Instagram is the best and most commonly used social network in world that has convinced many businesses to market their services or products online through Instagram. Instagram marketing is one of the most significant factors in business strategy and businesses are spending a lot of money on it; in fact, businesses are using the Instagram audience to boost their sales.
Internet businesses pay more attention to Instagram marketing than other businesses because Instagram has a very large and good audience. If you own an internet business and want to use Instagram marketing to sell your products or provide services, then you should also consider analyzing it! In fact, you need to know how successful you have been in your Instagram marketing and how much utilizing this tool has been able to increase your sales. In this article, we intend on teaching Instagram Marketing Analytics and asses the 4 major factors you need for this analysis. If you’re ready, please follow us:
A. Conversion Rate Analysis in Order to Identify the Users’ Decrease Stage
The conversion rate is the most important factor in Instagram marketing analytics; in fact you must know how successful you have been in converting your Instagram followers to website users and then determine the conversion rate of your website users to your business customers or clients. Some businesses convert these two steps into one step; in fact, they analyze the conversion rate of Instagram followers to business customers or clients – the higher the conversion rate is, the higher your sales will be.
When users log in to your website through your Instagram profile page, your chances of turning them into actual customers or clients are high. In fact, when users log in, they have an intention of making a purchase and the decision to buy what they require from the website depends entirely on how successful your website is. If your website has a simple online shopping process and users can easily make their purchase, your sales rates will increase. Experience has shown that many users intend on making their purchases via Instagram; so they ask you some questions in the comments or direct messaging section and they want to learn more about how to buy your product or service.
These users are among the most important followers and they are likely to make a purchase or place an order and by fully answering their questions, you may very easily sell your products or services to them. Suppose that you sell handbags on Instagram which is directly done through Instagram marketing. Suppose that based on Instagram Marketing Analytics, from approximately 180 direct messages, 75 purchases are made now you want to boost your sales. For this, you’ll need to hire another tailor to produce the ordered bags, which will also costs you money, so you need to have over 100 sales instead of 75 to be able to afford your new tailor.
What do You Need in Order to Boost Your Business Sales Through Instagram Marketing?
In the previous example, the business owner must find a way to increase sales rates; there are various methods to do so:
- Produce more content and encourage users & followers to purchase products.
- Increase the number of users & followers of the business Instagram profile page.
- Launch an online Instagram competition and thereby boost sales.
- Or choose another approach!
In order to be able to choose the best approach and get a good feedback, the business owner has to apply Instagram Marketing Analysis. A Sales Funnel is a tool which helps you identify your users’ decrease stages. Please take a look at the following Marketing & Sales Funnel:
This image contains valuable information that tells you at precisely which stage, the users have stopped following you or simply left your online sales process.
- Saw (Reach): This section shows the number of users who have seen (visited) your Instagram profile page. This is usually a large number; if users or followers interact with your profile page, they will enter the next step of your funnel, but if users do not have any interactions with your profile page, they will be removed from your Instagram Marketing Funnel. Note that this section is about the number of visitors to your profile (not the number of profile views) – that is referred to as Reach in the Instagram Analytics section.
- Started Following: Some users from the previous section will follow your Instagram profile page; this means that users are entering the second section of your Marketing Funnel and some the users of this section will enter the next section of your Instagram Marketing Funnel.
- Contact: Some of the users that have entered the previous section will send you direct messages and ask you some questions. However, these questions or inquiries may also be asked through website support tools (such as an online support chat tool) which falls into the same category. If at this point, the user gets satisfactory answers his/her questions and needs that product, he/she will purchase your products or services. This user or follower will be included in the next section of your Instagram Marketing Funnel.
- Purchased: This is the final stage, which involves a much smaller number of users or followers compared to the first stage (Saw)! So you should try to attract more visitors to your profile page in order to get more out of your Instagram Marketing Funnel. It is true that the users in the final stage of the Funnel are much less, but your sales rate will still be high and this issue has a great impact on your Instagram strategy.
The Instagram Marketing Funnel helps you to know what stage of the Funnel has had the largest number of user or follower loss, and this will help you develop a good strategy for your Instagram plans. Remember the previous section? We mentioned a few approaches to increase your sales for handbags, and based on your Instagram Marketing Funnel analysis, you can easily find the right solution; This solution may be the right solution for you, or maybe using a combination of multiple solutions will help you most.
You can set up your Instagram Marketing Funnel manually or utilize different tools. Either way, you need to have your Instagram page data and reports available. To access this information (especially the first to third Funnel stages) you may use the Instagram Insights tool.
An Example for the Instagram Marketing Funnel
You may find it difficult to grasp the previously mentioned concepts but that’s okay! In this section, we want to give you a practical example of Instagram Marketing Funnel in order to make it easier to understand. The following image shows an Instagram Marketing Funnel, please consider it:
In a business that intends to analyze their Instagram marketing, the Marketing Funnel is utilized. In this Marketing Funnel, 5000 people (viewers) have visited the business’s Instagram page, of which only 100 actually follow the page. Of those 100 followers, only 10 have sent a direct message to the administrator of the page and asked questions about the product or how the purchasing process works. By answering the questions of these 10 followers, the business has managed to convince only 6 people to make a purchase.
In the conversions section, you need to enter your conversion percentage; the higher the percentage of sections is, the higher your conversion rate will be and this will ultimately help you boost your sales. Finally, you just need to provide a complete Marketing Funnel from the path that users take on your business website. See the following image as an example:
In this picture, the information mentioned in the table above is presented to you in a visual form and you can determine the strengths or weaknesses of your Instagram Marketing. Once you have provided yourself with the Marketing Funnel, you can improve the conversion rate of each step and ultimately boost your business sales through Instagram Marketing.
B. Assessing the Expansion and Growth of the Business Page Based on Pre-Defined Goals
In order to determine the growth rate of your business profile page, you must first set some goals. In fact, if you don’t have pre-defined goals for your business, you can never measure its growth rate, and even if you do, this won’t help you boost your business sales. Your goal may be to increase sales or increase your email list contacts, depending entirely on your business. Once you’ve set your goals, you’ll need to determine the growth rate of your Instagram profile page.
To do this, create a table similar to the following table using Microsoft Office software and measure you Instagram profile page growth rate at different time intervals:
To obtain this data, the Insights tool on business profile pages will help you; when you enter the profile page, a number at the top will show you the number of profile views during a week. You can check this number on a weekly or monthly basis and register it in the created table. You can also add a new line below your table and register the number of increased followers there! This will help you measure your profile page growth rate:
There are two lines in this table of which the first line is the total number of followers per month and the second line is the increase in the number of followers compared to the previous month. In fact, the formula for measuring the growth rate can be seen in the following image:
Make another line (a third line) and register the growth rate for each month under its name to know in which months you have had the best growth rate!
If your growth rate is higher in some months, just think about all that you did during that month or what content did you post on your business profile page; publish the same kind of content for the new months and if your analysis shows that this is positively affecting the growth rate of your profile, incorporate this type of content into your Instagram Marketing strategy permanently.
Formula Guide! In the upper part of the fraction line, just subtract the current number of followers from the number shown for new follower in order to obtain the number of new followers that have recently started following your profile page; this number should be equal to the number in the second line. You can directly place this number above the fraction line. At the bottom of the fraction line, you can also put the number of previous followers and finally multiply it by 100 and the growth rate (growth percent) will be determined.
Finally, check out and asses the Instagram Marketing Analytics report for your business profile according to your pre-defined goals and tailor the best possible strategy accordingly.
C. Assessing the Comments on the Instagram Profile Page in Order to Determine Users’ Interests & the Amount of Interaction they have with Posts
One of the most important features of Instagram is the possibility for users to post comments below your business posts! In fact, by the use of the comments posted on your profile page, you can easily identify users’ interests. User reviews under post comments will have a significant positive impact on boosting your business sales.
In the past, businesses focused heavily on increasing the number of Likes their posts got. But today, Likes don’t have much of an impact on Instagram marketing! For example, suppose your business sells backpacks of different brand names and you want to know in which brands the users are more interested in. For this purpose, you’ll post different posts on your profile page, but sometimes the number of Likes for different posts don’t vary much; in that case, you don’t really know whether users like the color of that certain backpack or its brand name. That’s why you can’t plan a good strategy for producing the right content based on your users’ interests.
The commenting feature allows you to ask users questions in your posts! For example, you can ask which brands they like the most. Users will also respond in the comments section, so you can post related to your users’ favorite brands and increase sales for that particular brand in your business. If you have products or services to offer, you can ask users questions regarding quality or pricing and ask users to tell you what they think about the price or quality of your products or services. If they are dissatisfied with the price of your products, create discount festivals and opportunities and experience a good profit by selling more of your products, even if you have given a large discount on the products.
Bu utilizing the Instagram Marketing Analytics (Insights) tool, you can easily assess user interactions; if user interactions have increased, follow the current trend for the future, but if user interactions have declined, you need to change your current trend of creating content for your profile page and your Instagram marketing.
D. Check Inbound Website User Traffic through Instagram Marketing
Another one of the most important factors resulting in the success of Instagram marketing is to check the inbound website user traffic! In many businesses, users need to log in to the website and make a purchase or buy a service. So knowing the data on inbound website user traffic will help you a lot. It’s even interesting to know that some businesses’ goal of using Instagram marketing is to increase their inbound website user traffic. For this means, you need to have accurate information about the number of clicks on the website link that is available on your Instagram profile page. If you use the Insights tool on Instagram business pages, you must know that it displays the number of clicks on the website link in the Bio section of the Instagram profile page. You can also insert this into your Instagram Marketing Funnel (part one of the article).
If you need more detailed information, the Instagram Analytics tool won’t help you much, and you must utilize Google Analytics. With this tool, you can create UTM links and place them in the Bio section of your profile. If users click on it, the related report will be fully accessible in Google Analytics. Just follow Acquisition > Campaigns > All Campaigns to access your UTM links.
In this section, just go into the Traffic section and view the inbound user traffic via the UTM link. In the links section, there is a section called CTR which is the click rate.
The click rate is measurable by using the formula below:
Formula Guide! Above the fraction line is the (people who clicked the link) which is the number of clicks on your link and below the fraction line is the (people who saw the post with the link reference) which is the number of visits to the link. If you have put the link in the profile section of your Instagram profile page and have had 1000 viewers visiting the page from which 10 people have clicked on the link, you should put the number 10 above the fraction line and the number 1000 below. Finally, just multiply it by 100 to obtain the conversion rate.
NOTE! Bear in mind that all links on Instagram are merged into posts as non-clickable links and the only link that users can enter your website with is your Bio link! The best way is to direct users to your profile section and ask them to click on the website link there. If so, you can get a high conversion rate from your UTM links.
Instagram Marketing is a great tool enabling you to market your products or services through Instagram. When you market your products correctly on Instagram, you can achieve good sales because target audiences for every business are present on Instagram and you can easily experience good sales. The most important thing is to analyze Instagram Marketing with which you can formulate your business strategy! In this article, we taught Instagram Marketing Analytics and assessed its important factors.
Now You Tell US! What approaches do you use for your Instagram Marketing and how do you analyze them? Please share your experiences with us and with other users in the Comments section.