How do you measure the return on investment from social media? Understanding the value of social media is important but really comes down to experimentation. I mean honestly, it’s hard to tell how much revenue a Tweet you sent out last week brought in, or if you’re last Instagram post boosted your bottom line. Many businesses are struggling to grasp the financial impact social media marketing is having for them.
You track your return from the quantitative data you receive from experimenting. That’s right, this will help your businesses determine what works best for their brands. We’ve broken down the process and listed a few simple steps to follow.
1. Set Social Media Goals
Before you can get into measuring your return, you need to set goals! Your goals should be quantifiable and linked to a specific campaign. Why? This will allow you to track individual links that you share on Twitter, Facebook or other social media channels. Also, to ensure you get the most accurate number, you really want to set your goals based on actions that convert a casual browser to a lead, and ultimately a paying customer.
2. Track Your Goals
Once your goals are defined, the next step is to track them. Tracking is an extremely important part!
3. Measure Your Social Media Expenses
In order to figure out whether you’re getting a positive or negative ROI for social media campaigns, you have to measure how much you’re spending. This includes; man hours, content, social media tools and ad costs. After all your time is valuable and expenses add up.
As you can see, tracking your social media ROI isn’t impossible. You just have to take a planned and strategic approach. Happy experimenting!