Now that you have completed Step 1 and have your social media business objectives selected, it’s time to assign values. As you begin assigning values and tracking each value, you start to understand your own Social ROI.
Step 2: Assign a value based on your business objectives
eCommerce Purchases (eCommerce Brands, CPG)
Add GA code to your checkout cart to track purchases from social. Start by enabling ecommerce tracking on the view (profile) settings page for your website. After that, implement the analytics
.js ecommerce tracking methods in your shopping cart. The collection of ecommerce methods work together to send each user’s transaction information to the Google Analytics database as it occurs.
Page Views (Publishers, Media Companies)
If you monetize your site through ads, calculate your average CPM. Lucky for you, all of your most used social platforms will provide this information for you. You will want to take a look at your average across all platforms for each campaign. See below for more information on each:
Facebook Ads (+Instagram): The quickest way to see these details, is to click on “customize columns” and then scroll down to add CPM. From here your Cost Per 1,000 Impressions will be calculated for you in the column based on the campaign and dates that you chose.
Twitter Ads: Although they don’t specifically calculate the CPM for you, we can help you with the following equation: Budget / (Impressions/1,000) = CPM or we love this easy online calculator 🙂
LinkedIn Ads: After logging into your ads manager you can select your page, then narrow down the campaign and dates you choose. At the bottom you will be able to see an assortment of analytics including your average CPM.
Free Trial Sign Ups (B2B Brands, Financial Services, Health Care)
First find your “Customer Life Time Value”, if you aren’t sure what this metric is then the most straightforward way to calculate Customer LTV is to take the revenue you earn from a customer and subtract out the money spent on acquiring and serving them. Once you have this number, multiply it by your “Conversion Rate” or how many free trials turn into paying customers.
Newsletter Sign Ups (B2C Brands, Financial Services, Industrials)
You can find the value of an email acquisition by first dividing the number of email subscribers that became customers by your total email subscribers. Then take that number and multiple it by your Customer Life Time Value (see above to calculate).
Mobile App Download (B2C Brands)
First take your Monthly Average Users (MAUs) and multiple by the Value of your MAU.
Brand Awareness (Industrials)
Calculate your Avg. CPM rate on social ads buy following the same details for “Page Views” above.
Now that you’ve got your values assigned and your goals set, it’s time to start tracking your conversions. Next week we will help you connect the dots from social to site. Soon enough you will be a master at analyzing your Social ROI.