How do you measure the social media customer lifetime value (CLV) and retention rate?

2 Why are social media CLV and retention rate important?

Social media CLV and retention rate are important because they help you evaluate the long-term impact and return on investment (ROI) of your social media strategy. They show you how much revenue and profit you can expect from your social media customers, and how loyal and satisfied they are with your brand. They also help you identify your most valuable and loyal customers, and optimize your social media campaigns and content to increase their value and retention.

3 How to calculate social media CLV and retention rate?

Calculating social media CLV and retention rate requires data and tools, however, there are simple formulas and examples to help with the estimation. Social media CLV is calculated by multiplying the Average Order Value (AOV), Purchase Frequency (PF), Average Customer Lifespan (ACL), and Social Media Influence Factor (SMIF). AOV is the average amount spent per purchase, PF is the average number of purchases in a given time period, ACL is the average length of time a customer remains with you before ceasing interaction, and SMIF is a factor from 0 to 1 indicating how much social media activities influence spending and loyalty. For example, if AOV is $50, PF is 2 per month, ACL is 2 years, and SMIF is 0.2, then social media CLV is $50 x 2 x 24 x 0.2 = $480. The social media retention rate measures the percentage of customers who remain or interact with you over a given period of time, as influenced by your social media activities. This rate can be calculated by subtracting the number of new customers acquired during a period from the number of customers at the end of the period and dividing it by the number of customers at the start of the period multiplied by 100%. For example, if you had 100 customers at the start of a month, acquired 20 new customers during that month, and had 80 customers at the end of that month then your social media retention rate would be (80 - 20) / 100 x 100% = 60%.

4 How to improve social media CLV and retention rate?

To improve your social media CLV and retention rate, you need to focus on creating and delivering value to your social media audience, and building long-term relationships with them. To do this, you should segment your audience based on their characteristics, behaviors, preferences, and needs, and tailor your content accordingly. Additionally, you should use analytics and feedback tools to measure your performance and identify areas for improvement. Providing consistent, relevant content that educates, entertains, inspires and solves problems is also important. Leverage the interactive and immersive potential of social media platforms with stories, live videos, polls and quizzes. Reward loyal customers with incentives and discounts, acknowledge their feedback and communicate with them regularly. Finally, build a community around your brand to foster trust and advocacy among customers.

5 How to use tools to measure social media CLV and retention rate?

If you want to measure your social media CLV and retention rate, you can use various tools depending on your goals, budget, and resources. Google Analytics is a free and powerful tool that allows you to track website traffic, conversions, revenue, and attribution from different sources, including social media. You can use it to measure your social media CLV by setting up goals, ecommerce tracking, and multi-channel funnels, and applying the social media CLV formula to the data. Additionally, you can measure your social media retention rate by setting up cohorts, segments, and custom reports. Facebook Insights is another free tool that allows you to measure and optimize your Facebook page and ads performance. You can use it to measure your social media CLV by using the Facebook pixel, custom conversions, and value optimization features. Furthermore, you can measure your social media retention rate by using the page followers, page likes, page engagement, and page impressions metrics. Lastly, Hootsuite Analytics is a paid tool that allows you to measure and improve your social media performance across multiple platforms. You can use it to measure your social media CLV by using the revenue report, campaign report, and custom report features. Moreover, you can measure your social media retention rate by using the audience report, engagement report, and sentiment report features.