Every activity in digital marketing is measurable and trackable. Not to mention, it is one of the major benefits of digital marketing when compared with traditional marketing methods. By tracking the results of the marketing campaigns, you can measure their effectiveness of the campaigns and find ways to improve it.
In other words, it is quite possible to calculate the return on investment (ROI) of your digital marketing efforts and make necessary changes to improve its effectiveness. It allows you to refine your marketing strategy and maximize the benefits of it. In this blog, let us discuss in detail social media ROI and a few tips to improve it.
What is Social Media ROI?
Social media ROI refers to the value you create from the investments you put into social media. It is the measure of the results you get from the resources, time, and money invested in social media marketing. It is generally measured based on monetary value. As long as the ROI of social media ROI is more than zero, it is considered positive. If the ROI is less than zero, it shows that you are investing more and receiving less value.
If done rightly, businesses can expect a return of $2.80 for every dollar they spent on social media according to a recent study. Among the various social media platforms, Facebook generates the best returns. It provides a fairly high conversion rate for ads as well. On average, you can expect up to 9.21% for each Facebook ad you post.
Why Should You Measure Social Media ROI?
When you put money, time, and resources into marketing, you will want to know the value derived from it. Undoubtedly, social media marketing is becoming competitive more than ever now. Brands should come up with prolific social media marketing strategies to grab the attention of the target group and reach their marketing goals.
When you invest more in social media marketing, you need to ensure it is driving tangible results and value for your business. That is why calculating social media ROI becomes integral these days. In simple terms, social media ROI is the easiest way to understand the impact of marketing activities.
How To Improve Social Media ROI?
Developing a strong social media strategy is the first step to improving your social media ROI. Here are further tips to maximize your social media ROI.
Have A Strong Goal
The first step to any social media marketing effort is having a SMART goal. SMART is the abbreviated form of Specific, Measurable, Achievable, Relevant, and Time-bound. To calculate the ROI of social media activities, you need to set realistic and achievable goals. When you set the goals, make sure you identify the appropriate metrics which help you measure the impact of your campaigns. The common goals of social media marketing include increasing brand awareness, building a community of followers, improving engagement, increasing conversion rate, etc.
Choose The Right Social Media Channels
For maximizing the impact of your social media marketing campaigns, it is important to choose the right social media channels. Though it makes a huge difference in the ROI, many brand marketers do not consider it as important. The social media platforms you choose should fit your target audience and business. For example, if you are working on a B2B business, focusing on Twitter or LinkedIn would give you the best returns.
Create Superior Content
Content is at the heart of any social media marketing campaign. If your content is not up to the mark, it won’t yield the results that you want to achieve. It is especially important to post relevant and engaging content to connect to new customers and build a community of loyal followers. Each social media platforms are different hence you need to come up with a platform-specific content strategy for each.
To make sure you are calculating the social media ROI correctly, you need to track the right metrics. Different metrics allow you to track the progress you make toward the goals you have set. For example, you can calculate the audience engagement rate, leads generated, conversion rates revenue generated, etc. You can check the metrics frequently to analyze whether it aligns with your larger business objectives.
Improve User Engagement
Engagement includes various techniques, strategies, and practices to encourage participation from your followers. Improving engagement is one of the common goals of any social media marketing activity. You must answer the questions and responds to the comments from your customers appropriately on social media. Also, you should regularly engage in conversations with your followers. Apart from increasing user engagement, it helps in the humanization of the brand.
Experiment and Optimize
In social media, there are countless things you can try and understand that work best for your brand. You can experiment with the type of content, time of posting, audience segments, ad formats, etc., and understand which gives you the best outcomes. By testing and optimizing your social media marketing activities, you can significantly improve your social media ROI.
Involve Influencer Marketers
Influencer marketing refers to engaging influencers for promoting your brand. Not only influencer-driven content helps to build brand authenticity but also improves social media ROI significantly. It is one of the easiest ways to grow your brand at a lower cost. Influencers can largely improve the reach and engagement of your social media campaigns, which further leads to better ROI.
Let’s Start A Conversation!
You have come to the right place if you are looking for strategies to improve your social media ROI. At FCS, we put our brains into developing result-oriented social media marketing strategies that align with the client’s specific business goals. We follow social media trends closely and we are well-equipped to make your brand a digital success with our dedicated efforts. Get in touch with our team today to start a conversation on growing your brand using social media.