We all know what ROI stands for. Unfortunately, not everyone understands its meaning and importance.
If your company is spending money on social media marketing, you want to measure your ROI. This is important so you have an idea what exactly it is you’re getting out of the time, effort and resources you commit to your campaign. It helps you measure the efficiency of your social media marketing efforts.
To show you how you can track your social media ROI, here are the steps you should take to help you gauge the effectiveness of your social media marketing campaign.
Identify your goal
Different organizations will have different goals. Before you can track and measure your ROI, you first need to identify your goals. Is it to generate more product trials, get signups for your newsletter or increase traffic to your site?
Track your goal
Each of your goals can be measured using specific metrics such as traffic, engagement, reach, lead generation etc. It all depends on your goal.
There are certain tools that can be used to measure the effectiveness of your actions. You can track follows, likes and share in Buffer. Website actions such as signups, downloads and sales can be tracked in Google Analytics.
Quantify social media return
Add up all the expenses, including the cost of boosting a Facebook post, running a promoted ad and everything that go into generating content and maintaining social media presence.
Determining how much you have spent will help you determine whether you’re getting a positive or negative return on your social media marketing efforts. Now, calculate your ROI using this formula: (Earnings – Costs) x 100 / Costs
Monitor the impact of your social media efforts using the formula given above and then adjust your tactics as needed to improve your social media ROI.