Social Media Monitoring: What You Need to Know About ROI
Social media return on investment (ROI) is a metric tool that measures the value you generated with your social media marketing investment. Since ROI’s are based on your personal objectives and values (like comments, re-tweets, shares and newsletter sign-ups) its success depends upon your goals. It’s important for every business to conduct some form of social media monitoring to determine if they’re over or underspending for a marketing resource. This is where Social Ease can be a great help.
How Do You Calculate Social Media ROI?
The general formula used to calculate ROI is “Profit / Investment X 100 = Social Media ROI,” with profit meaning any money you’ve earned from your marketing campaign and investments being the total cost of your social media marketing attempts. Things gets a bit more complicated when your marketing investments garner intangible results like shares, e-book downloads, and viral re-tweets.
There are a few deeper steps you can pursue in order to really understand your ROI marketing funnel— such as adding special coding to your landing page to track where consumers are coming from, or measuring your Cost-per-click (CPC), click-through-rate (CTR), and conversions (downloads, installs, purchases) with media monitoring so you can instantly see where the majority of your foot traffic originates. With this new-found knowledge, you can determine what outlets are worth investing in and where you can cut future costs.
What is Social Media Monitoring?
Basically, media monitoring is the process (or tool) you use to gather key user insights (about your product) in one place so you can easily analyze the data. Listening apps could be considered as the flip side of a media monitoring coin— since they gather information from users and feed it back to your monitoring tool for analysis. This data is crucial business knowledge that will influence your business decisions if you utilize social media listening.
Before you create a media monitoring project, decide what you want to monitor and how you intend to apply the data you gather. Do you want to service customers, generate leads, improve your reputation, or build a social media following? The key to measuring your success is deciding what outcome you desire.
To generate leads, you might set a goal to engage media monitoring reports with similar products— such as, if you’re a fertilizing company, engage farmers who post pictures of their crops and suggest they try your product. If you’re goal is to improve your reputation (after noticing negative social media content around your brand), you might set a goal to improve public perception by sharing a gentler side. Or, if your goal is customer service, you might utilize hashtags to engage with complaints and comments about your product or company
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Indubitably, you couldn’t calculate your marketing ROI without utilizing social media monitoring to gather the necessary data needed to make business decisions in this ever-changing technological landscape. If you’re still unsure of how to set goals for your company or need an expert consultation to explore your options, contact us at 866-955-3287 or email@example.com.