How you calculate ROI varies from business to business. Measuring ROI depends on which objectives matter most to your company. These priorities might include brand awareness, revenue, or customer satisfaction. Our 2023 Social Media Trends research found that marketing practitioners and leadership perceive the value of social through different metrics: Hootsuite’s 2023 Social Trends report shows how marketing practitioners and leadership perceive social ROI differently. C-level execs and VPs value sales/revenue or Time on Page, while social practitioners consider impressions/views valuable. Source: 2023 Social Media Trends This perception mismatch explains why the formula above uses value, rather than revenue or profit, as the starting point. It allows for combining many metrics to find the total value.

Here’s how to measure ROI with social media.

The first step to calculating ROI is understanding your business as a whole. What are the main objectives, and how can social contribute to those goals? There are various ways your social media investment can create value, such as: Driving business conversions including lead generation, newsletter signups, and sales. Growing brand awareness Building a loyal audience Increasing positive brand sentiment Discovering & mitigating brand crises b2b leads Resolving customer service issues Improving employee pride and job satisfaction Creating relationships with partners and suppliers Per the list above, it’s not just about generating direct revenue. Social can also help with retention, brand awareness, and partners & suppliers. That said, you shouldn’t expect your social media strategy to achieve all of the above. Focus on objectives that are most likely to contribute to your business and department goals.

Define clear social & business objectives

Now that you’ve determined your social media objectives, the next step is to track their performance. Many social media metrics can give you insights into how your strategy is performing. But, choosing the right metrics is essential to fully understanding your social ROI. Metrics you can track to prove ROI include: Reach Engagement Site visits Leads generated Form submissions Sentiment Newsletter subscriptions Signups Conversions Sales/revenue generated To decide which metrics to use, consider the AUB Directory following questions: What action will the audience most likely take after seeing your social content? Does this metric reflect my business objectives? Does it help me make decisions. What to do more of, what to do less of, etc.? Is it possible to measure it accurately and consistently

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