By definition, social media ROI, or return on investment, defines the measurement of how effectively your social media campaigns are impacting your audience and ultimately how effective those campaigns are in generating leads and revenue.
Use the following 4 metrics to help you begin measuring your ROI on social media, so your can continue generating leads and growing your brand!
Determining the number of people who follow each one of your social media platforms, should be the first and most basic way you measure your social media success. The more followers you have, the larger your opportunity to create awareness and increase your ROI.
A simple tool or tracking method for your ROI over time is to keep record of your reach by tracking your month to month growth. Your goals on social media should be to generate new followers, so you can continue to build the success of your social media campaigns.
An effective way of understanding how well your social media campaigns are in generating interest, is to look at the number of referrals your social platforms are bringing to your website. Google Analytics is a free web analytics service that provides statistics and basic analytical tools for search engine optimization (SEO) and marketing purposes. Keep a close eye on the number of referrals your social media platforms are bringing to your website, and use these metrics to measure how effective your campaigns are overall.
The transformation of visitors to leads is also an important metric to help you understand your social media success. Take a look at the traffic you are generating from your social media platforms. What percentage of the traffic generated from social media has been converted in to leads? This is known as the conversion rate. While this metric is simple, the conversion rate is useful when comparing each one of your social media platforms to each other. For example, compare your Facebook conversion rate, to your LinkedIn conversion rate to analyze the ROI of those channels relative to each other.
How do you track the conversion rate of each channel?
4. Closed Sales
Lastly, it is important to analyse if your leads are being transferred into paying customer and if so, how many there are. Being able to quantify actual customers, can be a powerful indicator if the time you're spending on social media marketing is actually worth it.
Largely, revenue generation is the ultimate indicator of social media marketing success. Social media is about creating brand awareness, communicating with customers and building loyalty. If your product or service is worth the customer’s interaction, you will most definitely see a return on your investment.
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