Social media is becoming a massive factor in today’s business world. All over you can see businesses on Facebook, Twitter, Instagram, and more. But social media can be a bit of a gray area since the benefits can be a little harder to show. One benefit that’s obvious is the ability to easily communicate with potential clients and establish a brand presence. But how can you measure social media’s effect on your business? Is the time it takes to tweet and post actually bringing you revenue? Well, here are three ways to measure the effects of your social media profiles.
Almost every social media platform available today comes with software that can measure your post’s reach, how many people are viewing and clicking it, and whether or not your business is being talked about. Facebook offers analytics software for business pages that allows you to see your posts’ engagement, narrow the demographics of your posts’, and allow you to see if they are bringing more unique customers your way. Twitter also offers software so you can see how many potential followers have seen your posts, new followers you’ve gained, and see how many people are using a unique hashtag related to your business. Both of these sites allow for reports that show new followers, the number of people reached, and unique impressions that are solid measurable progress for your business. Tom Pick says in his Webbiquity article, “website traffic and “vanity metrics” (friends, followers, “likes”) are the most common metrics marketers use to measure the business impact of social media.”
Social Media Interaction and Revenue
According to Phys.org, “participating customers on a firm’s social media site contribute 5.6% more revenue and visit the business about 5% more than non-participating customers, [Ashish Kumar] explains.” These studies done by Texas A&M and the University of Buffalo actually found solid evidence of something social media users have questioned. Building online communities of users does increase revenue as those users who interact on social media platforms are more likely to purchase items from that business and are also more likely to be repeat customers.
Setting out to reach specific goals with a social media campaign is a great way to narrow your focus and energy. Your type of campaign will depend on your type of business. For example, for businesses with online stores, your goal could be to turn visitors into buyers. You can track the number of visitors and the number of buyers, establishing a conversion rate, as well as seeing what those buyers did on your site that led them to finalize a purchase rather than just visiting. Christine Moorman says in her Forbes article, “If a social media campaign is designed to generate brand awareness, then engagement is an appropriate metric.” This is for simply getting your business out there and reaching more unique users, a fantastic way social media gets more people engaged in your business.
Social media used to be a difficult area to navigate. There were no means to measure its effects on businesses and revenue. Now, each social media platform comes with analytics that do exactly that, measure how your profiles are being engaged and by whom, allowing you to see just how social media is bringing you closer to old customers as well as starting relationships with new ones. By utilizing social media analytics, establishing goal-driven campaigns, and interacting with users on social media, you can see just how much your social media profiles are bringing to your business.