Rethinking the value of social media

Posted on Thursday January 21, 2016

A lot of businesses are still mystified as how to measure just what kind of value they are truly getting from social media. Because it is a medium that is still evolving, it can be hard to understand just what works and what doesn't when it comes to social media and measuring its value. In fact, it's not unusual to see so-called experts contradict themselves. Don't worry if you are unable to totally understand social media value. We'll break down a few things for you.

Social media is important for your business and it can have a great deal of value for your company if utilized correctly. Of course measuring this value is an imperfect science. While we don't have a magic formula to help you figure it out, we do have a few things for you to consider when it comes to estimating it for yourself.

Followers matter but

...they are not the end all be all when it comes to your social media efforts. When social media first started, it was all about how many followers you had. In the eyes of consumers, more followers equaled more credibility. However, that sentiment is no longer a prevailing thought among consumers and the number of followers you have won't make or break your organization.

However, having a lot of followers does still reflect well on your business and it also gives you an easy way to reach your target audience directly. This is where it becomes important to monitor things like average clicks, the number of clicks the page you shared got, and conversion rate - the number of people who clicked on your share that turned into a sale or lead. If you have 100,000 followers but don't get clicks, then your social media doesn't hold a whole lot of value. The next point comes in handy if you're having trouble monitoring all of these.

Simplify the way you monitor social media

A lot of businesses make a simple mistake that convolutes the way they estimate the value of social media. That mistake is failing to create unique campaigns and contact points for each social media channel. Doing this can make it difficult to determine just what leads and sales are coming from which media. Here's an example for you. Your business shares a link on Facebook, Twitter and LinkedIn to a page on your website where people can download a free report. You get 150 people to download which is good but it can be hard to determine just where everyone came from to download the report unless you have advanced tools like Google Analytics at your disposal.

That's why for every promotion or pitch page on your website that you share via social media, you should create a distinct URL for each one so you can easily monitor where people are coming from. This will help you understand what kind of value each of your social media channels has. You might also want to consider creating a separate phone number for each social media channel so that way when a person does call, you will know where they came from. This option is especially easy and cost effective to implement if you have a VoIP phone system in place.

Set social media goals

Without goals in place, it's pretty hard to figure out the value of anything including social media. If you already have social media goals established, then these are probably the place to start in determining the value of your company's social media. If goals have not been set up, you are going to want to create some and see if your company is able to reach these. That's because the easiest way to determine if something has business value is to establish if it can help your company reach its goals. If you see that social media isn't doing this, then you'll need to reconfigure your strategy accordingly. If social media is adding value, then you will want to dig deeper using different tools to get a better idea of just what that value is.

If you aren't using social media to add value to your business, then you are losing out. And if you aren't utilising technology to assist in these efforts then you are really falling behind. Talk to our experts today to see how you can get started.