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What is the True Value of Social Engagement?

By | April 10, 2014

Measuring social impact on a retail client is one of the hardest things to do.  There are a lot of different metrics that you are able to track but creating a direct correlation between those and actual revenue to the business is tough. Many companies today get caught up in the ways to increase engagement and not the value associated with that engagement.

The first thing you need to do with social channels is set up goals.

You have to create goals that have a clear impact on the business.  Having an increase in Twitter followers or Facebook likes do not provide any real worth for a business. Increases in those type engagements usually do correspond with a positive correlation of revenue, however we need to try to tie actual value to those engagements.  For example within Google Analytics we can segment our traffic to come from different social channels like Facebook.

Depending on what type of website you are working with you can provide different amounts of return that you can directly correlate to your business.  If it is an eCommerce site you can easily just look at your transactions from your social channels and see how much revenue they generated.  If you are working with a lead gen client, find out what percentage of leads are qualified then the average deal size for those leads.




If you don’t have the tracking set up or you don’t have any transactions or leads, you can go back one step further and use your average Conversion rate through your other channels and figure out the number of transactions/leads you should have based on the number of clicks you are getting to the website.   You can also find the value for your engagements by going a set further back by using your CTR to find the value of each impression you are getting. Tying revenue to your social engagement will create a clear picture and display the importance of social channels.


Prepare for the August 2014 shopping search transition with Google Shopping and data feed optimization:

Guide: The New Google Shopping



About Cody Blair

Cody holds a bachelor’s degree in Marketing from Ohio University. He is currently an Online Advertising Specialist on Fathom’s e-Commerce Team. Cody specializes in paid search for enterprise level e-commerce accounts. With his analytical background, Cody enjoys problem-solving and diving into the data to make strategic decisions. When he’s not at work, he enjoys riding motorcycles.


  • Storewars News

    Nice read! Very informative. Something interesting: Airtel opens 100
    own retail stores in 14 months. Read it here:

  • Sindy

    I agree that social engagement is very important for business. Through social networks people get to know about many companies and become their clients. That’s why I think that SMM is also important. For that purpose I usually hire smo and <a href="“>seo optimisation company.

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