Are you having difficulty in determining your ROI or return on investment in social media marketing? Have you also wondered which of your social media campaigns are actually profitable? It is only imperative to know if the money you are investing in your social media marketing is returning the worth that you have put in, which is why you need to find a strategy that will help measure your social media ROI.
Why is it important to measure your ROI?
Your ROI is your indicator as to whether your marketing efforts are indeed effective and are working. It is important for your company supervisors, especially clients, to know if these strategies are worth it and if they are worth keeping. And to help you get started, here are the ways for you to measure the effectiveness of your social media strategy to determine if you are getting the most out of your investment.
1. Set social media goals
There are plenty of ways by which your social media ROI can be measured, including lead generation, customer acquisition, revenue, contest entries, and many others. At the end of the day, it will still depend on your goals, of course, with the help of your social media strategy. So before anything else and before you even begin to measure your ROI, you need to identify your goals so that you will know which factors you are actually measuring, and how you will define success.
2. Determine the right platforms
In order to measure which social media platform will be most effective for your business, you need to identify where your audience spends most of their time. You cannot just invest on any platform without considering your audience. Some of them primarily use Twitter; some others use Facebook or Instagram. When determining your target audience, you need to do more research about who they are, what their interests and preferences are, what social media platforms
they use the most, and how much time they spend there.
3. Track campaigns
To arrive at an accurate ROI, you need to track everything that you invest, including the time spent, cost of the ads, activities and campaigns you have launched, and other things that are involved in your social media marketing. And there are plenty of tools available for you to be able to measure these things.
4. Track your social media expenses
Measuring how much you are spending will help you figure out if you are getting a positive or a negative ROI for your social media campaigns. What you should include are the following:
- Man hours – It does not matter if you are a one-man team or if you have a social media team. You need to have the hours considered and added to the ones that go to a specific social media campaign.
- Contents – How much you spend on getting the content still counts, whether you hired a professional writer or outsourced it somewhere.
- Ad costs – If you boost a Facebook ad or run a promoted tweet, you should also be considering the cost.
- Social media tools – The use of social media platforms may be free, but if you use a social media management software tool, you need to have the costs added in.
5. Report findings
Whether you are reporting to a boss, a supervisor, or anyone higher than you, or even to yourself, you need to find a way to report your results. You also need to plot a regular schedule for the reporting. Why is this important? This will help you gain visibility on the trend of your ROI
in reference to a specific period of time. You will also be able to see whether you are getting the returns that you want to achieve from your investment.
6. Review results, and reset goals
Once all the numbers are available in front of you, you will be able to calculate your ROI and check the results to see what worked and what did not. Whatever it is that you have spent for, it is important to have it measured as well because it plays a key role to your ROI and is related to a specific cost.