Are you using social media to promote your business? Is it bringing in any results? Is your outreach to clients fruitful? Most of you would say that you do not have a clue of your social media returns. Measuring social media ROI is important if you want to analyse the contributions that your social channels are providing.
Online businesses are using social media channels more and more to promote their product and increase their visibility. This in turn redirects audiences to the official website thus increasing traffic to the site. Keeping a track of or measuring social media ROI is important in this case. However, not many entrepreneurs keep a track of how their social media channels are performing and what percent of the sales are attributed towards these channels.
Why is it important measuring social media ROI?
Social media is used by marketers to highlight their business to the target audience. The wide spectrum that these platforms provide helps businesses to reach to a wider group of audience than through any other form. Though social media is mostly used for brand building and creating a brand image, sometimes it may also generate direct sales. Thus the presence of a call-to-action button in your social media promotional ads can sometimes result in conversion directly.
Measuring social media ROI is difficult especially because conversions are not direct. Thus using few of the available tips can help you to track these return on investments.
Tip 1) Set your targets
When you start a business, you often chalk out a business plan for the coming period of time. This may be for the coming weeks, months or years. You set a standard target that you would work to achieve each month and year. Use the same strategy for yoursocial media campaigns as well.
Set targets and measure whether you are able to achieve them. Make changes in your targets or your work pattern if you find your present targets unachievable.
Once you have a clearly defined goal, measuring social media ROI would be easier. This would help you track the sources through which your ROI is getting generated and the ones that are not generating any revenue.
Few of the major metrics for your social media target settings are traffic, customers, leads and conversions. Quantifying your goals often results in a better way of measuring social media ROI as it is easy to calculate.
Tip 2) Select the platforms
Choosing the correct platform for your social media promotion too is an important determinant in measuring social media ROI. However, promoting randomly in a huge number of social media sites would only result in jumbled work pattern and you will not be able to distinguish any conversions.
Choosing the correct social platforms for your business promotion is necessary if entrepreneurs want to save time on their social promotion.
For example, if your business deals with products like wooden furniture, promotional ads on LinkedIn will never bring any revenue. On the other hand promoting the same ad on Facebook or Instagram would generate a huge number of leads and eventually conversions.
Thus choosing the correct platform is an absolute necessity in measuring social media ROI. Your target audience here is important. Focus on the type of audience you wish to target and generate revenue from. Each social channel has a diferent set of target audience with varying psychological needs and wants. Evaluating these target audiences and analysing which group to focus on is necessary for your business success.
Once you know which of the platforms are suitable for the promotion of your business or product, plan strategically to promote your product.
Tip 3) Pursue your campaigns
Running multiple number of promotional campaigns at a time is difficult to track. However, it is necessary to monitor each of your social promotional campaigns. You are able to track the social media returns that various sites are generating.
Tracking the campaigns however, is not just monitoring the campaigns. It requires you to maintain a detailed report on the time you spend on each social channel, cost of each promotional ad, and the activities that you carry out in your profile.
You can use social analytics tools to monitor your revenue generated through your social media channels. Few of these tools are HooteSuite, Buffer and CheckMySite. These tools help you not only in measuring social media ROI but also the performance and whether it is in sync with the requirements of the audience.
Tip 4) Review and revise
Frequent revieweing of your social media campaigns is necessary if you wish to generate revenue from your social media sites. If you pursue your campaign properly and monitor the campaign, you will be effective in drawing out handsome returns. When you are handy with all the facts and figures, calculating the ROI that should be generated from the social channels is simple to determine. This would let you assign each customers with a certain sum of campaign money and hope that this would bring returns.
If the present campaign is unable to generate good returns, you can always revise your promotional campaign and customize it as per your requirement. A/B testing of your social media campaign can help you generate a proper campaign that would be able to bring a higher number of visitors turning to your site which is evident when you are measuring social media ROI.