Is the time and money you’re putting into your company’s social media marketing paying off? You might think you can only really guess as to the success of your social media accounts, but there are ways to measure how “worth it” your social media efforts really are. To accurately calculate your ROI, which stands for Return On Investment, you must take into account all resources. Measure efforts and interactions that go into your company’s attempts to reach their social media marketing goals. Return On Investment also helps when it comes to attraction marketing.
Resources include such factors as time, cost, and effort. In order to calculate how the total resources your company is funneling into your social media accounts, ask yourself the following questions: Approximately how many hours does your company spend working on social media per week? How much effort do your employees put into your social media accounts each week? How much money are you putting into each of your social media campaigns? Estimate the answers to these questions and put them in their own separate resource categories.
Now it’s time to calculate the value of your efforts in order to see how well your resources are paying off. The first factor you should take into account is reach, which is used to measure the size of your potential audience. Who are the people directly (and indirectly) in your social network? How many page views and click-throughs are you getting on your social media posts each week?
Next, to find your value, you need to consider is the engagement of your social media, or the number of interactions with your brand. For example, how many retweets are your company’s posts getting on Twitter each week? How many likes are your Instagram posts receiving? How many people are sharing your Facebook posts?
Finally, you must measure is your audience growth, or the number of new audience members that your social media accounts usually attract. Who follows you or is friends with you on your accounts, and by how much does this number increase each week? How many new visitors are visiting your website in a given week? How many visitors are subscribing to your email list? What is your lead-to-customer conversion rate?
Now you can calculate your Return on Investment by using this formula: ROI= (Value- Resources) / Resources.Is your ROI within the desired range, or does it fall short of the social media marketing goals you have for your company? Perhaps you should see which social media accounts are giving you the best results, and put concentrate your efforts towards these accounts. Maybe you need apply different strategies in order to ensure that your social media content is garnering enough attention. In conclusion, calculating our ROI will put you on the right track for improving your company’s social media presence.