How to Prove the Value of Social Media to Your CMO

How to Prove the Value of Social Media to Your CMO

Have you ever sat through a presentation that wasn’t meant for you? You stare blankly at a screen of numbers and nonsensical acronyms, then you disengage after five minutes and daydream about your after-work bike ride.

When you’re trying to prove the value of social media to your CMO—or even CEO—you can’t afford to lose their attention. Their time is precious. Luckily, there are simple and effective ways to present your findings.

The executives in your company don’t care about the day-to-day details of your brand’s social media strategy. They want to how your efforts are driving business goals. It’s your job to eliminate unnecessary data and present the findings that matter to the C-suite.

How has social contributed to the company’s bottom line? This is the most important question that you need to answer for your CMO. If your social activities and efforts aren’t making money, it’s difficult to make a case for keeping social programs and/or expanding them.

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Lead generation: Leads from social will show potential revenue you’ve generated in comparison to other channels. Contests, ads, gated content on social—these are all effective ways of generating leads. To make sure that you’re getting qualified leads, capture enough customer data in all your form fills—company name, size, job title, etc.

Referral Traffic: Referral traffic, similarly to leads, will show the CMO the potential for revenue. If you’re running a company-wide campaign and social is responsible for 25 percent of all traffic, that’s an important stat to show. It highlights social’s contribution to driving new prospects to your business.

Conversion: A good chunk of your conversion goals for social campaigns will either be a purchase, download, or trial. By tracking conversions that come from social, you can understand how it contributes to your wider marketing and sales objectives.

Pro tip: To track leads and conversions, make sure that you use UTM parameters on all your links on social. Check out our article on social ads to learn how to build UTM codes.

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If you’re asking your CMO for budget, you need to show that the money already invested has generated income. Compared to other forms of marketing, social is a cost-effective way to generate sales and leads.

Cost to acquire a lead (CAL): To determine the cost to acquire a lead, divide your relevant social media spend by the number of leads earned from a specific campaign or timeline. You need to show that you can acquire high quality leads at a relatively low cost.

Cost to acquire a customer (CAC): When you’re calculating conversions, look only at those that include purchase or trial. It’s important to point out that social has an indirect impact on customer purchases, which you may or may not be able to track. The customers you’re tracking are only one piece of a bigger pie.

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