How chatbots can boost social media ROI
According to a survey of social media marketers, 61% say measuring ROI is the hardest challenge facing them making it the number one complaint about social media marketing. What makes measuring ROI so difficult for social media is that there isn’t always a correlation between the metrics most people pay attention to and actual sales. Social media has forced marketers to begin embracing new metrics but most are still having trouble correlating those new metrics with sales.
What is social media marketing success?
To understand the problem a little better, here is an example. Say that social media marketing success is determined by content engagement (56% of marketers in the survey mentioned above reported engagement as their most important metric). Engagement is simply the number of “likes,” shares, and comments on a given post. For most marketers, high engagement rates is a sign that the content is good and their community of followers is active. But it might be a lie.
A video uploaded to Facebook might have a 30% engagement ratio which is quite high, but only return about $1 for every marketing dollar spent to produce and promote the video on Facebook. Another video, or meme, or text-only post might have an engagement ratio of only 1 or 2% but an ROI of $4 for every marketing dollar spent. In short, engagement doesn’t necessarily correlate with ROI, and marketers are often stuck pursuing a metric that doesn’t matter in the long run.
Click rates vs. online behavior
Another metric that marketers often pay too much attention to is click rates. The thinking is that the more people that click on a link, the more people will buy the product of sign up for the service on the landing page. On the surface it sounds logical, but like engagement rates, click rates can be deceiving. Time and time again we see that click rates and ROI have virtually no correlation. Ultimately it doesn’t matter how many people click on the link, it matters what they do once they get to the landing page. A better metric for correlation with ROI is the bounce rate (a higher bounce rate negatively correlates with ROI) and the average time on page (a longer average time on page positively correlates with ROI).