No business wants to put money and resources into something that doesn’t pay off. Will the results make the effort, time, and cost worth it? How will you prove this? Is there content that will perform better and show a higher ROI? How is this going to be measured?
Showing a return on investment for social media marketing is a must in today's market but what if your objectives aren’t easily quantifiable? The success of a campaign is not always measurable or quantifiable. To account for this, the non-financial outcomes “tell the story by capturing changes in human behavior.” What kinds of things did your target audience do after exposure to your campaign? Did these actions align with your goals? Where did they fall short? How can they improve for next time? According to Social Media Examiner’s report, increased exposure and traffic are the top two benefits brands see from social media, with 92% reporting that social media has helped their business gain exposure. The same study showed that marketers who’ve been using social media for at least 3 years are seeing revenue come in from social channels.
Before you are able to measure your social media ROI, you need to know what metrics you are actually measuring. The key is to set social media goals that complement existing business and departmental goals. If you have set a specific number of leads you’re trying to attain this quarter, set the number of leads you want to specifically be driven by social media. If one of your goals is to increase landing page conversion by 10 percent, ensure that you’re tracking the conversion rate of people who land on the page through social channels. Audit your existing social media performance to establish baseline targets, then set appropriate goals for improvement.
The brand awareness created by social media—seen in vanity metrics including “likes” and “+1s” and “Retweets”—is valuable, but it is not enough. According to Altimeter, only 34 percent of businesses feel that their social strategy is connected to business outcomes. To demonstrate social media’s value, you need to measure social media ROI as it relates to your broader business goals.
Key examples of social media metrics to track include:
• Site traffic
• Leads generated
• Sign-ups and conversions
• Revenue generated
Once you’ve set your goals it’s time to actually track your social media ROI. This is something Slated has built in to all our packages. Tracking functions will be implemented in to all social media platforms and a custom reporting template will be built based on your goals. These reports will also present the data in an easily digestible way, allowing you to simply and effectively share your ROI on social media with others in the organization.
Once you’ve identified what works and what doesn’t work for your organization on social, it’s time to adjust your strategy. The point of tracking your social media ROI isn’t just to prove your social campaigns are valuable, it’s to increase their value over time. Go back and take a look at the goals of your specific campaign and evaluate how they tie-into the organization’s overall goals.
Slated typically offers this reporting on a monthly basis. Some packages may offer it more frequently. Of course custom reporting timelines are available upon request.
Information provided by Hootsuite. For more in-depth information visit https://blog.hootsuite.com/measure-social-media-roi-business/.