Social media investments truly results in warranted returns. We need to connect social media ROI to business goals, select analytics tools to measure, finally calculate ROI and improve the approach. Here are the steps in detail,
1) Connect Your Social Media ROI Back to Your Business Goals
Set social media goals that complement existing business goals. If you have set a specific number of leads you’re trying to attain this quarter, set the number of leads you want to specifically be driven by social media. Ensure that you’re tracking the conversion rate of people who land on the page through social channels. Measure social media ROI as it relates to your broader business goals. Key examples of social media metrics to track include:
- Site traffic
- Leads generated
- Sign-ups and conversions
- Revenue generated
2) Select Social Media Analytics Tools to Measure Your ROI
Identify and implement the tools and processes required to measure the ROI on your social media. This may involve adding tracking codes to URLs, building custom landing pages, and more.
There are a variety of social media analytics tools which service to track the diverse metrics you are after. Here are some to consider:
Google Analytics: Track website traffic, on-site conversions, and sign-ups originating from social media campaigns.
Hootsuite Analytics: Hootsuite offers a variety of analytics tools to help you track your reach, conversions and more. A few noteworthy examples are:
3) Calculate Your Social Media ROI
The ability to track should be built into everything you do on social media, so you’re never left scrambling to try and prove the success of a campaign.
Creating analytics templates will allow you to track your desired metrics without having to build out custom reports for each campaign. These reports will also present the data in an easily digestible way, allowing you to simply and effectively share your ROI on social media with higher ups in the organization.
You should be checking your various social media metrics frequently, often daily, to ensure that your social media goals are being met. The lifecycle of social media campaigns is often very short, so you need to stay on top of the data as it happens. Choose a timeframe that works for you, and stick to it. You can often have reports sent to your email inbox on specific days of the week so you don’t have to even remember to pull reports yourself.
4) Adjust to Improve
Once you’ve identified what works and what doesn’t work on social, it’s time to adjust your strategy. The point of tracking your social media ROI isn’t just to prove your social campaigns are valuable, it’s to increase their value over time. Due to the short lifecycle of social media campaigns, a failing campaign should be changed and improved as soon as possible. Social media is never static. To meet your social media ROI goals, you’ll need to constantly update and adapt your strategy taking into account the analytics data you’re tracking.