In the article,
Ensure Your Social Media Efforts are Paying Off I detailed how to create Smart Goals to define expectations and realistic goals for your Social Media Marketing efforts. This post, Social Media Tools for Measuring Results is about creating those relationships between things that are measurable and you can qualify and those things that are not worth the resources to measure and instead are quantified.
If you have created a proper Smart Goal, your goal should be Specific, Measurable, Attainable, Relevant, Time Bound. So let's use the example in Ensure Your Social Media Efforts are Paying off and define a Smart Goal for measuring.
Smart Goal - Using Social Media increase revenues 10% within the next 60 days.
Specific - yes, increase revenue 10%
Measurable - yes, we can measure revenue
Attainable - yes, 10% is possible
Relevant - yes, we are using Social Media and I am the person to do this
Time Bound - yes, in the next 60 days
The most difficult part of this will be to determine how much revenue is based on social media marketing. Let's create a few "facts" for our example.
We will create a hypothetical restaurant names SoCal Steaks.
Current figures: (Using the same example we created in
Ensure Your Social Media Efforts are Paying Off).
Weekly Sales = $50,000
Customers Served = 2000
Ave per Customer = $25
Social Media Networks Usage
SoCal Steaks has a Facebook fan page. Is listed on Foursquare but has not claimed the venue. SoCal also has a Twitter account that is not really used. The current stats are as follows:
Facebook Fans: 500
- Check-Ins per day: 1
- Check-Ins per week: 7
- Check-Ins per fan: 0.2%
- Current new Fan rate: 2 per week
- Updates: 2 per week
Foursquare Check-Ins per day: 1
Twitter Followers: 50
Tweets: 2 per week (Twitter account is tied to Facebook account)
Stats and Figures
Using the current stats we know:
14 total Check-Ins per week (7 FB + 7 FS).
Check-Ins per Facebook Fan: 0.2%
Check In Revenue: $350 ($25 ave sale x 14 check-ins per week)
Check In Revenue as a % of Total Revenue: .7% (FB + FS combined)
We place a value of a Facebook fan to equal $0.10 cents revenue ($50,000 revenue / 500 Facebook Fans). We will adjust later as we learn more but let's say $0.10 to start. So, to increase revenues 10% which equals $5,000 per week we would need to add 50,000 fans at a value of $.10 each. That's not possible, realistic or feasible.
Let's look at this differently. We need to determine how many Facebook fans come into the restaurant and how often. We can do this by asking them on Facebook with a Poll. We can create a Check-In Special or Facebook offer, both of which are also a great tracking tools.
Creating A Check-In Special or Facebook Offer and Measuring
A Facebook Check In and Offer are two different things. Both are basically a special that will allow us to track how check-ins relate to fans and revenues. The added benefit of a check-in is they do it at the venue and every time a fan checks in they broadcast to their friends they are at SoCal Steaks. A great added bonus which should bring in more customers as well.
By the customer broadcasting the check-in to their friends we might also
see an increase in our new fan rate. We determined our current rate to
equal 2 new fans per week. If we see this increase to 10 per week and
we previously determine each fan is worth $0.10, then we also realize a
virtual worth of $1.00 that should be deducted from the cost of the
Check-In.
Here's how to
Create Facebook Offers in Minutes.
How Much Does a Check In or Offer Cost
There is no charge from Facebook to create either. There are different types of Check-Ins or Offers you can create. One that is a % off, one that is a free item, one that is a dollar value off. I prefer and recommend the free item. Why? The cost of the item is much less than the value. For example, a free dessert that sells for $7.00 will cost under $2.00 normally.
How Much Does a Check In or Offer Bring in Revenue
Calculate the revenue using the sale, less the cost of the dessert. You may find the average sale goes up. In the case of the free dessert, the customer may add a coffee to go with the dessert. The added profit from the coffee will partially offset the cost of the dessert making the cost minimal.
ROI per Check In Customer
Cost of Check-In: $1.00 (Food cost $2 - Fan increase $1(10 x .10))
Revenue: $25+ in revenue.
ROI: $24 per check in.
This would equate to running an a print ad for $500 and generating $12,000 in sales. Something any business owner would take every day of the week. Fantastic! Remember, when you run an ad with a coupon in the local newspaper or where ever you need to add the cost of the ad when determining ROI.
Print Ad Example:
Coupons redeemed: 100
Food cost: $2 per unit
Ad Cost: $300
Food Cost Total $200 (100 x $2) + Ad Cost ($300) = Total Cost $500 or $5 per customer.
ROI: $20
You can see the ROI for a Facebook check-in is $24 compared to a print at ROI of $20. Use this formula with your exact figures and see which is more profitable for your venue.
Quick Update
At this point it is important to note that we need to be seeing an overall increase of sales otherwise we are cannibalizing typical sales. We want to add sales, not see the same sales with the increased cost of the Check In Special or Offer.
Do a quick tally of Sales / customer = Ave sale per customer. This should be done weekly if not daily.
Progress with Facebook Check-Ins
Week 1: 10 Check-Ins
Week 2: 15 Check-Ins (50% increase)
Week 3: 22 Check-Ins (32% increase)
Week 4: 29 Check-Ins (32% increase)
Total after 4 weeks: 76 check-ins total, weekly change +32%
Total Facebook Fans
Week 1: 520; +20
Week 2: 555; +35
Week 3: 580; +25
Week 4: 610; +35
These figures are examples, track your actual figures and determine your rate and projections.
Let's remember our goal is to increase sales revenue $5000 per week which equals 200 new customers.
Projections at a sustained 32% increase in check-ins
Week 4: 38 (29 x 1.32 rate increase)
Week 5: 49 (38 x 1.32 rate increase)
Week 6: 64 (49 x 1.32 rate increase)
Week 7: 83 (64 x 1.32 rate increase)
Week 8: 108 (83 x 1.32 rate increase)
These figures are examples, track your actual figures and determine your rate and projections.
During our week 4 review we would determine that our efforts to add 200 more weekly customers using strictly Facebook Check-Ins and see at Week 8 we would have 108 customers and would fall short by 92 customers. We would need to modify our Smart Goals, or add more Social Media Marketing initiatives.
At this point the decision might be made to add Foursquare Check Ins. Foursquare Check Ins work the same as Facebook but potentially bring new customers into the venue. Remember, with Facebook Check-Ins and Offers you are primarily reaching fans that "Like" you. Foursquare opens up your Check-In to everyone using Foursquare. To start using Foursquare and create check-ins see
How To Foursquare and Drive Business.
Measuring Tools - Part 3
Social Media pros know they need to measure their efforts and adjust to
consistently and systematically improve engagement with their audience.
Here are a number of great tools that create visibility and allow you
to monitor your effectiveness.
http://netprofitsmedia.blogspot.com/2012/06/measuring-engagement-levels-in-social.html
I hope this 3 part article gives you some good ideas and provides a
working framework to start, measure and succeed in your Social
Media Marketing efforts.
Get More Social Media Ideas and How To
Drive more business;
How to Launch Facebook Offers, Brand Building on Facebook,
Best Time to Post on Facebook and Twitter,
How to Super Charge your Facebook, How to use Facebook and Linked In groups
http://netprofitsmedia.blogspot.com/ 
