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There are stats, there are metrics, and at the top of the digital data food chain, there are KPIs: key performance indicators. You typically put your KPIs into a dashboard.
Wait, isn't a dashboard something you find in a car? A car’s dashboard presents you with a few selected and essential "KPIs" to help drive your car: speed, acceleration, fuel level, and left and right turn signals so you know which way you're going.
Social media KPIs are similar: They are the metrics that help you understand your social media strategy's effectiveness and success -- and where you should head next. Let's figure out what those essential indicators, or KPIs, are.
Social networks produce massive streams of data, nonstop. In the case of Twitter, there is so much data available to analysts they have named their data offering "the Firehose."
To succeed with social media, you'll need to access some of that data, track a number of metrics, and identify the best indicators of success. The most relevant KPI metrics can vary from one business setting to another, but our list below contains the most common ones.
With so much data available, it can be a challenge to define the best KPIs for social media. Let’s look at some of the things to consider when setting up your dashboard.
There are many business advantages of social media, but your strategy will focus on a limited number of objectives. Ultimately, you are aiming to sell more, but your sales might not take space on social media.
Instead, it may play a supporting role in the user journey. It influences, it qualifies, or it reaches out. Perhaps it helps define or build your brand. Your KPIs should focus on the most important function your social media plays for your business.
A great way to define KPIs is to consider how you measure success. What indicators define success? Is it an invoice, a payment, a lead, a delivery? Some success points are easier to measure than others.
Business metrics and social media metrics aren’t always directly compatible. When you consider what your social media business approach is, you must consider what data social media networks DON’T provide you with.
This will help you put your social media KPIs in perspective and keep your business on the right track.
The best social media KPIs measure your activity, your connections, the level of engagement you generate, and the resulting impressions and reach of your operation.
Connections are critical on social media: These take the form of followers, fans, and relations, depending on the platform. The higher your follower count, the higher the organic reach -- and therefore visibility -- of each post you publish.
Once people have connected, they'll only disconnect if you post something they dislike. Growth in your number of connections is therefore a healthy indicator for your social media activity.
Each social platform has its own notion of connections but will readily provide the data to measure this KPI. Most social media management tools will provide this in their basic reporting.
Your activity is all the actions included in your social media management: posts, comments, likes, shares. The most important activity to track is your number of publications.
This shows how active you are and can be compared with other time periods to explain movements in other KPIs, such as engagement and growth of connections.
Activity can be tracked by quarter, by month, and by week. You should compare similar or identical time periods. Use weekly reporting on this metric unless your activity level is very low.
One of your most important metrics is social media engagement. Firstly, engagement creates a higher reach as engaging posts are favored in social media algorithms and therefore distributed to more people.
Secondly, engagement can be an indicator of the inherent quality and fit with your social media audience since it triggered a reaction.
You can't measure what happens in people's minds, but as soon as they take an action on social media, it leaves a trace that can be interpreted. In this manner, user engagement is interpreted by the actions they undertake (and the intensity of them).
A like or a favorite is considered a small engagement, whereas a share involves the user’s own connections and is therefore considered a stronger engagement. A comment requires some thought and action and is also considered a strong engagement.
Applying weights to different actions is a commonly accepted method to measure overall engagement.
The coverage KPI is a qualitative measure of how effectively you reach your existing connections. It assumes your connections match your target audience and your objective is to reach this audience with your posts.
A social media audit that reveals low coverage may recommend that you narrow your audience targeting more, or that you increase the relevance of the content you publish.
The coverage KPI is unique to each social network. You should focus on this metric for your primary social network.
Your posts will perform differently. Engaging posts may generate many more impressions than your commercial posts. Comparing the number of impressions generated by similar posts can help improve your content strategy and results.
Social networks readily provide this information on company profiles and business pages. It is difficult, though, to include personal profiles in your tracking.
Overall, what impact are you creating via social media? There are two ways of looking at that question: eyeballs and people.
Whereas you may be more interested in understanding how many different people you reached, it's much easier to count eyeballs, or “impressions” of your ads, as you don’t have to de-duplicate the views by the same person.
Impressions can be added together and provide a consistent measure of the impact you generated over a time period.
Impressions are readily available across all social media platforms and are a simple metric to track the performance of your social media operation from week to week.
Whether you manage your social media organically or add social advertising campaigns to your setup, the cost per view or cost per impression is a useful KPI to measure your return on investment (ROI) on social media.
It measures the cost to generate an impression of a post or a banner. The notion of CPM (cost per thousand impressions) is used for paying social advertising campaigns. You can apply it to your entire social media operation to gauge your efficiency and measure ROI.
While you measure the number of views for videos, you use impressions for posts and banners. These metrics are readily available across all social media platforms. Your cost will be the sum of salaries, overheads, outsourcing, social media tools, and advertising.
In order to drive your social media activity effectively, you need at least four KPIs to cover the areas of activity, connections, engagement, and output. But try to limit the number of KPIs you track so you can give appropriate attention to each of them.
Aggregate them in an online dashboard that updates automatically at set frequencies so you can concentrate on building your business, accessing your KPIs when you need to.
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