Want To Increase Your Social Media ROI? Full Guide
Is your company’s social media strategy achieving fruitful results? If you’re struggling then don’t worry! we have some techniques to increase your social media ROI.
To calculate social media ROI, you must first define your goals, measure your KPIs, manage the money you spend, and use tools to make the process easier.
What is Social Media ROI?
ROI means Return on Investment. Social media (ROI) refers to the results of your social media marketing efforts whether it’s greater brand awareness, customer engagement, or increased sales.
Simply, Social media ROI refers to the return of increased sales and conversion a brand receives for the time, money, and effort engaged in social media marketing. It’s a way to determine whether your social media strategy is helping you achieve your financial or strategic goals.
How to calculate ROI?
Here is a basic method for calculating social media ROI:
Social media ROI = ((value gained from social media – costs of social media investment) / costs) * 100.
How Can You Improve Social ROI
If you want to improve the performance of your social media operations and improve your ROI, here are the things you should focus on.
1. Set Clear and concise goals
Firstly, you must know your business deeply and set your goals to increase your social media ROI. Determine weaknesses and build strategies to overcome them.
What are the main targets, and how can social media help achieve them? You can use a wide range of social media metrics to analyze your ROI. There are several ways your social media investment can add value, including:
- Increasing business conversions (including lead generation, newsletter sign-ups, and sales)
- Increasing awareness of a brand.
- Creating a devoted audience.
- Promoting a positive image of the brand
- Discovering and resolving brand crises
- Resolving Customer Service Issues
- Provide satisfaction to clients
- Building ties with partners and suppliers.
According to the list above, it is about more than just making direct money. Social media can help with customer retention, brand exposure, and partner and supplier relationships. Concentrate on targets that are most likely to help your company and department achieve their goals.
2. Keep track of your social media expenses
To determine if you’re getting a positive or negative ROI from social media marketing, you must first calculate how much you’re spending. Here’s what you should include in your ROI calculations.
Time:
Your time is precious, whether you run a solo company or a social media team. Add up the hours spent on a specific social media marketing campaign. Don’t rely just on an employee’s yearly salary, as they are mostly working on many projects throughout the year. Then, calculate the investment you make per campaign.
Content:
Have you hired a professional copywriter to create a landing page? Such expenses are easy to overlook, but they do matter. If you write the copy yourself, it will count against your time investment.
Social Media Tools:
Using Facebook and Twitter is free. However, if you’re using Sprout Social or another social media management software, you’ll need to factor in those charges. Just like the hours, you should compute this per campaign. So, if your campaign lasts one month, simply include the cost of one month’s software rather than a complete year.
Ad expenses:
Plan your ad spend wisely, whether you’re running a Promoted Tweet or boosting a Facebook post, include those costs as well.
3. Run trial campaigns
Today’s marketers have to run a range of campaigns, both paid and unpaid. Not every campaign can be successful. Before investing in a certain campaign or ad kind, save time and money by running a trial campaign first to get some insight.
This is especially important for sponsored advertisements, such as those on Facebook, which can quickly wipe out your budget if not managed carefully.
Check out our blog on How to Boost Clicks with These 7 PPC Ad Writing Tips
4. Find the best time to post
According to our data, audiences use Facebook, LinkedIn, and Twitter at various times. Sharing your material at different times will help it perform better.
Clearview Social’s PeakTime™ algorithm uses AI to optimize Facebook, LinkedIn, and Twitter postings for maximum engagement. This application allows you to automatically plan shares for each social network to obtain the greatest results and enhance social media ROI.
5. Focus on making Reels
Right now video content is dominating social media, and if you refuse to participate in this new trend, you will significantly reduce your social media ROI. Viewers are more interested in short-form videos, such as those seen on TikTok or Instagram Reels. So utilizing videos to promote your service or product you can most likely gain ROI.
It’s also famous among social media algorithms. Video content often gets priority over other types of content because customers find it interesting, amusing, and informative.
Conclusion:
After applying the above strategies to your social media marketing practices you can increase your social media ROI. Begin with your primary goals and choose one of the best strategies for achieving them. By using social insights to understand more about your target audience and using performance data to enhance your strategies over time, you can significantly increase your ROI.
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