Essential Equations for Measuring Social Media Success

Click image to print off our 1-page PDF cheatsheet

Our latest free ebook, 5 Steps to Effective Social Media Measurement, explains — in detail — how to measure the success of your social media efforts.
It’ll walk you through how to measure

• awareness, attention and reach
• leads
• conversions and sales
• cost savings for training and support

The ebook contains 7 helpful social media equations, and we’ve created a 1-page PDF cheatsheet for you to print off.
Here are the equations.

Potential Reach of Social Media

Potential Reach = Social Shares + Fans in their Network
Example: If you have 1,000 fans and followers, and together they have 90,000 followers, then you have a potential reach of 91,000.

Value of Fan

Value of Fan = Total $ Value of Transaction Resulting from Conversations / Actual Reach
Example: If you’ve generated $25,000 of revenue from your 1,000 fans, each fan is worth $25 to you.

Value of Facebook Like

Value of Facebook Like = Total revenue in a Month from Facebook traffic / Total Number of Likes
Example: If you received 200 Facebook likes in March, and generated $3,000 in revenue from Facebook traffic, then each Facebook like was worth $15.

Share of Conversation

Share of Conversation = Posts discussing topic and your brand / Posts discussing topic
If 50,000 of the 80,000 posts mentioning “smartphone” also mentioned “iPhone” or “Apple”, then Apple’s share of conversation is 62.5% share.
(Radian6 CEO Marcel Lebrun defined Share of Conversation in this post two years ago.)

Social Media ROI

ROI = (Revenue – Cost) / Cost, x 100
Example: Your social media efforts cost you $150,000 but drove $225,000 of business, meaning you had an ROI of 50%.
(We recently published a free ebook by Dr. Natalie Petouhoff (@drnatalie) called Social Media ROI that provides more detail on this important topic.)

Cost per Issue Resolution

Cost per Issue Resolution = Daily Support Costs / Average # of Issues Handled Daily
Example: Your 5 team members, office space, and equipment cost you $1,500 every day. On average, your team handles 175 issues each day, meaning your cost per issue resolution is $8.57.

Issue Resolution Time

Average Issue Resolution Time = Total Work Hours Resolving Issues in a Month / Number of Issues Resolved in a Month
Example: In March,  your 3 full-time and 2 part-time team members spent 128 hours resolving 1,870 issues. The average issue resolution time was therefore 0.068 hours, or 4 minutes and 5 seconds.


By: Bart Byl 
http://www.radian6.com