When running campaigns on social media just like we do at Easy2Access, there are plenty of tools to help you track results and measure analytics to let you know if the campaign was successful and if it hit your goals. Given all the analytics and software that exists out there for marketers, determining the ROI of the campaign is fairly straightforward.
3 Steps to Take to Help You Measure the ROI of Your Social Media Presence
This is one of the top challenges for social marketers and companies, as a lot of brands have trouble figuring out how exactly it can be measured. It’s comparable to throwing up a billboard; there’s no real way to track how many people see the billboard and then take the action you advertised. You just hope for the best.
Luckily, social media differs because you don’t necessarily need to spend money on it to be successful. You can measure the return on your social metrics so you can improve your efforts. Keep reading the blog as we uncover some ways that you can measure the ROI of social media for your brand.
Step 1: Define the Purpose of Your Presence
Why are you on social media in the first place? What are you offering to your audience? Some brands use their social media accounts solely as a customer service platform, while others use it purely to advertise their newest products. You could be doing both and more. Social media ROI isn’t a one-brand-fits-all calculation, so in order to figure out your ROI properly, you need to determine what your brand is doing on social media.
Step 2: Set Actionable Goals – & Measure Them
Let’s get one thing straight: if you aren’t tracking your metrics, you won’t be able to measure your social media ROI at all. It’s just not possible.
If you’re trying to figure out what your social ROI is, you have to start with your goals. This will probably go hand-in-hand with the purpose of your social presence, which is why you answer that question first. If you’re on social to promote products, your actionable goal might be to sell a certain quantity of that new product within one month. Or another actionable goal could be to increase email list sign-ups by 25%.
Whichever goal you have, it needs to be an action that can be tracked so you can see if your social followers are taking meaningful actions. A high engagement rate on Instagram doesn’t mean much if you don’t have the conversions behind it, so you need to go deeper and track whether that engagement is leading to something more meaningful.
Step 3: Track Your Expenses
Your social media expenses don’t necessarily have to mean campaign dollars. Your expenses can include paying a content writer or videographer to create top-quality content for your brand to post or any costs involved with paying for social media posting or analytical tools. If you’ve hired an outside agency to manage your accounts, their costs should be included. It also includes the time you spend maintaining your accounts, whether or not you’re running paid campaigns, since it can be time-consuming.
You should add up the total costs you spend per month, including the hours you or your employees spend managing your accounts, so you can get an idea of how much it costs. Then, you can measure the costs against your metrics and measured goals to see if the investment is getting your brand anywhere, or if you’re just sinking time and money into something that isn’t helping.