In today’s social media obsessed society, you likely already recognize the importance of a social media presence for your business. However, ensuring that social media outreach equals quantifiable results in the form of an ROI is another story altogether. You might assume, your social media efforts are working if you get a response, but it’s not that simple. That alone does not define or exemplify a good ROI. Read on to learn more:
What is a Social Media ROI?
Before determining what it means to achieve a good social media ROI, we first need to properly define what social media ROI even means. As you likely know, ROI stands for return on investment. In terms of social media effectiveness by garnering a good ROI, you need to consider objectives like customer satisfaction, revenue, brand awareness, brand loyalty, etc. In other words, enjoying a healthy social media ROI doesn’t just mean getting a response from customers. Instead, it means you are ensuring customer satisfaction and earning increased revenue because of your efforts. If you aren’t sure whether your social media campaign is earning revenue, you are not alone. In fact, some 46% of B2B marketers say they aren’t sure their social media efforts are working to generate revenue.
How to Measure Your Social Media ROI
The following are some common indicators that show you your social media campaign is yielding a positive ROI:
- An increased engagement and reach.
- Increase in purchases.
- More sign ups for events, webinars, emails, etc.
- A greater amount of product trials or downloads.
- A notable increase in visit-to-lead conversion rate.
- An uptick in web traffic.
- Improved campaign results.
Look For Key Performance Indicators (KPI)
While the indications listed above give you a good idea if your social media efforts are working, finding KPI helps you further test the success of any particular activity or effort. Consider the following KPI examples that showcase some key performance indicators and more accurately measure your social media performance:
- How much did you pay for ads on social media? This is your PPC ad valuation number.
- How much is each customer visit worth? Find this by considering LTV x your Customer Retention (CR) number.
- How much would you earn from a customer overtime? Lifetime value.
- Did a customer’s actions save you money elsewhere? This is your resource savings.
Auditing Your Social Media Efforts
The word audit doesn’t always have a negative connotation. In terms of social media efforts and your ROI, auditing can help you evaluate various elements of your campaign more efficiently. In fact, a social media audit can offer the following positive indications:
- Recognize trends that you can then incorporate into your current campaigns or allow you to create new, more effective campaigns.
- Help you adjust or develop a social media strategy that aligns with your goals or specific business objectives.
- Gives your team and executives a better picture of what is and what is not working social media wise, allowing you to manage and alter social media budgeting and spending.
Why You Need an ROI Tracking System
The biggest aspect to consider of any social media effort is its effectiveness. An ROI tracking system allows you to see what is and is not working. It also gives you an idea how your campaign is affecting other departments within your business outside of just sales and marketing. You also can gain control of your conversion rate and oversee your brand’s reputation more efficiently. Finally, you can use information obtained through a tracking system to prove to naysayers within your company the importance of consistent social media campaigns. Ideally, this will help you to get needed budgeting from your business’s executives by proving the effectiveness of social media campaigns.
Your Next Step
Social media campaigns are without question an important element of today’s marketing. However, quantifying the effectiveness of such a campaign can be confusing. Thankfully, you can outsource your social media management to us at fuze32 and let us do that hard work for you. Allow us to give you a good idea of your current ROI and to provide ways to make your campaigns more effective and then oversee their implementation. Call us today to learn more!