You spend hours crafting a social media strategy. Photos, videos, engaging content are all part of that strategy.
But, how do you know it is working? How do you measure your social media return on investment (ROI)? How do you know what’s working and what’s not working? Do you know when to revise?
In this article, we look at the trick to unlocking the secrets to getting a ROI on social media.
What is Your Social Media ROI?
Before you can determine if you are getting a return on your investment, you first have to know what that means for your business. It might be any of the following:
- Increased sales/revenue
- Enhanced customer satisfaction
- Brand awareness
- Increased engagement
- Website visits
- Videos Watched
- Sign Ups
Bottom line – social media ROI is all of your social media activity that equals something of value to you.
To measure your ROI, you need to know how much you spent on your social media staff and how much your business made.
Many companies won’t be able to attribute their sales directly to their social media activity. And this is just fine because social media success isn’t always measured by how much money you make.
Setting Actionable Goals
Because social media ROI isn’t always attributable to money in your pocket, the best thing you can do is set attainable goals.
For example, you might set a goal of social shares, an increase in followers, or website traffic. By managing your analytics, you can assess the ROI on these actions.
There are some actions, though, that you can track more tangibly such as email list sign-ups, downloads, and sign-ups for a trial service.
The best trick you can do is set your goals based on a defined set of actions. You want to set actions that convert a person to a lead for your business and ultimately into someone who makes a purchase from you.
Next, you want to measure your goals. Look at your social media analytics. If you’re running specific campaigns, use specific URLs from Google’s URL builder so you can track them in Google Analytics. You can also set conversion goals in Google to track people coming into your website to determine your ROI.
Tracking Your Expenses
You also have to know your expenses to figure out your ROI. You have to know how much you’re spending when it comes to your time, money, what you spend on social media tools, and the costs of any ads you do.
This is your basic formula for computing your ROI: (Earnings – Costs) x 100 /Costs.
You can also determine ROI for each social media network that you use by dividing your costs for each one.
Improving Your ROI
Now that you know how to figure out your ROI, you can go about improving it over a period of time. Here are the steps:
- Test and optimize your campaigns. You can experiment with different imagery, ad copy, ad formats, and even audiences. Continue to test and revise until you come upon the most successful campaigns.
- Use your data. Make educated guesses at what will work. Then, look at your data and analyze your conversions.
- Continue to revise and test because social media changes every day. Look at your platforms and make sure you’re meeting your target audience and their needs.
The ROI on your social media is what your business gets back for the time, effort, and resources you commit to it.
Know your conversion goals. This might be new followers, click to your website, time spent on your website, online purchases, filling out a contact form, or downloading something.
Then, you track your conversions. Once you’ve done this, you can assign a dollar amount to each conversion. Don’t forget to measure your costs as well.
Once you’ve computed your ROI, you can analyze your results and determine where you can improve.
At the end of the day, the secret to getting an ROI on social media is knowing what you want to track, tracking it, and analyzing it.
If you’d like some help developing your brand and nurturing the relationship between social media ad your business, we can help. We’ll provide customer-focused and engaging posts that encourage trust and a connection with your business.
We are here for you when it comes to your social media posting. We’ll study your brand and create posts that work with your overall social media posting strategy. Learn more about our services and how we can create engaging content that your customers will enjoy and appreciate.