When it comes to measuring social media, many businesses are still unaware of how to measure social media ROI (return on investment). Overall you know that social media is helping to raise awareness of your brand and business. It may also be getting potential and existing customers to engage with your via your social media channels but if you want to move forward nothing beats facts and figures.
It’s true that measuring your social media efforts it not as straightforward as Google Adwords for example but without knowing the effectiveness of the posts, tweets and the hours spent on social media you cant learn from what you are doing and make improvements.
Measuring social media ROI is like anything in business, when you start reviewing what you’ve done you can see how to increase or improve what has worked well or drop what hasn’t performed as expected.
What Are Your Goals?
Firstly you need to select what your goals are and put a monetary value against these to enable you to start working out your social media ROI. Here are some examples of social media marketing goals you can measure:
- New followers on social media channels
- Clicks on links in posts and tweets
- Online purchases/sales
- Contact forms filled out
- Newsletter signups
- Downloads of PDFs
- Time spent on a particular webpage
- Increased traffic to your website
Many of the above goals can be measured and tracked in Google Analytics such as sales, downloads, email contact forms and newsletter signups by setting up goals and event tracking features in Analytics.
Once you’ve chosen what you want to measure and then by assigning a monetary value to each you are able to look at your social media return on investment. One good example for working out the value of new followers is to look at how much you would spend if advertising for new followers and then applying that figure to organic follows.
What Is Your Investment?
You can then apply a monetary value on how much time is spent on social media and what it’s worth i.e. multiply your social media labour-cost per hour by the number of hours you have worked. Don’t forget to include costs of social media tools and advertising costs. This is your social media investment costs. When you have all the information, applying the ROI formula below lets you calculate a return on investment figure.
ROI = (return – investment) / investment
If you need further help with your social media ROI, contact our digital marketing experts who are happy to chat through how you can boost your social media and reach your goals or see if you need to make some adjustments.