There was a time when marketing on Facebook was virtually free. Brands simply had to post cool content to get free word of mouth advertising. These Facebook marketing methods did not generate much value but because they were so inexpensive, it was worth seizing the opportunity.
Facebook marketing ROI now must be tangible.
That era is officially over. As brands are discovering, social media marketing costs more and more money. Today, it requires:
- Numerous community management resources to respond to thousands of hyperactive fans
- Social media agency support to find and execute ideas that will interest over-solicited community members
- Social advertising because on Facebook especially, it’s now mandatory to buy ads to reach new—or even existing—fans
- Multiple, disparate social media management tools: listening tools, ad management tools, community management tools, social login tools, etc.
5 Ways to Measure Facebook Marketing ROI
Under increased scrutiny from the c-suite, social media marketing investments now require justification and tangible ROI. Many Neolane customers have requested our help to build KPIs for measuring Facebook marketing ROI. Why? Because they know that Neolane’s DNA is direct marketing, and therefore we don’t consider “engagement rate,” “word of mouth,” “number of mentions,” or “reach” serious KPIs. Instead, we focus only on measurable and financial KPIs.
Neolane’s Facebook Marketing ROI Approach
Our approach to measuring Facebook marketing ROI focuses on cost reduction, sales, and data acquisition. This ROI measurement framework has five key points:
1. Cost reduction of agency fees
Through automation, synergies created by cross-channel solutions, and internalization of social media marketing expertise, brands can drastically reduce agency fees. A 30% cost reduction is an easily achievable target for companies that leverage robust social media marketing solutions.
2. Conversion of fans into opt-in & monetizable contacts
Fans are Facebook’s property, not brands’. Thus, simply accumulating a lot of Facebook fans shouldn’t be the end goal. Brands have a tremendous opportunity to acquire a lot of new, highly qualified opt-in contacts that they’ll be able to engage in 1:1 through email, web or mobile channels. They can do it using Facebook apps or Facebook Login on their website. Some of our customers have captured more than 30,000 contacts per month using just one Facebook app! These contacts are added to their datamart in real-time, without any import-export tasks, since everything is automated.
3. Qualification of existing contacts with rich social information
Using the same Facebook apps and Facebook Login, brands can enrich knowledge of existing contacts already in their datamart. Capturing this additional social profile data is very valuable for brands. For example, knowing pages and brands people like, their interests, places they check in (restaurants, shops, cinemas, etc.) will allow brands to deliver ever-more relevant and personalized communications across inbound and outbound channels, thus converting more. This data enrichment process is fully automated by Neolane because we automatically reconcile social profiles and profiles in the datamart.
4. Direct selling
Brands can generate website traffic and direct sales by posting coupons, promoting exclusive offers & products for Facebook fans, and raising awareness of flash sales on the website. The ROI is easy to measure: it’s just sales from people coming from Facebook. Web analytics solutions, such as Adobe Analytics or Neolane web tracking capabilities can do it very easily.
5. The reality check: post-acquisition buying behaviors
With a solution like Neolane Social Marketing that integrates with other channels and retrieves transactional information, brands can easily determine who among their customers is actively engaged with them on Facebook. Thus, it’s very easy to measure things such as:
- people that are fans of the page spend X% more
- people that have interacted with the Sweepstake application on a page tab have generated X thousand dollars during the past 3 months
- people logged in on the website with Facebook and targeted with highly targeted email offers spend X times more
For more details about Neolane’s Facebook Marketing ROI measurement framework, have a look at the following SlideShare presentation and contact us for any questions.
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