The ROI (Return on Investment) of Social Media has been a contentious issue ever since social media started being used by businesses. Many have told me that it can’t be measured while others are adamant that it’s easier to measure the ROI of social media than traditional media (traditional media including billboards, flyers, etc.).
So how, exactly, can you measure the ROI of Social Media? Is it measured in the number of followers, clicks, likes, shares? That’s one part of it. But the biggest ROI of Social Media is the connections you make. I’m not talking about followers, exactly, but rather a more personal connection where people are engaging with you, talking to you, listening to you, and you are listening to them also.
Remember, people buy from people, so whether you’re in B2B (business to business) or B2C (business to community), you’re really in P2P (people to people). Build rapport with others on your chosen social media platform, whether it is Facebook, Twitter, LinkedIn, YouTube or any other. If people follow you on Twitter, thank them (but not with automated DMs – no one likes that), if they comment on your post on Facebook, reply with a comment of your own to each of the comments (not just a generic one reply to all) etc. If people are asking for a recommendation, help them out. Recommend others that you’ve seen and talked to on social media. You could help them get a sale, and they will remember that and return the favour some day.
Another thing to consider about Social Media is that the investment itself is less costly than traditional media. While others are spending thousands on advertising on the sides of buses that only a few hundred people will see, you can be advertising on Social Media platforms for much less and have thousands see your campaign. You’ll also be able to target the exact demographics of your audience – so if your ideal customer is female, late 40s, with 2 kids, living in London, that’s exactly the people who will see it! You won’t get that with a billboard, that’s for sure!
The best way to find out how people found your business is to conduct a short survey, even verbally, with just a simple, “Where did you see our ad?” question (or something similar). That way you can measure the ROI internally, as well as using the analytics pages of the various Social Media platforms (which are mostly free of charge).
If you’re having any difficulties reviewing your analytics, or implementing your campaigns on any Social Media platform, get in touch. We can help you.