How to Measure Social Media Marketing ROI
Measuring your social media marketing efforts is crucial to make the most of your marketing techniques. Tracking your ROI can help to minimize costs, and boost revenue. There are several ways you can measure social media marketing ROI, yet, 44% percent of businesses can’t quantify their marketing efforts. We’ve covered what we believe are the essential techniques for measuring your social media marketing.
Social Media Metrics to Look Out For
Depending on your business goals, there are specific metrics you should prioritize over others. A business that wants to increase sales will track conversation rates, leads, and revenue generated from existing marketing campaigns. A company looking to boost its brand awareness will track reach and engagement rates instead.
Below are some basic explanations of metrics that make it easy to measure social media ROI.
- Social reach– the number of people who saw/read your content on social media
- Social Engagement rate– This is a ratio that tells you how many people interacted with your content (clicking a link, sharing, or liking a post) after seeing it on social media.
- Leads from social Media channels– People who interacted with your content and showed some interest in your business, i.e., taking some action, e.g., signing up or filling out a form
- Conversions– These are potential leads that eventually turn into customers. They end up taking the desired action.
- Revenue generated– This is the business generated that can be directly or indirectly attributed to your social media marketing efforts.
As a rule of thumb, you want to track traffic sources and identify your potential leads. This can be sources from social media (Facebook, Twitter, etc.), search engines, or paid advertising.
Quantifying Your Social Media Marketing ROI
The techniques below will help you measure your social media ROI, so you can effectively gauge what works and what doesn’t.
1. Use Google Analytics
Google Analytics is a powerful web analytics service offered inside the Google Marketing Platform. While this tool isn’t a complete solution, it provides some insightful metrics which help you decide if your current marketing campaigns are worth the effort. Here, you can quickly analyze social media interactions that bring potential leads to your business. It even gives you a users’ flow map to check how users navigated your site. Therefore, you can see what attracted them and what made them close the tab. To make the most out of Google Analytics, you can use it with third-party analytics tools.
2. Track Email Campaigns and Associate with Sales
To know if your potential leads from social media are generating business for your company, you can use email addresses to check and associate email lists with the sales list. This will give you an idea of the number of those who purchased a product/service from a given email marketing campaign.
3. Track Call conversions using Custom Phone Numbers
Specific campaigns such as Google AdWords give you an option to use custom phone numbers. These unique numbers are linked to your business phone number, and when people call, it’s directly recorded as a call conversion.
Another option is using a phone number forwarder. Here, you add a specific phone number to a landing page on your business website, which potential leads can use to reach out. This enables you to track calls from any given marketing campaign.
4. Leverage Tracking Pixel
A tracking pixel is a must-use technique. This allows businesses to collect useful data related to website visits, digital ad impressions, email opens, and sales conversions. Once you have access to this crucial information, you can quickly gauge and see what you are doing wrong and learn how to improve. It can also help you learn where to cut or increase ad budgets. A perfect example is the Facebook pixel used for creating and monitoring Facebook Ads.
Tracking your social media marketing ROI and effort is necessary if you’re to break even in the marketing and advertising world. It would be uneconomical to invest in obsolete and unscalable marketing campaigns instead of shifting your focus to productive and more profitable social media marketing strategies.
Looking for help? Tired and believing there has got to be a better way?
Let’s talk about your business. With over a decade of experience leading companies and transforming lives, and a Master’s degree in Org. Development and Leadership, Mike can help you find the best way forward!