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.
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. It's just like calculating the cost of app design before starting to develop an app so you can get ROI easily and faslty.
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.
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:
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:
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 create a storyboard and 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.
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.
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.
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.
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