I have put together some common ways to measure social media ROI in a way that is easy to understand and implement. All it takes is knowing the tools available that can help you track your activity and the key metrics they provide which can help you evaluate your marketing efforts.
Before you start, it’s helpful to know how to measure the costs of your marketing efforts as it applies to your bottom line. As these are specific to each business, so I can only offer this general advice: know your goals, outline a marketing budget, and know how to measure costs to market and sell your product and service.
Here are some common available tools to measure the effectiveness of your efforts via your website and social media pages:
Website Analytics – Services like Google Analytics can help you better understand customer behavior on your website. It can answer questions like, what pages visitors visit; how many visitors leave versus how many stay; what words visitors use to arrive on the site; and what social media sites visitors come from. Understanding these metrics will help you track and measure your marketing efforts more accurately and quickly.
Custom Weblinks – services like www.bitly.com can create custom links that also provide traffic metrics, showing you how many people click on the link and when they clicked on it. This is very helpful for measuring traffic to the website during specific ad campaigns or measuring traffic from specific social media campaigns. For instance, creating a custom link for your Facebook page will show exactly how visitors saw your link in their Facebook feed.
Social Media Analytics – Social media platforms like Facebook and Twitter provide businesses with metrics that track all sorts of activities and engagement like shares, likes, retweets, comments, and views to name a few. The social platforms also provide you with audience info like online behavior (when they’re online), demographics, and interests. All these metrics are helpful in developing more targeted campaigns and evaluating the effectiveness of your social marketing efforts.
Another key metric is tracking your team’s marketing efforts. Keeping track of how much time they’re spending online and what they’re doing online will help you better calculate return on investment, whether it be time, money, or both.
Understanding your business goals, your marketing budget, analytic tools, and your individual or group marketing activities will help you better calculate the ROI of your digital marketing efforts.