Measuring ROI on Social Media

Tue 27 Feb 2018 - posted by Jake Hall

Social media ROI boils down to how much you’re investing and how much social media matters to your business. This can pose some challenging questions and interesting decisions, which can be affected by a number of factors, from the age of decision makers through to the marketing experience and insight of key staff. As an example, a business might be more used to spending most of its marketing budget on more traditional forms of advertising, like print. It can be difficult to change a mentality that has been a long-standing tradition. For some, it may seem strange to trade television for Facebook or Instagram. However, social media ad spend may actually get more results. In fact, 2017 marked the first year that digital marketing surpassed TV ad spend and this will not be changing anytime soon.

Defining your goals for social media is the first step:
•    Are you hoping to increase your number of followers?
•    Are you planning to use it to sell more products?
•    Are you looking for increased traffic to your website?
•    How about more footfall to your business?
 

Benchmarking Current Measurements:

Before you start measuring your social activities, Interdirect would recommend that you take a benchmark of where you are starting from.

•    Make a record of your existing website analytics (visitors, referral links, SEO rankings)
•    Record any current customer satisfaction scores you are tracking as well as customer ratings on external directories (i.e. Facebook, Feefo, Trustpilot or Google My Business recommendations)
•    Make a note of any KPIs you currently track (cost of customer acquisition, advertising budget and allocation, average sale, average sales per month) to see how these change over time.
•    If you've already set up some social profiles and have followers, make a note of the numbers you already have (i.e., number of connections on LinkedIn, Facebook fans, blog subscribers Twitter / Instagram followers)
•    Look at the engagement rate (number of interactions with your posts on average) to see if your content and increased posting is upping the interest in your brand.
 

Understanding the Importance of ROI:

There are many companies that don’t know specific information about how much time, money and energy they are spending on social media and what channels they could be investing more effort in order to get better results. It’s time to pay attention and find out which social media channel is bringing your company the most revenue at present and why. Also note areas in which you could improve. Monitoring these will enable you to make changes for the better.
 

Statistics to help with penetration:

•    Online adults aged 18-34 are most likely to follow a brand via social networking (95%) - Think about your audience and see where they are most likely to follow your brand.
•    71% of consumers who have had a good social media service experience with a brand are likely to recommend it to others - Use social media as an effective customer service tool to increase brand engagement and win new customers.
•    With 2.56 billion global mobile social media users, equalling 34% penetration; globally with 1 million new active mobile social users added every day - Make sure to optimize your mobile social media campaigns and since mobile ads are relatively cheap and easy to produce, test multiple versions to see what works the best. Users spend on average 69% of their social media time on smartphones.
•    96% of the people that discuss brands online do not follow those brands’ profiles - Companies need to go beyond their own channels and monitor those unbranded conversations to gain valuable insights and manage brand health.
•    Visual content is more than 40 times more likely to get shared on social media than other types of content.
 

Measuring Your Social Media:

Again, define your goals. It’ll be easier to measure your social media performance if your goals are clear. Don’t try to hit every aspect possible, choose areas that need improving or areas that are doing well and decide what to change to gain more impact.

Break these areas into categories that can be tracked, such as customers who engage with one of your brand's ‘calls to action’ via your social media channels rather than using a browser to get traffic to your website. For example, how many people are signing up to your customer emails or are making a purchase by clicking through directly from your social channels.
 

Social Media Campaigns:

The impact of your social media campaign should be measurable from the get-go as the value and specifics of each link you share on social media will be trackable. This makes it easier for you to see which links are building traffic and promoting engagement. It’s often the little things that add up. With that in mind, it’s important to remember that while social ROI matters, the figures themselves aren’t the only indicators of social influence and growth. For instance, influencers, collaborators and rich media can all enhance your social media presence without the need for long-term investment. As experts, Interdirect are always happy to help create a strategy and implement it for your business.  

If you would like to get more ROI out of social media channels and campaign activity then get in contact and let us help you.

Email our New Business Development Director: Jake.Hall@Interdirect.co.uk  

 

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