Your boss is asking you to prove the ROI of your social media or digital marketing work. And you launch on a mission to demonstrate social media results. You show data and more data, yet, your boss is still asking, “but, where are my results”?
It happens more than we’d like. And generally, it’s not that there isn’t social media ROI (or digital marketing ROI), or no data to measure. The culprit is usually one of the following:
Marketing is an expense. You will start seeing returns for this expense after you’ve been doing good marketing for a while. Often, a year or two. But even then, the effect is delayed. Expecting marketing to give instant and clear ROI is not realistic, for many reasons:
Given these facts, ROI should be measured for combined marketing efforts not by channel. There will be marketing impact indicators by channel, and it is important to measure these (more in the next section). In parallel you must measure overall ROI changes and watch for changes there (ideally, watch for an increase in overall ROI).
Let’s look at this second reason that makes it hard to convince your boss that your marketing is working. It takes work to tell stories with data, stories that show progress toward business goals. If not presented well, all the data in the world won’t be enough to show business impact.
1. Know what the data means
Truth is, too many marketers can’t show results because they don’t know what the numbers mean. For example, what does it mean if your engagement numbers are high? Does it mean that people see your content? Or does it mean that they read your content? Is there even a difference? Or is it that they “like” a “post.” And what if they liked your post? What does that mean?
Every time you catch yourself saying, “our engagement numbers are growing,” stop and ask yourself – so what? That’s the difference between reporting data and doing an analysis. You have to go beyond just spewing numbers, and actually think through (analyze) what those numbers mean.
What does your digital marketing data mean in relation to your objectives?
Here are some interpretations that may help:
Data | What it Means | Or… | Does it matter? |
Facebook page likes | I’m a fan and I want to stay in touch and get coupons and freebies | I’m curious about this topic | 80% of page likes come from people who already know of you. So it’s a great check to see how strong your fan base is. And those other 20% may become customers now. |
Facebook people reached | how many people possibly saw the post in their news feed | the higher the number the higher the brand visibility | Clicks matters more than views. |
Twitter follow | I’ll play nice and follow you back | I’m curious about this topic | Not much. people search Twitter for information so your content can be found in many different ways. |
Twitter retweet | Cool content, I think it’s relevant to my followers and it will make me look good if I share it | I want to get on your radar so I’m resharing your content | The more retweets the more chances that people will click on your content. Just make sure you’re sending the traffic to your site not to someone else’s site. |
Visit from a social network | I was compelled by your content and call to action to click | I want to learn more | It matters very much. It’s a commitment to learn more. As long as the website is designed to convert, you will soon have a new customer. |
Email Open Rate | I recognize the sender name and they always write things that I want to read | the subject line and/or the preview line made me want to learn more | The more opens we get the more clicks we’ll get. But open rates doesn’t mean your email was good. It just means your sender name is recognizable and your subject line and preview line were compelling. |
Email click rate | I’m ready to buy or I want to learn more | I had enough options to click | It’s very important. There is no point in emailing if there’s no link that I can click. Marketing’s job is to generate leads not to send announcements without calls to action. |
Instagram “heart” | I like the story your picture is telling and/or hashtag/topic | I’m liking everything in my path right now | It’s an indication that people care about your image and topic. Retailers have seen sales of products because of visual storytelling. |
Instagram follow | I want to hear from you | I am interested in this topic | Most “follows” come from people who are already fans of yours or of the topic, so it’s a great retention number. |
Conversion | You have credibility so I’ll buy from you | You made it easy for me to check out | duh! that’s what we’ve been working for. |
You can see more data points and interpretations in our earlier article on social media data analysis.
2. Translate data into stories
3. Know your audience and customize your report
Do they understand marketing? Are they good with math? Are they detail oriented? Why do they care about the ROI? Do they have to make a case to their bosses?
You may have to start with a discussion on what data points matter and why. For example, while your executives may want a direct dollar value tied back to your marketing, you will have to explain that before you can sell, you have to have “visitors” to your digital “shop.” So your job as a marketer is to get those visitors to the “shop.” There, a sales mechanism, such as a salesperson, will close the deal.
If you know your audience you’ll know what associations to make to get them to understand. If they’re into baseball, remind them that the majority of a baseball game is spent trying to get players to bases. Once in a while you have a home run, but that’s a very small percentage of the game time. If you were to measure the ROI of each hit and play you may come up empty. It’s the final game score that matters.
Prepare for each scenario:
The digital marketing and social media ROI questions will still cause you some pain. My hope is that by focusing on teaching your decision makers what marketing data is relevant, and presenting your data in more compelling ways, you’ll have more productive conversations about the results of your work.
What have you found works in helping people to understand digital marketing data?
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