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Why Analytics Matter to Small Businesses – July 15, 2012 by Christine Erickson
Lets summarise it:
- Businesses are online, trying to achieve 3 things – content development, community management and real-time analytics.
- They use analytics for Youtube, Facebook and Twitter
Why use Analytics?
To provide a major opportunity to generate business value by building powerful, lasting relationships with consumers through digital communities.
What Level Are You On?
Level 1: Reach
Marketers understand the social scale of their brands. They know how many fans, followers, subscribers, visitors and views they have, and how many discussions are taking place. They have visibility into where, when and in what context their brand is being discussed.
Level 2: Engagement
Marketers have moved beyond counting fans. They have insight into the activities in their various communities. They analyze the drivers of participation and amplification, studying the patterns in comments, likes, shares and take rates.
Level 3: Advocacy
Marketers can identify and encourage user behaviors that are associated with brand commitment. These include such metrics as: intent to recommend, referral and reshare activity, comments and followers per user, and brand favorability, consideration and preference.
Level 4: Return on Investment
The most sophisticated companies set out to achieve strategic business objectives based on their social media analytics. Most companies are still not fully at this level. For example, according to the survey, only about 40% of companies have metrics in place today to measure ROI-focused key performance indicators (KPIs), such as purchase intent, leads generated, conversion rates or actual sales.
Keep in mind that content is still king. In order for a small business to really benefit and evolve with these levels, they must provide customers with something to engage in.
“It doesn’t always work to just have your ads up — that’s not something people really want to talk about or forward to friends,” says Karen Premo, Booz’s Principal.
What level is your company on, and what are you doing to move forward?