“Social media marketing ROI” is a big term and often misunderstood by entrepreneurs. Some argue that there is no social media ROI, whereas others disagree. However, if you have a clear understanding of what goals you want to achieve for your business and how to calculate it right, things might just be the way it should be. Read on to know how you can make calculating the social media marketing ROI easier for your business. Given below are tips to help you understand how you can apply ROI to the social media marketing efforts of your company.
Defining social media marketing ROI
To understand the return on investment, you need to understand business finance. Businesses calculate the ROI to understand the amount of returns that they are getting per unit amount of money they invest in their business. In the same way, social media marketing ROI is the amount of money you get in return of the amount spent in doing social media marketing for your business. However, do not expect to see the amount return to show up on the “like” and “retweet” numbers. You must know that most of the social media marketing channels are free and you spend zero amounts of money to do marketing on these sites. However, the return on investment in the social media is generally noteworthy.
Steps to measure social media marketing ROI
You need to create social media marketing goals that complements the digital marketing goals that your company is making. For instance, if you are setting a goal of generating a certain number of goals this quarter of the year, make sure that you set a target of lead generation driven by the social media marketing alone. Track the conversion rate of the people who are landing on the website through your social media profiles. Check your existing social media performance in order to establish baseline targets. Now, you can set goals for the required amount of improvement. The main social media metrics that you need to track includes website traffic, reach, number of leads generated, registrations and conversions and the amount of revenue generated. It is important for the social data of the company to be relevant to the stakeholders of the company. So, connect the social media to your company’s goals.
Use social media analytics tools to measure ROI
Once you plan the social media goals, identify the processes and tools to measure the return on investment for your business social media profiles. You can do that by adding tracking codes to the website URLs and building customized landing pages. Each social media analytics tool tracks a specific thing about the website of your business. Google Analytics tracks the website traffic, sign-ups, and conversions. Salesforce codes are added to the links that are shared on the social networks. With it you should be able to track sales leads from specific campaigns and social messages. Hootsuite Analytics is another tool that you can use for tracking URLs, conversions, and the reach of your company to the potential customers.
Calculating the social media marketing ROI
Once the social media goals are set and the analytics tool is chosen, it is time to track the social media marketing ROI for your business. Whatever you do on social media should be tracked and you should be able to prove the success of the social media campaign with the help of the data, thus obtained. You should check the social media metrics frequently and make sure that the social media marketing goals are being met.
Identify what works and what does not. When it comes to social media campaigns, there are certain things that you can and cannot do. Adjust the strategies accordingly. Remember, the social media ROI tracking is not just to prove that the social media campaigns are important for your business, but to make sure that you are increasingly giving more value to the campaigns for the growth of your business.