The 3 Types of Social Metrics Which is required and What They Mean for SMB's
Despite the challenges, a defined social media strategy combined with proper measurement can lead to real business and marketing wins - and set the structure to find the return on investment (ROI) of your social media marketing efforts. Whether you’re an experienced social media marketer or just starting out, here's a framework to organize the metrics (which can also be applied to any digital channel from email to search), and examples of the metrics that would fall into each layer.
1. Business Metrics
Business metrics are the overarching goals for social media that align with your brand’s business objectives.These metrics provide the structure from which marketing is going to be defined - by identifying and understanding what drives the bottom line of your brand, you can begin to tie your marketing efforts to it. In doing so, you'll also be able to make the case for your marketing efforts in quantifiable and real terms in how they are providing value back to the brand.Moreover, these business metrics are the larger concepts that set your channel-specific goals, from which the rest of the metrics structure branches. Social media certainly can’t address all business goals, but it can serve as a means to address specified business needs.
2. Performance Metrics
The layer beneath the business metrics are the performance metrics, or your key performance indicators (KPIs). These numbers signal how your marketing is performing by tracking progress against the goals established through the business metrics. Performance metrics are typically defined by absolutes or hard numbers and are the building blocks that set the foundation for your larger business metrics.With the performance metrics, you’re essentially trying to answer the question: are we reaching our goals?
3. Optimization Metrics
The last set of metrics needed for an effective measurement system are optimization metrics. Optimization metrics are those that provide insights on how to improve your social media marketing or indicate what needs to change.
- Arguably, these metrics are the most important and valuable - at least I believe them to be since they provide the catalyst for actionable insights.
- Optimization metrics take the form of rates or ratios and help answer the question: how can we reach our goals better?
- Examples: Clickthrough rate (CTR), cost per click (CPC), cost per interaction (CPI), cost per acquisition (CPA), conversion rate, engagement rate, active audience percentage, engagement per post, reach per post, retention rate, and growth rate