People always ask questions about how to measure the return on investment (ROI) of their social media accounts. The answer is that ROI is a very difficult indicator to use to assess the success of social media activities. Anyway, how did you come back after two months to measure and make a purchase of a happy customer laughing with your company? ROI is only useful if you want to understand how different marketing tactics are performed in terms of cost effectiveness.
Return On Investment for Social Media
ROI calculations for social media are very difficult because it is almost impossible for your business to measure the outcomes and immediate results of spending on social media. You can sum up the costs of community service, consulting and content creation services, but they are worth the investment you get. Many companies fall into the trap of misrepresenting that Facebook’s “like” or Twitter’s “retweet” can not accurately determine the sales conversions created directly on social media pages.
It is possible to measure the social media’s ROI with dollar symbols and measure the success of social media marketing efforts. There is a strategy to measure the ROI of social media, though it is necessary to keep up with changing algorithms and the latest tools to preoccupy the online marketplace. We’ve provided a step-by-step guide with a number of examples showing how to measure your ROI on social media to categorize it in the following simple terms.
Total Value Measurement by Social Media Platform
The next step is to combine your knowledge of incoming traffic with the number of conversions for each social media account. This task requires significant math, so we recommend using Google Analytics and creating a spreadsheet to avoid any confusion or confusion. In the spreadsheet, you will measure the total benefit of each channel by linking conversions to monetary values. You can see your eye here, so you can keep it simple by continuing with the previous example.
Again, the monetary value is $ 15 per video view. Now, let’s learn more about how you can measure your performance on social media accounts by multiplying your total views by $ 15. So if 3000 Facebook users see your company’s video, the total profit is $ 45,000. Then continue this process and add up all of the gross profits across the social media channels.
Set social media conversion goals
Just like any other solid marketing plan, the first step is to set up social media conversion goals for your business. Different organizations tend to have unique goals in using social media profiles, but they want to choose goals that lead to measurable customer behavior. Ultimately, to be able to track and calculate the ROI value, you need to determine your conversion goals so that you can pinpoint the factors you need to measure and the likely success of your social media.
When choosing your specific goals, you need to pinpoint exactly what new and existing customers want for their social media accounts. For example, if a customer makes an online purchase, fills out a contact form, clicks a link, subscribes to an e-mail newsletter, downloads a PDF, shares a post, likes a social media page, Such as achieving good goals, spending time on websites, and so on. By focusing on measurable goals rather than simply increasing sales and increasing revenue, you end up paying monetary value.
Assign monetary value to your conversion
If you know the customer’s lifetime value (LTV), simply reverse track this historical data and generate conversion value. If your business does not have access to this data, you will need some guesses using experience and common sense. To give monetary value, you must assume the amount you are willing to pay to a third party to join your business website. If you use this value for a while and retain the historical data, you can make the necessary changes.
Now that you know the average customer LTV in your business, every effort has been made to know what social media conversion value is. Let’s say you have an average LTV of $ 150 per customer, which can be a bit complicated. If you know that 1 in 10 viewers of your page video is a customer, then 10% out of 150 people are 15, so it can be worth $ 15 to view social media videos.
If you can not explain the visit-to-lead conversion rate for social media traffic, there’s no way to measure ROI. You need to track conversions by determining the amount of social media traffic you generate and the percentage of those visitors who actually convert to sales leads. Also, when you compare all social media platforms, you should be mindful of the number of conversions to provide useful metrics.
Of course, how you track social media conversions will vary greatly depending on your platform, goals, budget, and company IT systems. In most situations, Google Analytics and other built-in social media tracking systems can help you measure conversions. For example, there is a Twitter conversion app that allows businesses to fully understand the impact of the entire conversion of a twitter ad and promote it. Here are some metrics you need to know to measure your social media ROI.
Lead: When measuring social media marketing ROI, leads are the most important indicator of traffic retention. In this case, leads represent the conversion rate from each recommended social media platform. Monitor the traffic on your social media sites and see how many visitors are actually turning into promising leads for your business.
Customers: Finally, keep your company loyal by paying customers and tracking the number of leads generated from social media. Bringing real customers to social media can maximize marketing effectiveness, so you need to know exactly how many leads are turning into customers.
Reach: The more content you have, the more people can see your company’s content, spread your message, and increase your ROI. So keep track of how your social media reach grows over time by recording the number of Twitter followers, Facebook fans, Pinterest boards and LinkedIn members. Reach is easy to track right from the social media platform.
Communicate: Helps social media fans to visit your company’s website or blog, which is the ultimate goal of your social media marketing plan. View the referral source of your website, specify how many visitors visit through social media, and monitor over time. To learn about ROI improvements, pay attention to all the increases in social media traffic.
Gathering data for the fourth and fifth steps will give you the data you need to determine your social media ROI per channel. When determining your return on investment (ROI), you should divide your cost by 100, minus time. For example, if you spend $ 55,000 on a Facebook page and spend $ 20,000 on a total cost, you would calculate an ROI of 175%. Having an ROI on your social media data can help you find channels that are performing poorly, which can improve your overall marketing efforts.
Total social media cost calculation
Before you measure social media ROI, you need to understand the total cost that your business has spent to perform these marketing activities. You need to be able to sum up your promotional account fees and job costs for each social media platform you choose. Then you need to estimate the number of hours you spend on social media marketing and multiply it by hourly wage to add it as a commission. For example, the total promotional account fees and other job costs for running LinkedIn pages are $ 180.
I hired a social media team that paid $ 50 an hour for 500 hours of work to maintain my LinkedIn account. This equates to a total of $ 25,000 in labor. Adding these two totals together will cost $ 25,180 to complete the marketing activity on LinkedIn. Then continue to process the same process and add up the total cost across all the social media channels you use.
What if you’re not involved in social media and your audience never finds you? What is invisible or inaudible? Talk to promising customers, or wait until the frightened people find you. Let’s face reality; You all know the right answer. Social media is essential for driving web traffic to your website and turning visitors into loyal customers. But you can not spend hours surfing through the social media platform.
No matter how disappointing and complex, the ROI for social media is the number that a business must make to make social media marketing campaigns work. When you know your return on investment (ROI) for each social media account, you can improve your overall success by realigning your marketing plan and re-targeting your audience.