We’ve discussed the challenges of measuring social media ROI in the past – and some of the limitations of what you can measure and how impactful social media marketing can be. That’s not to say some of the social media activity can’t be measured with precision, though.
Here’s a simple example… the CEO of the company tweets on thought leadership articles, the direction of the company, and compliments employees online that are doing a fantastic job. Those tweets are read and shared by the staff, prospects, and even customers. Over time, the employees are more content and educated on the direction of the company, the prospects grow to trust the CEO and close sooner, and the customers are able to leverage the information shared to do a better job and get better results with the company’s assistance. What’s the return on investment for the CEO’s participation on Twitter? Not so easy to answer, is it?
To show you how you can track the return on investment of your social media campaigns and use that knowledge to maximize your ROI, I’ve created an infographic that breaks down the steps you need to take to achieve these goals. Neil Patel, QuickSprout
Neil provides a discrete methodology of accurately measuring the direct impact of your social media marketing efforts:
- Set your conversion goals
- Track conversions
- Assign monetary value to each conversion
- Measure the total benefits by channel
- Determine total costs
- Analyze results and improve.
There is a minor shortcoming in this strategy as well and that it applies a fixed cost to the efforts but doesn’t allow for a changing return on investment. If you measure this ROI in the first month of utilizing social media, the effort is fixed but the return may be $0. Applyign the same effort month over month and growing your audience, which echos and expands your reach will increase your return. Much like a retirement account has compounding interest, so do your social media efforts!