It can often be quite difficult to measure ROI (return on investment) on marketing activities that don’t always have a direct sales benefit. A big part of being active in social media as a business is to build your brand and it’s really hard to measure this.
However, you can measure direct sales as well as the amount of people you are potentially able to reach with your activities.
Although knowing your total reach might not help you to gauge a return on investment, it can help you to work out how many people might see your content. The more people who see what you post, the larger the amount of people who might be interested enough to click a link or use a voucher code.
Your reach is the number of people who follow you, plus all the people who follow them. So, for example, if you have 1000 followers and they all have 200 followers each, your reach is 200,000.
This is because if one of your followers retweets/likes/shares your content then their followers are going to see it too. This is exactly the reason why your follower count isn’t always that important. If you have 200 followers who all have 1000 followers each and love sharing your content, then you are going to be better off than having loads of followers who only have a couple of hundred in their own followings.
If you want to measure how well a certain campaign is working then you can set up a sales path that can only be accessed by those visiting from a certain URL. This is the URL you can use on social media when telling people about your site.
You can then use Google Analytics to set up a Goal. The goal page can be the ‘thank you for purchasing’ page people will get if buying something from that URL. You can then use your analytics to determine how they got there, what they looked at, how much they spent and what they bought.
Use voucher codes
If it’s a bit too much to set up Google Analytics and keep an eye on it regularly, you can give voucher codes to your followers. Have a 10% off voucher for Twitter, one for Facebook and one for Pinterest. (Make sure they can’t be used together at the checkout, though!)
As these are used on orders, you’ll get an idea of where your traffic is coming from and who is more likely to buy. It also gives you the chance to try different strategies and see what works best at converting into real sales.
After the checkout process has been completed you can give your customers an extra little incentive to fill out a survey – 10% off their next order, for example.
You can then ask questions such as how they found you. From here you can get an idea of average spend depending on which social network they came from, how often they buy and there’s also the likelihood they’ll return in order to use the 10% voucher you gave as a reward for filling out the survey.
Looking at the survey as a whole, you can get an idea of the percentage of your income that comes from the different social networks.
We’ll help you determine the most effective digital marketing plan for your business.