6 Steps to Measuring Social Media ROI

Measuring-Social-Media-ROI

Social media marketing is known to increase awareness and add connections, but it is important to tap some potential that still exists. The fact is that Social media can produce ROI in dollars and not just in things that aren’t associated with profits. Social media has the ability to produce ROI, but you need to know how. Coffee Groundz is a company that used social media to produce ROI by using Twitter as a direct order method. This led to sales increases of more than 35%. Jimmy Choo is another company that used social media to produce ROI by enabling Twitter to geo-locate stores selling their shoes. This resulted in 33% increase in sales. The numbers clearly show that social media does produce ROI if you are inventive and make an effort.

Set Conversion Goals

The only way to produce ROI using social media sites is to learn how to measure it. You need to set conversion goals in the very beginning that enable you to accurately determine how successful your campaign is. Your measurable action must have a monetary value in order for you to correctly measure ROI. Conversion goals that you might try out include online purchase, filing out contact form or download pdf. There are many different measurable conversion goals that you can try out.

Track Conversion Goals

The only way to know if your campaign is successful is to track it. The method that you use to track your social media ROI can vary depending on your needs. Reach is one factor that has importance to your ROI, because more followers adds to your reach and can easily be tracked through your social media sites. Traffic is another way to track your campaign and is a metric that is essential to your social media ROI. Your conversion rate is the final metric that you must take into account and lets you assess why or why not your promotion is working. You get to determine what is effective in relation to what is not. Tracking your goals is the only way to evaluate success and ensure that you are producing ROI.

Make Improvements

Creating the perfect campaign to produce ROI right out of the gate is not easy. It is unavoidable that you will have to make some adjustments based on the results you get from tracking your conversions. Do not be afraid to make some changes along the way.