How to calculate the ROI of your Social Media Campaign ?

According to the Direct Marketing Association, if you run a direct response campaign and spend $1, you’ll typically generate $10 or more in return. They know this because they’ve been tracking the transactional data from direct mail, paid search, direct response TV and other campaigns for more than 50 years. But what if you’re new to social media or new to the world of direct response metrics and don’t have that data or experience? What should you do then? Social media ROI continues to generate a lot of interest among marketers, because without ROI it can be difficult to report the success or failure of social media campaign. A recent survey conducted by Oracle indicates that only 10% of the surveyed businesses can actually tell if their social media campaigns resulted in increased revenue.

The 3 Categories of Social Media Measurement

There are hundreds of different ways to measure social media, which makes it kind of difficult to wrap your mind around. To help with that, social media metrics can be broken down into three different categories.

Quantitative Metrics: These are the metrics that are data-intensive and number-oriented. You can really get overloaded with different metrics here, so the trick is to pick the key metrics that most influence your business and not get bogged down with the rest. Those metrics might include unique visits, page views, followers, demographics, frequency, bounce rate, length of visit or just about any other metric that’s specifically data-oriented.

Qualitative Metrics: These are the metrics that have an emotional component to them. For example, if 75% of the people who mention your product online call it “cheap” and only 25% call it “inexpensive,” that’s a qualitative metric that has an impact on your business. There are several companies that provide in-depth analysis of the qualitative metrics online. Some of these include RapLeaf, Nielsen and Adobe Online Marketing Suite.

ROI Metrics: In the world of social media, all roads should lead to ROI. After all, during business hours, social media isn’t just about being social, is it? We’re doing it to make money. And if you track what percentage of people you converted from a prospect to a customer on your e-commerce site, or how many people you converted from a prospect to a client on your B2B website, then you’ll be able to measure the success of your social media campaign on an ROI basis.

Extremely simple but effective ways to calculate ROI of social media campaigns

Below are some of the effective ways to measure the metrics discussed above:

  1.  Measure Engagement through Likes and Follows:

One of the easiest ways to measure ROI of social media campaign involves measuring followers on Twitter, likes on Facebook, and all other social media websites that you are associated with. Some tools like Twitter Analytics and Facebook Insights allow you to track how successful a specific post was, which is also helpful in pinpointing the content your customers respond best to. Furthermore, if you are looking to measure the success of a specific hashtag, keyword, or unique topic, there are various tools available such as GroSocial, Brandwatch and Keyhole.

  1. Measuring Click-through Rate and Impressions:

A simple formula for click through rate is, CTR = Clicks ÷ Views (or Impressions). Click-through rate is quite important to proving that your brand is visible on social networking sites.

  1. Measure Your Direct Conversions:

If you are running an ecommerce business and have an ecommerce site, there is an easy way to measure the exact revenue that you are making from social referrals. For this, you have to make sure that your Google analytics are set up to track ecommerce. After this, you can track exactly what Facebook referrals are earning in exact amounts.

  1. Set Up Call Tracking:

Another easiest way to measure your ROI for your social media campaign is Call Tracking. Often done with Facebook ad campaigns, this method can be done with other social accounts too. This effective method allows you to directly measure the calls you are getting due to your social networking sites. It is possible because your social media page lists a different business phone number than what is on your business’ site. Whenever you get a call to that particular number, you know the customer got it from your social media page. In this way, you’ll get concrete numbers that show the payoff from your social media efforts.

  1. Measure Sentiment:

Another important metric to track is sentiment, which is the general feeling and tone of conversations surrounding your company, brand, or product. Various tools like Klout, HootSuite, Buffer and Social Flow allow you to connect many of your social networking accounts and track what is happening on each account from a single dashboard. In addition to this, there are many great tools that include some level of sentiment tracking such as Social Mention, Brandwatch and others. The best part of these tools is that they also allow you to track which people are talking about you, what people are saying about you, and the general attitude towards your brand or product.


Above mentioned simple methods help you to calculate your social media ROI in a hassle free manner. The bottom line is that, as businesspeople, we don’t use social media to be social, we use social media to grow our business. And if you use the program outlined above, you’ll be able to prove the value of social media on a campaign-specific, ROI basis.

Thanks for Reading !!!









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