Grasp what social media marketing ROI is.
Understand the variety of factors that determine social ROI.
Discover some helpful KPIs to focus on besides sales and followers.
Understand the importance of patience when it comes to reaping the results from social.
If you’ve ever wondered if it’s possible to determine the ROI of social media marketing, you’re in the right place. Join us as we define what social media marketing ROI is and explore how to track it. We’ll also share which KPIs are more useful to focus on than others as you’re analyzing data from your business’s social channels.
What is Social Media Marketing ROI?
Social media marketing ROI is the measurement of the effectiveness of your social media campaigns in achieving your business goals. It’s not just about likes and shares; it’s about how these interactions contribute to your bottom line.
Is Measuring ROI for Social Media Possible?
Yes, it is possible to measure the ROI of social media marketing, but it requires a clear understanding of your goals and the right metrics to track. Unlike traditional marketing channels, social media ROI isn’t always about direct sales. Often, it’s more about raising awareness and engagement, which can eventually lead to sales. That’s true on whatever platform you’re analyzing, from TikTok and Instagram to Facebook and LinkedIn.
Looking at the Right KPIs
It’s crucial to focus on the right key performance indicators (KPIs) to determine if your social media marketing is working. While follower count and sales are important, they might not fully capture the effectiveness of your social media strategy. According to Social Media Examiner’s 2023 Social Media Marketing Industry Report, 86% of marketers claimed that the number one benefit they experienced from social media marketing was increased exposure for their business. Increased traffic and lead generation took second and third places, respectively. Only 55% of those surveyed claimed the benefit of improved sales.
5 Tips for Tracking Social ROI
Sometimes it’s best to let your desire for more sales and followers take a backseat. Instead, here are five tips to help you calculate whether your social platforms are yielding results.
1. Set Clear Goals.
Define what success looks like for your business on social media. Is it brand awareness, customer engagement, lead generation, or direct sales?
2. Focus on Engagement Over Followers.
Engagement rates, such as likes, comments, and shares, can be more indicative of success than just follower count. They show how people are interacting with your content.
3. Use Analytics Tools.
Platforms like Facebook, Instagram, X (formerly Twitter), and Google Analytics 4 offer built-in analytics tools. Use them to track metrics relevant to your goals.
4. Track Conversions.
If your goal is sales, use tracking pixels and UTM parameters to track how social media traffic converts on your website.
5. Calculate Your Investment.
Consider the time and resources spent on social media. This includes content creation, management, and advertising costs.
The Time Factor in Social Media Marketing
As a small business owner, it’s easy to underestimate the time required for effective social media marketing. It’s not just about posting content; it’s about creating quality content, engaging with your audience, and analyzing your results.
Similar to how SEO takes time, so does the ROI of your social channels. Here at TTG, we believe that six months is the earliest that you can start seeing some kind of return on your social media marketing efforts. Though, sometimes it takes longer than that. It’s important to remember that all worthwhile endeavors take time, and social media marketing is no exception.
While you’re waiting for social ROI, it’s vital that you’re consistent with how often you post on platforms. It’s also essential to adjust your brand’s content based on data and trends. Last, but not least, don’t forget to spend time interacting with other accounts. Social channels reward you for the time you spend within the channel and commenting on others’ posts will further improve your brand’s visibility to your online audience.
Embracing a Smarter Perspective on Social ROI
Measuring social media marketing ROI is more nuanced than simply looking at sales figures. It requires a deep understanding of your business goals, the right metrics to track, and patience. Remember, social media is a tool for building relationships and brand awareness, which, over time, contributes to the overall health and growth of your business.
By focusing on the right KPIs and giving your strategy time to develop, you can gain clarity on what works and what doesn’t. This, in turn, will lead to more informed decisions and a stronger social media presence for your brand. (And who doesn’t want success on social?)
Make Sense of Your Social Data
Need some expert training on establishing KPIs and analyzing your data in light of them? Schedule a customized training session with TTG!