Calculate the ROI of your social media campaigns
In a world that's becoming increasingly connected, few businesses can afford to ignore social media marketing. However, a large number of businesses are failing to invest fully because they find it difficult to see how social connections can directly impact their . Learn a few important lessons about calculation for a variety of social strategies and discover how your campaigns can translate into conversions.
Setting your goals
Get started by setting some campaign-appropriate conversion goals. These can include making an online purchase, signing up for a newsletter, downloading an asset or clicking through to a partner site. Set up goals for filling in contact forms and don't forget to track and benchmark your social interactions – from follows to likes or shares.
Next you will need to create ways to track these conversions. Many social platforms have their own built-in analytics packages, and there are some free social tools that can analyse your reach and impact over a number of different sites. For anything on your own site, Google Analytics should have you covered.
Tracking your impact
One of the most important things to track, aside from traffic and reach, is the number of leads being generated from each platform – and how many of those leads go on to become customers. If you're running a specific coupon or promotion available solely through a social site, keeping tabs on where the money comes from is easy.
For results that are harder to track, measure conversion rates by customer origin to see which campaigns are paying off. Assign a monetary value to each conversion (use common sense or calculate using a customer’s lifetime value rate) and you'll also be able to assess how useful non-monetary conversions are. For example, if you know that for every 30 people who download a one becomes a customer, you can accurately estimate how much that download is worth to your business. Combine this with your conversion data and the information from your analytics tools and you'll be able to see what's working.
Crunching the numbers
Knowing how much you're making from your social media efforts is one thing, but comparing it to the time spent is another. Social media campaigns are notoriously labour-intensive and there will be account fees and social advertising spend to take into consideration. Crunch the numbers and work out if your is in a healthy state or whether you need to scale back spending on some of your less successful social campaigns.
Don’t stay in the dark when it comes to social . Use analytical tools to your advantage and make informed social media spending decisions.