Monday, March 5, 2012

Measuring ROI through Engagement

With the rise of social media and websites such as Facebook and Twitter, Marketing ROI has encountered a new level of complication. With fans, likes and followers, it appears that Marketing ROI has been simplified, the more fans the more return on investment.

But recently in marketing, research is showing that more fans doesn't actually equal more value. If a large number of fans are inactive or unresponsive what value do they really have? We have learned that more companies are narrowing in on a smaller, more focused core group of fans or followers. By targeting a more concentrated demographic that is truly interested in a companies product, the company is getting more value than by pushing information onto a larger less interested crowd. True fans or followers appreciate the core information being shared with them and are more likely to then be active participants in the conversation, even starting conversations themselves on behalf of the company.

Therefore its not the number of fans you have but rather the amount of participation and engagement that your fans give back in return.Companies such as Facebook offer corporations insights on the number of followers they have but also by calling out the number of people are respond, repost, talk about your company and the overall reach. Through engagement and quality referrals from consumers, companies are benefitting more than by simply having huge followings.

Here is a summary of the insights that Facebook provides:

The Insights dashboard gives you more insights on the content that users view on your Page.
  • Page Views: Total number of views of your Facebook Page, during the date range you specified.
  • Tab Views: Number of views that each tab on your Page received when logged-in users visited your Page, during the date range you specified.
  • External Referrers: Number of views coming from the top referring external domains sending traffic to your Page, during the date range you specified.
  • Media Consumption: After you post a Facebook video, a photo, or an audio clip, users are able to click to consume that piece of content. This data corresponds to number of views of that your videos, photos and audio clips received on that day, during the date range you.

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