Many people seem to believe that there is no ROI with social media marketing. Even more find it very tough to measure results. The reality is that if you are not measuring your efforts or looking for a return, you are at minimum, going to have a hit or miss experience. Businesses must define what they expect to get from their efforts and measure the results. It is no different with social media marketing.

Measuring results can seem difficult or daunting, or both. It doesn’t have to be if you have a well-thought out process that aligns to your specific goals and objectives. The first step is to use analytics and understand the information to which you have access.

Google Analytics is one of the top tools available, and it’s free. With Google Analytics, a company can learn about its traffic - where visitors are coming from (online and off), how long they are staying, key links, keywords used, referring sites and so much more. If you have a site that sells product, you can turn on the e-commerce tool and track sales.

Start by looking at your audience. Who saw the program? Who engaged? Is this the audience you were targeting? By understanding who responded to your campaign, you can determine any changes that need to be made, or better yet, understand what caused the reaction. Comparing impressions and engagement across channels can also provide information to help improve or customize programs for specific targets.

Also look at where engagement is coming from, and actually where there is little engagement. Understanding this will tell you a lot about how your campaign resonates in different places. This will give you perspective on how to optimize your program.

Measuring engagement will require determining what actions you expect and establishing a weighted scale to measure the actual activity. For example, a single impression is probably not as important as someone who comments. A click through may be weighted less than extended time spent with the information. Or perhaps your goal is simply to drive traffic so time spent is less relevant. Determine what the actions are that you want for this campaign and apply a weighted scale to measure them so they tie to your program and goals. An example might be:

• Impression 1X
• Click through 2X
• Comment 3X
• Share 4X
• Video play 4X

Integrate these programs into your existing research. For example, if you are conducting research on awareness and exploring where someone heard about your program, include options like “from a blog” or “online from a friend.”

Measuring engagement is a critical component of measuring the success of a social media campaign. However, we also need to look at the impact on the company in areas like:

• Brand awareness
• Customer satisfaction
• Marketing & communications costs
• Conversion rates
• Support costs
• Supplier satisfaction
• Supplier support costs
• Time to market
• Speed of knowledge
• Operating margins

Looking at benefits means looking at both internal and external needs, as well as hard and soft costs. For example, if the program is directed at enhancing communications, then a company can measure customer satisfaction and knowledge about the company and its products over time. Additionally, it can look at the overall costs of communications and support. Often social media will positively impact satisfaction and reduce costs through call centers and support teams.

Conversion rates can also be measured in relation to social media programs. Social media can be used to build desire, influence buying patterns, and to build trust. With increased trust and knowledge, customer conversions rates are likely to rise. If they don’t, the information gleaned may identify critical information on why they are not.

Most companies are having to learn how to measure results from social media. Measuring engagement is the first step in looking at real ROI. However, looking at the impact on real costs is just as important. Whether the goal is reducing costs, improving margin, or improving sales conversion rates, results can be measured with advance planning.

Any new technology is tested by early adopters who learn to use the tools and then espouse the benefits or flaws. Adoption picks up as others recognize the value. We are moving from the early adoption phase for businesses to the acceptance phase because companies recognize that these programs drive value. This transition is bringing with it an awareness that measuring the outcome and financial impact of these programs on the organization is a critical component of ensuring that real value is gained.

Contact me with any questions or comments. You can follow this series on the EQi Services facebook page or connect via twitter @lesliehughesny.