When investing in advertising and marketing, the focus of most companies has shifted to online and especially social media marketing. Social media engagement allows us to create a bridge between company and customers.
As effective as it is, digital marketing is still composed of marketing strategies, whose efficiency can be measured to define the best working approaches and those to leave behind.
To do this you can calculate the ROI (Return on Investment) of your social media marketing. But how exactly is this done?
Here are our favourite strategies to improve the ROI of social media marketing.
1. What’s the best approach when measuring ROI?
In simple terms, the ROI of social media marketing is calculated by comparing the profit/results of your tactics with the resources, time and effort invested to get there.
It’ll give you a picture of how much revenue is being produced.
There is no one right way to calculate, but instead it’s necessary to know your social media campaign to determine its goal and plan resources and profits.
Aspects to keep in mind are:
What your goals are:
When planning a campaign, you need to define the purpose first. It could be generating traffic and interest, promoting a product, creating brand image, etc. Different content should be expected to have a different outcome.
Know what traffic is coming from social media:
UTM tracking codes are codes attached to URLs to track traffic sources. With the help of Google Analytics you can analyze what percentage of page visits are coming from social media platforms.
Track the performance:
Unless the expected profit is solely financial, there have to be ways to track and monitor how well your content is doing to have exact data for the ROI calculation.
Our Social Media Management Tool will help you measure the performance of your content. With the implemented statistics you’ll be able to see the number of likes, reach, shares, clicks and comments. They’re a good indicator for the success of your posts.
When you’ve decided what it is that you’re aiming for, it’ll be easier to define the target and shoot your arrow!
2. What are good strategies to invest in and why?
Now that you have a good plan of action, it’s time to set it in motion. When strategizing to optimize the ROI of social media marketing, you can rely on different elements to make your work more efficient.
Keep this in mind when creating the marketing budget!
Strategies like videos and professional looking pictures are two good things to invest in constantly. They are attracting the most attention in a social media feed. Constantly adapting your media production and multimedia presence is the key for people to develop interest in your brand. Treat your social media content as any blog or SEO campaign post – stay active and optimize it so it can be found by others.
Influencers often have the “loudest” voices on social media. Having the support of one of them can really put your brand into the spotlight.
Creating a bridge towards new customers through someone with an active following is one of the most effective ways to create interest. Let influencers fuel your interactions with social media users by creating a photo post together or starting a conversation with the use of a hashtag. Be creative and revenue will follow!
Get the most out of your investment
Always keep in mind that it’s important to closely follow your strategies in every step of the way to see how your target group reacts to your content. The idea is to get the most of your investment and this can be done at multiple points of a campaign.
Once you have your objectives and tools, you just have to focus on the metrics (reach, engagement, site traffic, sign-ups, lead generation, etc.). Be sure to choose those that most closely mirror the data you need to measure your ROI, as that’s what will display the effectiveness of your strategy.
Be where your customers are!
Test our ONLIM LIVECHAT widget to have real-time conversations with your website or Facebook page visitors.
3. What are the next steps?
Test & Adapt
When you’ve determined which tactics are working and which aren’t, you’re ready to adjust your campaign for a better performance. Make some tweaks and see what happens.
Remember that the main point of measuring ROI of social media marketing is not just to show how valuable and effective your campaign is, but also to increase its value over time. Since social media never sleeps, the lifecycle of campaigns is short lived so there’s always room for change and improvement.
Keeping your ROI goals in mind, update your marketing tactics to match the response of your target group constantly.
Think about the analytics and the data you’re gathering. Understand what they show and how you translate them into calculable numbers to learn more about weak points to improve.
Consider changes in customer behaviour and interaction, business and campaign priorities, as well as the type and quality of media used for your campaign.
Remember that calculating ROI won’t always be the same so tactics will have to differ from one campaign to the other. The more you evaluate your current and past campaigns,the more insight you’ll have on each new one.
Don’t be afraid to learn and test, as this is what will lead you to true success in social media marketing!
Content creation has never been easier! With Onlim you plan your posts in advance and publish them simultaneously throughout different platforms. Our software offers a great dashboard and statistics to regularly check in on your posts’ performance.
Read more about social media marketing for your business:
- Why Social Media Marketing Is The Best Way To Promote Your Small Business Online
- Our 7 Favourite FAQs About Social Media Marketing