Social media marketing is essential for all businesses in the modern era. Therefore, proactive brands care about measuring success online. Actions, reach, engagement, user acquisition, conversion rates, retention and advocacy are some of the most popular KPIs brands seek to achieve. We highlight 10 important matrices that every business should measure on social media:
1. Average Response Time
The average time that a brand takes to respond to comments and answers, queries/concerns online. The lower (faster) the response time, the higher the engagement of the brand. Consumers today expect human-like digital interactions with brands. Research shows that 42% consumers expect a response within 60 minutes. While this can be taken as a benchmark, the aim should be to make this time short and be consistent with it. Robi’s social media team has done a great job in this regard in Bangladesh.
2. Audience Growth Rate
The rate at which a brand adds (or loses) audience members per channel, found by dividing net increase in audience by total audience members. This KPI helps determine effectiveness of a brand’s activation campaigns. It can also help determine which campaigns work and which don’t.
3. Share of Voice
It is a measure of how a brand’s engagement metrics compare to others in similar category (comparative metrics). A higher share of voice indicates the brand connects to the emotions and interests of its audience better then it’s competitors. The better a brand does this, the more “human” they appear.
4. Average Engagement Rate
The percentage of total audience that has engaged with a brand’s content on a social channel per reporting period. People like to engage with content that excites, interests or benefits them. Thus a high rate of engagement indicate the brand connects with its audience in the right context.
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5. Conversation Rate
It is the number of conversations going on per social media post. On Facebook, Google+, LinkedIn, Pinterest and Instagram, this will be comments. On Twitter, it’s replies. A high rate indicates that a particular strategy is working well and vice-versa, and is crucial to determine what kind of content works for a specific audience, helping to understand the consumer mindset, behavior as well as interests.
Number of visits and visitors on social media drives to your website. No matter what the business is, if you have a website, social media should drive a significant amount of traffic everyday. Website traffic can be significantly increased by making the URL visible in social media and by being proactive in promoting links to your site.
7. Click Through Rate (CTR)
The rate at which your audience clicks on a link within a post on a given social network. It is found by dividing the number of clicks on a post by total number of impressions. Higher CTR is an indication of high content relevance and conversion rates.
8. Cost Per Acquisition (CPA)
The dollar amount a brand spends in order to get a relevant users (follower/audience). Generally, the aim should be to bring the cost down to as low as possible, preferably lower than competitors. Relevant content and interesting conversations helps derive the CPA down. Giveaways are also very useful.
Learn more about today’s media reality [infographic].
9. Customer Reviews/Ratings
Number and quality of positive or negative customer reviews or ratings received per period. It provides a clear picture of how the consumers perceive the brand. These are valuable insights that help any brand create a strong presence online. Reviews are user generated word-of-mouth, and are very important for purchase decisions. Brands should incentivise users to review and rate their products and services so that it generates positive WOM or useful insights that can improve the product/service. Read more about ways to stay ahead using social media here.
Unsure about how important customer reviews are? This might help: 20 Inspiring Quotes On Customer Service
10. Customer Turnover Rate or Churn Rate
A measure of the number of customers who leave over a specific period of time. This shows a brand’s ability to retain consumers and consistently offer value. If churn rate is high, it is a clear indication that something is wrong with the applied strategies.
Consumers in today’s world are easier to reach out. On the other hand they are also, more than ever vocal and powerful in sharing their experiences with brands and peers. Success and failure in social media marketing depends on how well the brand understands the consumers and connect with them on a “human like” level. Brands now have the power to get closer to people, befriend them and earn their trust. At the same time, they are vulnerable to consumer outrage and negative WOM. KPIs are useful tools to consistently track and monitor your brand’s customer experiences on digital platforms.
See also: 9 digital value drivers for businesses.