The real value of social media initiatives is in developing and strengthening a relationship between a brand and its consumers. Traditional ROI measurements and attempts to analyse direct impact on sales are futile and misplaced. Thus, one should calculate the ROI of social media campaign on the following parameters:
- Measuring engagement: is the simplest way to measure the effectiveness of your social media campaign. This can be calculated by the number of likes and shares on the Facebook and by the number of follows or retweets on the Twitter. One can, in fact, keep a track of the followers or the fans in a spreadsheet to predict the trend or the success of the campaign.
To make the data more relevant, one can determine the number of new followers to gauge the success of campaign. Simple tools like Facebook insights or Twitter analytics can be used to understand the content most popular with the customers and to modify the campaign accordingly.
- Click-through rate and impressions: An ad might be very popular and be liked by thousands of followers, but might not be the impactful enough to get the traffic to your website to convert the sales. One of the best and frequently used tool is click through rate – is the ratio of how often people who see or like your ad, has actually clicked your website and followed it.
This is imperative to prove that your brand is visible on the social media platform.
- Impact on the social media: Indeed, your social media campaign is popular and creating enough impressions, but is it influential! Now, the question arises how you measure the influence. Klout, Social Authority and Brandwatch are popular tools that measure “influence” in your industry. It helps you to know how people interact with what you share on social media.
- Sentiment analysis: Sentiment is the general feeling and tone of conversations that surrounds your brand or the campaign. Tools like Hootsuite, Klout, Buffer and Social flow allow one to integrate all the social media platforms and track them on one dashboard. These tools allow one to track what people are saying about you, how they are saying about you, which people are talking about you and the general attitude of people towards the brand or the campaign.
- Integrating the social media data: All the above mentioned tools help the brands to calculate one or the other thing that is important to track a social media campaign; but, in silo, this information is incomplete. One need to integrate all the metrics calculated to have a holistic picture of the campaign, to understand the trends in the industry, to analyse future opportunities for the social media marketing and to apply these insights to improvise the current media plan.