There are two ways to measure social media ROI: (1) direct profit that results when people act on an offer you publicize on a social channel (a promo code, a coupon, or the like); and (2) the contribution to profit and value that results from people engaging on social channels to chat, research, converse, and generally form a positive impression that inclines them to buy, recommend, follow, and stay loyal and satisfied.
We help clients focus on that second, far more lucrative metric, also known as Customer Lifetime Value, or CLV. Ever heard of that? It’s a measure of the profit you can expect to generate from a customer as long as they remain a customer. It includes initial sales, renewals, upgrades, referrals, and other sometimes non-monetary indicators of buyer satisfaction.
How do you measure contribution to CLV? The slide deck linked here offers a glimpse into some of our client work that answers the question. If focuses less on the technology that underpins the effort, although we do provide a resource list, but more on the types of things you can measure and the ways you can capture the upstream inputs to do that measurement so you can determine what works and pivot to do more of that. We hope you find it helpful.
How do you measure social media ROI? Love to hear your stories. Comment below, or really open up the chat by sharing on your favorite social channel!