In order to measure the effectiveness of your social campaigns, it’s critical that you know your objective. ROI is proof that your marketing efforts are working. Clients and supervisors need to know if you’re successful… and you do too! What is ROI.
Return on Investment (%) = (Net profit / Marketing Costs) × 100.
Set the goal of the return on your investment. A 0% ROI means that 100% of your expenses are returned (i.e. you did not lose any money).
ROI measurement strategy
Here are few steps for your ROI measurement strategy.
- Set clear and realistic goals and targets
- Social media measuring tools
- Quantify Your Social Media Listening
- Create a Rating System for Your Social Engagement
- Add Tons of Value, Then Sell and Measure
Social media analytics provide metrics that accurately estimate how many customers are converted across their journey. For instance, number of views of a Facebook ad might reflect an increase in awareness; number of clicks might reflect interest about a product; similarly, companies might use the number of fans as a reflection of their interest in their products; and finally, online purchases capture the conversion of new customers.
Today, most brands and companies use one of a combination of these metrics to assess social media efforts. For instance, many business-to-business (B2B) companies measures social media effectiveness through cost per lead or customer acquisitions. Other measures, often favoured by business-to-consumer (B2C) companies include metrics of Brand Impressions Frequency, and Reach. Companies identifying relevant social media content by using more specific metrics such as product sales, referral site traffic or even social product mentions.