If you are thinking of starting an online business, then consider hiring an online marketing agency to boost your social media marketing ROI right from the start. You can take your business to the next level by outsourcing this function of your organization.
However, there are a lot of factors businesses consider before making any such decision. Effective and efficient social media marketing strategy is the key to success for every business.
Now, businesses should understand the importance of social media marketing. It can truly present your brand image in the eyes of literally billions of customers.
There were 3.5 billion users connected to social media platforms worldwide in 2019. That is why successful businesses would hire a professional social media marketing agency to target this massive group of customers.
Some of the most popular and widely used social media channels are Facebook, WhatsApp, Twitter, LinkedIn, and Pinterest.
Unless you work in this arena, it might be hard to understand the market dynamics and reach of each platform.
Therefore, consulting a professional agency to advise on the relevant platform to reach your target audience is beneficial. Your strategy should showcase your unique product and service on platforms where your customers can be found on.
What is Social Media Marketing ROI?
ROI stands for “return on investment.” ROI of social media is a number that represents the net value of all social media actions (or lack thereof) divided by the amount you spent (people hours, advertising dollars, etc.) to get that result.
ROI = (Net Value)/ Total Cost
*Net Value can be profit or some other measure of success.
Your goal is to have a positive ROI. It’s important to remember that all social media activities must create value. If they don’t, you haven’t really invested anything and your ROI will be zero.
Measuring social ROI should be a priority for your business.
- Show the value of your social media efforts to your brand.
- Prove that your social media marketing strategies are effective and are driving the intended results. If you aren’t getting results, or if your competitors are out-performing you, then it’s time to re-evaluate your strategy.
- You’ll discover what initiatives work best, so you can improve on them and spend your time and energy on the next big thing.
- Justify your current budget. Communicating the need for further investment in other areas of your marketing strategy.
Your objectives can be customer satisfaction, sales, brand awareness, impressions etc.
That’s why the formula above uses net value, rather than revenue, profit or other forms of monetary value, as the starting point.
Take, for instance, an electronics retailer who uses social media listening to find out what kinds of products they should be selling.
They use an ROI calculation that is based not on a financial calculation but on how much intelligence they are able to share with the product development team. Their value is in the intelligence gained, and not in sales or revenue.
Their value comes from the information they gain, and not from the money they make.
No matter the objectives you use, there are still a few basic steps to take in order to measure your social media marketing ROI.
Here’s where you determine what results on social media mean to your brand. It’s an important first step in the process of defining your social media strategy.
Social Media Objectives are crucial to the success of any social media campaign. They help you define how social actions align with business and departmental set goals.
Here are different ways your social media investment could create value:
- Conversions: Likelihood that a person who visits your Facebook Page will purchase something from you (direct response)
- Branding: Awareness and/or perception your brand has among your customers/partners/audience
- Experience: How much potential customers enjoy being on your social channels
- Loyalty: The likelihood they will continue to purchase or use your product or service
- Trust: Likelihood people will trust you and your company
- Leads: The likelihood people will become a lead (first-time buyer) for your company if they are on your site/page
- Partner confidence: The likelihood your partner(s) will have confidence in you and your ability to execute
- Prestige: Your perceived status among your customers, partners and industry peers
- Word-of-mouth: The likelihood people will tell others about their experience with your company
- Comments: Likelihood comments left on your Facebook Page will be positive
- Convictions: The likelihood people will leave a positive impression of your company and become a customer/partner/affiliate
Make sure to consider all your social audiences in your objectives. Not only should you consider customers, but also employees, partners, suppliers, and any other relevant stakeholders.
Without tracking your conversions, you’ll never know if you’re on the right track. And, if you do decide to change anything, it will be difficult to evaluate whether or not those changes improved your bottom-line.
The easiest way to track your social media goals is by using Google Analytics. Although it can tell you which channels are driving traffic, you can get much more granular than that. For example, you can see exactly which blog posts are responsible for the most traffic.
From your Google Analytics dashboard, go to Traffic Sources > Referrals > Conversions.
If you haven’t set up any goals yet, click on “Set Up Goals”.
If you have specific funnels for your different offers, you will be able to setup each of those funnels here as well. After you have everything completed, you’ll be able to see your conversion rate and the actual dollars earned from each of those conversions.
Step 3: Track the right performance metrics
You can’t improve what you don’t measure. You need to know if your social media activities are making a difference. Hence, it is important to monitor your social media metrics to see if your objectives and goals are being met. You can then adjust your strategies as necessary.
Some metrics you could track for ROI include:
- Customer engagement
- Site traffic
- Leads generated
Measure your results regularly. Make sure you are comparing your results to relevant controls and against industry averages.
Don’t fool yourself into thinking that any return you get early is going to be sustained over time. You will likely get a lift from the initial enthusiasm of your customers but the true value of your investment will be measured over time.
To get a true picture of the ROI of any marketing campaign, you’ll also have to measure the results in relation to the cost of running those campaigns.
Your expenses can include:
Social media tools – social listening and measuring tools often come with a monthly subscription.
Ad spend – LinkedIn, Facebook ads, banner ads etc cost money to promote.
Content Creation – the cost of hiring a copy writer to create your campaign the landing page.
Time – Add up the total number of hours that go into a social media marketing campaign over a specified period of time. Multiply that by how much you’re paying your employees to do this work. That will give you an idea of the time financials of your campaign.
Reporting your ROI can have enormous value for your team, your budget and your shareholders.
Here are some steps to creating a meaningful and actionable ROI report:
- There is no one-size-fits-all approach to increasing website profits. You must analyze each social media platform, ad format, and ad placement separately to determine the biggest contributor to your website profits.
- Make sure all the metrics you are using to evaluate your ecommerce performance align with the company’s marketing objectives.
- Record and present data extending over a period of time to show the true impact of your marketing activities.
- Show how the “soft” components of your social media strategy were just as (if not more) important than the hard-nosed tactics.
- Identify areas where you met your goals and where you could do better.
- Map out lessons learnt from the campaign and actions that can be taken to obtain better results in future endeavours.
Factors That Increase Social Media Marketing ROI:
As mentioned, metrics are everything in social media. If you don’t measure what you want to improve, you’ll never know if you are successful.
Take a hard look at all the data coming from every source you use to monitor your social campaigns. You’ll be surprised at the insight you’ll gain.
Make no mistake; knowing these types of details will put your marketing on steroids. It will give you the ability to supercharge your results, often overnight.
There are various tools from companies like Hubspot and Hootsuite that can help with measuring your results,
You can use these “social analytics” to see what types of content perform best for your campaigns and which campaigns are under- or overperforming. This data will be invaluable when it comes to optimizing your overall marketing efforts.
Who is engaging with your content
You need to understand the demographics of your target audience so you know what they value, and you can craft your messaging to appeal to them.
How older are they? Are they mostly women? What are their interests, worries, yearnings and problems? What is your audiences mindset? How do they like being served content?
Knowing who your audience is, will help you improve the quality and relevancy of your content marketing.
If your business is just starting out and you are having a hard time getting social engagement, it’s likely because your target audience – the people who are good leads for your business – aren’t being reached with your content.
You can dramatically improve the effectiveness of your online sales copy by knowing what people are saying about your competitors and your marketing campaigns. One way to do this is by listening to what people are saying about you on social media.
You’ll discover what types of content (products or services) are proving to be the most valuable to their customers. Through this analysis, you’ll gain invaluable insights to create more effective marketing campaigns and strategies.
Use socia monitoring tools like Google Alerts and Crowd Analyser find mentions of your brand, products and competitors.
Your social media presence shouldn’t only be used for lead generation and finding new followers. One of your key performance indicators is improving your bottom line by taking care of your existing customers. A caring brand must continuously maintain and deepen relationships with their customers by rewarding them for their loyalty and their success.
Share their success stories in a relevant way on your website, blog and social media sites. It will make your customers feel like they are important to you and their success will bring credit and recognition to you.
Grow your community and develop a helpful culture, If you provide good answers to your follower’s questions about how to solve their problems, they’ll be happy to share those answers with their network, which is essentially free marketing for your brand.
Leveraging Smartphones And The Mobile Trend
Smartphone social media users worldwide have access to more information than ever before. That means if you fail to use social media marketing to capture their attention, your competitors will leapfrog you in the global marketplace.
SMM is the most powerful marketing tool on the entire web. If you are not using it, you are truly missing the boat.
It is prudent to leverage this mobile trend. A good social media campaign should be a part of your everyday marketing routine.
How Professionals Increase Social Media Marketing ROI:
Promote Your Brand
There are millions of businesses operating worldwide and are active on social media. In this competitive world, you need to be proactive and vigilant. To stand out from your competitors, you need to promote your business regularly.
Social media marketing boosts your company’s profile quickly. Through your company’s profile, people know the existence of your business and create an image of who you are and what you stand for in their minds.
In-Depth Insight Into Customer
This is one of the most important insights that a social media marketing agency in Singapore can provide.
After successfully promoting your business, the next benefit is getting in-depth insight into customer needs and preferences.
This is very important. It gives you an idea about customers’ choices and preferences. That way, you can customize your products accordingly.
Remember, it is not about selling but building a relationship with your customers.
When you understand your customers, instead of bombarding them with random intrusive ads, you can engage them by sharing relevant posts regarding your offers, discounts, and deals. This is the best way to build a relationship with them.
With regular engagement through social media marketing, customers develop a sense of trust. They see you as an authority in your industry.
They start to think more about your business and in this way; your brand image starts to develop in the eyes of customers. Once your brand image is developed, your target audience will be ready to buy your products.
The primary objective of every business is to generate higher returns for shareholders. This objective is best achieved by investing in marketing. A properly thought-out marketing plan leads to objectives being achieved quickly.
Through effective social media marketing strategy, a business can benefit from both financial and non-financial objectives. Some of the non-financial objectives have been discussed earlier.
Through social media promotions, your business revenue and profit can grow quickly. Once a relationship of trust has been established between your business and your customer, the sales come naturally and easily.
You will attract buyers instead of browsers. Consumers who come to you will already be looking to buy. Converting your leads into sales will be a breeze. Your business grows rapidly with social media marketing.
Value For Money
Social media marketing is a ‘value for money’ strategy. You’ll enjoy maximum returns for what little you spend. You’ll get large sales turnover, build a large customer base, loyalty, brand image and much more with relatively little expense.
Seldom do you see such benefits from a marketing channel. The low cost-high profit gains that businesses earn through social media marketing makes social media an important consideration for any marketer.
One other major benefit is that social media can be used to reinforce your web site SEO as well. Over time, you will experience more traffic from your SEO rather than social media.
Social Media Marketing Strategy Vs Online Marketing Strategy
You can promote your business identity and products through different mediums of online marketing.
Some of the popular ways of online marketing are online banners on websites, Google AdWords, mobile marketing, etc.
However, it is important to understand that a combination of other online tools with social media tools will give you maximum results. So don’t consider them mutually exclusive.
Though other online marketing tools can be expensive, the output from a combined strategy can be enormous.
The decision whether to use social media or online marketing is dependent on whether your business has the resources – both in terms of finances and manpower – to coordinate a multi-prong strategy.
If you do, a combination can give you a chance to grab customers from every platform and promote your business more effectively.
In order to increase your social media marketing ROI, it is important to see the big picture – your company and marketing at a whole.
Do It Yourself Vs Hire Professional Social Media Marketing Services
Time is money for business. If you invest your time on social media marketing then you may compromise on other important tasks. You know that your paying attention to your core management role is the key to business success.
Social media marketing is not as straight forward as many describe it to be. Developing a proper strategy and plan requires effort, time, and skill. Executing it well requires even more so.
A professional social media marketing agency can run campaigns successfully due to skilled staff with both business and technical acumen. These together with detailed knowledge of customer profiles and products allow them to maximize the potential of the internet.
Social media marketers know how to apply their knowledge effectively to target your audience. They have all the resources to run a campaign based on your budget for you.
Improve the ROI of your social media marketing efforts and attain your business objectives now. Contact Blazing Conversions SMM Agency to bring your business and your social media marketing ROI to the next level.
Our consultants will customize a social media marketing strategy that best suits your needs.