How to measure ROI in Social Networks

Calculating social media ROI, a priority for CMOs and marketers, is an art that demands the right combination of quantitative data and strategic insight. In this content we will explore this process and break down the key metrics to consider.

Discover how to calculate social media ROI and optimize your strategies

Measuring social media ROI allows you to evaluate not only the financial impact, but also the intangible value that social media can bring to your brand. Therefore, when developing social media metrics, it is necessary to explore different approaches to calculate engagement, lead generation or the impact on brand perception.

There are solutions such as Digital Customer Engagement by aggity that, among many other features, provide the data necessary for marketing departments to make informed decisions to optimize their social media strategies and maximize their ROI.

These types of tools perform, among other functions, an analysis of the return on investment in social networks or allow the establishment of digital marketing metrics. But what are the basic rules for establishing the right social media ROI measurement strategy? These are the main keys:

Define clear objectives

Before incorporating any type of tool to analyze performance in social networks, it is necessary to know what objectives you want to achieve. Some companies will simply want to provide information, others will want to achieve lead generation. lead generation while certain companies will want to increase sales or have influence on social networks. Since the objectives are diverse, it is necessary to clearly establish what these purposes are in order to be able to measure ROI in a simple and relevant way.

Conversion tracking

An omnichannel communication and marketing automation platform such as RedPoint Global by aggity allows you to track conversions related to your business social media strategy. In this way, social media measurement strategies can be established since it is possible to know indicators such as the number of clicks on links, content downloads that have been carried out or other KPIs in social networks.

Assignment of values

Once the objectives for increasing the value of the company’s social networks have been established, monetary values must be assigned to the actions that contribute to those objectives. These values will, like the objectives, be varied. Thus, if what a company wants to achieve is an increase in sales, it is necessary to know how much each sale is worth to the business.

Thanks to value mapping, marketing departments can quantify the economic impact of social media interactions and evaluate the profitability of strategies, providing a solid basis for calculating ROI and helping to make decisions about social media investment.

Quality over quantity

In general, the quantity does not allow to establish a customer engagement on social networks. The evaluation of impact on social networks must be more defined by the quality of a company’s followers, since they are also the ones who have the greatest influence on social networks.

Metrics such as average time on website, bounce rate and length of visit can indicate deeper engagement and will allow you to define actions to improve the results of your social media campaigns.

Comparison with costs

The comparison with costs is one of the fundamental sections to measure the impact on the brand in social networks and to know if the company is getting a good return on its strategic plan for customer loyalty.

The objective here is to determine whether the company’s investments in advertising campaigns or account management tools are adequate. With this, the company can identify opportunities for savings and optimization, in addition to aligning the social media strategy with business objectives.