Many small businesses are struggling to grasp the financial benefits social media marketing.
They have no idea whether or not their social media efforts are actually paying off.
Other small businesses aren’t measuring their social media returns because of inability to tie social media to their outcomes, due to a lack of good analytics and an abundance of poor tools.
What you need to understand is that measuring the ROI of your social media marketing strategy in not impossible.
Concentrate of fewer. So how do you track your social media marketing returns?
Define your social media goals
Before you start measuring your return, you must set goals that make sense.
I suggest you start with:
- cost per lead
- cost per customer
- ROI (revenue / spending)
Track & Measure Your Goals
You can easily track leads by using Google Analytics,
Within Google Analytics you can define goals which are specific URLs. I recommend you define a goal for your landing page, and another goal for your Thank You or splash page (the page you display after someone fills out the form).
For tracking sales you take your leads as reported in Google Analytics and see which ones resulted in paying customers.
Track your social media expenses
Figure out your social media marketing ROI by simply dividing your monthly revenues from these customers by the amount of money you spend on social media marketing. You want your social media ROI to be AT LEAST 5 times your spend.
To know your cost per lead, you divide your monthly cost by the number of leads generated
To know your cost per customer, you divide your monthly cost by the number of customers generated.
Knowing these details helps you adjust your spending and make your social campaigns more effective.