Tag Archives: ROI

Fix Social Media ROI Easily

Not surprising that ROI was the number 1 concern for Marketers (Source: The State of Social Marketing 2017 Annual Report)

Top 3 Challenges Facing Social Marketers in 2017:

  1. Measuring ROI was listed as the biggest challenge.
  2. Tying Social to Business Goals
  3. Securing Budget and Resources for Social

Why do Social Marketers struggle with Social Media ROI?

A typical problem statement Social Media Marketers deal with is trying to figure out how to effectively engage their audiences.

Engaging audiences on Social media requires one to be abreast of the latest and greatest happening in Social Media Networks.

Each of the Social Media Networks keep evolving.

Whether it’s Facebook, Instagram, Snapchat – the one thing common amongst all these social networks is that they keep changing and adapting to users requirements.

Organic engagement on FB is literally dead. So you need to think of new ways to engage your audiences.

A lot of social marketers are finding video content to be more engaging on FB, some are experimenting with private groups.

This list goes on.

The quest for engaging their audiences is never ending.

Social Media Metrics?

However, social media engagement metrics are very different from business metrics.

On Social Media you might track share of voice, measured as the likes, comments, and shares of your posts. However, this is meaningless from a business perspective.

The solution to social media ROI?

You need to really examine the word ROI for the solution.

Return On Investment – by definition it means the amount of return you’ve got in monetary terms on the investment made.

In short how much money has your Social Media investment made for your business.

If this has you stumped you’re in the right place, as now you’ve understood the key problem.

In order to solve the problem of Social Media ROI, you need to be able to show that the investment you’ve made in your Social Media program has generated a tangible monetary return.

Another way to look at Social Media ROI

There is another way to look at it as well.

It’s either making you money or it’s saving you money in some way, that’s also another way to justify the ROI.

So if x was the amount of money you spent on engaging or reaching new customers and x-100 is what it costs you now via Social Media that’s a cost saving and hence is a valid way to show a return on your investment.

Breathe. Seriously. That could have been a lot, or not for you.

Breathe again, I’m having to do that while I type this out myself.

More easy guidance…

I know some of you might need a little more guidance on this.

I’m putting TOGETHER a quick guide on how to do this.

It’s going to be an absolute breeze to go through. It has just three steps.

What the guide will will help you with is:

  • How to Measure the ROI of your Social Media
  • How to tie social to business goals
  • How to secure budget and resources for Social 

Sound Interesting? If Yes, GIVE it to yourself NOW 🙂

Option 1: Pre-book TOGETHER $29 Report and Worksheet

Option 2: Pre-book TOGETHER $32 Report and Worksheet AND FREE 1-1 call with me for 30 minutes (worth $100)

 


Have any queries post them below.

What is the ROI of Social Media?

She literally screamed out, it’s all bullshit! What the hell is the ROI of social media? You tell me, is there any ROI? I was quite taken aback, considering that she made a living selling customers on social media, and more so as we were on a dinner table, with kids and friends. My initial surprise at the outburst from a professional in the field, turned to a realization, that there are many others who have the same question. Too many people are not clear about the ROI of Social Media.

First, What is ROI?

Before diving into explain the ROI of social media, let me look at the word ROI, I know it sounds silly, but bear with me. ROI – Return on Investment is a number which tells you how much you stand to make on your investment.

ROI Bank examplee.g. ROI of a Fixed Deposit (Certificate of Deposit). You put in $100, and based on the interest rate the bank offers you get your $100+x, where x is the amount of money you earn, i.e. the return on your investment. ROI is a financial term. It is money which you’re making, by investing in some asset, or some kind of activity.

 

What is the ROI of social media? Hmm something is not quite right about that question.

ROI of Social MediaSocial media is not an investment vehicle, you invest in a particular social network, e.g. Facebook or Twitter by performing certain activities there. When you think of ROI of anything you need to think of what have I invested and what is the return I’m getting. However, sometimes calculating the return of an investment can be difficult.

 

What is the ROI of your business card?

That would be a little difficult to know. However, it’s quite situational. For instance if you gave your card to a few people and because of that one of them called you and gave you a business opportunity, You’d be then able to calculate the value of handing the cards out to people. Yeah I know I’m making it sound a bit too simplistic, but you get the idea right?

 

What is the ROI of your phone?

Similarly, what if I asked you the ROI of your phone? Ok, here again, if you’re lets say an outbound sales person and making calls all day, then the ROI would be based on the business you got by making those calls.

There is obviously in both of these examples the unknowns, i.e. lets say your business card got passed on, and two people copied your number and called you, and so on and so forth.

 

What is the ROI of your website?

One more example, What about the ROI of your website? Is that more tangible? – So for example you might measure it based on the number of people who connected to you via your website and gave you some business, or bought a product from you online via your site. It’s a little easier and direct. Though ROI calculation can get complicated here if you have a multi-channel strategy (Check the reference section below if you want to get in depth information.)

How to think about Social Media ROI?

When trying to figure out the ROI of activity on social media, you’re going to calculate it based on how much money you’re putting in via resources – people, hard cash, advertising on social networks, costs of content creation, daily posts and other activity, which you do on a particular social media network, and then you’re going to evaluate the amount of business, the amount of sales this has generated for you . So in essence it is the value you derive from the social media marketing or networking activity or whatever type of activity you do on a particular social media network.

Types of activity you could do via Social Media Networks

  • Marketing
  • Selling Products and Services
  • Networking
  • Prospecting (could be as part of marketing and selling)
  • Competitive Intelligence gathering
  • Understanding gaps, issues and opportunities in the market space by listening to and analysing customer interactions.
  • Customer Service (Answering customer queries online versus the traditional call centre)

The number one mistake people make while measuring Social Media ROI

Continue reading What is the ROI of Social Media?