Many social media strategists would say that there’s no way you can track Return On Investment (ROI) through social media, and they make such claims based on the present scenario that there are still no concrete rules and systems to follow in this online landscape. But are they correct?
Indeed, social media has become a vast new frontier, and it is still in its first steps towards development. And as a pioneer in this field, you should take advantage of its raw potential by looking for ways in which you can effectively track your ROI. Doing this may take effort, but by the end of the day you’ll not only achieve good results but more importantly, fulfillment, as you get to realize the metrics that gauge your success, and the opportunities in which you can leverage from them.
You don’t have to worry much about measuring your ROI on socialmedia though; there are many CRM platforms that are capable of measuring the status of your business on the social media. These platforms help in presenting the metrics that matter, the KPIs that you must set, depending on the campaign your business had implemented.
So, how do you track your ROI through social media? Here are 3 of the best tips you can use and the reasons to use them.
1. Set your social media goals. What are your objectives for going social? Are you after fan growth, brand awareness, or customer loyalty? If you happen to be new in social media, you should not think about sales first because this isn’t the place for direct selling. Rather, social media is the community where you gather your target market and slowly (but surely) prepare them into becoming proactive and eventually repeat customers.
When you are already sure about your target goals, then you must also set key performance indicators so you know your target achievements by the end of a specific timeframe. This way, you can gauge whether your campaign is working or if you need to improve your ways of promoting your brand.
Setting social media goals is the most important tip in tracking your ROI. You have the figures to reach, and from there you can find your pace on whether to amplify your campaign or not. This will also save you a lot of effort, as you have paved the road to follow in this messy social media world.
2. Monitor your ads regularly. This tip is essential to those who are starting out in social media and are into expanding their brand’s reach by means of buying ads. If you have ads running, like for example on Facebook, make it a point to monitor them regularly. Check for their click-thru-rates (CTR), costs per click and per thousand impressions, as well as your reach and ad spend. If you are able to get a high CTR from you ads, and the results show that you are very close to your target KPIs, then it means that your social media campaign is effective, and the fruits of your investment are slowly coming to life.I
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Monitoring ads to measure your ROI is something you shouldn’t ignore, otherwise you might end up wasting money on an ad campaign that didn’t really work. And yes, ads support your social media campaign because they bring in more customers, those who are actually interested in doing business with you.
3. Check the cost of your customer service expenses. Once you have established your social media campaign, you may want to monitor your spending on customer service. Try to see if the costs have decreased compared to the time you started your social media campaign. When your spending has indeed decreased, then your campaign is doing its job right.
Why? This is primarily because customers and interested audiences use social networks to voice out their concerns, and the social media offers a faster response mechanism to accommodate customer queries. If your customer service expenses have gone down in a span of 3 months or so, then it only goes to show that your campaign is downright effective. The more users utilize social media to throw in their questions, the lower the costs of your customer support expenses, practically because they got the answers they need at the soonest possible time.
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