3 equations to measure Social Media

1) Average Interaction Rate AFF/PV= AIR This equation measures how people are interacting with your business online. Simply take the Average Fan/friend (AFF) number which is determined by dividing how many Points of View (PV) people add to your wall by the amount of friends/ fans on your list, this will give you your Average interaction rate. Example: 655/2 = 327 AFF, say you have five of your friends post to your wall, so PV=5 then 327/5 PV = 65.4 AIR
2) Return on Investment Equation: (NFI x CA) – CI = ROI this is determined by taking the amount of friends/fans you have, multiply that by the cost of your advertisement and subtract the cost to Implement the campaign – this will give you a Return on Investment number. Example: 525 x 1.50 = 787.50 – 100.00 = $687.50 ROI per month. However if you are outsourcing social media, you must take in consideration how much you are paying the business to do content management on your social media platforms.
3) Online Production Equation WAO/SMO x .05 = TOP this compares your web traffic to your social media traffic; simply take you Web Analytics from month A and subtract your web analytics from month B, this gives you your WAO (Web Analytic Output) Then take your Social Media followers from month A, subtract from your social media followers from month B; this gives you your Social Media Output (SMO) Now, Divide your WAO by your SMO and multiply that number by .05; this gives you your Total Online Productive Rate. Example: 262/11 = 23.81 x .05 = 1.19 (TOP)

Individually the numbers won’t make sense, but when you compare them month to month through a 12-month period, you will have measurable results that will tell you how effective your social media is in comparison to your web traffic, Because the main objective for social media is to drive traffic to your company website.

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