of the formula.
Of course, you need to define clear goals, know in advance which values you will measure.
Marketing analytics with Metric Tools
When your goals are measurable with numbers, like web traffic, number of comments, Twitter followers or Facebook fans, your marketing analytics shouldn’t only rely in bigger amounts. If you have more visitors you must know if they are interested in buy things from you, or they are just reading something or being redirected from somewhere.
Measuring web traffic isn’t just a matter of numbers in marketing analytics, the movements of your visitors while are visiting your page are important too, so there is a list of good tools, some are for websites, and others are for social media profiles:
Google Analytics, as Google can fetch a lot of information with it, gives this tool for free, providing a really powerful baseline for a variety of different factors. You can track incoming links and then the activities of the users they send, which can be helpful.
Omniture With this tool you can track Facebook and Twitter metrics to have data for your marketing analytics..
TweetMeme Analytics , I use this plugin, that puts the TweetMeme’s retweet button than I have in the top right of my posts, provides data about the website fetched from twitter, but this tool isn’t only useful for marketing analytics, because people can Tweet my posts very easily by clicking on the button.
PostRank Analytics ,is a suite of tools that measures social engagement on other platforms and services.
HootSuite, is a great Twitter manager but also offers a lot of data for your marketing analytics. The nice thing about the click data you get from an app like HootSuite (or bit.ly) is by looking deeper you can more easily see if those clicks translate into transactions or impressions on your other sites.
Be sure to read the second part of this article I will publish next week, I will continue with marketing analytics centered in sentiment values, in other words, measure the feelings of people.
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I think hootsuite with its new tools help more so now with tracking your statistics. I really like how you demonstrated their is a way to track, many do not think that far ahead. Kudos to you.
Extremely helpful information. Thank you! Because I have no idea how to use all of the analytics data! I am like a lost ball in high weeds.
Hi Steven, nice to meet you. I’m Happy to see that my post has been usefull for you.I’m planning to release the secon part next week as I try to post articles about social media once a week, and the other days I post other kinds of stuff.
Thanks for reading my article Lisa Lomas, Hootsuite is also very useful to schedule Tweets
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