How do you know if your LinkedIn strategy is helping your company to generate revenue? Of course the one easy way to tell is if you are able to nurture first degree connections into sales. But there other analytics and key performance indicators that you can use to measure the positive effect your social media efforts are having on your bottom line.
Referral Traffic and Social Media Traffic
Social media sites, including LinkedIn are a great way to funnel people to your company website. To see how effective your LinkedIn strategy is at directing traffic to your website, you use Google Analytics.
You can create a customized Social Media dashboard on Google Analytics that will show you:
- which social media sites visitors come from
- top socially referred pages
- most socially shared content
- even where in the US your social media visitors are located
You can also create a custom report of all traffic sources to allow you to compare social media referrals to all other traffic sources, such as google, inbound links, and direct traffic.
When you take a look at these analytics, you will want to see if you can correlate them to a specific LinkedIn campaign you created to determine which strategies are most effective in driving traffic to your website.
Lifetime Customer Value
LinkedIn is a good tool to use to keep existing clients as well as obtain new ones. It costs businesses more to obtain new clients than it does to keep current customers happy. Therefore, it is important to understand how your LinkedIn strategy impacts your current clients.
Lifetime customer value (LTV) is one metric you can use to help you determine if your social media activities are affecting your bottom line. LTV is a formula you can use to determine the value of a customer. The longer you can retain a customer, the higher your lifetime customer value will be.
Compare your LTV before, during or after specific LinkedIn initiatives. Significant changes can be an indication of your social media activities affecting revenue generation.
If you are a B2B service provider, you can monitor your rate of attrition to determine the success of social media activities. Rate of attrition, or churn rate helps you to monitor subscribers who discontinue or don’t renew their service.
Churn rate can also be used for non-service based businesses, depending on how it is calculated. It is just another way to look at customer retention, and drastic changes in churn rate can be an indicator of an effective LinkedIn Strategy.
Changes in Department Costs
Changes in the efficiency and operational costs of certain departments can also indicate a successful LinkedIn strategy. If the sales department is meeting or exceeding its goals while spending less to acquire new accounts, you may have an effective LinkedIn strategy.
Another indicator could be a reduction in costs for your customer service department. If you are communicating with existing clients on LinkedIn and your customer retention is high, then you may see a decrease in inbound customer service activity. LinkedIn lead generation can also reduce or eliminate the need for other lead generation activities, like an outbound call center.
LinkedIn Strategy and Revenue Generation
A successful LinkedIn strategy can have an impact in many different areas of your business. Sales, marketing, customer service and operations can all see positive changes once you create a LinkedIn platform. Using metrics like referral traffic, LTV and attrition rate are just a few of the ways you can measure the effect your LinkedIn strategy has on revenue generation.
[cta]If you would like to learn more about how to create a successful LinkedIn lead generation platform, then contact us today. We can schedule a free strategy session with one of our experts to help you see how LinkedIn can help generate revenue for your business.[/cta]