When it comes to social media ROI, the obvious metrics that you may initially measure across your business’ social media channels are follows, likes, shares, comments, etc.
And although these are useful in determining how successful your content has been (i.e telling you how many people have engaged with it), they don’t actually represent the monetary returns of the posts that you put out.
There’s no denying that measuring social media ROI is a crucial part of every social media strategy you create. Securing your budget for each social marketing strategy you craft, it shows you what’s working and what you need to change.
Opening the doors to new tactics and resources that will be more effective, it’s a one-way track towards success.
How to Calculate Your Social Media ROI
The simplest social media ROI formula is:
Profit/investment x 100 = social media ROI
And while it’s easy to calculate this (especially when you use an ROI calculator), it’s challenging to determine exactly what specific metrics you should look out for. So to help guide you, we’ve rounded up a handful of the key metrics that will help you to measure your social ROI.
Click-Through Rate (CTR)
The click-through rate represents the number of people that click on the link that you’ve put in your posts. Transporting your customers onto the intended page, it indicates how successful your post has been – and could lead to converting this click into a sale.
To get this, you can use the following formula:
Total clicks on the link / total impressions x 100
Reach – Audience Growth Rate
The benefit of tracking this metric is that you can connect the social media data within your report with your business’ profits. An item that you should pay attention to from the get-go, it’s typically expressed in a percentage.
Over time, this percentage will change indicating how your social media efforts are linked to the growth rate of your audience. Which then allows you to evaluate your social marketing efforts and therefore your ROI.
This social metric is important as it allows you to compare that amount that you’ve paid for your post with the amount you’ve pocketed from it. Particularly useful for sponsored social media posts (whether that be on Twitter, Facebook or Instagram), it will help you to make long term decisions when it comes to what you post.
One of the most significant metrics is the conversion rate. But what is it exactly?
The conversion rate is when a customer clicks on your social media posts, goes through to your site and they take action – e.g they purchase a product or service, download content, etc.
An invaluable metric that shouldn’t be ignored, this alongside the other metrics on this list are vital to your overall strategy. To track these effectively, you can use website traffic analytics programs like Google Analytics.
This metric shows you how each user has landed on your website – i.e which social network they came from. Although this may initially seem like a ‘vanity metric’ it actually helps you to measure your social ROI as it showcases if what you’re posting on each site is useful and engaging to your customers.
This does what it says on the tin. This is a social metric that represents the percentage of people that have clicked onto your content, but then swiftly came off of it after viewing the page.
To try and avoid this, you must focus on social media content creation that captures their attention and convinces them to stay on your site for longer. This is another metric that can be calculated through tools such as Google Analytics and is vital in measuring social performance.
Watch Time – A Video Metric
If you’re putting out multimedia content (which, let’s face it you should be), you’ll want to also measure the performance of it. And when it comes to videos, you need to determine how successful they have been – primarily in terms of engagement levels.
No matter whether your video is promoting a new product or service or simply related to a topic, it needs to entice viewers from the beginning and keep them engaged until the end. But how do you measure this?
Through Watch Time
This is a metric that refers to the amount of time that each viewer spent watching the video that you posted. If your total watch time is high, chances are that your click-through rate is favourable too. But if there is a high bounce rate, there’s something that needs to change.
Directly indicating how interesting the content is to viewers, it can be used in determining what content you’ll put out in the future.
The Importance of Understanding Social Metrics
So why is it so important to understand social metrics? Well, the proof is in the pudding. By understanding social metrics, you’ll be able to:
- See your efforts, determine how successful they are and create better content.
- Demonstrate what needs to be done in the future – perhaps as a way of indicating that more budget needs to be put into the efforts.
- Pinpoint aspects that need to be fixed.
- Compare and contrast your efforts on social media channels.
- Saves you time – when you understand the social metrics and track them effectively, you’ll be able to save time by focusing on content that will increase your ROI.
From the above, it’s clear that measuring your social media ROI throughout the lifetime of your business should always be a priority. Something that can’t be taken for granted, you want to guarantee that you’re always getting the return on investment that each post deserves.