Measuring Social Media ROI: Difficult but not Impossible

TheNetworkChefs
Sandra Morgan Founder/CEO, The Network Chefs

Posted on December 19th 2013

Measuring Social Media ROI: Difficult but not Impossible

Social Media Return on Investment

Being active on social media is no doubt effective and important for your business, but what concerns businesses is the complex task of measuring the return on investment from social media campaigns. It can be a daunting task but it is not impossible.

While it’s important to know exactly how much worth social media marketing is bringing to your business, it can be difficult to know the exact numbers. Nevertheless, having a fair and rational picture helps. Here are some ways to measure social media ROI:

Determine Measurable Goals

The first important thing is to define your objective, attach a measurable outcome with a time limit and try to quantify your efforts in some way. For instance, you post pictures or a status relevant to your business and start building value, next you give out vouchers to encourage those people to buy your product. The number of vouchers you give out can give you a measure of the worth your activity created for your business.

Use Standard Analytical Tools

There are a number of tools available which give different kinds of statistics showing your effectiveness through the different social platforms. Facebook for example gives an insight dashboard for your page which helps you understand your audience better and improve your content according to the needs. Likewise, Twitter and Google+ also have these analytics tools incorporated helping you gauge online performance of your content.

Use Specialized Tools

From the standard tools that are available to gauge the outreach of your tweets and posts, other metrics give you an opportunity to gauge performance across all platforms together. For example, a free tool named Klout lets you measure influence across several platforms like Google+, Facebook and Twitter. SocialMention is another tool that will inform you about the general sentiment and also who is saying what. Oktopost is another such tool with special focus on LinkedIn, it tells you among other things which posts created a conversation and so on.

Turn Data into Information

Start creating links between data and try to translate raw data into a measurable outcome for your activity. For example, the relationship between the number of likes and increased traffic to your site can be measured. Similarly, the increase in traffic to your site related to the additional revenue can easily be measured. Keep an eye out for trends, and see if the traffic to your site increases after you made a post. Always remember that a share of your post or tweet is more valuable than a like or comment because that is making you reach beyond your page, flooding others newsfeed and generating possible traffic back to you.

Having quantitative results related to your social media marketing campaigns will help you refine your strategies and will allow you to gain the most out of your campaigns. Use the methods discussed in this blog post and send us feedback regarding your experiences. We look forward to hearing from you.

Photo Credit: Social Return on Investment/shutterstock

TheNetworkChefs

Sandra Morgan

Founder/CEO, The Network Chefs

Sandra Morgan is the Founder/CEO/Editor in Chief of Kalön Women (www.kalonwomen.com), an online magazine and blog – all designed and geared toward supporting her 95,000 (founded in 2008 and built solely through social media) subscriber base of women forty plus. In 2010, Sandra founded a sister company called The Network Chefs (www.thenetworkchefs.com) in response to the hundreds of emails she received asking her the same question, “How did you build Kalon Women, and can you teach me?” Her response to their question: “I built it through social media, and yes I can help you!” Although she began to build a consulting business based on helping people (small business) grow their social media presence, she quickly realized that even with consulting and training her clients just weren’t able to keep up with it – or – they just didn’t want to, nor could they afford to hire a full-time person to manage it for them. The Network Chefs was created to fill that need, and opened its online doors in April of 2010. She is rapidly building a strong customer base and a leading edge line of social media services:  SOCIAL MEDIA MARKETING STRATEGY  IMPLEMENTATION GUIDELINES  SOCIAL MEDIA AUDIT  COMPETITIVE ANALYSIS  SOCIAL PROFILE CREATION  BADGE CREATION AND STRATEGY  WIDGET STRATEGY DEVELOPMENT  BLOG DESIGN, SETUP AND/OR OPTIMIZATION  BLOG STRATEGY DEVELOPMENT  COMMUNITY BUILDING STRATEGY DEVELOPMENT  COMMUNITY MONITORING  ENEWSLETTER DESIGN AND MANAGEMENT  DIGITAL MAGAZINE DESIGN  WORDPRESS DESIGN & OPTIMIZATION In recognition and appreciation of Sandra’s commitment to volunteer service, she was awarded The President’s Call to Service Award in 2010 for over 4,000 hours of volunteer service. Elected in 2010, Sandra sits on the Board of Directors for IMMN (International Mature Marketing Network). Accepted into The National Association of Professional Women 2012

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Comments

I love these tips, I get a lot of people that ask about social media ROI immediately after they've started on Facebook or Twitter and that's just not how it works. Having goals in place and the tools to measure the outcome makes all the difference. Thanks for the post, Sandra! 

Hailley - thank you for your comment! So glad you enjoyed the article. It is difficult to get business owners to understand that social media growth doesn't happen overnight but if we can help them understand why and show them at least a glimmer of growth then it helps - at least a little!