Social Media ROI
ROI IN SOCIAL MEDIA MARKETING
Definition will depend on what your specific goals are. But at its core, social media ROI is what your company is getting back from the time, money and resources you’re putting toward social media marketing.
Measuring ROI Is Important
The reason a lot of companies get into social media marketing in the first place is because it’s mentioned on just about every website that has anything to do with marketing or business. You hear stories of how the top companies are “dominating” on social media, and how it’s where your audience is, so you have to be active on sites like Facebook, Twitter, Pinterest, etc. But unless you’re tracking what you’re doing, what’s being spent and what kind of results you’re getting, it’s really difficult to determine whether or not anything you’re doing is working.
Aside from avoiding wasting your time, you need to measure your social media ROI because:
- You’ll see where you can improve your efforts
- You’ll be able to decide which social media channels are bringing in the most revenue for you
- You’ll see how specific changes impact your social media goals
How to Track and Measure Your Goals
Once you’ve defined your goals, the next step is to track them. The tracking part is why it’s so important to set up goals that are based on your visitors taking action.
The easiest way to track your social media goals is by using Google Analytics.
o From your Google Analytics dashboard, go to Acquisition > Social > Conversions
o If you don’t have any goals set up, you’ll be prompted to create one. Click on “Set Up Goals”.
- Lifetime value x conversion rate: Calculate the lifetime value of a customer, and multiply that by your conversion rate (average number of email subscribers who become customers) to find out what the potential value of each visit is.
- Average sale: If the goal of your campaign is to try to get sales, then you’ll want to calculate your average sale amount and set that as the value. In this case, your destination page would have to be the page that shows up after a customer completes a purchase.
Lastly, if you have a specific funnel that you created, you can set that up here too. After you have everything completed, you’ll be able to see your conversions and the actual amount earned from those conversions. It’ll look something like this (except you’ll only see the results from social media traffic).
Tools to Measure ROI
- Google Analytics: To track your campaigns and goals
- Google URL builder: To assign track able links for your campaigns
- Sprout Social: To schedule your social media posts
- Customer LTV Calculator: To calculate the LTV of your customers