Amazon: ROI, KPIs & Social Listening

Amazon is easily one of the most popular brands in the entire world and it’s no surprise that it continues to grow. Similar to other major brands, Amazon should focus on social media efforts and intend to achieve their SMART goals as the company progresses. In order to plan for the future, we need to understand the company’s history and analyze potential goals.

(FourWeekMBA, 2019). With that being said, Amazon’s objectives should be related to being as innovative as possible to best support its consumers. According to some potential company objectives for the 2021 year are:

  • Amazon’s Fulfillment capabilities will become their next AWS
  • More experiments with live video and virtual experiences
  • Amazon will slow down or even stop its private label brand expansion
  • More competition amongst sellers
  • Bulking up Amazon Fresh
  • Amazon Advertising will accelerate

Setting Specific, Measurable, Achievable, Realistic, and Timely (SMART) goals related to these objectives can be best achieved through social media efforts. To be specific, Amazon should increase awareness, engagement and revenue on social media by continuing to use the most popular social media platforms, but should expand the current target audience. Among these platforms, Amazon should promote their newest features to niche groups to effectively expand to its fullest potential. To measure these efforts, this can be collected through analyzing post engagement such as likes, comments, shares, and mentions. More specifically, looking at trends after the launch of certain campaigns and acknowledging how “new” target audiences are reacting to the posts. A goal that can be easily achievable is posting more user generated content and engaging more with its fans. User generated content helps with producing more content and different kinds of content. Additionally, realistic goals should relate to Return On Investment (ROI) rates. Amazon needs to use social media platforms to their fullest extent to have a positive ROI and have positive brand awareness. In order to effectively achieve the goals mentioned so far, there needs to be a timeline set in place. By the end of 2021, Amazon should engage with at least 3 new target audiences that are designated beforehand. In order to achieve this engagement, a suggested 3 major social media campaigns need to be executed by October 2021 to ensure that Amazon can analyze the aftermath before the end of the year.

Identifying Key Performance Indicators (KPIs) will help Amazon with measuring the effectiveness of social posts and campaigns. A few KPIs that would benefit Amazon to track in their social efforts are:

  • Audience Growth Rate
  • Average Engagement Rate
  • Conversion Rate
  • Click-through Rate
  • Cost-per-click

Ultimately, Amazon should capitalize on social media to increase engagement and revenue. As one of the most innovative companies in the world, Amazon needs to continue to have a large social presence and aim to grow and amplify that presence. Creating new social media campaigns that are tailored to new target audiences will expand their reach and, hopefully, expand revenue.




Graduate student at the University of Florida

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