Everyone has been hearing about the importance of social media for the last few years, especially in retail business. Some businesses may have written off social media, not wanting to spend time and resources, thinking it is just a fad. Social media has officially been around long enough, and its importance validated enough, that we can all agree, this is no fad.

Speaking from a retailers point of view, more and more customers are using social media to stay informed and up to date on their favorite brands and retailers. According to Monetate.com, 80% of smartphone users access social media on their devices, and 55% of those users visit these social networks at least once a day. In addition to the social network activity, 96% of smartphone users have researched a product on their phone before purchase. With consumers relying so heavily on what comes through their mobile phone, it is imperative retailers take full advantage.

Although it is obvious that a retailer must commit to improving their online social presence, it is not always so clear as how to measure their return on this investment. According to SocialBakers.com, here are a few social media metrics a retailer can use to measure the fruits of their labor.

Fan/follower growth: How many new fans are you gaining during a select time frame?
Engagement rate: The number of user interactions (likes, comments, retweets, replies and shares).
Response rate: The percentage of user posts or questions that the administrator responded to.
Response time: The average amount of time it takes for the administrator to respond to user posts or questions.
User activity: Identifying the hours and days of the week your users are engaging most frequently.
Shareability: The number of shares and retweets a post gets.
Interactions: The number of interactions that a page or post receives and the types of interactions (likes, comments, retweets, replies and shares).

Whether done in house, or outsourced, do not underestimate the power of social media and what it can bring to your business.

-Mike