With social media spending projected to account for 16% of the digital ad market in 2017, how many businesses really know what they’re getting out of it?
Does your business struggle to accept social media as a valid marketing channel?
In our experience, businesses aren’t willing to leverage social media because they are unsure if it can make them money.
But this is a misconception. Social media channels can make money. You just have to be prepared to measure these channels.
The key to being a good business marketer is to figure out what’s working and what isn’t through regular testing.
Social media channels are something your business absolutely must test and measure. From leveraging it organically to running paid social ads, your business can generate a positive social media ROI.
6 Steps to Maximise Social Media ROI
Step 1 – Choose and Set your Goals
Different businesses and campaigns will have unique social media conversion goals.
But in all cases, you’ll want customers to take a measurable action that has a monetary value.
Step 2 – Track your Goals
How your business goals are tracked will vary depending on which social media platforms are used and your goals.
Zymplify’s platform provides tracking, which pulls together analytics from Google and social media and allows you to track your goals in detail.
Step 3 – Assigning Value
Your business will attach a value to each goal conversion. This is worked out using any historical data, or experience, held about a customer’s value.
Step 4 – Measuring Total Benefits by Channel
During this stage we collect inbound web traffic and generate conversion data from our analytics tool. Then data is correlated to the total value of those conversions.
Step 5 – Determine Total Costs
At this point we add up promotional account fees, staff costs and any other costs by social media channel.
Step 6 – Analyse Results and improve
Finally we use the data from Steps 4 and 5 to calculate the ROI per social media channel.
This data also allows you to tweak your approach to improve your social media efforts and improve your future social media ROI.
While having data is nice, you also have to account for the indirect benefits you get from social media.
For instance, getting retweeted by an influencer may not result in direct sales, but can be hugely beneficial by exposing your brand to new people.
So while these types of returns are difficult to track, it’s important to keep them in mind when you’re going over the ROI of social media campaigns.
All of your social media activity can impact your social media ROI, even if there’s not always a value tied to it.
The trick to generating a good return through social media is to use your creativity. From posting on your wall to ads, the top social media campaigns that we’ve seen generate a positive ROI tend to be the more creative ones.
Tracking your social media ROI isn’t impossible. You just have to take a strategic approach. The more organised you are, the more accurate your numbers will be. And as you start to create multiple campaigns, you’ll be able to fine tune your numbers, like the lifetime of a customer and your expenses.
One thing you should also keep in mind is that social media gives unseen benefits too like brand building.
Even earning natural backlinks as people link your site to theirs has benefits. It might not add up to a measurable value, but it can help you figure out whether social media marketing is helping your business.
If you’d like to find out more about Social Media ROI, sign up for our free webinar.