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The Right Way To Measure ROI on Social Media Marketing

SocialMedia(10)If your company is looking for ways to expand its business and reach new customers, social media marketing is the way to go. However, there is no way of knowing how your social media strategy is working unless you have some way to measure the return on your investment. How does a company know if its social media strategy is working out well? Here are some factors to consider when determining the effectiveness of your strategies.

Your Followers Are No Good If They Don’t Take Action

Having 4,649 followers on Twitter is great, but if they don’t take any action, or make any purchases, it won’t matter. The bottom line is that your following isn’t doing your company any good if they aren’t tuned in and engaged with what you are sharing, telling friends about the company, or taking measures to spend money on your company. The best way to see how well your social media efforts are working out is to see how it translates into the actions you have set as goals.

Let’s say for example, your goal is to increase brand exposure. In this case the number of followers/fans etc you have is a key metric to measure. But it doesn’t stop there. You will also want to measure how many of those fans/followers are tuned in to what you say (ie retweets, likes, responses, comments, shares etc). There are quite a few great social media marketing tools that can help you track, measure and analyse this data. The number you get will be those who you have successfully attracted to your brand and you can measure this growth over time. The next step will then be to turn them into customers.

Sometimes Money Isn’t Everything Though

One of the great things about social media is that your customers get to talk to you directly. Listening to them is going to be a key way to determining how well your social media efforts are working. Do you take the time to really listen to what customers are saying? If you do, you will find that the customers can help you gain invaluable insight into what they want from you and how you can market your company, what products to introduce and how to allay concerns and do better with customer service. Down the line, these suggestions/insights can help you save money and boost sales, making your time online worth it.

A case in point, I recently saw a popular retail store throw out the question to their fans on Facebook whether they would prefer to have free shipping all year, more coupons throughout the year etc. The overwhelming response was more coupons! The company can now use this information to increase sales as they now know what their fan base wants.

What’s The Point?

Why is your company using social media marketing? Do you want to gain new followers and convert those people into sales? Is your Facebook page a customer service outlet for customers online? Perhaps you are online simply to do market research. It could be that different departments within your company are out to do different things with the same platform. The goal is to allow each department in your company to come up with its own goals for social media usage. The sales team wants to make money, the service team wants to help customers and the marketing team wants to advertise well. If each department can meet its own goals, then your social media strategy is working.

Determine Success In Your Own Way

The easiest way to measure ROI is to simply figure out what you need social media to do for you and then use the right tools to determine whether the goal is being reached. Maybe you just want more exposure, so having a highly engaged, large Twitter following is all you needed. Perhaps the goal was simply to expand online operations and advertise in another venue. If what you are doing online is helping your company reach a goal that you set, then your time online is being used in the right way. Don’t worry about all the possible metrics, or what other people say your social media experience should be. Just figure out what your company needs and go in a direction that your company will benefit from. This is what the most successful social media marketers do.

Get Yourself a Partner

If social media marketing isn’t your thing, that’s ok. We’re here to help.  The only thing worse than not having a social media presence is having a poor one. Partner with LeapGo and we can help you create and maintain a social media strategy that contributes to your overall business goals. Contact us to find out how or check out our social media marketing plans.