Many variables affect your company’s return on investment from social media marketing efforts. ROI can mean more than just revenue, especially when it comes to social media for business.

Define Objectives

Set your marketing campaign goals based on what your organization wants to achieve. Once you have identified the specific things you want to accomplish, you can start breaking your intentions down into actionable steps. Use the SMART method to set your objectives. This acronym stands for goals that are:

  • Specific
  • Measurable
  • Attainable
  • Relevant
  • Time-based

This technique guides you by helping to create precise aims that help drive traffic, leads and conversions.

Gather Soft Leads

Some businesses drive direct sales from their social pages, but others may need to focus on soft leads. This term refers to visitors that provide contact information in exchange for access to valuable content. This method aims to obtain quality leads so you may begin contacting interested consumers with the follow-up process in your marketing funnel.

Analyze Efforts

Once you have clear goals, it becomes easier to determine if your social media marketing is effective. The data you assess varies depending on your current objective and may include the following:

  • Brand awareness: This helps you evaluate your ability to reach new audiences and increase recognition.
  • Lead generation: The metrics for this type of campaign include the amount of traffic to your site from your social platforms through links, downloads and contact forms.
  • Conversion rate: This provides you with information regarding how social media inspires followers to become active customers.
  • Engagement rate: This data measures the interaction your content receives. It tells you the number of comments, reactions and shares each post garners. Your focus depends on your specific goal.
  • Sales: Your company may sell products directly through social sites. If this is the case, you will analyze sales metrics to determine your ROI.

Determine Costs

Ensure you include all the incorporated costs of your campaign to get an accurate picture of your investment and return. For most businesses, social marketing spending consists of the following:

  • Sponsored posts
  • Content creation mechanisms
  • Data analyzation tools
  • Social management programs
  • Social media employee salaries
  • Freelance or agency costs

Improve Customer Experience

Social channels allow you to communicate directly with your existing clientele. These interactions provide insight into what your customers like or what they find frustrating. This information is a valuable resource for addressing customer concerns and improving their overall experience with your organization.

Regardless of which platforms your business uses, you want your social media marketing to have a positive ROI. By defining objectives and analyzing your efforts, you can continually adjust campaigns to ensure growth.