If you are running a social media campaign, measuring your return on investment is one of the most important steps. This will help you determine if your social media marketing is paying off or if you are throwing money down the drain. It will show you which part of your campaigns are working and which requires changes. But how do you measure your return on investment(ROI) in a marketing campaign? Let’s find out in this article.
Steps in Measuring Your ROI
To measure your ROI on social media marketing, follow these steps:
Determine Your Goal
It is important to note that the ROI on social media marketing isn’t a one-fit goal. It depends on your objective. Some of the goals could be:
- Making sales on your site
- Getting more social media followers
- Improving click-through rates
- Getting an email subscribers
You will need to determine your “why” before you can measure your social media goal. Once you have a goal, set measurable targets you want to achieve. For instance, you want to get 10k subscribers with your campaign. Instead of measuring the ROI of your overall social media efforts, you should measure the returns of each campaign.
Track Your ROI
Now that you have a goal, you should track your ROI. You can easily do that by setting up a goal in Google Analytics. There are also other paid tools, such as Ahref, Semrush, and Buffer, that you can use to track metrics such as shares, brand mentions, and likes.
On top of the tools mentioned above, you should pay attention to your social media analytics. This can show you crucial data, such as your best-performing posts. Remember that you can quickly maximize your reach if you have more data.
Determine the Monetary Value of Your Returns
The results from the tools in the previous step will only show you the metrics. However, determining the monetary value of some metrics, such as brand mentions or likes, can be challenging. One way of doing that is by checking the historical data to get an idea of the lifetime value of each customer.
For instance, if your brand has a customer lifetime value of $200 and one in every ten people who view your content buys, you are spending $20 to get a customer to convert. ($200/10). Another alternative is to determine the average purchase on your site.
Tracking your Spend
The next step is to understand how much you spend on making the campaign. Remember that spending isn’t just about money. It can include:
- Time spent by your marketing team in setting up a campaign
- Tools and software you pay for to use in a campaign
- Weekly or monthly budget of your budget spend
- Money spent in creating content
- Any professional or agencies you hire to help in the campaign
Formula For Calculating Your ROI
Now that you understand the monetary value of your results and spend, you can use the social media ROI to determine the returns on each campaign. The formula is:
Social media marketing ROI=Earnings-Costx100/Cost.
The answer you get will show which campaign or platform works best for your brand.
How to Improve Your Social Media Marketing ROI
Use these tips to improve your ROI on social media marketing.
A/B Test Your Campaigns
If you are unsure if your campaigns will work, one of the strategies you can use is to A/B test them. This can be particularly important for paid campaigns such as Facebook ads that can easily blow your budget.
Pay Attention to Social Media and Customer Trends
Customers’ needs and behaviors can change over time, resulting in a change in their preferences. When that happens, this will also affect the effectiveness of your social media marketing.
Optimize your Social Media Profile
When people visit your account, the profile is the first thing they see. Ensure that you leave a good impression of what they see. Your content, bios, images, and links should be well-optimized.
Work With Influencers
Working with an influencer who aligns with your social media goal can bring leads and improve engagement.
If you need an efficient social media campaign, you will need to track the performance of your posts and ads. This will also help you to improve your campaigns and, therefore, get better ROI. By implementing this guide, you can easily track your social media marketing ROI.