No matter what size, scale, or industry you’re in, social media is a powerful platform to engage with and gather insights about your customers. But just how powerful is it for your business—and how do you know you’re using it effectively?
How do you measure your ROI on social media?
- Revenue generated?
- Number of followers?
- Number of times you were trending?
- Likes, shares, and retweets?
While those are valid metrics, figuring out your ROI on social media is a little more complicated than that.
According to HootSuite, the “[Return on investment] of social media can be measured by the sum of all social media actions that create value”.
What this “created value” actually is will depend on your business goals.
Your objectives could include brand awareness, conversions, customer support and experience, engagements, email signup. The list goes on, and your ROI will depend on that end goal.
You might be wondering, why should I measure the ROI of my social activity?
The answer is simple. To make sure that your efforts are actually effective at achieving your objectives.
Having these measures will also allow you to make an ROI report—perfect for proving the effectiveness of your social media efforts towards skeptical bosses.
Plus, there’s always the consideration that you can only fix problems in your processes if you know what they are! Measurement means bottlenecks and inefficiencies can be discovered—and resolved.
Tools of the trade
- Scheduling tools: allow you to schedule your posts ahead of time.
- Analytics: there’s plenty of data available social media websites like; Twitter, Facebook, Instagram and LinkedIn. Everything from amount and type of engagement to best times to schedule.
- Google Analytics: Utilise the social conversion tool to track a goal set by you (for example; Boost people spending time on your website from twitter by X%)
- Google URL builder: Helps in creating trackable weblinks for your campaigns (extremely useful for search engine optimisation too).
The bottom line
A strong social media presence is an important aspect of your overall digital presence. Just like every other aspect of your marketing, you’ll only know for sure what’s working and what isn’t by setting measurable outcomes based on your business goals.