You often hear about how leveraging social media has become such an important element of online marketing, but how much are those efforts really worth? To give you an idea based on market numbers, research conducted by startup company ChompOn showed that a Facebook Like is worth about $8 while a tweet is worth $5. This type of research is always interesting, but rarely is it ever an accurate assessment of your individual situation. While determining the value of your social media fans and followers can be difficult, there are some metrics you can rely on to measure their worth.
Evaluating the worth of your social media followers? Ain’t that easy!
The measuring of social media influence is different from one brand to the next, so you need to be creative in order to get a clear view of your impact. Loyalty is an ideal metric to start with. So how do you measure an intangible aspect such as loyalty? By analyzing the actions that encourage your fans or followers to behave in a manner illustrating their loyalty to your brand. For your business, this could entail examining how many of your Facebook fan are being converted to Twitter followers, liking or retweeting your content, or actively advocating the brand to others. Your most loyal audience members are usually your most valuable as well.
When it comes to the social media realm, there are a variety of ways a fan or follower can interact with your brand. However, if you want to use interaction as a measuring stick to determine value, you must identify the methods that result in actionable data. This isn’t as difficult as it sounds. For example, some metrics in this category that are likely to apply to your social media marketing efforts include the number of posts commented on, the clicks and impressions from your advertising campaigns, or if you have defined a specific goal for a particular interaction, conversions. Here, it’s all about finding out which user interactions have the most value.
Another metric that can be used to determine the value of your fans and followers is ROI, aka, the return on your investment. There are a number of ways to do this, but we’ll look at the simplest of examples. Let’s say you invested $40,000 in your Twitter marketing efforts and calculated that the investment resulted in a $60,000 increase in customer value. In this case, your ROI would be 50%. This figure can be calculated by subtracting the cost of your investment from the valued gained, and then dividing the gained value by the cost of the investment.
Trying to put a dollar value on your social media fans and followers makes for a fun exercise, but this practice will never result in 100% accuracy no what metrics you utilize. Not only is every brand different, but so is every user and the interactions they have with that brand. The true value of a fan or follower can be determined only when you understand what makes the individual members of your audience want to be connected to and advocate on behalf of you brand.