When it comes to social media, not all businesses can see it as something worth investing in and can get hung up on the concept of conversions and simply making cash when measuring success. But the truth is, social media can offer numerous returns on investment that are invaluable to your business - not just simply in monetary terms. Social media is a customer service tool, a platform of direct conversion with your customers, a digital storyboard and an excellent self-promotional platform - offering brands and businesses a host of excellent opportunities in the digital sphere. Here’s how you measure your social media ROI.
Why Tracking ROI is Important
As with any marketing activity, tracking your ROI is important to not only justify any spend - both in terms of time, cost and resources, but to help determine which areas of the business are successful, which areas need work and how to create a strategy for the growth and progression of your brand. However, when it comes to social media, ROI doesn’t necessarily always come attached with a monetary value. Tracking your ROI is important to firstly, prove the value of social media to your business or organisation. It also allows you to accurately assess how much time and money to dedicate to your social media strategy, and helps you to improve your efforts on social media by quickly identifying which aren’t working.
Deciding on Your KPIs and Targets
As we discussed in the introduction to this blog post, when it comes to social media, conversions are but only a single KPI to track when attempting to determine ROI. In order to appropriately assess which factors are KPIs for the social media strategy of your business, it’s important that you outline the business goals and understand what the purpose of the social media strategy is. Do you want to gain followers? Do you want to increase brand awareness? Do you want to create a unified presence across the internet? Do you want to provide a customer service tool for your clients or customers? Do you want to drive more traffic to your website?
How to Track, Measure & Present These Goals
Once you’ve outlined what your KPIs are, it’s important to figure out how you’re going to track them. If increasing traffic is your goal, you need to utilise Google Analytics to track the incoming traffic from each of your social media channels. If you’re promoting your own content, sharing your own services or directing your followers back to your website - is this having an impact? Is your traffic increasing?
Engagement is arguably the most important metric when it comes to social media ROI. If you are fortunate to have millions of followers, it doesn’t mean anything unless they are actively engaging with your content. Be sure to keep a note of comments, likes, shares and replies.
Keep note of your impressions to determine which days and weeks you’ve had a successful day on social media. Twitter, Facebook and Instagram for business all offer invaluable free insights tools built into their platforms - each of which will tell you the impressions that your content achieved.
Naturally, keeping an eye on your followers is an incredibly tangible method of ROI. Seeing your numbers increasing proves that your social media content and strategy is hitting the mark.
Use a custom pixel from Facebook and input it to your website in order to accurately track conversions. Monitor any enquiries, quotes or products sold and track the journey of your users using Analytics. Measure your referring traffic from each of your social media channels and be sure to consistently publish content on the channels which are converting well.
Why not create a custom spreadsheet which monitors each of your KPIs in detail. Track your followers, your number of engagements, your number of conversions, your web traffic and any notable interactions you might have. Religiously jot down this data in order to build campaigns, assess what works, what doesn’t work and to identify patterns within your social media strategy.
Once you’ve identified your business goals, acknowledged your KPIs and utilised all of the relevant tools and analytics platforms to accurately and consistently report on your social media efforts - it will be clear to see your ROI. If your engagement, followers, conversions or traffic are increasing, then you’re getting a return on the invested time, resources and finances put towards a social media strategy. However, the most important thing to remember is that social media is a long game, and one which can prove incredibly important to your business development if you get it right. If you’re not seeing the ROI you had hoped for, utilise the data you’ve gathered to perhaps determine why, adapt your methods to reflect the needs of your customers and always seek to improve.Return back to Knowledge