You are on page 1of 14


Do not arbitrarily jump into the social marketing space without first setting measurable kpis (Key Performance Indicators). Define how you will measure success by selecting one primary and one secondary kpi. According to Jim Sterne in ‘Social Media Metrics’: ‘Social media kpis are, by necessity, a little fuzzier’. But even if you first have to work with a ‘best of breed’ home recipe of mainly free, publicly available and often imperfect sources, it is definitely worth the effort in the long run. Sterne continues: ‘You can’t control the conversation but you can guide the conversation. You can influence the conversation. You can have an impact on the conversation. That’s the whole reason for tracking and measuring it.’ For your reference: Deloitte takes it up a notch by connecting social media efforts to known business KPIs like NPS, PR Value, ARPU, Media Reach/Impact, Media Spend, CPA and Churn.

main KPIs for the Marketing. They are part of the Marketing Dashboard or Balanced Scorecard. Please see the following table.

-> Recommended bibliography about marketing KPIs

Sales due to launched products / services New product sales cannibalization Average time-to-profitability for changes Time from the time a product change is envisioned to existing products / services or defined until it is profitable Average time-to-profitability for new products / services Time-to-market of changes to existing products / services Time from the time a new product is envisioned or defined until it is profitable Time from the time a product change is envisioned or defined until it is on store shelves Time from the time a new product is envisioned or Time-to-market of new products / services defined until it is on store shelves Customer satisfaction with new products / services % of new customers from new products / . promotion..) Number of new customers acquired Demographic analysis of new customers Revenue generated by segments of the customer population.. catalogs. trade fairs.g. PR. Profitability by segments of customers Market share Cost of marketing Customers New customers Existing customers Product Product life-cycle % of new products % of new products revenue % of products end of life % sales due to product / services launched in previous period (e.. product launch.Activity Corporate Subject Revenue vs last year vs target Gross margin vs last year vs target Gross margin percentage Markup rate Calculation (Revenue-COGS) ÷ Revenue (1-[cost ÷ selling price]) x 100 Can be calculated considering the sales volume (unit market share) or the sales value (revenue market share) Total cost of marketing activities (advertising. the past year) Reduction in sales of existing products due to new products.

services Promotion Number of promotion per year vs target Sales increase during promotion vs target Cost of promotion ROI of promotion Number of advertising campaign per year vs target Sales increase during advertising campaign vs target Cost of advertising ROI of advertising Level of awareness of the product before and after Value of sales ÷ spend of campaign People who recognize the product ÷ total people gathered Number of people who bought products ÷ total number people who asked after advertising program Value of sales ÷ spend of promotion Advertising Number of people asked to buy products advertised after advertising program Sales of products advertised: be measured before and after the advertising program Place Merchandising Shelf productivity Sales ÷ number of meters of shelf space (% of sales + % gross margin) ÷ 2] * number of meter of shelf space % of sales ÷ % of used shelf space % of gross margin ÷ % of used shelf space Number of customer passing in front of the shelves ÷ number of customer coming inside the shop Number of customer buying inside the shelves area ÷ number of customer coming inside the shop Number of customer buying inside the shelves area ÷ number of customer passing in front of the shelves gross margin ÷ average inventory value (at cost of sales) Optimal number of meter of shelf space Sales sensitivity index Gross margin sensitivity index Shop Visit Rate (detailed at shelf level) Purchase index Attractivity index Inventory profitability .

possibly via ERP integration. software. how much revenue are your Inbound Marketing campaigns bringing in? You'll have to define what you mean by "inbound" and "outbound. year over year. You need to develop your content marketing and lead conversion strategy to capture these differences. marketing distribution. plus overhead. Now you can directly account for new sales from both Inbound and Outbound Marketing and assign CAC on a monthly basis.E. You can find a relatively simple CAC formula here. for example using different landing pages and A/B tests for different types of campaigns and tactics.Customer Acquisition Costs . Month over month. #3 . and general overhead. #2 .Marketing Number of website hits Number of new visitors Return of the old visitors Average number of page views per visitor Bounce Number of people that left web just after visiting New visitors ÷ total visitors Public Relation PR Awareness of the product through the public relations did Awareness of customers and the public image of the product and business Awareness of the enterprise through the public relations did Results before and after implementation of the PR Results before and after implementation of the PR Results before and after implementation of the PR #1 .Customer Lifetime Value .Sales Revenues From Inbound Marketing This is the bottom line. You can break this down even further by campaign types to assess their relative success rates and profitability. manpower (both sales and marketing). The other crucial thing is capturing sales data directly via CRM integration and closed-loop reporting. of course.Inbound vs Outbound Calculating Customer Acquisition Costs (CAC) also requires integration of your marketing automation and CRM platforms." for example PPC campaigns that go straight to a "buy now" landing page should probably be treated as outbound. On the inbound side: manpower (both creative and technical). On the outbound side: advertising. plus careful accounting for all of the relevant costs.

but by itself. This KPI largely determines the future course of Inbound Marketing in your organization. website referrals. target segmentation and other more subtle factors. leads and conversion rate by source (organic search. #5 . not traffic. If revenues and LTV increase year-over-year while CAC and churn decrease. inform them about new use-cases and products. social media and direct marketing) You should also break these metrics down by individual campaigns to compare tactics. A simple calculator for LTV can be found here.Inbound Marketing ROI The only reason I didn't make ROI #1 is that you need the basic data in 1-3 to make this calculation. Senior Managers are looking for sales revenues. #4 . This also represents a non-invasive way for your sales team to upsell and cross-sell. reducing churn and expanding their lifetime value (LTV). HubSpot has a great inbound marketing ROI calculator here that's useful not only in assessing monthly and annual performance.Website Traffic to Marketing Leads Website traffic is an important metric. it's misleading. ppc. you are getting the job done. This data will allow your Senior Managers to judge the effectiveness of your marketing efforts and their impact on the bottom line. and help them to get the best out of their installed base. check out this article. but also in planning marketing strategy and budgets. email. What you want to capture and compare month-tomonth is:     Website traffic (unique visits) Overall marketing leads (form conversions) Visit-to-lead conversion rate Traffic. timing.Inbound Marketing should be ideal for reaching out to your existing customers. . Turning your lead nurturingcampaigns inward to reach out to existing customers presents a great opportunity to keep them engaged. content. direct. For a more sophisticated approach.

That particular metric may be interesting. white papers. These KPIs are most useful for sales and marketing executives to make sure their processes are optimized for capturing qualified leads. You want to track all of your public facing offers so that you can compare conversion rates. #8 . #7 . but it's very hard to translate into sales and marketing ROI.   # Lead Conversions assisted by organic search (an indication of relevance and well-tuned SEO strategy) # Customer Conversions assisted by organic search (an even more powerful indication of relevance and well-tuned SEO strategy) . No. videos and webinars.Organic Searches I'm going to break this category down into several business-related metrics. Sales qualified leads would be those leads that are automatically flagged as sales-ready via lead scoring or specific triggers. you can directly calculate both sales qualified lead (SQL) conversion rates and sales accepted lead (SAL) conversion rates. Don't forget to optimize your landing pages and calls to action with A/B split tests. track your tests and double down on the winners.Landing Page (Content) Conversion Rates How well is your content marketing working? The only true metric is landing page conversions for your ebooks.#6 . Sales accepted leads would be those that have been directly accepted by sales reps as opportunities in the CRM and either have been contacted directly or are scheduled for a call. such as a "contact a rep" form conversion.Marketing to Sales Conversion Rates By integrating your marketing automation and CRM systems. passing them along to sales at the right time and enabling highclose rates. none of them involve Google page rank.

then get to the bottom line. #9 . 2012 | 6 Comments sponsored by: Wildfire Interactive     Companies are still grappling with how to measure social media and its resulting return on investment (ROI).Mobile Traffic. The new social metrics include social connections like Facebook fans (or likes). leads and lead conversion rates from mobile devices and some indication of how effective your mobile presence is. social chatter. Traditional metrics you can easily look at 198 inShare . Leads and Conversion Rates Last but not least. shares.Social Media Reach and Engagement Your Senior Management Team is likely to question the value of your social media efforts on behalf of the company. At the very least. so much of what you do can be tracked just like anything else you do online. comments. you can't ignore the ever-growing proportion of online users via smartphones and tablets. etc) for all channels each month.  Traffic associated with branded keywords (an indication of brand awareness) Traffic associated with unbranded keywords (an indication of content marketing effectiveness) Here are some more important KPIs associated with organic search. You could look at bounce rates from mobile devices and conversion rates from mobile-optimized landing pages. you need to show your Management Team the overall trends in traffic. Facebook engagement rates. Show them the value by showing the growth in reach and engagement (likes. retweets. and Twitter retweet rates. The reality is that while there are new and unique metrics and key performance indicators (KPIs) related to social. 14 Social Media ROI Metrics You Can Use Right Now! Harry Gold | December 18.    # Lead Conversions assisted by each social media channel # Customer Conversions assisted by each social media channel Traffic associated with social media channels #10 .

. SocialEye. Social page views. Facebook.all the things you look at now when you run banners or paid search or look at your site analytics. The chart below is plotting out daily levels of YouTube video views within a YouTube channel. Now this one is obvious . Radian6. Data visualization and dashboarding graphics in this column are from Twitter. I mean. leads. clicks. unless you are a brand that has the budget and potential to eventually gain hundreds of thousands or even millions of fans.are things like impressions. and Bitly. Social Media Metrics Social connections. site traffic. So let's explore some of these metrics and take a look at what it looks like to visualize this data. it may be your least valuable metric. Video/SlideShare views. in the long run.'s how many views you got on your videos on YouTube or presentations on SlideShare. In some cases I would consider page views on your branded Facebook page more valuable than some page views on your site. right? The chart below actually plots out daily level fans and daily page views. a random page view on an obscure internal site page is often worthless. This metric is just like page views to your site but instead it's how many page views you got on your Facebook page. Basically it's looking at Facebook fans and Twitter followers. However. This is what most marketers dwell on when looking at social media. revenue .

) Talking about this. . It reports on how many people are talking about you or your posts on their pages. It basically shows when you have things going on in the real. It lets you take note of what you posted and. Want to know more about EdgeRank? Just Google it.clearly a lot of negative responses. The metric from the graphic below is basically the total of likes and comments divided by a total fan count. or social worlds that are sparking conversation on Facebook. Having a high engagement rate will help to build your EdgeRank! Also. are not good! (EdgeRank is the Facebook algorithm that personalizes your newsfeed and inserts posts it thinks you will be interested in based on your relationship with the poster. This is like a buzz metric on Facebook. below is a snapshot from the Tabasco Facebook page . by the way) is trending that number. A good social media marketer needs to know when she posts something that creates reaction and engagement. when. Then the chart below that (not for Tabasco. take note as to whether the reaction was positive . while building your EdgeRank.the "talking about this" number is boxed in red next to the fan count.Engagement rate. This one is super important. virtual. For example. as importantly.

It is direction and allows you to ask. this number does not represent all the people that saw your tweets . The chart below is generated via tapping into the Facebook API and dividing it out by organic. "Am I doing better than last week or last month and what did I do to improve or hurt my performance or reach?" Retweet rates. Twitter impression reach. This metric is the cumulative individual tweets going into people's feeds based on all your tweets and retweets. and paid. This is a super cool metric that helps you gage the relevance and appeal of your tweets by tracking how many people retweet it. What's more.Facebook reach. Of course.but it's the sum total of your tweets' possible impression and frequency. viral. it is less about the accuracy of the numbers and more about scoring your previous performance. The key here is not to take it too literally.) . (Also see below. Like all online reach metrics. the Twitter API can show you who is retweeting your posts and their reach. This is a metric that Facebook generates that is based on your reach.

So this is a good way to see how many clicks you are generating even if they are not to your site. or blogs and media sites. Pinterest. Are you using Bitly as a URL shortener? Well.they may go to YouTube.So you can identify influencers who have a large base of followers and are likely to retweet you or post your content to their blog if they have one. Flickr. you can use its API to see how many clicks you get and what category of posts drives the most clicks. . This is important because if you're being conversational you are very likely posting links that don't always lead to your site . Social clicks.

but in all blogs. you can see how many leads you get from social media. Just like socially-referred traffic described above.Chatter levels. public relations. tweeting. not just in Facebook. While they are imperfect numbers like many online metrics. Socially-referred site traffic. and marketing is echoing in social media? Check out your chatter levels with applications like Radian6 or simple Google Alerts. Socially-referred leads. and email. So you can track social media ROI and leads! . and groundswell a brand gets. banners. they do represent your overall presence and groundswell in the social media space. and the millions of social media sites that could be talking about you and linking to you. blogging. Want to know if all that posting. tweeting. Just like search. you can see how much traffic your site gets from all the posting. forums.

" Add up what you would pay for all the impressions. Richard Fouts described "Media Equivalent Value" as "the monetary equivalent of the impressions generated through social media that would have traditionally been acquired through paid media." .Socially-referred revenue. traffic and engagement. By doing this you can arrive at your social program's "Media Equivalent Value. e-commerce revenue can be sourced to social media. and leads you get from social and apply what you would pay for those clicks via banner buying or other forms of media buying in your category. Just like leads. So you can track social media ROI for e-commerce too! Media equivalent value. clicks.