“Conversations are happening whether you are there or not.”
- 97% of adults between the age 16-64 say they logged onto at least one social network in the past month
- 7 in 10 Gen Xers are more likely to make purchases from brands they follow on social media
- 4% of users follow a brandbecause they’re interested in the product or service
- The top choice for a customer care channel is social media
Tracking the ROI on social media is very important for your business as social media can be a source of a lot of income. Tracking the ROI on social media can give you a lot of insights on customer behavior and help you with product improvement and product development as well. Social Media ROI is the sum of all actions that provide the value you gain in comparison to the resources you invest on social media. Basically, calculating the ROI tells you whether the time and money you spend on social media are worth the investment. These are few of the ways you can track your social media ROI. Let us now understand why it is important to track your social media ROI-
1. Providing perks to loyal customers
Identify influencers and prospects that engage with your brand on a consistent basis. Target these individuals and set your ad campaigns around them. Paying attention to the customers who are the most consistent in their purchase of your products can help you in increasing sales.
2. Measure the individual campaign performance
Tracking an individual campaign allows your firm to quantify the success of each campaign and helps in determining the campaigns that are the most important in driving leads. For example, if you generate more leads on Facebook than on LinkedIn, then it is rather wise to allocate more funds to Facebook when compared to LinkedIn.
3. Research and Development
Tracking your social media ROI can help you in evaluating your products and improving them. It can also help marketers for coming up with ideas for product Development. With a solid understanding of what content works where, when and for whom, your company gives itself room to play with the latest tools. It is an ongoing process, a journey. Tracking your ROI on social media can help you with a lot of insights!
1. Identify your key performance indicatorsAssign a dollar amount to your conversation goals to fully understand the ways your social media marketing efforts impact your bottom line. Some objectives you could set for your social media campaigns are:
- Build brand awareness
- Drive traffic
- Drive conversions
- Improve customer retention