What is Social Media ROI?
Social media ROI is a metric you can use to judge and see if your time and money spent on social media are worth the effort. ROI stands for “return on investment.” In short, this is the dollar amount spent concerning how much money your business is making based on the time and amount of money you’ve spent on your advertising.
ROI is the amount of money gained or lost on your investment relative to the amount you’ve invested. You can determine your ROI for any advertising you decide to invest in. In this case, we’ll focus on the financial return for your business based on your social media. Social media ROI is a metric to measure the financial return on investment from social media marketing efforts.
How Do I Calculate my ROI from Social Media?
To calculate social media ROI, you’ll compare the investment made in social media marketing, such as time, resources, and money, to the revenue generated from those efforts. For example, you’ll want to account for the costs of your social media scheduler, the VA time used if your VA schedules your social media, or the costs of the social media company that is scheduling your social media. In addition, you’ll want to include any costs associated with photography if you use a photographer or the cost of your time if you are taking videos or still images of your products or services.
What Metrics Should I Use to Calculate my Social Media ROI?
There are many metrics used to calculate your social media ROI. Some data-based metrics include the number of leads generated from social media advertising or posting, website traffic generated from social media posting, direct sales from your social media platforms, or customer retention.
Other metrics that aren’t as easy to measure or don’t have a number associated with are client satisfaction and building trust with your client base or leads. While these are also important metrics, they are harder to measure with data as these metrics aren’t cut-and-dry numbers. One way to measure these metrics is to send a survey to clients and followers of your social platform and offer them an easy “freebie” for their time filling out your survey.
By tracking social media ROI, businesses can assess the effectiveness of their social media marketing campaign. Using that data, you can make informed decisions on how to allocate your resources. In addition, tracking your social media ROI can help your company determine whether your social media campaigns deliver results and identify improvement areas.
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