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Two sided approach for KPI reporting in social media marketing

Two sided approach for KPI reporting in social media marketing

Two sided approach for KPI reporting in social media marketing

The statement ‘Every action has an equal and opposite reaction’ may be true on theories of Physics but not for the science of Social Media.

Social Media companies are continuously on the lookout for market spend optimization i.e. they focus on a strategy to make multi-fold output from their most minimal inputs. Hence if the company or firm posts a ‘tweet’ or a ‘comment’ on their social media pages, the aim is to increase its coverage through either increased fans, followers or retweets.  But the question is what should you  communicate with the audience? The answer is simple, ‘Define your KPI’s and make sure it follows through to the audience via the information you are communicating matter.

There are two ways in which KPI’s (Key Performance Indicators) can be measured for social media – ‘Inside Out’ and ‘Outside In’.

The In-side-out approach is all about the activities of businesses after setting up your pages or accounts on suitable social media platforms. The number of blogs, tweets or facebook comments the company makes will have an effect on the overall impact on the social profile of the business. This will also depend on the intention of the activities you are carrying out whether it be awareness, followership or sale. The content of the posts will depend on that but be clear social media marketing starts from giving a lot of information, awareness or fresh content to your customers before expecting them to return the favour by making a sale. Along with the social media strategies businesses need to define their in-side KPIs in order to set the direction and keep the team on track. These KPIs can be – number of tweets, number of comments, time and resources spent for customer engagement per calendar month etc. Every business is different and internal KPIs will be different in all the cases.


The Out-side-in approach is about measuring the reflection of what businesses are doing. Followers and fans, number of mentions are just indicators of how well you are spreading the word. Businesses need to go a step forward and engage with customers and see how many people are re-tweeting, commenting or sharing your content. The most important KPI is ROI (Return on Investment) and here most of the businesses struggle to measure it.

ROI can be calculated in many ways such as Sales or subscription numbers per month by investing a given amount. To calculate these, businesses need to keep track of the source i.e. where the visitor is coming to your website from before making a sale so that you can differentiate the visits from search engine to the visits that have come through your SM activities. Also this should be related to internal KPIs for example if you are getting 1 sale through twitter after every 100 tweets then ROI is 1/100 and this needs to be recorded.  Other external KPIs can be number of followers, likes and retweets etc.

You can also define matrix of customer loyalty and advocacy on the basis of repeat sales, referral sales and shared content.

One thing is very clear that if businesses will not define KPIs before starting their social media campaign, they may be lost on their way after spending lot of money and not getting anything back. Remember 1000 fans are worth nothing if they are not adding any value to your business.

For more updated articles and news follow us on Twitter @odimax, on facebook at on.fb.me/mFsVrA or visit www.odimax.com

Tags – Social Media, Social Media marketing,  Social media ROI, SMO, Social Media KPIs, SM performance matrices.



The Author is know social media marketer and CEO of ODiMaX Ltd. – A london based online makrting solutions company. Recently company has launched it first social media monitoring tool SocialGuru.

follow us on Twitter @odimax, @AtalMalviya

on facebook at http://on.fb.me/mFsVrA

or visit www.odimax.com

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