How to Measure the ROI of Your Social Media Marketing Efforts

Happy Wednesday, friends! This weeks blog is about how to measure your return of investment in social media. We hope you enjoy!

Social media has a reputation for being very difficult to measure, but the reality is that it's actually quite easy. All you need to do is follow these five steps:

Understand the Return on Investment of Social Media

ROI is a financial term that measures how much money you make from an investment compared to how much money you spent on it. It's often used when talking about marketing and sales, but it can be applied in any situation where there is an investment of time or money.

In social media marketing terms, ROI refers to the amount of revenue generated by a particular strategy (like advertising) divided by the total cost involved in conducting that strategy (such as ad costs).

Use the "3 C's of ROI" to Measure Your Social Media Marketing Efforts

Before you start measuring the ROI of your social media marketing efforts, it's important to define the problem. In other words, what do you want to accomplish?

It's also vital that you set goals before beginning any kind of measurement process. You can't measure something if there aren't clear metrics and benchmarks in place. Social media is an incredibly broad topic and there are many different ways to measure its effectiveness; however, there are three main areas where most businesses will focus their efforts: traffic generation (how many people visit your website), lead generation (how many people fill out forms on your website), and conversion rate optimization (how many visitors convert into customers).

For example: If I want more traffic from Facebook ads, my goal would be defined as "increase organic reach by 20% over six months"--but only after determining what my current organic reach is! This way I'll know whether or not my campaign has been successful or not once it finishes running its course.*

Monitor Your Metrics

When you're measuring the ROI of your social media marketing efforts, it's important to keep an eye on the right metrics. You should be keeping track of:

• How many people are seeing your content? This can be measured by tracking views or clicks on links shared in your posts.

• How many people are engaging with your brand? This can be measured by tracking comments, likes and shares on each post.

To track these metrics, there are a few options available:

Remember that ROI should be defined by your business goals.

When you're thinking about how to measure the ROI of your social media marketing efforts, it's important to remember that ROI should be defined by your business goals.

If you're not sure what your business goals are, it's time for a little soul searching. You need to figure out what success looks like for your company--and then determine how best to measure it in relation to social media marketing. For example:

• Are we trying to increase sales? Do we want more people visiting our website or signing up for a free trial? Do we hope that our brand becomes more recognizable among consumers so they'll buy from us when they need something similar in the future? These are all things worth measuring when it comes down to figuring out whether or not social media is working for us as part of our overall marketing strategy

If you have a clear idea of what you hope to accomplish with social media marketing, it will be much easier to measure your results.

Before you begin your social media marketing efforts, it's important to define your goals. The clearer you are about what you want to accomplish with your brand and its presence on social media, the easier it will be to measure success.

Don't worry about what other people's goals are--just be ambitious and realistic in terms of what's possible for your business within a reasonable timeframe (3-6 months).

For example: If you're a fitness company that wants more customers who are interested in working out at home rather than going to the gym or participating in group classes, then one goal might be increasing email subscriber signups by 20% over six months. Another example could be getting 10 new followers per day on Instagram by posting photos that highlight specific exercises as well as tips for how people can incorporate those exercises into their daily routine without having access to professional trainers nearby.

In Conclusion,

Now that you know how to measure the ROI of your social media marketing efforts, it's time to get started! Remember that there are many different ways to measure success, so don't get discouraged if your first few attempts at calculating return on investment don't go as planned. It takes time and practice before you can start seeing results consistently--and even then, your results will likely vary depending on which metrics are most important for your business goals. But if you keep track of these three things (goal setting, monitoring key metrics over time), then you'll always be able to measure whether or not your social media strategy has been successful enough for its investment costs. As always, we are here to help! Give us a call today to start your social media marketing journey.

xo, Peacock Marketing