Step 1: Determine Your Objectives and KPIs
Measuring ROI is pointless if you don’t first determine what type of return you’re hoping to get from your social strategy. For example, are you hoping to:
- drive more traffic to your website?
- Generate more leads?
- Drive sales?
- Or simply grow your social following so that you can further establish yourself as an authority in the field?
Answering these questions is important because it will tell you what your Key Performance Indicators (KPIs) are. These are the metrics you will be using to actually measure the impact of your social strategy.
Translating your objectives into KPIs is usually pretty straightforward. Typically, you can divide your KPIs into three categories: reach, engagement, and conversion. Here are some of the more common KPIs in marketing:
- Followers, subscribers, impressions, etc. are effective for analyzing REACH
- Shares, likes, comments, retweets, etc. are all good ways to measure ENGAGEMENT
- Sales, sign-ups, downloads, clicks, quotes, referrals, etc. are all useful metrics for CONVERSIONS
For example, if your hope is to drive more traffic to the site, the KPI would be the number of visitors to your site, and to zero in on your social strategy, it would be the number of people who visited the site as a result of something they saw on social media. Usually you can measure this by looking at the number of people who clicked on your social content and visited the site.
This would be an example of measuring conversions since your goal is to get people who see your presence on social media to react by clicking on a link and visiting your website.
Setting SMART Goals
Anyone with a marketing background is likely familiar with the SMART acronym, which is a way of reminding you how to make your objectives.
They should be Specific, Measurable, Achievable, Realistic, and Timely.
This is important because it will make your measuring efforts more effective, and it will also help you design a strategy that has a chance to actually work.
If you say, “we are going to double website traffic,” that’s great, but by when? And is that really a possibility? Instead, it’s better to say, “we’re going to increase traffic to the website from social media by 25 percent over the net six months.”
So, when setting your objectives for your social media campaign, follow these steps:
- Determine the area you want to improve in
- Figure out how much of an improvement you think is possible and want to see, and while you’re doing this, be sure to establish some benchmarks (indicators of your current progress) so that you have something to compare with the new data that comes in after you implement your social strategy.
- Identify the KPIs you need to measure to follow the progress of your strategy as it’s implemented.