Social Media ROI (Return of Investment) is defined as a measure of the efficiency of a Social Media marketing campaign. To secure executive buy-in for Social Media marketing strategies, Digital and marketing leaders need to confidently demonstrate how social media efforts are contributing to an organization’s broader business goals.
To show you how brands can track the return on investment of your social media campaigns and use that knowledge to maximize your ROI, Neil Patel, a contributor for Quick Sprout, has created an infographic that breaks down the steps that organizations need to take to achieve their goals. Here are 6 steps from Neil Patel’s infographic to calculate your social media ROI :
Set your conversation goals : Organizations and campaign will have unique social media conversation goals;
Track conversations : How your track conversations will vary with your social media platforms? There are a lot of great apps out with more sophisticated tracking;
Assign monetary value to each conversation : There are 2 types of method you can use (Historical data and guesstimating);
Measure total benefits by channels : Collect incoming traffic and conversation numbers by site from your analytic tools;
Determine total costs : Add up promotional account fees, labor costs and sundry costs by social media channel;
Analyze results and improve : Use data to calculate the ROI per social media channel in order to improve your social media marketing efforts;