When it comes to return on investment in social media marketing, terms such as attention, commitment and reputation come up again and again. With these words in the direct context of the social media ROI, the stomachs of many well-trained business economists are likely to turn around. By definition, the return on investment is actually a tough key figure for assessing the economic success of investments. Awareness and awareness are definitely important and desirable goals in social media marketing. In this article we would like to show you that the social media engagement of companies does not have to hide from financial key figures – on the contrary.
Social media platforms definitely have the potential to generate conversions and thus monetary value in addition to awareness and attention. In order to be able to determine this later by means of social media monitoring , a systematic structure of the social media activities is required, from the goals to the key figures to the calculation of a social media ROI.
From Social Media Goals To Monitoring To Return On Investment
Every (social media) marketer should be aware of the following problem: Fan engagement on Facebook is good, the tweets are spread by many followers on Twitter and then the board comes up with a question that seems almost like a stab in the heart: “How does it work? does this specifically relate to our sales targets? ”Don’t worry, you can look forward to this question in the future, because thanks to an infographic from Quicksprout you can calculate your social media ROI and thus provide irrefutable proof of your good work.
With these 6 steps you can create hard facts and on top of that you can optimize your social media marketing:
1.Set Conversion Goals: As already mentioned, awareness and attention are definitely correct goals for your social media marketing, but much, much more is possible today. There are many different ways to generate sales with social media. For example, online sales, filling out contact forms or downloading company publications – these are all measurable social media goals.
2.Social Media Monitoring: Whether Facebook, Twitter, Youtube or Instagram – all social media platforms offer extensive analysis options. Important key figures include reach, traffic and leads. If the platform’s own tools for social media analysis are not enough for you, you will find numerous software that offer further detailed key figures and statistics.
3.Value Of A Conversion: Attributes a certain value to each individual conversion, preferably based on existing monitoring data. This step is of the utmost importance, because this is the only way you can calculate your sales in the next steps. So you have to ask yourself how much euros downloading a brochure or filling out a contact form will bring you in the end. You can find a good example of the calculation in the infographic below.
4.Calculate Sales: Calculates the sales of your social media engagement for each individual platform. So you can compare Facebook, Twitter, LinkedIn and Co. and later delete possibly unprofitable social media platforms from your marketing mix and focus on the successful networks.
5.Calculating Social Media Costs: When calculating costs, social media advertising fees are an obvious factor, but don’t forget your own work! In most cases, that’s the biggest cost.
6.Calculate Social Media ROI: If all steps have been carried out correctly, you will now receive a meaningful key figure with the return on investment, which can be very helpful to you in optimizing your social media marketing. You can also find the formula and a calculation example in the infographic.
Are these 6 steps not enough for you? We are happy to support you in optimizing your social media marketing. If you need help with calculating the social media ROI or with social media monitoring, you can contact us here .