Facebook ROI: Converting likes to Dollars for Small Businesses

Posted on May 10, 2013 by

This is a guest blog post by Mike Pare, Marketing Director for musttry.it, a marketing agency focusing on helping Main Street businesses figure out how to become “must try” businesses, one at a time!

Likes are nice, dollars are better. Likes are nice, dollars are better. That is the mantra for our team when evaluating Facebook campaigns.

It’s easy to get caught up in the glamour of accumulating Facebook likes, but they are a terrible indicator of social media marketing success. An unengaged audience of thousands is worthless compared to a smaller army of loyal advocates.

This point can be illustrated simply using AgoraPulse’s ROI reporting tools. AgoraPulse assigns industry average dollar amounts (or custom values for advanced users) to several key performance indicators (KPI’s) to approximate a page’s value over the trailing 30 day period. With this information you can definitively prove (or disprove) the value of any page’s Facebook content.

I’ll share a recent example of this tool in action from one of our clients—a sports radio show based in the Northeast U.S.

Their program is well known for their impressive guest list, so, to coincide with the NCAA tournament, we helped them put together a bracket of their 64 best guests and let fans vote for their favorite.

Over the course of the three week promotion, a new page with only 375 fans was able to organically reach over 40,000 people and gain 180 new fans. But what does it mean? Was this promotion really valuable, or was it just smoke and mirrors?

Let’s look at the numbers to find out.

Facebook ROI in Agorapulse

This is a screenshot of the Agorapulse ROI measurement tool. Want to know how it works? Check out this video:

Despite a big chunk of the value coming from impressions and link clicks, which will dry up now that the promotion has ended, the report shows that our content was a big success for a page this size.

We were able to generate $1,972 of value while spending next to nothing on overhead, and, during the course of the promotion, we qualified 38 new fans using the AgoraPulse’s sweepstakes app. Unless those qualified fans unlike the page (which is unlikely) we have permanently identified a huge amount of value in our client’s Facebook page.

This is all news any small business owner would be delighted to hear.

Having the ability to simply quantify and present the results of Facebook campaigns is a huge boon to our agency. Because they are focused on other facets of their business, small business owners are often inexperienced online marketers and don’t know what type of results to expect from their Facebook campaigns. By presenting data in real dollars we can show them the impact we are having directly on their bottom-line without resorting to fuzzy web terminology.

Once likes, reach, and engagement are converted to terms that small business owners appreciate, we can clearly show that likes are nothing but a vanity metric. The real value is in the dollars the page generates.

What do you think? How do you measure the value generated on your Facebook page?

Emeric is the co-founder of AgoraPulse, a Social Media Marketing Software company launched in 2011 and based in Paris and San Francisco. AgoraPulse is currently being used by more than 5,000 businesses across 180 countries.   Since 2000, he has been one of the European pioneers in the field of Social Media Marketing. He has advised French and international brands such as Virgin, FIA and Microsoft.   He is a regular speaker at International conferences such as the AllFAcebook Marketing Conference, Facebook Success Summit and BOLO. He is also an accredited instructor at the Online Marketing Institute.