Social media has transformed to become the backbone of business in the current digital economy as opposed to being an outer marketing tool. But the biggest challenge many organizations face is to explain their social media investment based on this following question: How does our social media investment contribute to the bottom line?
We are convinced that there should not be a secret to the importance of social media at Newton Byte. With a proper tact in implementation, the social platforms can be engines of revenue that provide quantifiable business results. This guideline unveils the model we employ in converting social media into an established growth engine among our global customers.
Why Best ROI Measurement Challenge: Most Organizations Fail.
Three basic gaps have generally contributed to the difficulty of the proving social media ROI:
1. Attribution Complexity: Customer paths are not very linear. Instagram may result in a prospect learning about your brand, weeks of interaction with your content on LinkedIn, and a conversion with a Facebook advertisement. These associations are invisible without appropriate observation.
2. Metric Misalignment: It is common to see teams work on vanity metrics (likes, followers) that are not associated with business results. The real worth is in the metrics which are related to revenue.
3. Limitations on the tools: The integrated technology stack required to monitor the impact of social media throughout the customer lifecycle is not in place in many organizations.
Our tested methodology fills these gaps in a systematic way:
Phase 1: Goal Alignment – Defining What Success Looks Like
We set clear business goals, which are related to social media actions, before we measure anything:
Demand Generation: Conversion and Leads Generation of qualified leads.
Revenue Acceleration: The Reduction of the sales cycles and the size of a deal.
Customer Retention: Churn and lifetime value empowerment.
Brand Equity: Creating market position and competitive differentiation.
Phase 2: Infrastructure: Tracking – Development of the Measurement Foundation.
We deploy an all-encompassing tracking ecosystem:
UTM Parameters: Tagging of every social link strategically to track the campaign accurately.
Conversion Pixels: Tracking on ad performance, platform-specific.
CRM Integration: Linking social interactions and sales outcomes.
Multi-Touch Attribution: Deciphering the importance of social media throughout the buyer journey.
Phase 3: Value Calculation – Measuring the Impact
We go further than the mere metrics of engagement to compute the actual business value:
Lead Quality Scoring: Evaluation of the best social channels to provide the most valuable leads.
Customer Acquisition Cost (CAC): Comparing social media CAC with other channels.
Revenue Attribution: Bridging social-sourced leads to closed revenue.
Lifetime Value (LTV): This is the long-term worth of customers that are acquired over social.
Key Performance Indicators That Matter
We do not report on all but on those measurements that illustrate impact on the business:
Primary KPIs (Business Impact):
- Social-sourced revenue
- Cost per acquired customer
- Conversion rate of leads to customers.
- Social media ROI percentage
Secondary KPIs (Performance Indicators):
- Engagement rate (qualified)
- Click-through rate
- Social share of voice
- Content amplification rate
Advanced Measurement Strategies
This technique has been used to execute certain sophisticated attacks that are difficult to detect, including the Advanced Measurement Strategies.
To those organizations that are willing to take their measurement strategy to the next stage:
Marketing Mix Modeling
How social media influences the effectiveness of marketing generally and the interaction between the two channels.
Incrementality Testing
Proof of the actual lift created by social media activities under controlled experimentation.
Brand Lift Studies
Measuring brand perception and awareness changes that can be traced to the efforts of social media.
Case Study: Transforming Social Media into a Revenue Channel
Client Challenge:
A software company with businesses in B2B was spending a lot of money on social media but was unable to reveal its effectiveness in pipeline or revenue.
Newton Byte Solution:
1. Installed all-inclusive UTM tracking and CRM.
2. Installed lead scoring to determine social-sourced opportunities.
3. Developed closed loop reporting linking social interactions with revenue.
Results:
- Social channels generated 35 percent of all opportunities sourced by marketing.
- Cuts down on cost per qualified lead by 42 percent to other channels.
- Shown 285% social media investment return in the first quarter.
The Future of Social Media Measurement
In the future, there are several future trends remaking the way we quantify the effect of social media:
AI-Powered Analytics: Predictive campaign performance and spend optimization that works in real-time.
Privacy-Compliant Tracking: The state-of-the-art measurements methods that not only honor privacy of users but also offer correct attribution.
Unified Analytics Platforms: Integrated platforms offering a single view of the overall marketing performance of all channels.
Conclusion: Making the Case for Social Media Investment
Whether social media is valuable is no longer a question, but its correct quantification and maximization are a matter of concern. Organizations can convert social media into a responsible revenue generator by using a strict measurement framework to integrate social media into a branding exercise that is less abstract.
At Newton Byte, we assist international corporations to harness this potential by means of data-driven strategies to link the activities of social media to tangible business results. The outcome is not only improved reporting it is smarter investment decisions and faster growth.
Ready to Transform Your Social Media into a Measurable Growth Engine?
The team at Newton Byte is a group of specialists that focus on creating social media plans that can produce tangible business results. Since monitoring their actions is one thing, and sophisticated analytics is another, we give you the means and know-how to demonstrate (or enhance) your social media ROI.
Contact Newton Byte Today to have a full analysis of your social media and find out how we can assist you in linking your social task to your business goals.