Social media has now become a common way to connect with your audience, increase conversions, visibility, and overall presence of your company, regardless of your niche. Over the years, social media campaigns started to play an important part in every company’s strategy. But companies are still confused about the effectiveness of their campaigns and how to tackle the ROI challenge.
Let’s have a look at some of the best ways to measure your social media campaign ROI.
But first things first…
What is ROI?
Social media ROI stands for social media return on investment, simply meaning the proof that your marketing strategies and investments in your campaigns are being effective (or not effective).
Why should I measure ROI?
Social media is now a serious tool and a contributor to your business. By measuring ROI, you can easily track your successes and failures, and actively respond to ever changing algorithms, challenges, and new trends.
ROI allows you to analyse your current performance on social media and adjust to new techniques to improve your social media campaigns and bring more revenue and exposure to your company.
So what are the main keys to measuring your social media campaign ROI?
1. Set and identify business OKRs.
OKR stands for Objectives and Key Results and it’s a common method for setting business goals, which is usually measured quarterly. OKRs were first introduced in 1999 in Google, and after proving to be successful, many companies adopted this strategy in every department, including social media and marketing.
Make sure your overall goals are aligned with the business objectives and the goals of your CEO. The common OKR question a CEO asks his or her employees to develop a strategy for their department is “how can you help me reach my goal?”
2. Identify your key performance indicators (KPIs)
To identify your KPIs, you must first ask yourself what it is that you want to achieve. What is the goal of having your social media pages? Is it conversions? Engagement? Brand awareness?
Here is a simple table that will help you explain how to use KPIs to measure ROI:
3. Assign a budget to your campaign
To create successful ROI results, you will need to assign a budget to your campaign. The social media management tool Buffer fantastically explains how assigning budgets can work in your benefit and how to analyse them – which brings us to our next point…
4. Track conversions with Google Analytics
Next step to measuring your social media campaign ROI is setting up your Google Analytics account and customising it for your goals.
Make sure you enable the goals tracking function in Google Analytics. You’ll find four types of measurable goals, which largely depend on your overall company strategy and KPIs.
The four measurable goal types Google Analytics offers are:
- URL Destination (the objective would be to increase views for a specific landing page)
- Time on Site (the objective would be content and bounce rate related)
- Pages per Visit (this objective also involves the structure and visibility of your content)
- Events (for complex visitor engagement, which includes time spent watching videos, social media shares, downloadable content, newsletter signups, etc.)
5. Utilise social media campaign ROI tools
Due to the popularity and requests for campaign tracking and reports, there are many tools out there that will help you reach and measure your goals.
If Google Analytics isn’t enough, you should look into the following tools:
Hootsuite Analytics: fantastic for keeping track on your competitors and updating your ROI whenever needed. The insights offer millions of data sources and real-time search results. As an upgrade to Google Analytics, you can create custom URL parameters and track social network traffic to a website, a blog, and a specific landing page. Their reports are slightly easier to export and put together and include the analysis of your social media pages.
LiftMetrix: perfect for larger teams. LiftMetrix comes with customised ROI dashboards and is more focused on business measures like purchases, lead generation, and more. As it is more advanced, it also comes with recommendations and insights to help you take complete advantage of the tool, and an analysis of social media content of your competitors.
We recommend you use one of these tools on top of Google Analytics for advanced measurements and bigger results.
6. Analyse the tactics of your competitors
One of the keys to measuring your social media campaign ROI is to measure the campaigns of your competitors. The tools mentioned above can help you see what worked and what didn’t work for companies in your niche. It can save you time and money, if you choose to learn from other’s mistakes, but it’s also an extremely useful brainstorming tool as you come up with new creative campaigns for you company.
7. Calculate your investments
When measuring your social media campaign ROI, don’t forget to calculate your investments and look at your assigned budget results.
This mean that you might need to look at time invested in social media management, budget spent on tools and ads, and the results all three combined are producing.
More tips on improving your social media campaign ROI
Analyse and report: Track your reports on a weekly and monthly basis and see what works and what doesn’t.
Adjust your campaign when needed: If you notice something is not working, there is no point in using it – adjust parts of your campaign by experimenting with new tactics.
Never stop learning: Companies come up with new ways to better ROI results all the time – keep an eye on new trends and never stop learning.
Neil Patel and Quicksprout put together an amazing analysis of how to measure your social media campaign ROI in an awesome infographic. And don’t forget – if you need any more tips on how to measure your social media campaign ROI, let us know! WLY at your service, always!