These days every savvy company is active on social media, trying to craft content that resonates with their target audience and hoping for a social media ROI. Roping in a prospect through engaging social content may seem like an easy task, but knowing how to quantify your social media marketing ROI is a more challenging task, which Spot On will help you master.
There are two primary categories for measuring your social media engagement, both of which are important:
- Ongoing Analytics – Ongoing analytics gives you a broad-stroke look at the overall impact your brand is having on social. It provides a quick-pulse view of engagement and is easy to monitor regularly to see how effective your efforts have been. For example, the number of overall followers and likes/shares your company has are considered ongoing analytic factors.
- Campaign-Focused Metrics – Campaign-focused metrics, which are specifically tied to an event or campaign with clearly defined start and stop dates, allow a deeper understanding of that campaign’s particular impact on your audience. They can be analyzed as a solo campaign or you can measure them against other campaigns in a series, allowing you to adjust future campaigns based on the strengths you’ve identified.
MEASURING YOUR SOCIAL MEDIA ROI
There are several things you can do to assess how effective a campaign’s success may be. For example, if you are promoting a free e-book or white paper, checking the number of downloads is an easy step. Or you can follow your post hashtags to see what kind of traction they’re getting.
Primary considerations to ask yourself before even launching a campaign include:
- What are your campaign goals? Have clear objectives. Are you looking for basic product awareness? Positive online buzz? A large number of shares and likes? What does success look like? Write down your goals and objectives and then assign metrics to each.
- Set up metrics to measure those goals. To truly assess success, you need to track the right performance metrics. Renowned marketer Neil Patel shares these tips for how to best measure your campaign’s success:
- “If you want to measure awareness, then use metrics like volume, reach, exposure, and amplification. How far is your message spreading?
- If you want to measure engagement, then look for metrics around retweets, comments, replies, and participants. How many people are participating, how often are they participating, and in what forms are they participating?
- If your goal is to drive traffic to your website, then track URL shares, clicks, and conversions. Are people moving through social media to your external site and what do they do once they’re on your site?
- If your goal is to find advocates and fans, then track contributors and influence. Who is participating and what kind of impact do they have?
- If your goal is to increase your brand’s share of voice, then track your volume relative to your closest competitors. How much of the overall conversation around your industry or product category is about your brand?”
Our partner HubSpot recommends considering these five social media metrics as well:
- “Start to measure social media networks together and separately.
- Track visit-to-lead conversion.
- Track lead-to-customer conversion.
- Score leads and monitor the sales cycle.
- Watch site behaviors from your social media traffic.”
YOUR SOCIAL MEDIA ROI CALCULATOR
To calculate your social media ROI, add up all revenue gained from your social media efforts, and subtract from that your investment (boosted posts, paid platforms, content creation, people hours, ad budget, etc.) to determine your profit. Divide that profit number by your total investment to get your social media ROI. If you want to know that ROI as a percentage, times your subtotal by 100.
For example, if you made $1,000 in revenue from social media on a $500 investment, your profit is $500. You then divide that $500 profit by your $500 investment, multiplying it by 100, to show that you received a 100% return on your investment. A pretty wise investment, by any standard!
From using Bitly and UTM Codes to track behavior to setting up Google analytics for social tracking, there are so many factors to consider when improving your social media marketing ROI.
If you’re looking to strengthen your approach to social media marketing, check out Spot On’s blog post on 10 ways to step up your strategy.
Spot On has a long track record of success in helping companies measure social media ROI and we’d love to assist you as well. Just set up a time to chat and we can get your social media performing in ways that deliver the most efficient return on investment. Spot On can bring you the expertise and strategy to cut through the clutter.