What is Key Performance Indicator (KPI)?

Key performance indicators (KPIs) are measures of performance that allow an organization to know if it is succeeding at its objectives. KPIs may be quantitative or qualitative and they should be specific and measurable. They can also highlight processes, outcomes, and business activities in order to measure progress towards a goal.

KPIs are a way to measure the effectiveness of social media marketing. They allow businesses to track their success and performance in relation to what they want to achieve with their marketing efforts. KPIs for social media include volume, quality, reach, frequency, and conversion rates. This article will explore how each KPI can be measured and why it is important for marketers today.

KPI Metrics

KPI Metrics


Volume is the number of people reached with a message by using social media marketing tools. Volume can be tracked and measured with follower counts, post views, retweets, likes, and comments. To track volume you need to consider three things: (1) how many followers you have; (2) what types of content were promoted or shared; and (3) how often the content was posted.

The more followers you have, the more people will see your content. Each piece of content should be shared in different ways for maximum reach.

Posting three times per day works well when sharing similar pieces of information such as quotes or pictures related to a theme that fits into your overall brand image. Frequency doesn’t matter if the content isn’t shared often enough.


Quality is how engaged your audience is with you and your content. High quality can be measured by the amount of time people spend reading or watching the content, the number of comments on posts, retweets, likes, shares, views, click-throughs to other pages on your website (like a product page), and conversions (for example putting an item in their shopping cart).

All of this information will give you an idea if the content shared was relevant to them or not.

People who interact with social media marketers are interested in engaging with businesses online because it gives them something they can’t get anywhere else. When someone follows your business on Facebook they expect relevant interactions including sharing relevant updates about products and services, promotions, coupons, and special offers.

To measure quality you need to consider how many of your followers click through on each post or share each piece of content. This information will tell you whether the interactions your business is generating are relevant to people’s daily lives.


Reach is the number of new people that were exposed to brand messages because of social media marketing tools. It matches up with volume by providing another way of measuring how many people were able to see posts made over time (like frequency).

Using reach allows businesses to track visibility of posts within different demographics like age groups and cities/states rather than just tracking overall audience size.

For example, an auto dealership may create a Facebook page for its location in downtown Chicago but the majority of followers are from a different part of the city. The dealership can use reach to see how many people from downtown Chicago have been exposed to its Facebook page.

Reach can be tracked by using social media analytics tools or basic counts of new users who follow your website after clicking on a link from your Twitter profile.


Frequency is how often someone sees content about your brand during their day and in relation to other brands they interact with online. It is important for businesses to find the best ways to share information across all platforms in order to capture audience attention and grow engagement.

People will ignore repetitive posts that they don’t need or want and frequency isn’t really effective unless it has some variation (volume).


Conversions is the process of turning people into customers through social media marketing. This can be done by sending them to a website that has products or services available for purchase, encouraging them to sign up for an email list (in order to get updates about your business), or getting them to promote your brand on their own social media profiles (by sharing content).

Conversions happen when businesses use social media marketing tools to build trust and relationships online. Rather than pushing sale messages all the time, brands can connect with people on relevant topics which can lead to sales as well as purchases made offline from traditional advertisements.


Sales is the final stage in the conversion funnel and it is when revenue is made. Social media marketers use reach and frequency maximize the total number of people who are exposed to sales messages online since they have already completed steps in the buying cycle. They are more likely to buy when they have been influenced enough by other people’s opinions before making a purchase decision. People who were not convinced to purchase something after a few interactions with a business may eventually buy something days or weeks after posting, sharing, or responding to a post.


Activity is what happens within each stage of the buying cycle. To measure how many steps have been completed you need to identify conversions from multiple points in the conversion funnel including volume, reach, frequency, and conversions depending on your goals for a particular campaign or month.

You can then compare monthly metrics with previous months to see how things are trending over time and learn whether your social media activities are effective towards increasing sales and conversions.

After Thoughts

Defining Key Performance Indicators (KPIs) is important because the measurements you use will define how much revenue your business makes, whether or not current campaign strategies are successful, and what types of content to share through social media marketing tools.

For example, if a business’ reach is low compared to its competitors then it could mean that they need better ways to generate brand awareness such as using ads to get more people interested in their posts or asking members of their audience for help spreading the word about their products and services online.

If a company doesn’t have any conversions happening on Facebook after one month then it may be time to evaluate the type of content being shared across different social media networks since not enough people are buying things even though they are exposed to brand messages.

Understanding which metrics are important for your business is an ongoing process that requires regular review of data collected from social media management tools, feedback from customers, and business ideas through brainstorming with employees.

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