Nowadays many businesses around the world are spending major chunk of their marketing budget on Social Media. One of the challenges we hear from the companies is how to measure the ROI on social media efforts.
Before getting into the effectiveness measurement and analysis part you should take into account following key points:
- The length of the time you have spent in efforts: If you are doing it for the first time, give it considerable time and stick to it as long as you see some action.
- Right choice of social media platform: Make a right choice of social media platform based on your target audience Vs the strengths and demographics of social media platforms. This will also guarantee you the expected results
- Avoid comparison with traditional marketing media: Social media is not a “Magic Bullet” and it will not replace all your other marketing modes. So try avoiding comparing the results by both the means. It takes time to justify your social investment.
How can you measure ROI on social media?
You need to set up your own tracking parameters based on Facebook Insights, Google Analytics, Twitter and Pinterest analysis to measure the actual impact. The click counts and website traffic spikes can be direct reflection of the social media efforts. These can be termed as “Social Media Tangibles”
However marketers have started looking beyond the tangible numbers to other forms of measurement to identify and analyze the value of social media efforts.These parameters comes under the category of “Social Media Intangibles” e.g. customer satisfaction, improved communication with the customers, increased sales and quick brand perception etc.
If you’re working on your social media strategy and measuring the ROI, keep in mind these tangibles and intangibles. As all these will collectively form the basis to calculate ROI on social media.