When it comes to determining what metric is most suitable for your campaign it can be difficult to understand which one is of most importance. There is no single metric that determines success on a social platform, but rather a collection of metrics and key performance indicators (KPIs) tailored to the purpose and goals of the business. These may be organic efforts, paid campaigns, or referrals, which together provide an overall result that shows what is working and what is not. So the question becomes, what metrics should a company consider? It all depends on how the company operates and what its goals are.
Micro-actions are tracked through social media KPIs and are easily measurable as metrics are a basic currency on any social platform. These include impressions, views, followers, likes, shares, comments and reach. They often lead to the final action when added together, or the macro action.
KPIs are an indicator of the extent to which social networks are contributing to strategic business goals, as the metrics show a company how well its tactics are working. Macro actions are a representation of the bigger picture tracked by social media KPIs.
So, a company wants to increase its product sales by 5%. The KPIs for this could be the number of purchases or revenue generated. Mirco actions that help achieve this goal include engaging in social posts that talk about the product, referral links from other sources, or going to the product page on the company’s website. Impressions, comments, likes, and views are tracked in these strategies. The macro action this company expects its customers to take is to buy a product.
In short, these macro and micro actions are key to figuring out what kind of return on investment a company is getting.
Does the business model affect the metrics and KPIs?
It all depends on how the company operates and what its goals are. For example, two companies want to grow their revenue, and they both do it differently. One is a direct-to-customer business, the other is a business-to-business business, and therefore both have different metrics for determining return on investment (ROI). Direct clients focus on tracking metrics such as link clicks, page views, and site duration triggered by paid ads. Engagement in organic posts can also drive interest when services and products are mentioned. You can even track the entire customer journey across social media and analytics platforms.
Business-to-business or software-as-a-services (SaaS) companies often need a more complex sales channel. Trials or demos can be used to increase sales and the number of qualified leads.
For each stage of the sales channel, there are key metrics that indicate the level of intent. Understanding this can give a better picture of where the return of investment is coming from.
At The Studio 4, we specialise in selecting the right metrics for you. Our team has experience with success in both business-to-business and direct-to-consumer marketing. Our goal is the same as yours. Contact us today for more information.