Approximately 92% of marketing directors report that social media is an important part of their business. However, up to 88% are unsure how to measure their ROI for social media activities.
While there are plenty of metrics to help us gauge the performance of digital marketing for businesses, marketers may also rely on referral traffic and purchase quantity. The problem with these differences in ROI monitoring is that there’s no common way to measure ROI.
But if there’s no common denominator in measuring ROI, how can marketing directors determine the effectiveness of their social media campaigns? Consider the following ways you can measure the success of your own business’ social media efforts:
- Know your key performance indicators
Before you can determine the success of your business’ social media efforts, you need to first identify your business’ key performance indicators or KPIs. This is because not every business has the same goals. For instance, if the goal of your business is to drive up sales, it’s in your best interest to measure ROI in dollars. If the goal is to build brand awareness, it’s in your best interest to measure ROI in likes and shares.
- Assign value to your KPIs
Once you’ve identified your business’ KPIs, it’s essential that you assign them a monetary value. Monetary value is what keeps your business in business. Therefore, assigning a value to your goals is critical to determine the economic success of your social media efforts. Different values include average sale, PPC valuation, and lifetime value.
- Position your social media with your KPIs
After you’ve identified your KPIs and assigned them a monetary value, it’s time to position your social media accounts around these goals. For instance, if your business’ KPI is to drive up sales, your social media accounts may be focused on your business’ products or getting customers to sign up for subscriptions. Like a call to action, your business’ social media should be focused on a goal.
It can be a struggle to measure the effectiveness of your business’ social media efforts. Connected Culture can help.
Whether you need assistance with video marketing, SEO, or digital marketing services, Connected Culture can provide digital marketing for businesses struggling to keep up with the frequent changes in online media. For more information, contact Connected Culture today.