Social media marketing performance measurements come from the number of fans, followers, retweets or shares your social media actions receive. These measurement tools may not always provide an accurate picture of how well your marketing efforts are performing. Here are five steps that can help you identify a more accurate return on investment for your social media marketing practices.
Step One: Pinpoint Key Performance Indicators
Before you can start measuring the return on investment that your social media marketing efforts receive, you need to define the goal that you are looking to accomplish. Ask yourself if the campaign needs to increase revenue or create brand awareness. Sales goals are measurable through assigning a dollar amount to conversion goals. You can easily see how social media marketing impacts your bottom line.
Step Two: Match Social Media Goals with Business Goals
Social media marketing can be an overwhelming task to undertake. It is advisable to take your bigger picture objective and break it down into smaller, more manageable tasks. Align those smaller tasks up with similar business objectives that you are looking to accomplish. A business goal of tracking brand awareness can have social media goals that pursue increases in followers or brand mentions.
Step Three: Use Google Analytics
You need to have a solid understanding of customer behaviour and be able to identify what prompts them to make purchases through your social media channels. Google analytics gives you the necessary tools to make this happen. It gives you insight on how to go about increasing your customer conversion rates. Need some help with this? Check out our Google Advertising Packages.
Step Four: Designate KPI Financial Value
Your key performance indicators need to have a financial value associated so that you know how each one impacts your bottom line. It allows you to make changes when there are indicators not performing as you expect or ones that are making significant financial contributions to your profit margin. There are several methods available for designating a financial value for your key performance indicators.
- Lifetime Value
Ask yourself how much revenue each customer contributes to your bottom line.
- Lifetime Value Multiplied by Conversion Rate
Take the lifetime value of a KPI and divide that by the conversion rate to turn prospects into loyal clients.
- Average Sale
Look at your sales figures to determine what your average website transaction amount.
- PPC Valuation
Determine your cost of creating a traditional Internet pay-per-click advertisements and compare that to your social media key performance indicators.
Step Five: Competition Benchmarks
Pay attention to the social media actions that your competition is taking. It can give you a window of opportunity to cover an area their campaigns overlook. You can take a different approach to the same social media channels, making your company stand out in the crowd as a result.
If you’re finding this all too overwhelming or just can’t find the time to manage it all, get in touch with the team at Grow Digital Marketing to find out how we can help.