August 19, 2011 6 Comments
Recently I answered a question on Quora that I wanted to share as a post as well.
“What is the best way to measure ROI for increasing the number of fans for a Facebook Page?”
Since this question is focused primarily on success metrics tied to acquisition, I will forego discussions around engagement metrics and jump into 5 KPI’s that I reference as part of an acquisition plan.
1 - % growth over a period of time | As I have mentioned before, on average the top 50 (US) Facebook pages growth rate is 5% per month. Using this as a baseline you can track & project your growth % and track the % increase as a core KPI.
E.g. AllFacebook.com has a good resource to track against the last 30 days of growth.
2 – Like acquisition rate | When executing a promotional program or simply tracking ROI against the % increase, I look at the total cost of the program to acquire the Like. Based on my research over multiple campaigns (including media) a good baseline average Like acquisition rate is ~$5.00 per like. We have experienced below $1 acquisition rate on highly successful campaigns but you should be tracking the Like acquisition rate in order to set realistic expectations with projected Likes vs. budget allocated.
E.g. Brand A recently increased Likes by 125,000 and spent 200K to execute the program/media, etc… the Like acquisition rate for this initiative would have been $1.60 per Like well below average thus a great value for the brand.
3 – Earned Media Value | Vitrue had an interesting study determining the value of a Like at 3.60 using the $3.60 as a potential baseline number it is a quick calculation to determine the current earned media value of a brand page.
E.g. Nerf With 420,093 Facebook fans has an earned media value of $1,512,334.80
4 – Facebook Like = 20 | In a recent discussion with Carolyn Everson of Facebook, she referenced that based on their data a Facebook “like” is equivalent to 20 unique visits to a brands web site.
5 – Facebook Media Reach | One additional KPI to review is media performance in terms of both Impressions & # of Likes generated with & without media support. Using the Facebook self-service platform, or a platform such as Adapt.ly are essential to support your growth initiatives.
There are many other metrics that you can track and platforms such as PageLever & Edgerank Checker to go further than Facebook insights but these are a few that I like to use when tracking success metrics on Facebook growth initiatives.
What are some additional metrics that you deploy to track against ROI for growth strategies?