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Social Media: how to measure their impact?

 

For a company, having "a presence" in social media is worthless unless it allows it to achieve some objectives. However, beyond the control of the company, social media talk about the company, under these conditions is it reasonable to ignore this space frequented by customers, prospects, partners and competitors?

Social media influences reputation, image, and perceived value. All this has an impact on business results, sales, recruiting new customers, the frequency of transactions, the success of promotions, customer loyalty, and perceived quality of customer service.

A company should not run on social media without thinking, it must begin by setting goals. What does the company want? Increase revenues, have more new customers, offer new services, ... ? Save money, reduce costs, ... ? The objectives are necessarily specific to the business models and context, and must be precisely defined.

Very often non-financial targets are set as: a number of web visitors, page views, subscribers, comments more or less positive, e-mails delivered, texts adopted by other, number of subscribers, visits generated at points of sale, ... . This is all very well but is useless for measuring return on investment actions. We must therefore focus on financial metrics such as increasing the number of customers, frequency of purchase, and the amount of average spending.

Before launching its first actions on social media, company must first fix the references of selected business metrics in order to compare and measure after the impacts of its actions. The company must then plan and conduct various activities on social media, measuring non-financial items precursors of turnover, as the polarity of the conversations, and finally measure the financial impact.

Specifically the information system should integrate classical business intelligence data with social media data (text searches, network analysis, ...), and look for possible links between various actions on Social media and financial performance measured. This is not trivial and as for all marketing activities of an enterprise, define the paternity of a result is highly political.

To go further on the subject of measuring the impact of social media on the results of a business, you can usefully consult the link below:

http://www.wdfm.com/marketing-tips/jim-sterne-social-media.php

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Tags: Analystics, BI, Big, DSS, Data, IT, Mining, Model, Warehouse, management

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