Social is a lot more than just a network of web pages – it’s closer to a layer that defines digital relationships between your brand, products and shoppers. In order to answer the question “how Social were we?” – you will quickly realize that our traditional understanding of how we measure success also needs to evolve beyond how we measure success for websites. Avinash Kaushik, an Analytics expert who writes on “Occam’s Razor” – has designed one such framework for Social performance based on measures for Conversion, Applause, Amplification and Economic Value.
Avinash’s framework helps us get past the all too common focus on individual gross measures such as number of fans, followers, number of subscribers or number of posts and tweets. In isolation, they don’t help clearly differentiate between a socially ineffective brand and a socially active one. Another common caveat is to focus on improving on a single metric without foreknowledge of how all of them come together. With the help of a framework to tie it all together, you can focus on not only the tiny bits that matter, but the big picture as well.
To help get a better understanding of how each of these measures can work for you, I have used instances from ShopSocially social campaigns.
Conversion Rate. Conversions can help you understand if your attempts to engage shoppers and recruit Brand Ambassadors or Fans is working.
With ShopSocially, you can ask shoppers to perform social actions such as share a purchase they just made with their friends, or express their intent to purchase by unlocking and sharing a promotion with their friends before they buy. Measuring the Conversion Rate for these actions reveals how effective your efforts are at building an extraordinary brand with your Shoppers. For instance, Gaiam’s Balance Ball Chair is a top shared product amongst shoppers and incredibly effective at recruiting brand ambassadors. It’s exclusivity and design appeal are natural magnets for converting Gaiam’s shoppers to brand ambassadors.
Amplification Rate. Amplification is one aspect of Social that also makes it unique. Similar to popular organic meme’s your message’s potential reach goes out beyond the audience you can reach directly. By tracking the number of shares per post, number of retweets for your tweet and so on you can determine how deep your message reached in to the networks of your shoppers. Success here depends on how well you are able to break down the key elements of your brand into simple and relevant concepts in a way that allows your brand ambassadors to share it with their friends and so on further in.
RitzPix use of Social’s amplification for their email campaigns makes an interesting study. With ShopSocially’s Share-a-Promotion landing page, they work with their brand ambassadors to help spread the word on compelling discounts around personalized photo products such as Canvas Prints. By combining the inherent word-of-mouth around discounts on such products and Social’s amplification effect – they’re able reach out better than they would have with a linear email or adwords campaign.
Applause Rate. Your more passive shoppers can choose to applaud or endorse you in a way that is visible to their networks. You can measure this by tracking Likes from Fans on promotions, Likes on comments posted by your brand ambassadors and tweets marked as Favorites.
One way to interpret the Applause Rate is as a measure of how your efforts are to taking your brand ambassadors into the extraordinary. Ask yourself, do your campaigns step out of what is the usual to do something unexpected that your shoppers’ networks would appreciate? For instance, Gaiam encourages shoppers to contribute $2 that go towards replanting forests to offset the emissions from shipping products. Similarly, Best Bully Sticks ask shoppers to donate a $1 to building pet shelters at checkout. Shoppers can share the donations they made with their friends and draw encouragement.
Economic Value. Measures here help you clue in on whether your Social efforts are having a positive impact on the bottom-line. Using data from Cost of Promotion, Sales and Average Order Value for purchases made by traffic coming from Social, you can determine how much business does each shared comment, or Like create for you, and what the costs were of acquiring a sale this way. Similarly, you can repeat the same exercise for other actions on your site such as Registering, Acquiring a Fan, Creating a Wishlist that come before making a sale.
Comparing these measures with data from other digital channels to quickly determine if you are able to create the lasting value that you expect from Social. It is obvious that friends would trust a friend’s recommendation over that of a search engine, but we’d like the data to speak for itself.
If you need one of us to help you with these metrics, leave a comment here and we will get back to you.
Author Bio: Santosh is constantly seeking out new ways for merchants to delight their shoppers with social experiences using ShopSocially’s platform. You can get in touch with him over email santosh at shopsocially dot com.