With more and more organizations leveraging social media as a marketing tool, companies now have to allot a budget and resources dedicated to social media marketing.
But as with all departments in an organization, there needs to be some gauge for determining success. Because time spent is considered money spent, how does an organization know that their social media efforts are worth the effort?
However, beyond demonstrating the impact on that social media has on your team’s marketing efforts, mapping and tracking social media ROI also allows you to identify how much time and resources you should be focusing on a particular campaign. You determine what’s working and what’s not. To help you evaluate your social media ROI, we break it down for you:
What is social media ROI and why is it so important?
(social media return – social media investment) / social media investment percent = social media ROI
Measuring your social media ROI is critical for numerous reasons. Here are the top three:
- Recognizing where your efforts and resources are being used most efficiently and which areas you may need to make adjustments or drop altogether.
- Identifying where your resources are being wasted or not being utilized to their full potential
- Exposing your gaps in strategy though content and use of hashtags and mentions
Identifying your social media goals
Of course, every company is different, but when it comes to your social media goals, there are four that every business should be measuring:
- Raising awareness of your brand
- Increasing website traffic
- Determining website visitor loyalty
- Increase your conversion rates
Measuring your social media ROI
There are many social media analytics tools which can track the different metrics you are after. Here are some for your consideration:
Google Analytics
With Google Analytics, you can track website traffic, on-site conversions, and sign-ups originating from your social media campaigns. You’ll recognize where your traffic is coming from and how they interact with your site, particularly those coming from social media.
Customer Lifetime Value Calculator
By creating CLVs for each of your different customer groups, you can find out what a new lead is costing you and whether it is worth it. By calculating your estimated customer lifetime value, you can quantify how much you spend on lead generation and engagement campaigns on social media.
Fedica
The brand insight and management platform, Fedica delivers intelligent publishing, targeted DM Campaign, and precision segmentation. Your customized all-in-one dashboard reports your Twitter engagement by tracking the number of Twitter mentions of a specific keyword or hashtag. Furthermore, Fedica provides your business with an in-depth analysis and understanding of influencers, reach, and impact which gives you a complete view of your campaign progress, media investments, and efforts.
Adjusting your strategy comes with identifying what works and what doesn’t. When you track and measure your social media ROI, you not only establish that social media campaigns are an integral component to your business’s success, but you also create new targets once you have reached your initial goal. Through social media ROI measurements, you will have a historical view of your progress based on analytics and quantities that prove your efforts have not been wasted.