More businesses are spending a significant portion of their marketing budget on social media. Social media marketing is crucial but at times it can be difficult to tell how successful a particular campaign has been. How can you gauge the performance of a specific social media strategy so that you know it was worth the effort?
To measure social media marketing ROI there are many different kinds of metrics that you can look at. You can measure fans, followers, retweets and shares or even referral traffic from other platforms. In order to measure the ROI for a particular campaign though, you will need to identify the specific goals you have and determine your key performance indicators that will measure those goals.
For example if your goal is increasing engagement then you might focus on measuring likes, comments and shares. If your goal is sales then you would track your conversion rate based on actual purchases. There are tools to help track changes in any of these numbers such as Google analytics which helps you monitor particular actions from visitors including conversion.
It can also be useful to measure your social media efforts in comparison with competitors to see how you are succeeding. You can start to look for ways to stand out against others in your industry so that your social media efforts are more effective in the future. Doing something different or unique compared to other brands can help you get better results with social media marketing.
As long as you know what your goals are for a particular campaign you can narrow down the type of data you need to gather in order to measure your ROI. If you consistently work to improve your ROI you will start to see your social media campaigns experience more success over time.
Matt Ramage is founder of Emarketed a web marketing agency located in Los Angeles. He loves coffee, good design, and helping businesses improve their look and getting found on the Internet.