Following on from my blog The Rise in Social Media… But what does it mean to Marketers?, we’ll investigate how we measure the ROI on Social Media Marketing.
One of the biggest challenges social media faces is the question of return on investment. If marketing budgets are going to fund a social media campaign or presence, what will the return be?
Many marketers struggle to quantify fans and followers. To determine how social media can help achieve your business goals, you must set your own objectives and what you expect to see back on your ROI. The success will then be measured with how well you achieve them.
Here are a few key ways you can track your ROI using social media.
Building your brand recognition
Social networking can help build your brand recognition simply by the number of followers or fans who see your regular updates on a regular basis. If you have a consistent growth in the number of followers and fans which resulted in reading regular updates with good content, then the visibility of your brand is being recognised by more people.
Increased number of calls (call tracking)
Marketers are given a unique telephone number for each social media channel in their marketing campaign (or even each tweet) which enables the marketer to capture and measure telephone leads in a report in a similar format to Google Analytics.
If the number of telephone calls has increased during particular social media campaign to a particular call tracking number you can tell which campaigns or tweets are working best. It is also a key tool in helping to target the right market with the right message which in the long run saves time and money.
How often do your fans comment on your posts and blogs? Instead of focusing on the numbers of fans and followers, how responsive are they? The more fans and followers that comment and re-tweet the more your brand will be recognised by other businesses which will in turn create more opportunities.
Sales promotions can be extremely successful on twitter and other social networking sites and can increase sales revenue and brand recognition. These can be measured by all that is mentioned above; increase in number of followers or fans, number of re-tweets or comments and number of calls or call tracking calls.