All business and promotions expect some Return on Investment (ROI) on their marketing spends and efforts. Qualitative factors and sentimental aspects of social media are very tricky to measure with traditional methods of tracking ROI. Measuring ROI from social media campaign is something quite different from a Banner placement campaign or Pay-Per-Click. Still a few calculation techniques are followed by some social networks:
Baseline Metrics: Setting a baseline metrics can help you to calculate how much you have progressed from your starting point. For Example: Twitter Followers/Following, Facebook fans, Blog RSS subscribers, Brand Mentions (Positive/ Negative), Average Comments/Month, Unique visitors/Month, Sales Revenue.
Social Media Tactics: Always keep a record of tactics you are implementing so that you can analyze the logic behind fluctuation in traffic. You can start a timeline to keep track of various social media tactics like working in twitter, launching a Press Release creating work shops etc and later compare the overall impact on your revenue.
Compare Sales Revenue: Measuring your ROI with traditional metrics is not possible here. Social media can’t always have a direct financial impact on your business. Start with your initial investments and compare your sales revenue numbers with revenue 3, 6, 12 months down the road. So basically you can’t judge your efforts like the traditional ROI and qualitative impacts.
Use Tools to track social media: Look out for the best tools out there that can help you in the process of tracking all your social media efforts. Google Analytics, Hootsuite, Radian6, Social Media Metrics Plugin are some of the bet tools available today.
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