RMI: It's all about interaction!
To map the effectiveness of your message and to measure whether your why also yields conversion, the RMI method was developed. In this example, we use Facebook because this is the platform where many brands focus. The formula for the RMI is as follows. Interaction : Posts : Followers x 100% = Interaction rate
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The RMI is always measured over a certain period. Let me give you an example. You have an active Facebook channel. In the month of September, the figures are as follows:
11,218 followers;
7 posts;
386 likes on the posts;
37 shares of this post;
197 comments on these posts;
100 clicks;
20 orders.
The formula is applied to each aspect of the interaction below.
Like rate: 386 likes : 7 posts : 11,218 followers x 100% = 0.49% of your followers like per post
Share rate: 37 shares : 7 posts : 11,218 followers x 100% = 0.047% shares per post
Comment rate: 197 comments : 7 posts : 11,218 followers x 100% = 0.25% comments per post
What does RMI mean in concrete terms?
This method is all about insights. How many of your viewers have you triggered? If your like rate is 0.49%, you're going to ask yourself: what does it take to get to 1%? You can look at the following things:
People who like your post ensure brand distribution. If the call to action of your post is correct, the desire to like your post is quickly converted into a click.
People who share your post are spreading the word about your brand but are so enthusiastic that they want to share your content, so they are even more likely to click on your links .
People who respond to your posts want to engage in dialogue with you and this gives you the opportunity to convince them. These people want to be heard, recognized or acknowledged before they take action.
From all three scenarios you have a chance to generate conversion (Clicks & Purchase). For that it is important to analyze when your posts get a lot of shares, likes or comments. Test what works and what doesn't work and learn from it. Which posts did well, which delivered a lot?
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If you have little interaction yourself, see which content scores well with a large brand. Pictures, inspiration, videos, quotes do well. For inspiration, also read this article about Facebook content and this piece about smart content for social media . In any case, make sure that it matches your story and your 'why'. The more sincere and motivating your story is, the greater the chance of dialogue. If your content is relevant, authentic and original and people talk about it, then the step to an action, purchase or promotion is made faster.
How many of your followers have you prompted to take action? To know this, measurable clicks are important. If you want to get conversion from Facebook, it is smart to have people take action on a post. Think in advance how you are going to respond to the interaction and how you are going to convince them to do something for you. A click to your website or campaign site, downloading a coupon or something else measurable.
What about ROI?
Suppose we now assume that you have done an action on your Facebook page that has led people to the website. 100 people have clicked on the link of which 20 people order in the webshop for an average amount of € 50. In this way you have converted € 1,000 via Facebook.
An employee at the client has been busy with Facebook maintenance during this period. This costs salary, but also the hosting of your site costs money and there are possible additional costs. Let's assume that these costs amount to € 350 in the measured period.
€350 in costs: 7 posts = €50 per post in costs. It only gets really interesting when we compare it to the revenue. The previous calculation showed that the clicks on Facebook generated €1,000. €1,000: 7 posts = €142.85 revenue per post.
The return on your Facebook activities is €142.85 – €50 = €92.85 per post
The ROI is €92.85: €50 (cost per item) x 100% = 185.7% ROI
So now you know what you spent, how much it brings you and what your ROI is. But how do you connect the previous percentages to this result? Simple, it is a benchmark. If you achieve 185.7% ROI with the previously mentioned qatar mobile phone number list percentages, what is needed to activate more of your followers?
When analyzing, also look at the figures of your own site. What brings people to your site? Which Facebook action generated a lot of traffic to your website? A good analytics package is therefore very important. Google Analytics is often a good basis. Combine this with Facebook statistics and sales data and you already have a nice starter package. Also look at how people behave on your website. How many people drop out after the first click, how many people go for the order button, how many people drop out during the ordering process?
Every page the customer goes through from the first click should be included in the analysis. Why do you have many dropouts on one page and not on another? Is the call to action clear enough, is the offer irresistible, are they missing something if they don't click? Use A/B testing for both the routing of your website and the design and optimize the flow!
Make your brand measurable
Review and analyze all data at least once a month. Then make the content planning for that month or ask for help to think along with you. It is important that you know what you are doing and that you consciously post things that your target group is interested in. But also leave room for spontaneous things and current affairs. And above all, check whether your content matches your long-term vision, because then you build brand loyalty and brand consistency. If you take these steps, you are well on your way to making your brand measurable online. This way, measuring becomes real knowledge and knowledge is converted into conversion.