How can you ensure that the time, energy, and resources you put into your company’s social media channels is actually paying off? How do you go about measuring social media ROI (or, return on investment)? It does get quite complex if your goals aren’t purely profit or conversion driven – what about if your main objective is to broaden brand awareness? How do you measure that?
Measuring social media ROI allows you to accurately pinpoint where your social media strategy is failing, and give you a chance to change tactics, amend, and improve. It’s also a great opportunity to gain a little more insight into the personality, preferences, and perception of your customers and the wider community.
Set some goals for measuring social media ROI
First, what are you measuring? Go back to basics and do a complete audit of your current situation to give you a starting point. Set achievable goals that align with your social media objectives. For example, you may want to convert 5% of website click throughs from social media to sales in 12 months. Or, increase engagement by 5% in three months. Or, respond to 100% of social media enquiries or mentions in under one hour. There are many ways to measure your success, but start with goals that are achievable and relevant.
As we talked about in a previous post, Followers vs Engagement, the number of followers you have on a company social media page can be a misleading metric to use as a benchmark. What’s far more important are engagement levels, and the ratio of engagement to followers. If you have 5,000 followers, yet you’re only getting a dozen likes on a post, then this is a pretty clear indication that the content you’re posting is either irrelevant or uninteresting. Comments, likes, shares, tags, reach, and mentions are all more important than follower numbers, so make sure to raise the bar on these with each reporting period and you’ll head for certain social media success.
Mentions of your brand
Don’t just monitor your own social channels when measuring social media ROI; also see where else your brand is mentioned. Check relevant forums, community groups, location pages, review sites – anywhere you think your audience may congregate online. Also: how are your competitors doing in this space? Are you doing better or worse? This is another way you can prove that your social media strategy is working – if more people are positively talking about your brand than your competitor, then you’re doing great!
Set up your analytics and reports to do the work for you
Make sure you have a system to chart your social media success. There are some really useful software and web applications that can pull all your social media analytics and report according to any metrics you choose. As a minimum, ensure that you have Google Analytics installed on your website so you can see the path customers have taken through social media to get to your site (where they hopefully convert to sales!)
There are plenty of other ways to prove your social media strategy is beneficial, and measuring social media ROI is an essential part of your overall strategy. If you want some specific information tailored to your business, let us know!