Social media is an invaluable tool that helps businesses communicate important information and nurture quality customer relationships. Successful business executives and marketing teams understand the value of social media to the overall ROI, business reach, and revenue generation.
The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.
- Social media KPIs should align with your business goals and social media objectives
- The KPIs should provide valuable insights to improve overall business performance
- It’s essential to review KPIs periodically to ensure they are relevant to the current business position and future goals
Social media KPIs (key performance indicators) are quantifiable metrics that help evaluate key operations within a business, such as the effectiveness of marketing strategies. With the proper KPIs, businesses can monitor performance over multiple quarters or business periods.
Social Media KPI Definition
Social media key performance indicators (KPIs) are the metrics that you use to track information like audience growth, engagement rates, and campaign effectiveness for your social media channels. Although most KPIs require a social media analytic tool, many brands and agencies have their own proprietary set of KPIs that they keep specific to the goals of their programs.
Profit.co’s agile OKR management software enables users to create custom KPI boards so that you can track the KPIs that are most important for your business. You can get started on Profit.co today– try it free!
Why are Social Media KPIs Important?
Each goal you set should have a way of monitoring the progress. This is what makes social media KPIs vital to any business.
Social Media KPIs Highlight the Health of Your Social Media
Evaluating KPIs from various social media platforms gives you a detailed perspective of your performance. It helps you identify the areas that need improvement and at what levels.
Monitoring KPIs also helps you develop new ideas on leveraging social media to achieve your business goals.
Social Media KPIs Significantly Affect the ROI
KPIs for social media are vital when calculating the ROI of your social media strategies and marketing campaigns.
They help you make more informed decisions when adjusting your marketing budget.
Social Media KPIs Affect the Entire Strategy
Social media KPIs significantly affect major business decisions such as:
- The social media channels to focus on
- The type of content to create
- The appropriate times to upload content
- How to allocate the marketing and advertising budget
How to Set Social Media KPIs
It’s essential to understand the principles of social media. It assists in understanding the audiences on particular social media platforms, their behaviors, desires, and needs.
There are numerous social media metrics and KPIs you can track. However, ROI is an essential consideration, so avoid focusing on vanity metrics.
1. Align Every Social Media KPI with Your Business Goals
As Bernard Marr, a world-famous influencer says, the right metrics depend on specific business goals. It’s best to identify the objective first before selecting your KPIs.
Your social media KPIs should relate to your business goals and objectives.
2. Develop the KPIs
Once you align the KPIs with your goals, it’s essential to ensure that every social media KPI that helps measure your objective is associated with a SMART key result:
- Specific– The social media KPIs key result should reflect the specific goals and strategies of the organization.
- Measurable– Your KPIs should have quantifiable data points that you can access from one or more platforms.
- Achievable– The KPIs should be realistic based on your specific circumstances and the period you need to meet your target within.
- Relevant– Your KPIs should give you purposeful feedback regarding specific strategies.
- Time-bound– Setting a clear deadline is essential when measuring your progress.
3. Evaluate your Current Progress
Evaluating your content helps you understand how it’s performing, who the audience is, and the best-performing channels. Such valuable insights allow your marketing team to adjust the strategies accordingly.
4. Review your KPIs Regularly
Reviewing your KPIs helps determine whether they remain relevant to your business goals.
The 10 Most Important Social Media KPIs You Must Track
Your social media KPIs should focus on three primary areas:
- Lead conversions
1. Lead Conversion KPIs
Conversion rate refers to the number of users who act on the information shared on your social media posts. For instance, the users can:
- Visit your landing page
- Subscribe to your newsletter
- Buy a product or book a service
High conversion rates signify that your content is valuable and relevant to your audience.
Click-through Rate (CTR)
The CTR shows how frequently users click on the call-to-action (CTA) button on social media posts. It helps you understand the value of your offers and how enticing they are to your audience.
When combined with the conversion rate, it can help you identify the specific area on the customer journey where you lose customers.
Return on Investment (ROI)
The ROI shows the revenue generated from social media channels minus the associated costs. You’ll arrive at the ROI by dividing the profits from social media by the investment costs. You can multiply the number by 100 to determine the percentage.
The goal of any social media investment is more revenue or sales. If you integrate your social media channels with your products or services, you can determine the income from the channels’ data and analytics.
2. Reach KPIs
Impressions are the total views your content gets in general. This KPI only includes the people exposed to your content. Having more followers generates more impressions. Sharing your content will expose it to their followers and hence more impressions.
If you have high impressions but low engagement, this probably means the content is not engaging enough to prompt an action.
Social media content aims to generate more traffic to your website. Evaluating the traffic helps you see how effective your content is in converting leads from social media.
Share of Voice (SOV)
Share of voice evaluates your brand exposure against the competition. It measures your brand’s online visibility based on the conversions from social media tags and mentions.
You can calculate your SOV by the number of mentions your brand gets within a specific period. Divide the number by the total mentions to get the percentage, and multiply it by 100.
If you compare this figure against your competitors, you can determine how much effort to add.
3. Engagement KPIs
Having a large social media following only makes sense if they engage and interact with your content. Most platforms recognize and suggest your content to more followers if it has high engagement levels.
Comments and Likes
More comments and likes signify that your audience connects with the content. It helps you reach and engage more potential leads and online communities.
Sharing your content means your followers like it enough to recommend it to their followers. It shows that your content is relevant and captivating.
Follower Growth Rate
The follower growth rate shows how fast your social media following increases. Tracking the growth helps you identify the particular strategies that are more effective. It enables you to modify your content and marketing efforts to boost your growth rate.
What are Vanity Metrics?
Vanity metrics are figures that make your brand appear great, but they don’t offer any meaningful business insights like the number of page views.
How Can I Track Brand Mentions?
You can monitor you, and your competitors’ brand mentions using Google Search Console and TweetDeck.
Is Customer Care a Social Media KPI?
Customer care metrics like response rate and response time can be considered social media KPIs. They show the customer experiences with your brand on social media and your team’s response to important messages.
Social media metrics and KPIs should measure aspects that align with your business goals. They are vital tools in comparing the current performance of your social media strategies against the business goals.
Social media KPIs help to determine the strategy performance to ensure continuous improvement. With so many options, it’s essential to select the KPIs relevant to your business goals and objectives.
To learn more about how Profit.co can help you measure your most important social media KPIs, schedule a demo with our OKR experts today!