Tip: This post is a part of a series of blog posts, which focuses on social media analytics and marketing. To view the other blogposts that provide background knowledge on how the traditional marketing landscape has changed and why companies use social media analytics please refer to previous posts below:
- The Transformation of Marketing (Social Media Analytics)
- What do Business Analytics aim to achieve in Marketing?
- Types of Social Media Analytics and Tool
Business analytics has two main aims in marketing:
- Measure effectiveness of marketing campaigns
- Monitor the current state of social media engagement between a brand and a consumer.
Once these metrics can be measured, this can aid the business in making decisions needed to develop loyal members which will build brand value by retaining customers. This revolves largely around the stages of member development.
Stages of Member Development
Business Analytics is ultimately utilised to measure the ability to capture value from customers by building relationships, which may come from promoting participation, and building brand loyalty with consumers. This will enhance a firm’s ability to gain retain consumers, providing them with a competitive advantage.
The diagram below portrays the stages in capturing value from customers (i.e selling products), which first highlights the need to attract members, promote participation to encourage engagement, and ultimately building brand loyalty to capture value. This portrays the notion that a community needs to be established online before value can be captured, and this community development can be aided by Business Analytics to ensure the right decisions are made.
Social Media Metrics
Various types of metrics can be utilised to measure the effectiveness of each stage in the above diagram. Each metric can be utilised to measure level of engagement, awareness, participation and sentiment. The table below highlights the variety of metrics that can be utilised. The metics utilised on each platform will vary depending on the structure of the platform. Furthermore, to see the types of business analytics tools that utilise these metrics please see our next post.
Type of Measurement
|· Number of unique page visits
· Number of bookmarks
· Search ranking
· Number of tweets/tags/likes
· Number of page views
· Number of reviews posted
· Number of followers
· Number of videos posted
· Number of subscribers
|· Amount of user generated content
· Number of comments and replies
· Number of wishlist adds
· Number of topics and threads
· Sentiment of product reviews
· Sentiment of comments
· Number of responses to polls
· Number of responses in a discussion
· Number of posts shared
Word of Mouth
|· Number of retweets/reblogs
· Number of posts shared
· Number of additional tags
· Number of references into other blogs
· Frequency of appearance on timelines
· Numbers of referrals
- Hagel, J. and Armstrong, A. (1997). Net gain. Boston: Harvard Business School Press.
- Hoffman, D. L., and Fodor, M. 2010. “Can You Measure the ROI of Your Social Media Marketing?,” MIT Sloan Management Review (52:1), pp. 41–49. Available from: http://sloanreview.mit.edu/article/can-you-measure-the-roi-of-your-social-media-marketing/