More and more businesses are making social media a central part of their marketing strategy. If you’re putting resources into social media marketing, you’ll want to keep track on your return on investment (ROI).
Determining your social media ROI will help you to determine which marketing techniques are successful and adjust your strategy accordingly.
While there isn’t a standard measurement, before you begin be sure to determine your key objectives.
Let’s take a look at some ways to determine social media roi for your business.
How to Determine Social Media ROI
The Rising Popularity of Social Media Marketing
In recent years, social media has become increasingly popular among businesses.
In particular, social media plays an important role in business marketing.
Define Your Social Media Goals
If social media is part of your business’s marketing strategy, it is essential to establish what your key objectives are. This will help you to focus your efforts and to measure social media ROI accurately, based on statistics that are relevant to your objectives. Your social media goals might include improving short term sales, engaging more effectively with existing customers, increasing brand awareness, and enhancing your searchability.
Different Metrics for Measuring Social Media ROI
One of the challenges of measuring ROI for social media is that there are many possible benefits of social media marketing, beyond simple increased profits. The metrics your business might use to monitor social media ROI will depend on what your marketing goals are. Some of the most popular metrics used to measure ROI are site traffic, conversion rates, number of fans, number of positive mentions by customers, number of contributors, and revenue.
Social media can also lead to additional benefits, such as new partnerships and recruiting new talents.
Which Platforms Produce the Best Social Media ROI?
To get the largest return on your social media efforts, it’s important to use a platform that has been proven to be successful. Company CMOs have ranked Facebook as the platform that produces the highest social media ROI, with Twitter and LinkedIn not far behind. Social media, however, is a field that changes quickly. You’ll also want to pay attention to platforms that are emerging as highly successful. Youtube and blogs are two platforms that companies are seeing increasing returns on.
Over to You
Is your business using social media as part of your marketing efforts? In the comments below, let me know where you’ve seen the greatest ROI and what strategies have been the most successful for you.