Technology concepts and applications

Technology

"The beauty of social media is that everything is measurable; clicks, impressions, engagement, web traffic, blog views -- you name it," (Ockenden, 2012). As beautiful as all this raw data -- or counting metrics -- may be, such data is really only useful to businesses with clearly defined social media objectives and strategies. Moreover, too much information can be a detriment. The key is not to generate a massive amount of data but to use that information wisely, in accordance with business or marketing goals. Different types of social media metrics can extrapolate raw data into forms and figures that can be incredibly useful to organizations, their managers, and their stakeholders. "A practical first step for a social media manager involves developing trackable, relevant, and actionable metrics that align with an organization's business priorities," ("Social Measurement Best Practices," 2012).

Bartholemew (2012) outlines three sources of social media metrics. These courses include the specific program objectives; the business outcomes; and the channel-specific metrics. The breakdown of social media metrics sources into program objectives, business outcomes, and channel-specific metrics stresses the importance of context and specificity when it comes to utilizing social media for business. In Social Media Metrics Secrets, John Lovett (2012) outlines four main types of social media metrics. Those include counting metrics, business value metrics, outcome metrics, and foundational measures.

Counting Metrics

Definition and Measures

Counting metrics are the most basic and fundamental of all metrics and are therefore best described first. All other metrics depend on counting metrics on some level. As Lovett (2012) puts it, counting metrics are "the most basic and readily available metrics" in a business's social media arsenal (xvi). Some of the most important measures that generate counting metrics include number of fans, followers, users, viewers, visitors, and subscribers. Of course, each of these measures can be channel-specific.

Cons

One analogy of counting metrics is that they are similar to the raw data of a test score. The raw data of a test score, such as how many questions a student answered correctly, is made more useful when it is put into a meaningful context: such as comparing one student to the entire class; or measuring the progress a student made since a prior examination.

Raw scores and counting metrics are less useful before they are processed or aligned with marketing or business objectives. It is important to avoid "falling into the trap of simply 'counting' metrics, such as Facebook 'likes' or video views, without matching up the data with your marketing objectives," (Ockenden, 2012). It is likewise possible to "generate massive amounts of raw data feeding endless activity metrics. If not properly filtered, these can rapidly distract social media marketers and practitioners from developing a solid measurement foundation that cuts through the noise," ("Social Measurement Best Practices," 2012).

Pros

As raw data, counting metrics are crucial. Counting metrics are the starting point of social media metrics mastery. Counting metrics are useful because they can be generated regularly, simply, and on demand. As raw data, counting metrics are generally exempt from biases and assumptions that might color other types of metrics -- such as discerning the tenor or sentiment of a social media conversation.

Business Value

Definition and Measures

Lovett (2012) defines business value metrics as "the basis for communicating the successes and failures of social media to stakeholders," (xvi). As such, business value metrics in social media are "specific to roles within the executive suite, legal department, human resources, sales staff, service teams, and marketing functions," (xvi). Therefore, business value metrics are meaningful in terms of internal communications. Some common measures of business value in terms of social media include revenue, market share, and customer satisfaction.

Cons

Business value metrics are tailored to specific stakeholders or departments. Their application is therefore narrow, making them less useful in a broad or universal sense. Moreover, business value metrics may be costly to produce, given the need to generate business value metrics across different departments.

Pros

Business value metrics put counting metrics into a language that each department can understand, and use to develop strategies for success. Social media is a means to an end, and not an end in itself. Business value metrics underscore that point.

Outcome Metrics

Definition and Measures

As Lovett (2012) puts it, outcome metrics "help measurers of social media align their operational programs with their corporate goals," (xvi). Outcome metrics are "crucial in quantifying the effectiveness of social media," (Lovett, 2012, p. xvi). They are Key Performance Indicators (KPIs) (Lovett, 2012, p. xvi). "Business outcome metrics are used to connect the dots between social media programs and the business results they are designed to drive," (Bartholomew, 2012). Outcome measures include reach, velocity, interaction rate, conversion rate, and sentiment ratio.

Cons

There are few cons with outcome metrics, as they are the heart and soul of any company's social media strategy. Social media must be linked with clearly defined goals, in order to receive a return on investment into a social media strategy. Outcome metrics show stakeholders how well a social media strategy is working, and what, if anything needs to change.

Pros

Outcome metrics are essential for providing feedback to investors. In fact, all departments involved in the organization ultimately benefit from outcome metrics. Outcome metrics can help social media specialists develop strategies that can remedy setbacks, and can help with public relations and branding.

Foundational Metrics

Definition and Measures

Lovett (2012) defines foundational metrics as "the underlying formulas used to calculate your own customized outcome metrics and business value metrics," (xvi). They are also known as the most complex of all metrics. Measures include interaction, engagement, influence, advocacy, and impact. Other foundational metrics include audience reach, community growth, and referrals (Ockenden, 2012). Volume, frequency, reach, and sentiment are also considered foundational metrics ("Social Measurement Best Practices," 2012).

Cons

Because they are complex, foundational metrics can become inefficient, ineffective, and costly. Foundational metrics can result in "over-information-itis," or the unnecessary generation of too much data that confuses, rather than clarifies company goals (Ockenden, 2012). Because they often rely on inferences and judgments, foundational metrics can also be biased and misleading.