Considering ROI When Using Social Media
One of the great appeals of social media is that it’s free. However, if you’re managing a business or starting one, time is money. You don’t have time to dabble around. Are you seeing a return on your investment or is social media simply a chore every business is expected to do? In this article, we will not only address how to track your social media ROI but strategies to increase your return on time and effort invested.
1) Link back to your website/blog
The best way to track how effective your social media content is linking back to your website. This is where a blog or CMS comes in handy. Marketing to businesses? Great. Write an article or host a webinar that could be useful to your clients. Marketing directly to consumers? Create a digital flyer and link back to your site where customers can take advantage of a coupon or promotional offer. The most important thing is that you’re tracking this activity. Google Analytics makes this easy through referral tracking.
2) Be social.
Most businesses treat social media like a bulletin board. They punish those who like their page with self-promotion and advertising. Social media is meant to be social. Share content that aligns with your company’s mission and industry. Engage in online discussion groups. Tag people and companies. This philosophy will save you the time and effort required to produce your own original content. It will also increase your reach.
3) Content Marketing
When sharing, always keep your audience in mind. Are you an expert in a particular field? What’s trending or important to clients right now? Is your content engaging? Keeping these things in mind, position yourself as the gatekeeper for compelling information and/or content. The entertainment and media industry does an excellent job in this area. Remember to link back to your website (when possible) to track effectiveness.
4) The Formula
The authors of “The B2B Social Media Book” Kipp Bodnar and Jeffrey L. Cohen suggested a formula for tracking social media RIO:
[TLV – COCA] = RIO
COCA stands for cost of customer acquisition. TLV for total lifetime value. Although using social media is generally free, calculating COCA forces you to consider not only salary but overhead factors that are required to produce and maintain social media content. Using Google Analytics and linking back to your website, you can also calculate customers value when you have identified social media as a referral source. For the nuts and bolts of using this formula, I strongly recommend their book. To purchase it, click here.
- “The B2B Social Media Book: Become a Marketing Superstar” – K. Bodnar & J. L. Cohen
- “Jab, Jab, Jab, Right Hook” – Gary Vaynerchuk
How Evielutions helps:
Evielutions Design specializes in integrating social media plugins on all web applications. We streamline your content management system to make social media marketing easier and less time consuming.
Contact us at 832.779.3843 for more information.