Social media is an incredibly powerful and free tool that businesses of all sizes can use to their advantage, from building a reputable brand to engaging with customers. With over 420 million people actively using social media, there’s no denying its importance. Especially when 54% of those active users are browsing to buy. The stats certainly speak for themselves but how do you measure the impact of social media on your business?
How is social media impact measured?
Getting across the importance of social media and measuring its positive impact on your business can feel tricky to navigate if you don’t have the knowledge but there’s no disputing its value. In fact, “52% surveyed in the recent Smart Insights and Clutch Social Media report confirmed that social media has positively influenced their revenue and sales with Facebook and Linkedin providing the highest value for businesses”.
If you’re unsure of where, to begin with measuring the impact of social media on your business then look no further, we have listed 3 ways listed below to help get you started:
This is a great starting point when measuring content engagement and you should begin with:
- Followers – when it comes to followers it’s easy to get distracted by how many you have but it’s also crucial you monitor just how fast your follower’s list is growing. A slow or stagnant rise could mean your followers are engaging with your content and it might be time to switch it up. Just remember to never buy your followers!
- Likes, comments and shares – when it comes to social media the general consensus is likes are king. It means your content is effective and resonating with its audience and the more likes you acquire the more the algorithm of the platform will work to your advantage. The same goes for shares which have the added benefit of ensuring your posts reach a wider audience and network. Comments invite conversation and reiterate the importance of your post and replying to them keeps that conversation going.
- Impressions – the more impressions you have, the more your posts are likely to be appearing in people feeds which widens your reach and potential for new customers.
Social media platforms offer your customers the opportunity to buy, through shoppable links or by directing to your website or landing page. An easy to keep up with how well these features are performing is by checking the:
- Total sales – using tools like google analytics can be a great way to begin to understand your website. From who is visiting and where they’re from to what they’re choosing to do when they get there. This is an easy way to see just how many sales are as a result of your social media accounts compared to the other avenues of customer acquisition.
- Bounce rate – the higher the bounce rate the more likely it is that something isn’t quite working. The bounce rate itself is a percentage of users who view just one page before then leaving. A good indication of a successful bounce rate would be anything below 40.
- Conversion rate – this is perhaps the most crucial aspect to measure as it tells you the number of customers who visited your site and bought something. The higher the conversion rate the better as this confirms all the processes in place to lead a customer to purchase are working.
A simple formula
If this is sounding like lots of variables to consider and a little overwhelming then this simpler formula is the one for you.
You can add up all the resources that you have chosen to invest in your social media content, from tools and ads to memberships. Then, you can calculate the total sales that have come with social media visitors. If it’s sounding a little mathematical stay with us! You simply divide the sales by investment and multiply by 100 to equal your social media return on investment as a percentage. You’re aiming for anything over 100 percent for it to be considered a positive.
Why is it important to measure your performance on social media?
By using these measurements and techniques you are able to determine how well your social media initiatives are working and whether they’re having a positive impact on your business. This is why it’s so important to make these measurements and continue to make adjustments based on your findings. This way you can reassess your goals and realign your campaign depending on what it is you’re aiming to achieve.
Following the above points and continuing to spend time on your business social media analysis will soon show a return and yield the results needed to continue to grow your company.