Most businesses today are active on social media platforms, around 20% of digital marketing spend is spent on channels such as Facebook, Instagram and LinkedIn; but are you measuring the success? What does success look like for you? You may measure the number of fans/followers your page or profile has, or how many likes you got on your post, or you maybe more interested in the number of hits to your website, perhaps the number of leads you’ve received or sales generated.
There really isn’t a common metric for measuring success as your objective maybe different from campaign to campaign. You may want to increase brand awareness, you may want to increase interaction, of perhaps you’re just looking for an instant win and get cash in the bank.
Measuring your ROI is a challenge among marketeers, 65% name this as their number 1 struggle. So how can you overcome this?
If you’re aiming for sales, you’ll need to measure your ROI as a cash value. Assigning an £ amount to your conversion goals, you’ll easily understand the impact of your efforts.
Building your brand awareness of course is a little different and is never the same for everyone. You may wish to get your brand seen by as many people as possible, you may want people talking about you and remembering you for something specific; in this instance, you may want to track “vanity” metrics – such as likes, comments, and shares, which are often referred to as irrelevant, but they do have value.
Make sure you utilise them to measure the overall health of your social presence, measure yourself against competitors, and determine what content is resonating with your audience. They should only be considered “vanity” metrics if they don’t align with your business objectives.
Other metrics you could track to prove ROI include:
- Audience engagement
- Site traffic
- Leads generated
- Sign-ups and conversions
- Revenue generated
When deciding what metrics to use, ask yourself:
- Does it align with my objectives?
- Does it help me make decisions (what to do more of, what to do less of, etc.)?
- Do I have the capacity to measure it effectively?
Don’t forget you don’t just need to factor in the cost of your spend on adverts, but also the time taken to produce the content and managing your accounts, the cost of producing the assets, and of course any platforms and tools you’ve used to manage your channels.
So, if you’re using social media to drive website traffic—to support a business objective of increasing brand awareness, for example—you can determine the cost of each visit with a simple formula:
“Profit” (in this case website visits via social) / total investment (people hours, ad budget, etc.) X 100 = ROI (as a percentage)
Need to measure the ROI from your social media efforts? Here at Media Jelly, we’re able to assist with establishing the right metrics and providing analytical reports; this is actually included as standard when you engage us to manage your social media platforms. Click here to get in touch and get your project started.