The issue is, most organizations get so tied up in vanity measurements—like the quantity of followers/Tweets on Twitter or Likes on a Facebook post—that they overlook those numbers are truly meaningless. Yes, Engagement on Social Platform is very important but then that's not the only parameter you will measure your effectiveness of your social media. For example, what’s great if a Tweet that is retweeted 500 times if it's not helping you achieve your final objectives?
It's an ideal opportunity to clear any confusion and do a profound jump into tracking the returns you're getting over your social media channels. Here's the way you do it and its really simple.
Define Your Objectives
Before you can get into measuring your returns, you need to begin by setting objectives. Your objectives ought to be quantifiable and connected to a particular campaign. At the end of the day, they ought to be things that you can connect a number to. Some great cases are:
Downloads of a whitepaper/PDF or ebook
Anything can be your final objective
See that these objectives depend on the client making a quantifiable move that can be followed. Particular social media engagements, for example, social shares and following are pleasant to track as well, yet they shouldn't be your main objective. With a specific end goal to get the most precise number, you truly need to set your objectives in view of activities that change over a normal browser to a Prospect/lead, and at last a paying client/customer. Somebody clicking a link to your site in a Tweet is extraordinary, however you shouldn't stop there. You need to know whether they're changing over into leads for you.
Track and Measure Your Objectives
Once you've defined your objectives, the following step is to track them. The most effortless approach to track your social media objectives is by utilizing Google Analytics.
If your objective was to get newsletter signups or blog subscriptions or a pure sale from social media promotions, you'll need to setup a thank you page on your Website which is relevant to your respective objective. In any case, if your objective was to increase time spent by Twitter users by some X%, or to get traffic from Facebook to watch a video on a particular page, you can do this as well but you should pick a proper objective, so that you can track the conversion properly.
At that point, you have the opportunity to join a value to each conversion. To make sense of this, you can utilize:
LTV (Lifetime Value) x Conversion rate: Figure the LTV of a client 1/(1 – retention rate), and multiply that to your conversion rate (average number of audience/visitors who become clients) to discover what is the potential value of every visit.
Average sale: If the objective of your campaign is to try to get sales, then you'll need to calculate your normal sales sum and set that as the value. For this situation, your goal page would need to be the page that appears after a client finishes a purchase.
In conclusion, on the off chance that you have a particular sales funnel that you made, you can set that up here as well. After you have everything finished, you'll have the capacity to see your changes and the actual ROI earned from those conversions.
Your Social Media Costs
To make sense of whether you're getting a positive or negative results for your Social Media Marketing efforts, you'll also need to measure the amount you're spending. This is what ought to be incorporated into that numbers:
Resources (Man hours): Your time is important. Whether you're a solopreneur, or you have an online marketing team, include the resource hours that go into a particular social media marketing effort over a predefined timeframe. Don't simply utilize a representative's yearly pay (CTC), since they will be deployed in to other projects and works throughout the year. So, Measure this Cost per-campaign. Also, Your landing page content might be designed by an expert Content Marketing specialist? On the other hand, you outsourced the development of the landing page. These expenses are not entirely obvious; however, they count.
Social Media Marketing Tools: Utilizing Facebook and Twitter is free, yet in the event that you're utilizing tools like Buffer or other Social Media Management tools, you have to include those expenses in. Much the same as with the resource hours, you ought to compute this on a for each campaign. So if your campaign goes on for one month, just include the cost of a month of that particular tool, not a whole year.
Advertisement costs: In case you're running a Social Media Advertising Campaigns like promoted Tweet, Facebook Promotion or boosting a Facebook post, include that cost also.
When you have your calculated costs, you'll be able to calculate your return for money invested for every Social Media Campaign with this simple equation:
(Earnings – Expenses) x 100/Expenses
You can make sense of the particular return for money invested of each social media channel by dividing/segmenting your profit and expenses per social channel, and utilizing that same formula given above. After look at the numbers, you'll have the ability to choose which social channels are doing the best for your organization and you can focus more on those channels to maximize your Social Media ROI. For any social channel that are giving you a negative returns on invested cost, you can either attempt to change by spending less or by making changes in your campaign to make it more effective.
Tracking your Social Media return on investment isn't impossible. You simply need to adopt an arranged and strategic approach. The more organized you are, the more accurately your numbers will be. What's more, as you begin to make different campaigns, you'll have the able to fine tune your numbers, similar to the LTV of a client and your costs.
One thing that you always remember is that Social Media gives intangible advantages – like brand building or winning regular backlinks from individuals who discover your website through a Tweet. That won't signify a quantifiable value, but rather it's certainly something that you need to figure while figuring out if Social Media Marketing is helping your organization.