Using Social Media Metrics to Track Return on Investment
When digital marketers require a lot of funding, those at the top of the business want to see results.
One way this can be figured out is by using social media. But there isn’t just one social media metric that companies can track to see their return on investment.
Instead, there’s four key social media metrics that relate to return on investment. Below, each four are laid out for you.
1) The Simple, Direct Method
This method is the easiest to track. And in the case it applies to your campaign, it’s the only one you’ll need.
This metric is the one worth tracking if you use social media to make direct sales.
In this example, you may use social media to get followers, give them information, send them to a sales page, and then close the deal.
In this case, all you have to do is use Google Analytics to separate those who make a purchase from social media, from those who find your sales page another way.
Once you do that, you’ll be able to see the difference between your customers that come from social media, and adapt to make even more sales to them.
2) Generating Traffic
In the early stages, before having a sales page, you may aim to simply gain readers, viewers, or followers.
These people aren’t giving you money, but the goal is to have a certain amount of them regularly viewing your content so that when you are ready to sell, they’re ready to buy.
Depending on your social media platform, track them using:
Choose the one that’s appropriate for the social media platform you’re using.
Another metric worth tracking on social media is opt-ins.
This phase comes in between generating a following, and having a sales page.
Opt-ins are people who either:
- Sign-up for something free
- Sign-up for updates
The most important thing here is that they’ve given you their e-mail address.
This means they want to hear from your company about the latest offers.
To track this, you can use your e-mail software to see where most of your sign-ups are coming from: whether it be people who found your website from a Facebook ad, or from a shared tweet.
Then, you can adjust your strategy based on where the most sign-ups are coming from.
4) Click-Through Rates
This rate comes in handy when you’re running a social media ad.
Basically, any time someone clicks on your ad, they apply to your click-through-rate.
The higher the rate, the better.
And it can be any type of click:
If you run an ad just to get likes, a click that gives you a like counts.
If you run an ad to drive traffic, a click on the link counts towards the rate.
By tracking this metric, you can see if your ad is working.
When using social media for advertising or to build a business, it’s all about getting results.
By tracking the four metrics in this post, you’ll be prepared to optimize your strategy – whether you’re just starting out and building an audience, or already have a full-blown sales page.