Question

What are social media, RIO, KPI, and Web Analytics? Give a detailed example of each.

Answer 1

Social media are online communicating channels which enable the users to share personal information and online content and to collaborate and interact with others on web. Social media channels are usually accessed through computers and mobiles. Facebook, Twitter and Linkedin are some of the popular social media channels. Through social media businesses can improve their connectivity with the customers. Even political parties can campaign themselves through social media.

ROI or Return on Investment is used to measure the relative gain or loss incurred to the amount invested. It is a ratio of profit and cost of investment. ROI is used in business estimation and in share markets. It is also used to analyze whether marketing investments has led to fruitful returns or not. Note: Question must be ROI and not RIO.

Key Performance Indicators(KPI) help an organization in determining whether its business objectives and targets are being achieved or not. KPIs change from department to department. For example, in marketing department number of sales achieved can be a key performance indicator. For a business, profits achieved can be a key performance indicator. KPIs also vary from company to company depending upon their goals and strategies. For a social media campaign, clicks, shares, likes, sales, conversions, leads etc can act as KPIs.

Web Analytics is the collection, analysis and reporting of data on the web for optimizing web usage. Web analytics help companies in measuring the effectiveness of their websites and their digital marketing initiatives. Traffic to the site, click rate, conversions etc help in analyzing the effectiveness of a company's online campaigns and business. Analysis of web server log files, http request data, application data and external data are some of the sources of data for web analytics.