Not the same as trend spotting, I'm afraid. This is about measurement and social media. One of the most overlooked considerations when starting to gather increased in sales numbers is the corresponding acquisition costs. Direct marketers and lead generation experts are intimately familiar with this metric -- and you should get to know it very well.
If you have high sales and a negative return on those sales, you're going to have a very difficult conversation with your CFO, and you want her as your friend. How do you keep an eye on costs? By looking at trends during a program. With careful consideration you will spot variables or deltas in your numbers.
Find the cost by dividing the total marketing dollars spent on a program by the following, which are some of the key trends:
- number of newly acquired customers
- number of customer referrals
- number of transactions
- changes in repeat customers
- uplift in other marketing channels
When you integrate tactics, which is my recommendation, make sure you have a way of tracking which one gave you the results and the total measurement against a benchmark measured before the program.
So while it's great to measure things like:
- customer retention
- customer value
- competitive customers
- referral engine
- new leads
- Web site conversions
- length of sales cycle
Make sure you're weighing those measurements against the corresponding acquisition costs. What costs have you not factored in your social media program? How do you track each tactic?
[image by Darren Hester]
© 2010 Valeria Maltoni. All rights reserved.