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Measuring your return on investment using social media ROI is not such a simple task. However, we will explain how to carry out this task in a way that is easy to understand. This is a very important process for your company’s marketing strategy, therefore, you must know about it.

ROI metrics are there to help you. It is a measurement instrument that allows you to know when a social media strategy is failing, and when it works. Discover the secrets of ROI measurement by reaching the end of this article, where you will learn more than you expected on this subject.

How to measure social media ROI

It will depend exclusively on the type of strategy selected. For example, the same metric does not apply if we are trying to measure achievement in terms of customer satisfaction or loyalty. In general, attention is usually paid to engagement, since it is one of the most popular social media metrics to track.

However, social media marketing metrics offer multiple possibilities. Nevertheless, to begin to shape this process, the decisions must be consistent. The idea of ​​this article is to show you a series of steps that help to carry out this operation successfully.

Social media ROI can be measured following this series of indications:

1. Calculate how much money you have spent on your social media strategy: These values ​​can only be known if it is clear how much money has been spent on platforms. How much has gone into ads, content creation, salaries, and training. In addition, it is also true that a lot of money is invested in the professional work of marketing agencies specialized in the area of ​​social media.
2. Define what type of strategy you want to apply: Another way to measure social media ROI is to clearly define the objectives of your company. This will allow you to clarify the way forward for your marketing strategy and will give greater coherence to the work of each of the departments.
3. Pay attention to the right metrics: Another way to generate a successful measurement is to pay attention to the indicated metrics. Try to analyze where you should focus, to get the most relevant metrics for your interests. There are many metrics that can be useful to you, such as:

• ROI calculator
• Audience engagement
• Site traffic
• Revenue generated

4. Create a social media ROI that reports their impact: Once you’ve collected all the data you need to analyze your ROI status, and you must report that data. Then, you can monitor the progress in the short and medium term with the help of KPI’s.

In the end, it is important to note which aspects of the social media strategy could not be clearly analyzed. This will be very useful in the next process. Now, let’s discuss how to choose the right metrics for the type of business you run.

Choosing the right metrics for your business

To select the best social media ROI for your company, you must take into account very specific aspects. You need to detect where the greatest expense of money is in your strategy. In this way, you will be able to analyze if your social media campaign is profitable enough.

Then, you will also have to establish what is the aspect of your campaign that you are not paying attention to. With this method, you could discover flaws in situations that you did not have in mind.

Tracking ROI social media over time

As time goes by, customers change their needs and therefore strategies must be reformulated. Not doing so can bring unforeseen changes in these metrics. Therefore, it is important to periodically monitor customer behavior on social media.

There is a wide variety of platforms that allow you to analyze how campaigns lose their positive effect on the client when changes are not made on time.

The different ways to measure social media ROI

They offer the chance to focus on the points that interest us most in our campaign. For example, these are some of the most analyzed aspects when measuring the return on investment of a strategy:

• Reach
• Engagement
• Views

The challenges and benefits of measuring social media ROI

Keep in mind, measuring social media ROI generate nothing but benefits for your company. This is a very smart way to avoid wasting money on a strategy that doesn’t make sense. Thanks to these types of metrics, you will be able to clearly notice when a campaign is not working.

Of course, this can generate certain tensions when it comes to generating the desired changes. Above all, when your company has a creative team, and you decide to use a specialized external agency.

Why is it important for you as CEO to measure social media ROI?

For you, measuring social media ROI is nothing more than saving money. It is the most practical way to take a shortcut towards the strategy that suits you best, proving that you are right in making that decision with the help of clear statistical data.

It is evident that for any CEO it is vital to have clear accounts and not waste time on undesirable investments. For this reason, periodically reviewing the metrics of a department as essential as social media is always a great idea.

How to Choose the best Digital Marketing Agency

First, try to make sure that it is a digital marketing agency that knows how to solve your problems in the most creative way possible. Once you have crossed out this item, you will know that you have an agency in front of you that you can trust.

We are much more than a great technical team that can solve your doubts about social media ROI!

At Rubik Web (by ABCW), we will be glad to work with you and create a thrilling website for your business! Contact us!