According to a digital marketing speaker Hong Kong, measuring your online success is the most important part of a digital marketing strategy. In social media, platforms have provided analytics to easily track metrics, as a social media agency Hong Kong. So, a video marketing agency Hong Kong highlights the need to consistently check KPIs.
KPI means key performance metrics. These are insights very important to determine whether an action is effective towards the desired goal. Social media platforms offer a lot of metrics to brands and businesses. But what are the vital metrics to track in social media? We’ve got you covered!
CONVERSION RATE (CR)
The conversion rate is a record of the percentage of users who completed the desired action. The formula for calculating conversion rate in social media is dividing the total number of users who completed the desired action by the total number of people who interacted with an ad or a post. A good conversion rate is 10% or more. It shows that your ad or post is effective enough to drive or influence users to take action. It can be a referral, sale, simple like, software download, share, submitting personal information, subscription, etc.
ENGAGEMENT RATE (ER)
An engagement rate shows the average number of interactions that a social media content receives per follower. It can be calculated by dividing the total number of interactions by the total number of followers of a social media page. Then, multiply it by 100%. A standard engagement in social media includes a comment, download, like, reaction, share, etc. It is a good idea for a brand or business to respond to each engagement to build communities and connections. A good engagement rate in social media is between 1% to 5%. A bigger number of a brand or business following makes it harder to achieve.
When monitoring the health of a brand or business on social media, one important metric to track is the issues resolved by the customer service team. It is very important to build a good brand reputation. As much as possible, a brand or business should resolve any customer complaint or issue at the very first point of contact. Whether it be via chat, email, or phone, it should, as much as possible, be resolved right away. To calculate the resolution rate, simply divide the number of customer issues by those that have been resolved. A good resolution rate is between 70% to 79%.
RETURN ON AD SPEND (ROAS)
Return on ad spend (ROAS) is a quantitative measure of the efficiency of an ad or campaign. It shows the amount of revenue generated for every dollar that the business spends. For example, if a brand or business spends $2,000 on social media ads within a month, and the resulting revenue for such ads is $10,000, simply divide the total revenue ($10,000) over the ad spending ($2,000). The ROAS is $5.00 for every dollar or a ratio of 5:1.