The new in thing in the online community is analytics. With data clinching popularity, and increase in analytic tools, businesses are using these to measure ROI because most of them have now gone online and use digital marketing as a tool to market the products/services. Hence, social media plays a critical role and here is what can be done to measure ROI with Social Media Analytics.
- Determine the platforms and expenses
You need to decide which social media platform works better and drives maximum traffic to the website or offers maximum conversion rates. The expenses come second to deciding the platform that you choose and the amount you spend on social media campaign or promotion can be a benchmark for the conversions you get. The comparative study of what has been invested and how much business was generated with that amount gives you the ROI.
- Define your social media goals and identify key performance indicators (KPIs)
Set the social media goals clearly. You need to understand what you are trying to achieve at end and how this can be done. Also, knowing KPIs validates these goals. For example, if your goal were to create brand awareness, then brand awareness would be your KPI. The conversion rate would give you an idea of ROI.
- Analytical tools/ROI tools
Use analytical tools available online to track campaigns and have actual numbers on your decision plate. Social media metrics such as likes/followers/retweets can be indicative of ROI and gauge the social media presence and your position against the competitor. Use metrics such as reach, audience engagement, signups, leads generated and use tools that measure ROI of social media across paid, owned and earned social channels. These tools give an in-depth analysis of your platform and campaign gauging the impact and conversion rate.
The social media analytics give you an insight into how your business is performing and what you can tweak in or change to achieve better results. Measuring ROI with the help of this, can help in rerouting the social media plan and adopt strategies that are effective and can take your business to the next level.