Four Ways to Measure Social Media Marketing Results

August 9, 2010

While there are unquestionably many ways that social media marketing results can be measured, the debate rages on as to whether it’s truly possible to quantify the ROI from these activities. Some experts contend that because social media activity is rich in metrics, you can and should be measuring ROI constantly. Others argue that social media is a tool, not an event, so applying an ROI to social media is akin to calculating the ROI of your phone, or that at this point the business risks of ignoring social media are so great that ROI is immaterial.

Social Media ROI Clarity Can Be ElusiveMeasuring the ROI of social media is challenging for several reasons, the most significant of which is the problem of “last click attribution;” just because a sale or lead “came from” Twitter or Facebook as the last click doesn’t necessarily mean that site deserves all the credit. The prospect or buyer likely had several other exposure points to your brand prior to that click (visiting your booth at a trade show, hearing someone from your company speak, seeing an ad, reading about your firm on a blog or an industry trade press article or analyst report, etc.). Assigning proper credit to each of these sources is impossible; assigning all of the credit to any one of them is inaccurate.

Still, much of what happens in social media is highly measurable, and these metrics can lead to an least indirect evaluation of the value of different media, activities, topics and tactics. Here are four areas of social media metrics worth tracking, even if they don’t provide direct ROI calculations.

Influence: a.k.a. “reach,” these are high-level measures of your brand or company’s presence in social media, such as number of Twitter followers, Facebook fans, LinkedIn group members, mentions across social media (you’ll want to pick one social media monitoring tool for this and stick with it for a while, for the sake of consistency of month-to-month comparisons). This category can also include metrics like blog visitors and RSS / email subscribers. While larger numbers are generally better, keep in mind that it’s easy to inflate a Twitter following (note all of the spammy “Internet marketers” with ridiculously large follower counts) and that in terms of generating business value, quality is more important than quantity.

Engagement: A level deeper than influence, these metrics include the number of RT’s and #followfriday recommendations you get on Twitter, posts to your company’s Facebook wall, questions answered on LinkedIn or Yahoo! Answers, comments posted on your blog, etc. Anything that measures social interaction. Again, more is generally better (spammy blog comments aside), as engagement is the “social” in social media.

Sentiment: Are the comments, posts etc. being made about your company, brand, product or service generally positive, negative or neutral? This is a very important metric to track, but accuracy can be a challenge, particularly for mid-sized companies. Small companies may have so few social mentions to track that the process can be done manually, leading to theoretically perfect accuracy. Mid-sized to large firms may rely on fee-based social media monitoring tools like Radian 6, Alterian SM2, Cision or Vocus which provide automated sentiment tracking, while global brands can use tools like Neilsen BuzzMetrics or Cymfony.

No automated sentiment tracking tool is perfect (for example, “It sucks having a cold but NyQuil is helping” may be tagged as a negative brand reference for Vicks because of the way that sentence started). Accuracy is most problematic for mid-sized firms that have too many brand mentions to track manually but can’t justify the cost of the most sophisticated tools. For large brands, the number of social media mentions is so large that errors in automated tracking tend to cancel each other out, meaning that overall sentiment analysis can be highly accurate even though individual items may be mis-flagged.

Activity: Most web analytics tools, such as Google Analytics, can be used to track the number of visits, traffic quality (e.g. average time spent on site, number of pages viewed, bounce rate) and even conversion (lead or sale) sources. Again, while this information is certainly helpful, it shouldn’t be relied upon as a precise ROI measurement for several reasons, including the last-click attribution issue noted above, and the fact that some analytics packages (Google included) don’t measure social media referrals accurately; Google Analytics dramatically undercounts Twitter visits, for example.

Particularly in this tough economic environment, where every expenditure is receiving even greater than normal scrutiny, numbers matter. The C-suite expects justification for every dollar spent, including investments in social media marketing. You can’t afford to ignore what customers and other influencers are saying about your brand, but need to quantify the benefits of social media monitoring and participation, in some manner, as well. Calculating ROI with any precision is problematic, but there are still many aspects of social media which can and should be measured. These provide a picture of the benefits of specific social media tools, tactics and activities which can justify expenses and help guide activities—even without perfect cost-benefit analyses.

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14 Responses

  1. Ultimately, measuring ROI comes down to both your goals and objectives, as well as the “language” your currently reporting speaks. For example, are there metrics that can be measured via the social web as well as the original medium (for example, call volume might be measured alongside @ replies to your Twitter help handle)?

    Thanks for the Radian6 shout!

    Katie
    Community Manager | Radian6
    @misskatiemo

  2. Hi Tom,
    ROI doesn’t need to be a challenge if one plans what they are going to measure. A good question to ask is what % change in behavior is desired?

    Thanks for mentioning Alterian SM2. In addition to the professional tool, we have the Freemium version.

    btw, we should get together for coffee some time. I’m in the Twin Cities now.
    Connie
    Dir of Community Strategy, Alterian
    @cbensen


  3. Tom 

    Hi Connie, thanks for stopping by. My concern is that when people believe they are measuring ROI, they are actually measuring something else. As long as the metrics used are actionable (i.e. behavior will be adjusted based on the results), then the metrics have value.

    Coffee sometime sounds great. August is a good month for that (always a bit slow).


  4. Tom 

    Good point Katie. Social media ROI may be easier to measure in a customer service context than in marketing. Call avoidance can be assigned a cost and measured. But the value of influencing someone who influences your market, even though not directly a sales prospect, is a bit tougher to place a hard dollar value on. No worries on the Radian6 shout, it’s a nice product.

  5. Hey Tom,

    I agree – those are the big 4 of social media monitoring. Since social media is non-linear it’s important to look at your campaign from the levels of engagement, influence, sentiment and activity.

    My favorite feature of some of these tools is that they offer the opportunity to identify your brand advocates (key influencers). imo, WOM is the biggest influence!

    With the insights gained from social media tools, marketers need to make decisions based on data and measurements. It’s possible.

    -Sarah
    Communications Manager – MutualMind
    @mutualmind


  6. Tom 

    Hi Sarah, thanks for validating those points. No question there are many aspects of social media marketing that can be measured and acted upon; the challenge, I think, is in converting WOM to ROI with any degree of precision.

  7. Thanks for the great read. Product Category Positioning is an important social media metric to consider as well.

    Being able to get a measurable, storytelling read from the voice of the crowd on a product’s or brand’s positioning “relative to” a competitive set on an unlimited number of issues that drive purchasing decisions for an entire product category has for many market researchers become a starting point for social media measurement.

    Knowing the issues discussed in social media for entire product categories, how they’re evolving over time, and “how” consumers are talking about those issues (especially meaningful in the context of and relevant to other issues or subjects) allows researchers to more effectively act upon the insights obtained.

    Check out the following links for some interesting illustrative case studies and feel free to reach out to me at tom@geeyee.com or 877-GEEYEE-1 with any questions:

    Tiger Woods: https://www.geeyee.com/blog/2010/05/may-2010-tiger-woods-case-study
    ARF-Starcom: https://www.geeyee.com/blog/2010/05/arf-360-measurement-workshop-at-starcom-mediavest-group


  8. Tom 

    Tom, thanks for the comment. I don’t often approve comments that are quite this self-promotional, but you raise an interesting issue and I’ll let readers decide for themselves on the merits of your approach.

  9. These are some great stepping stones for those looking to get into measuring their social media efforts and ROI.
    Just to throw it out there, another tool your readers may want to look into is Sysomos. We offer software that delves deep into the analytics of social media to help find the information for reporting on social media. Check out http://sysomos.com for some more info.

    Cheers,

    Sheldon, community manger for Sysomos


  10. Tom 

    Thanks Sheldon, I’ll have to check that out. There are a plethora of social media monitoring/measurement tools on the market, though none (that I’ve seen at least) seem to be able to capture the full range of measures that marketers need. The potential payoff is huge for any vendor that gets this right.

  11. Yes Now a days social media is the best way for marketing. This article is worth reading and its sure it will help marketers to analyze the results of the marketing. Thanks a lot for this great post

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