L16: Metrics and Analytics Flashcards
What is consumer data?
Units of information collected from the interactions between a company’s touchpoints and current and potential consumers interested in its products and services.
What is Declarative Data?
refer to data created and, in general, disclosed continuously by consumers in their interactions with companies or brands and other consumers, either at the request of the company or of their own volition.
What is non-declarative consumer data?
The observable behaviors of customers in both digital and physical spaces that companies can track, process, and analyze to derive behavioral consumer insights.
CONCEPTUAL FRAMEWORK OF CONSUMER DATA
Primary usage of consumer data is…
reflects the company activities intended to gain marketing intelligence through market research activities.
CONCEPTUAL FRAMEWORK OF CONSUMER DATA
Secondary usage of consumer data is…
data, not actively collected for market research purposes but, instead, the by-product of consumers’ activities during the customer journey.
CONCEPTUAL FRAMEWORK OF CONSUMER DATA
EXAMPLES
Examples Quadrant 1: indepth interviews, surveys, focus groups, and other traditional market research techniques, that gather data from current and potential consumers about their preferences and consumption habits
Examples Quadrant 2: market research activities to experimentally collect novel forms of consumer data in controlled environments through neuroscience and neuromarketing techniques (eye tracking, fMRI, EEG)
Examples Quadrant 3: unstructured, behavioral data that consumers create in declarative form (e.g., social media activity, word of mouth [WOM]
Examples Quadrant 4: Data in non-declarative form (e.g., location, clickstream data)
What are social media analytics`
represent the tangible outcome of monitoring, measuring, reporting, calculating content from social media.
What does social media analytics consists of?
consists of gathering and analyzing the data in order to take decisions for businesses.
Choosing the right SMM Metrics
CHALLENGES OF MEASURING SOCIAL MEDIA
- Quantity vs. quality of data
- Variety of different platforms and engagement types: how to compare different social media engagements?
- What is the value of becoming a follower? Million Follower Fallacy: little correlation between influence and number of followers, fake followers
- Data is not neutral/Algorithms are often biased
- Uncertainty in big data
- Ethical considerations: Surveillance economy, Trade-off personalization vs. customer privacy
Is Social Media Activity measurable?
Metrics need to be…
Actionable
Accesible
Auditable
Marketing strategy & social media metrics challenge
- Getting high-quality data
- Finding the metrics that are relevant
- Having the skill to analyze and interpret the data
- Different metrics for different business
SOCIAL MEDIA METRICS
SOCIAL MEDIA METRICS
Awareness: Reach
number of people that see your content (follower/non-follower)
SOCIAL MEDIA METRICS
Awareness: Impressions
number of times people saw your content
SOCIAL MEDIA METRICS
Awareness: Social Share of Voice
how many people are talking about your brand? (direct: @nike or indirect “nike”)
SOCIAL MEDIA METRICS
Awareness: Audience growth rate
how many new followers in certain time (as percentage of total audience)
SOCIAL MEDIA METRICS
Consideration & preference: Click-Through-Rate (CTR)
The CTR is the number of people who click on an ad or a link in your posts. Indicates interest and consideration. CTR = visitors / ad views Example 100 visitors / 4000 ad views = 0.025 -> click through rate is 2.5%
SOCIAL MEDIA METRICS
Consideration & preference: Video-views
How many people have at least seen the start of your video
SOCIAL MEDIA METRICS
Consideration & preference: Video completion rate?
How often do people watch your video to the end? Good indicator of quality
SOCIAL MEDIA METRICS
Consideration & preference: Social Sentiment
Sentiment analysis tracks the sentiment and emotions in conversations about your brand. Can provide insights into the audience’s perception of your brand.
SOCIAL MEDIA METRICS
Action: Conversion Rate
The conversion rate is the percentage of visitors who comply with one of the business goals, i.e. make a purchase, sign up for a newsletter etc.
SOCIAL MEDIA METRICS
Action: Clicks on CTA (Call-to-Action)
Measure how many users are taking the intended action after engaging with your content.
SOCIAL MEDIA METRICS
Action: Cost per Acquisition (CPA)
is the price you pay for acquiring one customer or one conversion. The CPA is sometimes negotiated between an affiliate partner and the advertiser. CPA = ad spend / conversions Example: $1000 / 200 conversions = 5 –> cost per acquisition is $5
CUSTOMER METRICS
Loyality: Customer Retention Rate
Measure the percentage of customers who continue to engage with your brand over time.
CUSTOMER METRICS
Loyality: Repeat Purchase Rate
For e-commerce, track how many customers make multiple purchases.
CUSTOMER METRICS
Loyality: Customer Satisfaction Score (CSAT)
measures how happy people are with your product or service. How would you rate your overall level of satisfaction?
CUSTOMER METRICS
Loyality: Net Promoter Score (NPS)
measures customer loyalty. How likely is it that you would recommend our [company/product/service] to a friend?
SOCIAL MEDIA METRICS
Engagement metrics:
Time Spent on Page/Content
Indicates the amount of time users spend engaging with your conten
SOCIAL MEDIA METRICS
Engagement metrics: Engagement rate
calculates shares as a percentage of impressions
SOCIAL MEDIA METRICS
Engagement metrics: Amplification rate
Ratio of shares per post to the number of overall followers
SOCIAL MEDIA METRICS
Engagement metrics: Virality rate
number of engagements (reactions, comments, shares) as percentage of audience
Website metrics:
- Pageviews
- Session/session duration
- Traffic by source
- New visitors / returning visitor
- Exit rate
- Bounce rate
- Conversion rate
Social Media ROI
Business value returned from social media marketing and advertising
How to calculate social media ROI?
((Value generated from social media – Costs of social media investment) / Costs) * 100
Value generated from social media: varies from business to business (e.g., increased sales, leads, conversions, or cost savings due to effective social media engagement)
Costs of social media investment: all costs associated with executing the social media strategy (e.g., advertising budgets, content creation costs, employee salaries, software & tool subscriptions).
CALCULATE THE SOCIAL MEDIA ROI
Step 1: Define clear social and business objectives
* Understand the overall business strategy/vision
* Examples: building a loyal audience, create relationships with customers, drive business conversions (newsletter sign-ups, sales), improving customer service
Step 2: Track metrics that align with your objectives
* Does this metric reflect my business objectives?
* Does it help me make decisions (what to do more of, what to do less of, etc.)?
* Is it possible to measure it accurately and consistently?
* Examples: Reach, engagement, conversions, sales/revenue generated, newsletter subscriptions
* Are you interested in a specific time period, campaign, post format?
Step 3: calculate your social media costs
* Social media costs should include all expenses required to create and publish content.
* Examples: Tools and subscriptions for social media management, Advertising campaign budgets, Content creation costs, ongoing costs for your social media team (salaries, training, etc.)
* Are you interested in a specific time period, campaign, post format?
Step 4: Calculate your ROI
* ROI percentage greater than 0: your social media efforts have generated more value than the resources you invested.
* Anegative ROI means you invested more than you made back (aka you lost money).
UPSIDE DOWN SOCIAL MEDIA ROI
* Rather than taking investments in social media tools as the starting point, social media calculations should be based on the investments the consumers make into social media
* The time invested by the consumers to engage with the branded content
This approach rates engaged consumers higher than consumers who are only following (Dahl 2021)
4 tips for getting social media metrics and analytics right
- Have a clear vision and set realistic goals and objectives
- Constantly test and improve your content (guided by a vision)
- Stay updated on changes in algorithms
- Stay critical about your measured metrics
4 tips for getting social media metrics and analytics right:
- Have a clear vision and set realistic goals and objectives
Vision
Mission
Goals
Objectives
KPI’s and (Social Media) Metrics)
Getting social media metrics and analytics right:
- Constantly test and improve your content (guided by a vision)
An Iterative process…
- Plan your A/B test: learn, measure and build - including developing a formal hypothesis
- Build social media post with differing elements
- Measure the resultats against your hypothesis to decide whether you can improve the posts
- Learn from your results and decide whether to persevere or pivot
What is A/B-testing?
aka. split testing
= tests small variations in the social media content to find out the content that best reaches a certain audience
Key points: Stay critical
- Question Everything: the context, source, and methodology behind the numbers (see challenges).
- Be careful with “Vanity Metrics” –> connect metrics to business goals
- Context Matters: Metrics will differ for different social media platforms and companies
- Take data privacy seriously
Continuous Learning: agile mindset, social media is dynamic
