Tracking social media ROI can be complicated. But it doesn’t have to be.
First, start by choosing measurable goals. General traffic and followers are essential to measure, but you should also focus on goals like email newsletter signups or contact form submissions that lead to future revenue. Google Analytics often tracks these goals and can be assigned a monetary value.
Increased traffic to your website
The value of social media can be challenging to demonstrate, especially when it involves non-monetary metrics like followers, engagement, and new customers. Using specific metrics that directly translate to business growth (like website traffic, email subscribers, or conversions) can help to prove the value of your social media strategy.
For example, if you run a Facebook campaign to drive traffic to your site, you can track the number of visitors and sales from these campaigns in Google Analytics. You can even filter this data by attribution type to see where your revenue comes from.
Likewise, using a tool to monitor your social media engagement metrics can give you a clear picture of your audience and what type of content they respond well to. This information can be incorporated into future content strategies to increase engagement and potential revenue. This is a simple, effective way to measure the value of your social media efforts.
Increased conversions
To make sense of your social media ROI, you need to know how much money you’re making compared to how much you’re spending. It would help if you calculated your earnings and costs by segmenting your campaigns by each social network. Once you have these numbers, you can see which platforms bring in the most revenue and focus your resources on those delivering a positive return on investment.
In digital marketing, it’s crucial to establish effective strategies, and one key aspect is to measure social media ROI. This process involves assessing the impact and returns generated by your social media efforts, providing valuable insights for optimizing future campaigns.
Measuring social media ROI can be difficult because translating its non-monetary metrics into dollars and cents is often challenging. For example, you might post an infographic on social that generates many likes and shares but doesn’t necessarily lead to new customers.
In these cases, it’s important to emphasize the value of your campaign’s other aspects, such as the intel you gain from customer feedback and how this can improve your business. This will help you win over executives who are skeptical of the ROI of social media marketing.
Increased sales
The ultimate goal of any business is to generate revenue. Social media can help to do this by driving traffic and sales. By tracking the results of your social media campaigns and putting them into an ROI equation, you can show your managers and company stakeholders that you have generated a positive return on your investment.
However, calculating your social media ROI can be difficult because it’s hard to determine which metrics are the most valuable for your business. It’s essential to focus on goals that involve someone taking a measurable action, such as email newsletter signups or contact form submissions.
Intangible benefits like brand awareness, customer loyalty, and reputation management are essential when determining your social media ROI. These benefits are more challenging to quantify financially but can still drive business growth. By focusing on these intangible benefits, you can maximize the value of your social media ROI. The key is to track your ROI regularly and continually optimize your social media strategy.
Increased brand awareness
Brand awareness is a crucial component of social media ROI. Through sponsored content, boosted posts, or social media advertising, businesses can increase brand awareness by targeting the right audiences with the most relevant messages. This helps attract new customers and allows existing ones to connect with the brand more effectively.
Brand awareness can be measured through metrics like reach, engagements, and link clicks. However, it is essential to understand that the most meaningful metrics drive a measurable action. This could be anything from a newsletter signup to a contact form submission.
Whether through a free social media ROI calculator or a more sophisticated tool such as Sprout’s advocacy ROI calculator, aligning these metrics with your business goals to determine your actual social media ROI is essential. Doing so can unlock the value of your social media investments and accelerate your business growth.
