Whether you are trying to enhance your business’s engagement or monetize your following, the only way to get an accurate read on performance is through social media ROI. A significant problem aspiring influencers face is deceptive vanity metrics. Visitor actions such as shares, likes, or comments feel great in the moment, but these forms of measurement may actually conceal the true results of your digital marketing endeavors.
Vanity metrics may give you warm, fuzzy feelings when you see a follower like or share your post, but this is about as far as their influence extends. While vanity metrics are easily measured, they do not actually make a difference in your performance in the long haul. They change with the wind and do little to inform you about the state of your business and the growth it is or is not experiencing.
On the other hand, social media ROI is the actual return on investment your company anticipates experiencing. It is based specifically on the time and expense your business invests in social media marketing. Because social media ROI follows specific actions rather than shifting follower metrics, it is far easier to measure your actual performance and adjust your marketing efforts accordingly.
The primary problem with vanity metrics as opposed to checking social media ROI is that they lead you astray. If you use vanity metrics as a way to make future decisions regarding social media marketing, you are basing your decisions on factors that have little to no weight on the eventual outcome of your efforts.
For example, one oft relied upon vanity metric is website hits. If more users visit your site in a particular month, it would be natural to assume that whatever you did that month was right. Not so fast.
The issue is, website visits alone do not tell you which marketing approach made the difference. Who was responsible? Was it a random, isolated event? At the end of the day, the number of users that click on your site doesn’t bring in revenue. Neither do likes or shares. Your social media marketing only hits payday by drawing more customers. If your approach to measurement does not involve gaining additional customers, it is essentially worthless and wasting your valuable time.
Social media ROI does not have a one-size-fits-all definition. Instead of using changeable metrics like shares or new followers, social media ROI looks at the actual rewards you are reaping from the money, effort, and time invested in social media marketing. One business’s ROI may be worlds apart from another, as it is completely dependent on the investment a person or business makes and the resulting return.
For instance, take a look at the amount of money invested last month in your business and the money you received back. Even if you gained additional likes or followers, if you turned little to no profit, you can use your ROI to pinpoint what improvements you need to make, which social media platforms are contributing the most to revenue, and how any alternations affect your ultimate goals.
Tracking ROI for social media marketing is a multi-step process, requiring you to pinpoint your goals, time frame, and strategy. Always rely on tools and hard calculations to determine your final ROI.
You can reach a concrete number for your business’s social media ROI by compiling a list of the expenses incurred (including time, money, and tools invested). Subtract your costs from your total earnings in the campaign time frame. Multiply that amount by one hundred. Your final ROI is the resulting number divided by your costs.
Social media is always moving, so you need to keep a constant eye out for new possibilities. Adjust your strategy by relying on dependable ROI social media metrics so you can formulate a campaign that wins.
Bailey is a vibrant addition to Connectica’s social media department. Her enthusiasm and passion for all things #Trending keeps her at the forefront of the social media game.
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