Why Should You Measure Your Social Media Marketing ROI?

By Shane Barker

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The worldwide usage of social media is increasing day by day. As of October 2020, more than 4 billion people use social media and this figure will continue to grow.

Image via DataReportal

Consumers turn to social media networks to research products, check out ratings and reviews, and talk about their experiences with different brands. That’s why it is crucial for businesses to build a strong social media presence to serve their prospects and existing customers.

Are you already using social media to attract and engage your target audience? Do your social media strategies deliver good returns?

You need to measure your social media marketing ROI to answer this question and create a marketing plan.

What Do You Mean by Social Media ROI?

Social media ROI means the returns you get by investing in various social media marketing and management strategies.

You can calculate your social media ROI by dividing the value of the results you achieved by the cost of the investments you made to achieve those results.

Social Media ROI = (Value of Returns/Cost of Investment) x 100

Or, you can say that:

Social Media ROI = (Profits/Investment) x 100

Calculating your ROI can help you determine what you achieved from social media marketing.

However, calculating your ROI can be complex when you start considering your campaign and business goals. You can take a digital marketing course to understand the concepts of ROI calculation in detail.

Why Do You Need to Measure Your Social Media ROI?

Measuring your social media ROI offers many benefits, which I’ll discuss in this section. These benefits make it essential for marketers to track, manage, and optimize their social media activities to generate good returns for their businesses.

Without further ado, let’s take a closer look at what measuring your social media ROI can help you with. You can:

1. Identify the Right Social Media Marketing Strategies

When you calculate your social media ROI, it helps you understand which strategies are driving maximum engagement, web traffic, or sales for your business. You can also discover the strategies that are not generating any significant results.

But how can you track results?

A majority of marketers use advanced tools to get valuable insights into the effectiveness of their social media activities. These tools can help you learn about:

  • Your top-performing social media posts
  • Your engagement rate
  • Affiliates who drive maximum engagement and sales for your business
  • Content formats that your audience values the most
  • The optimal times for your brand to post content on social media

You can identify the strategies that are delivering good results, the ones that need improvement, and the ones that you should stop using.

Similarly, you can determine the types of content, photos, and graphics that drive maximum engagement. You should use design tools like Crello to create engaging graphics and videos.

When you measure your social media ROI, you’ll be able to spend your budget efficiently on strategies that generate maximum returns for your business.

2. Prove the Effectiveness of Your Social Media Marketing Efforts

Social media marketers often find it difficult to convince their bosses and clients to increase their budgets. But measuring ROI can solve this problem for you.

Measuring your social media ROI is the most accurate way to prove that your efforts are contributing to the achievement of the business’ goals.

You should use reports that show quantifiable returns such as increased engagement, web traffic, sales, and revenue to prove the effectiveness of your marketing efforts. Then, it will be easier for you to convince your clients to spend more on social media marketing.

As a small business owner, you will have to learn how to prove the worth of your services and convince clients about the value they’re getting. You should read guides, tips, and resources for small businesses to turn your venture profitable.

3. Optimize Your Campaigns for Better Results

You can’t improve what you don’t measure.

Measuring your social media ROI enables you to identify improvement opportunities and optimize your campaigns for better results.

You should track, optimize, and manage your social media efforts using automated software solutions to improve your effectiveness. 

Ready to Measure the ROI of Your Social Media Campaigns?

If you want to run successful social media marketing campaigns, you need to measure your ROI.

You should set goals for your campaigns and define the key metrics that can help you evaluate whether or not you’re achieving those goals. For example, if you want to increase brand awareness, you should track metrics such as reach, impressions, and social shares.

Tracking relevant metrics will help you identify the strategies and content formats that are working well for you. You can use them more often and cut back on the strategies that don’t deliver significant results.

Still not convinced to measure your social media ROI? Share your thoughts in the comments below.

 

The kind of stuff that Social Hire do...

We won't just do social media strategies. Social Hire will work collaboratively with your team to ensure your business gets genuine value from us and that your team gets the most out of the service. Our experienced social media managers are motivated to make a enhancements to your social media marketing and reaching targets in a way that realistically makes a difference to your business goals.

What the Social Hire gang loves is making a difference for our clients, and we don't want to waste your, or our resources on marketing for marketing's sake, if it doesn't get your organisation the impression you need - we take a different approach.

Is it important to you to increase the digital footprint of your business by utilising online promotion, but can't work out how to begin?With the professional understanding of our digital experts working in your business, you can begin to see interaction, brand loyalty and enquiries get better without having to take your team out to spend time on ineffective marketing strategies, or spend money on a internal marketing manager with a view to get results that may not deliver!

Our team are a company that assists our customers further their digital footprint by giving digital marketing on a regular basis.

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