This is Guest Blog by Jugal Shah. Jugal is pursuing MBA w/ focus on Marketing from a premier university in India. He shares his views on marketing, sales and strategy via his Blog & Facebook.In this post, He briefly comments on “How to measure Social Media Marketing ROI”.
Jugal Shah’s Short post on Measuring Social Media Marketing ROI:
In social media marketing, ROI is not in just monitory terms. So, for social media ROI, my focus would be on1) to how many people I have reached2) How many people I have engaged through online activities3) Becoming a conversation enabler and perception driver
Then focus on
1) how much increased revenue is due to social media reach (you can do this by tracking referred link)2) How many leads you generated through social media3) How social media efforts helped to resolve customer query/problems and led to more customer satisfaction (remember customer acquisition cost 10 times more than customer retention cost).In a nutshell, It’s of utmost important to use Social Media as:
- conversation enabler
- perception driver
- customer retention
Paras: Jugal, Thanks for this post. I am sure, this short post would be a great food for thought for readers who are interested in Digital Marketing Analytics or analytics in general. Readers, Feel free to reach out to him on his blog and/or Facebook page.
This post will briefly describe an important marketing metric called “Customer Lifetime value”.
What is it?
It’s an important metric in the world of marketing. It helps businesses measure a customer’s worth to a business during the entire business relationship. In other words, it helps a business calculate net profit associated with a customers relationship starting from first purchase AND subsequent purchases along with expected future purchases.
How is it used?
It’s used to measure return on investment when formulating marketing strategies. Here’s an example: If your strategy costs $100 to acquire a customer and the average lifetime value of customer is $400 – then well, that’s a great thing, isn’t it?
It also helps business focus on making the most out of the existing customer relationships.
To extend these examples in the Internet marketing world, let’s take an example:
Suppose that the cost of acquiring a customer via Internet marketing is $25. The customer buys a $10 worth of goods. Is this good? Not from what we’ve seen so far. But the lifetime value of customer is $120 – see, now it does makes sense to spend $25 to acquire a customer.
In this post, I wrote about a key Business Metric that should be of help when you work on your Marketing analytics project. Note that accurately measusring this metric is NOT an addition of couple of numbers and there is some thinking involved. To that end, I would leave you thinking about this critical business metrics that could be used in marketing analytics project! Your comments are very welcome!
In this post, I’ll share how I learned to track an email campaign via Google Analytics.
First up, what do I mean by email campaign?
let’s say you email 1000 newsletter subscribers a link (URL) along w/ a summary – How do you track the traffic that is generated via this email campaign? Well – that’s where Google analytics can help you track your email campaigns. One metric would be how may people clicked on that link and visited your site.
Why should I care?
“If you can’t measure it, you can’t manage it” – Peter Drucker
If you do not measure what’s working or what’s not working, then you can’t improve – can you? Let’s take a hypothetical example. supposing it’s cost you $25 dollars to email 1000 people. How do you calculate the ROI on it? Well – track it! And the tool you can consider using is Google Analytics.
Now, Here are the steps to track an email campaign via Google Analytics:
Here’s the visual:
Here are the steps:
1. First Step is to create an URL.
Why do you need this? Basically this URL would have “meta data” that helps Google Analytics identify this link belongs to one of the campaigns.
How do we create it? Use this web service: http://support.google.com/analytics/bin/answer.py?hl=en&answer=1033867 to create an URL:
This is how an URL that I created looks: http://parasdoshiblog.blogspot.com/?utm_source=newsletter&utm_medium=email&utm_campaign=UTDEmailCampaign
2. Create an advanced segment in Google Analytics:
> Open Google Analytics.
> Select your site
> you should be in the audience overview report
> From here, click on advanced segment and click on new custom segment
> Here I’ve configured it like shown in the image below. Note the name of the campaign is same as the name of the campaign in STEP 1.
> Save segment
> next time you visit, you’ll see this custom segment – select it and you’ll see only from the campaign that you want to track:
That’s about it for this post. your comments are very welcome!
Some time back, I wanted to search one of my own social network post. It was a resource I had shared and somehow I was not able to “google” it (again). I eventually found it – but it took me 15 odd minutes to scroll down to my twitter feed. It was NOT fun! And I thought to myself – there’s got to be a better way! And I thought – It’ll be great if I solve it for not just Twitter but all my social network activities that includes LinkedIn, Facebook Pages, Google+. So here’s couple of things thats working for me, I hope it helps someone out there too:
Now, before we begin when I say “Searchable” – I mean searchable by YOU (or a human being) and not necessarily search engines. But it turns out, both my ideas increase your chances of getting your social media activities Indexed! With that, Here are the ideas:
1) Syndicate your Social Network Activities (Posts/Images/Updates) to Tumblr/Blogger
I use IFTTT to syndicate my Twitter, Facebook and LinkedIn activities to Blogger
2) Create a post about your social network activities on your blog:
Here’s an Example: Things I shared on Social Media Networks during Oct 19 – Nov 11
Though Idea #2’s main goal is to keep my blog readers updated about my social network activities – But it also acts as a good way to make my social media posts “searchable”.
And remember I said earlier that the chances of your social network posts getting indexed by search engines increases? That’s because WordPress, Tumblr & Blogger’s posts are accessible by Google (unless you choose to block it). So that’s about it for this post. If you like the idea(s), please let me know! And if you have other ideas – also let me know, I am always looking for ways to make my social media activities easily searchable to me as well as for anyone else.
Let’s connect and converse on any of these people networks!