Originally posted on Gigaom:
Businesses are struggling with how to evaluate the effectiveness of their social media campaigns. Currently, most companies are using a variety of metrics to measure diverse campaigns across multiple departments. These metrics fail to provide an overarching picture of which marketing programs are increasing their revenues. There are five metrics that accurately measure success in terms of ROI and revenues from social media for all enterprises, both big and small, B2B and consumer web, and across multiple geographies. The following post provides case studies for three of these five metrics. I will outline the other two metrics in a subsequent post.
1. Social media revenue conversion measures how many people become customers through social media referral channels.
Challenges: Social media is great for creating awareness and engagement, but it is hard to measure how many people convert to customers. Facebook’s last click attribution attempts to measure customer conversions by tracking which Facebook links sent people to other websites. However, this doesn’t work well either because there is a delay in the conversion.