Social Media KPIs?

As social media moves into the mainstream of marketing there’s a growing body of content addressing and suggesting KPIs for measuring it. Recently I’ve even encountered a SEOmoz post that tackles the issues.

Here in Bangkok I’ve been asked about Social Media KPIs twice in the past few months, and I must say it seems I have a slightly different view to the mainstream of thought out there (Maybe because most of the stuff being published is being published by social media practitioners who might just have a less than objective opinion?)

What are KPIs again?

I’m a meat’n'potatoes kinda guy, and personally I’ve always believed in tracking KPIs that have a strong correlation to conventional business metrics. Boring numbers like:

1. Leads per month
2. Sales per month
3. Closing rate
4. etc.

I also hold the perception that in the  majority of cases a KPI must be a ratio and match the following definition:

A KPIs is a number obtained through the correlation of  two or more  metrics that helps drive change in the organization.

More about that in the slideshow at the end of this post…

So…

What aren’t KPIs for Social Media?

Based on the above definition it immediately becomes evident that all these cannot be considered KPIs at all, and therefore obviously cannot qualify as KPIs for Social Media:

1. Facebook “likes”
2. Facebook fans
3. Twitter followers
4. Youtube views
5. Google +1s
6. etc.

All of the above (and many similar banal numbers like them suggested by pundits web-wide) are only METRICS. They can have a relation to business KPIs, but they’re next to useless in themselves. A case in point is the famous “Old Spice Guy” viral videos. They had a spotty record insofar as sales are concerned even while views of the videos on Youtube were going through the roof (and even that didn’t last forever as the figures for the last video in the series clearly show…).

 Remember this guy?

My basic premise is this:

What good are a million Facebook fans if they make no change to the bottom line?

What Can be KPIs for Social Media?

As defined above a good KPI is a metric that can immediately assist the business in adjusting tactics and strategies to improve profitability. As such I believe that any of the following can be considered valid KPIs for social media:

1. Leads generated by Social Media activity from each individual channel (Twitter, Facebook, Youtube, etc.)
2. Cost of client acquisition via Social Media (and it’s relation to same for other lead sources)
3. Lifetime value of customer generated via a Social Media lead
4. Relevant thought leaders engaged and retained via Social Media over a given period
5. etc.

Ideally any Social Media KPI should be tailored to the business’ existing on- and offline marketing strategies. After all in most cases Social Media is going to be only one of many marketing efforts  the company is engaged in, and as such it must validate and justify it’s existence just like any other marketing spend. Even if it is currently the coolest kid in town…

Tags: front page feature, KPIs, Social Media, social media KPIs

Category: KPIs