Calculate your Social Media ROI with these tips
Needless to say, social media sites are the best platforms to promote your business optimally. Prominent examples include Facebook, Instagram and Twitter etc. However, these sites do not have the necessary tools for tracking actions, costs and results etc. The need for Social Media ROI (Return On Investment) calculation lies exactly in this regard.
Introduction to Social Media ROI
ROI or Return On Investment basically means the ratio between the cost of the investment and the net profit. Calculation of ROI through revenue in an effective manner is important. You need to adhere to the following formula to perform this task successfully.
Conversely, do you want to verify the efficacy of your campaign on the social media platforms to promote your brand? If yes, then you need to rely solely on social media ROI. If you calculate your social media ROI effectively, then, you can create a compelling impression for your brand. Moreover, you can sustain this compelling factor properly through strategic ROI calculation. As a result of that your targeted consumer-base will also increase to a reasonable extent.
Ways to Calculate Social Media ROI perfectly
So, as already said that evaluating the efficacy and productivity of your campaign is imperative. To attain this objective successfully you need to calculate your social media ROI by implementing the following steps.
Calculate The Total Campaign Cost
List all the costs that you have spent on your social media marketing campaign. However, these costs will differ somewhat according to the specific business objectives. The costs will also vary reasonably according to the ways to achieve these goals. A few of the metrics you can consider when gauging the cost include:
Let’s exemplify this method of calculation furthermore. Say for example, you have spent INR 4000 for promoting a particular campaign on Facebook. Subsequently, you have a made profit of INR 8000. In that case, following will your ROI percentage:
So, you can say that this Facebook promotion yielded a 100% Return On Investment or ROI for your brand.
Decide on your Favorite Social Media ROI Calculation Tools
There are plenty of tools for calculating your Social Media ROI and identifying your potential KPIs. Prominent examples include Google Analytics, Facebook Insights and Twitter Analytics. If you wish, you can get help from a popular digital marketing company in this matter. Such Companies offer high-quality social media management services to their customers. In return, you can conduct effective campaigns for your business which will consequently enhance your Social Media ROI.
Start Tracking your Campaign Metrics
Key Performance Indicators (KPIs) or Campaign metrics are metrics that evaluate and calculate the extent to which your campaigns are profitable. Say for example, you want to promote your brand optimally with an extensive audience-base. You want to complete this task by providing relevant product updates to your potential customers. In that case, you need to verify your potential metrics in a proper way. A checklist of these metrics can be considered below.
So, start tracking each of these metrics effectively. After doing so you will get a clear understanding that whether your campaigns are adequately profitable or not.
Know your Social Media Marketing Objectives
Creating an optimum brand position and attracting massive traffic to your site are entirely two different aspects. Hence, creating effective and profit-making social media goals should on the top of your list. It is only after that when you should measure your ROI on the different social media platforms. Some of the key aspects based on which you can frame your social media objectives can be considered below.
Follow the S.M.A.R.T method while formulating your unique social media marketing goals. These include specific, measurable, achievable, relevant and time-sensitive. This way you will be able set up the most remunerative goals before you start calculating your social media ROI.
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So, implement each of the social media ROI calculation methods given above and determine your campaigns’ success level perfectly.