Social Media Means Business

When using many different social media platforms for business, it is essential that a company see how the posts on social media affects their audiences, guests, customers, users, etc.  It is much more than just how many likes something gets’ it’s what those likes mean and if they actually connect the customer to the company.  Avanish Koshik, author of the article titled Best Social Media Metric: Conversation, Amplification, Applause, Economic Value, writes of important ways that companies can track their presence and success on social media.  For instance, Koshik mentions the importance of conversation rate.  Conversation Rate = the number of audience comments per post.  Conversation rate can be measure on blogs, Twitter, Facebook, Instagram, Google Plus, etc.  “A high conversation rate requires a deeper understanding of who your audience is, what your brand attributes are, what you are good at, what value you can add to your followers and the ecosystem you participate in.” It is important to analyze what people are responding to your company’s posts and what they are saying about your brand.  Furthermore, Koshik explains amplification, which is the rate at which your followers take your content and share it through their network.  It is said that amplification is measured differently across the different platforms: Twitter: Amplification = Number of Retweets Per Tweet; Youtube: Amplification = Number of Share Clicks Per Video; etc.  This allows a company measure what types of content cause the highest amplification success; it is important at this time to take in consideration which areas of the world are sharing what and how certain posts affect certain demographics.  Koshik even created this thing called the applause rate.  On Twitter the Applause Rate = Number of Likes Per Post; on Youtube the Applause Rate = Number of +1s Per Video. This is crucial to understand what appeals to your audiences.  If you upload a picture of a sale going on at your company to Instagram and 27,000 people like it, that most likely means that people love sales! Lastly, economic value is mentioned, which is basically the fundamental use for companies to use social media platforms to spread information about their business/product/services.  Economic Value = Sum of Short and Long Term Revenue and Cost Savings.  “Social media participation done right, adds value to the company’s bottom-line.”  This is very important for companies to measure and manage.  Koshik recommends using Google Analytics, Omniture, CoreIBMInsights, WebTrends, etc. to measure the economic benefit (or loss – but no company wants that) that the use of social media can create.  One of the Human Resources Professionals from New York City’s 21 Club came into my Food & Beverage class about two weeks ago.  She mentioned how her companies monitors their success on social media by using something like a code given out on a social platform that says something like “20% off if you mention this code at your table.”  This can be used to see how many people are actually taking advantage of what companies offer throughout social media.  The 20% off post may have gotten 1500 likes, but only 350 people came in and actually used the code to receive 20% off.  This is another way that companies can monitor the success of their posts. Not only is it very important that companies spend time monitoring the success of their posts, but they must make sure that their posts are so enticing, vibrant, eye-catching, so that they really capture the attention of their users.  In the article, The Social Media Reader, it says “As social media becomes increasingly pervasive in everyday life, more and more people will be overwhelmed by the information surrounding them. And they will have to make choices. Networked technologies allow us to extend our reach, to connect across space and time, to find people with shared interests and gather en masse for social and political purposes. But time and attention are scarce resources.” Because time and attention are scarce resources, companies must strategize their posts so that they create positive attention and receive interest from the guest, customers, and users of the companies’ products.  Ultimately, success on social media can be measured by many of the ways mention above.  Companies that are spending time and money using social media to market to their costumers really must spend the time analyzing their posts, likes, shares, reach, views, etc. to measure the profitability that social media is bringing to their companies.

http://www.kaushik.net/avinash/best-social-media-metrics-conversation-amplification-applause-economic-value/

https://archive.org/stream/TheSocialMediaReader/Mandiberg-theSocialMediaReader-cc-by-sa-nc_djvu.txt

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