Por Elisabet Parera Writer at Postcron. In other words, Social Media ROI has the important job of helping you find the economical performance of an investment in order to evaluate how much money each dollar invested has generated during a determined campaign. When you define your objectives, always remember that, ideally, they should fulfill 5 requirements: For example, if your objective is to increase the number of Instagram followers then a good KPI to measure would be reach.
Purchases Downloads of a whitepaper or ebook Note that all of these goals are based on someone taking a measurable action that can be tracked. In order to get the most accurate numbers for your social media ROI, it pays set your goals based on defined actions. Specifically, actions that convert a casual browser to a lead and ultimately to a paying customer.
For example, you need to know whether Calculating social media roi not those clicks are resulting in sales or other meaningful interactions. Make your goals campaign-specific Rather than look at the big picture of your social presence, social goals should be campaign-specific.
This is a critical aspect of measuring ROI that so many marketers miss.
A campaign is a planned out effort with set goals and a measurable outcome. For example, any brand running a paid Facebook campaign should know whether or not their ads paid off.
Through analytics the answer is fairly straightforward. One of the most important reasons you want to set up campaigns is that it will allow you to track individual links that you share on Twitter, Facebook or other networks.
This allows you to easily attribute visits from specific links you share. For example, brands on Instagram oftentimes update their bio link to coincide with whatever their most recent promotion might be. Rather than use a generic link, URL trackers help tie clicks to specific campaigns and calls-to-action.
Check out how Topshop tracks whether Instagram followers are converting to shoppers via the Curalate link in their bio. Check out our guide to UTM tracking for an in-depth look at how to track your campaigns this way. The easiest way to track your social media goals is by using Google Analytics.
Although Google Analytics can clue you in on social traffic and which channels are driving traffic, you can get much more granular than that. For example, what if you want to see the financial social ROI for a specific campaign?
Google has you covered. Make sure this page is not indexed in Googleso that the only way for someone to land on it is by going through your email signup process. Otherwise you could potentially muck up your data. Then, you have the option to attach a value to each conversion.
To figure this out, you can use: Lifetime value x conversion rate: Calculate the lifetime value of a customer, and multiply that by your conversion rate average number of email subscribers who become customers to find out what the potential value of each visit is. In this case, your destination page would have to be the page that shows up after a customer completes a purchase.
Lastly, if you have a specific funnel that you created, you can set that up here as well. Your time is valuable.
Measure this investment per-campaign. Did you get a landing page written by a professional copywriter? Or maybe you outsourced status updates. These costs are easy to overlook but they certainly count. Just like with the hours, you should calculate this on a per-campaign basis.
So if your campaign lasts for one month, only add in the cost of a month of the software, not an entire year. This is fairly easy to track as you set up your ad budget.
Your costs are the items listed above hours, content, etc. You can figure out the specific ROI for each social network by segmenting your earnings and costs per social channel using that same formula above.
For any social networks or campaigns that are bringing in a negative ROI, you can either try to adjust by spending less or fine-tune your campaigns. Mine your social data As noted, so much of measuring your social ROI boils down to your metrics. Beyond Google analytics, take a hard look at your social dashboards to understand your performance.To show you how you can track the return on investment of your social media campaigns and use that knowledge to maximize your ROI, I’ve created an infographic that breaks down the steps you need to take to achieve these goals.
Once you have your expenses calculated, you’ll be able to calculate your social media ROI for every campaign with this simple formula: (Earnings – Costs) x / Costs.
Earnings are based on the value you calculated in the previous section. Your costs are the items listed above (hours, content, etc).
Calculating social media ROI and collecting all this data can open doors to measuring and improving your social media marketing. But all these numbers only become useful when they are applied to improving your social media efforts. Social media ROI tools. Now that you know the theory behind measuring social ROI, you’ll need the right tools to actually do it.
Social ROI calculator: This free tool makes it easy for you to calculate the return on your social media investment. Google Analytics: Track website traffic, conversions, and sign-ups from social media campaigns.
Social media return on investment (ROI) is simply a measurement of efficiency. It's a lot of things to a lot of people: 'return on inactivity,' 'return on innovation' and 'return on engagement.' However, in a stricter sense, social media ROI is defined as a measure of the efficiency of a social media marketing campaign.
Watch video · It's time to calculate social media marketing ROI. We look at the steps involved in assessing ROI, and work through an example.