To ensure a marketing channel success, you must track your results. You need to measure the efficiency of your marketing campaign.
If you are engaged in Social Media, you should be measuring how well you are doing?
Buffer offers this simple definition, “Social media ROI is what you get back from all the time, effort, and resources you commit to social.”
Social Media Examiner gives a general formula for calculation your social media ROI:
Social Media ROI = (SM Return – SM Investment) / SM Investment %
SME added further, “you use the ROI number to compare to other social media campaigns and also your TV, print, radio and other campaigns.”
Measuring the social media ROI proves the importance of social media campaigns for your marketing strategy.
Do you still think, social media is just for some connections and awareness?
Here are some real examples that will show you social media can produce ROI – Thanks to Neil Patel
With the availability of several metrics at your disposal, you are lucky enough to consider them, in the better measurement of your social media ROI.
According to Econsultancy’s State of Social Report based on a survey of more than 1,000 companies and agencies, 41% of respondents are not tracking social media ROI.
I love this quote from Jay Baer,
If you’re looking to place blame for why you can’t measure social media ROI in your company, grab a mirror.
He added further, “If you want to measure social media ROI, stop wasting your time doing software demos and attending webinars. Just figure out what you want to track, where you can track it, think about both current customers and new customers, and go do it.”
Here are 10 metrics that play a key role to help you determine Social Media ROI for you:
The first and easiest metric to measure is the volume. Volume is a great indicator for the interest of people in the brand.
The volume is the size of the conversation your brand is involved in. The conversation may be negative or positive, but what matter is that the people really care talking about you!
Reach is the measure of the spread of the social media conversation. The reach, in fact, determines how wide your reach among the audience is and is an indication of the potential audience size.
Reach can be considered as a good measurement metric for your Social Media ROI in a good number of cases.
Considered as one of the most important areas to measure the social media ROI, the engagement is considered as the way your target audience is involved in the conversation about your brand.
While, the methods of the engagement may differ depending upon the social media platforms, but most of them still provide either Reply or Comments options, thus offering you an engagement metric, a very good metric to consider in your social media ROI.
Like, shares and Comments
Considering these three aspects all combined can give you an idea, what are posts doing on Social Media.
Have a look at the posts and updates by you and analyze the response of the audience to better analyze the Social Media ROI.
Traffic to website
Another important metric, which determines how your target audience responds to you on Social Media, is the traffic being diverted to your website through the Social Media.
While this can be checked through the Google analytics, this is an important indicator to give you a fine impression on how well you are doing on social media.
Considered as the most controversial Social Media metric, influence is the measure of what kind of response you are getting from whom. You can find quite easily whose words have the most influence about your brand.
Share of voice
In order to really know, how well you are doing on Social Media, consider this factor as the most important. Determine what share of percentage you carry in the overall conversation of the niche in comparison to your competitors.
The leads are perhaps the second best metric considered, when you determine your Social Media ROI as all hard works are only done to gather more leads for the business.
Thus, the more leads you are generating through Social Media, the better you are doing on Social Media.
The number of customers gathered through the use of Social Media is the ultimate ROI on Social Media. The more is the number of customers gained through the Social Media, the more successful is the Social Media campaign of yours.
The revenue generated with the use of Social Media is entirely dependent on how much you spent on, in the social media campaign all over.
The less is the amount invested on Social Media and more is the profit gathered through it, the better is the revenue generated through the Social Media.
If you’re still wondering how to determine accurate ROI?
I’ll suggest you some tools which will help you to measure your social media ROI accurately.
The social Media is becoming the highest influential place to better brand promotion for the business. Invest your time and money to gain more through the Social Media.
Do you have any questions about Social media ROI? Do you want to share your favorite method? Please do drop your views in the comment section below. I’d love to hear from you.