It’s not easy to determine a dollar-for-dollar return on investment for social media. The good news, though, is that a company needn’t find itself buried in this task: there are numerous ways to track whether social media marketing ROI investments are paying off in big ways.
Recently, a marketing consultant told me how when she first came on board with a new client, a large corporation, the CEO told her repeatedly that they should cut their social media because he couldn’t see a return on investment. So, she suggested they run a test that involved taking social media away for a period of a few weeks. Perhaps surprisingly, sales dropped throughout the course of the test.[quote]Circumstantial evidence led the marketers to deduce that the social media activities were, in fact, driving at least some sales.[/quote]
Luckily, brands are coming up with more effective ways to measure social media ROI. It begins with looking at analytic data, and using that to determine how that relates to financial data. Our Orlando ad agency has a few tips that may help you in determining social media ROI for your business.
Tip One: Think Carefully About What You’re Measuring
It’s nearly impossible to measure direct sales from social media engagement, just because someone saw or “favorited” your company’s tweet, it doesn’t necessarily mean that alone is what drove them to a conversion.
However, most sites have built-in analytic dashboards that allow their users to see which links are leading to hits for your site. (If you aren’t already collecting data through Google Analytics, sign up for a free account today). If you have evidence that someone clicked through an ad and landed on your site, it’s effectively telling that you that it was good for that, and if they’re not converting, there may be some other reason for it.
Tip Two: Think About the Quality of the Interaction Itself
It’s great when someone retweets your post, but it also makes a difference if the person sharing your content has one follower, or one million. In this way, companies can think more about the reach of a certain post than simply about the interaction itself. People with many followers often act as influencers not only online but in the real world, so social media managers can tap into influencer activities by having continuous conversations with these fans. Influencers can help companies build sales over time, so look at the investment the company is putting into engaging with fans and monitor whether sales increase over time.
Tip Three: Consider the Benefits of Social Media Beyond Marketing
While Twitter is a great place for people to share their thoughts and comment on things they find interesting, it’s also a great way for them to reach businesses directly through their social media accounts. Many people report that their problems are answered more quickly when tweeted than when they try to call on the phone, and as such marketers should be prepared accordingly. As such, take into account how much money your company is saving through using social media as a customer service alternative.
Tip Four: When You’re Not Seeing a Return, Reassess Your Strategy
When it seems to your marketing team that your social media isn’t offering a significant return on investment, it’s time to address your strategy. If your company sells a product that’s visually appealing, like gourmet food or luxury clothing, make sure you’re posting images on Pinterest that click through directly to your site. If you’re an author trying to market a book, consider doing a live chat with your fans about subjects related to the book, which can be informative and interesting and, in some cases, can even become a trending topic on Twitter.
For more ideas about how to successfully generate social media marketing ROI from creative social media efforts, contact our Orlando marketing agency for a free consultation.