When it comes to Facebook, Instagram, or whichever platform you’re using, assessing your return on investment (ROI) is a crucial component in order to help your marketplace grow. Calculating your social media’s ROI is not as black and white as last month’s sales. The world of social media is abstract and can be difficult to track.
Utilizing the proper tools and how to use them, can help you get a grasp on what has been working to improve your efforts. Analyzing the effects of your social media strategy goes deeper than the amount of followers or retweets your platforms acquire. Pinpointing the where leads are coming from for instance, can tell you what attracts your customers, and what type of content they prefer.
What is Social Media ROI?
When it comes to social media, measuring ROI uses different types of information depending on what goals you’ve set. Conversion rates, sales, labor, budget, and many more variables can be influenced by social media; locating the source of these rates and changes is how ROI will help you figure out where you can expand.
The return on investment considers where sales or leads are coming from. Depending on where visitors are coming from, you can adjust your budget to strategize better. Be wary of focusing on vanity metrics like followers and retweets, they look good but are not exactly related to the growth of your business.
Related: What Should I Share On Social Media?
Measuring ROI is important for various reasons. Point blank, you’re most likely doing this to increase revenue and sales. What better way to get money than by providing clear numbers and data to your investors? Measuring your ROI will give you the proper data to show what’s doing great and what needs improving. Your wallet will thank you for utilizing its data points.
How to Measure ROI
With such an abundance of raw information it’s hard to draw out what’s useful or not. Some helpful beginning steps would be to figure out what your company’s social media goals are- leads, sales, conversions, etc…
After you figure out your goals you’ll start building a plan and how your social media platforms will help you reach your goal. If you want to build an audience on Youtube you’ll create more original content and the next step would be to leave links in the description to your website or landing page of your choice.
Related: 5 Social Media Analytics You Should Be Tracking
All of your platforms can be added to most analytics sites. Google analytics is the most common and you can have access to a ton of information through it. Sites such as Hubspot, Hootsuite, or Twitter has built in analytics as well.
Once you’ve launched your new social media strategies and have identified the points to look out for, you will constantly adjust the plan (if you want to do it right). Trends, people, economy, everything will change and that will require your plan to constantly shift. It’s a lot of work but it will be worth it once you reach your goal! And once you reach it, set another, greater one.