Measuring True Social Media ROI Beyond Likes and Followers

Social Media Marketing has become one of the most efficient ways of marketing. This is mainly due to the fact that today's customer base is heavily influenced by what they see on social media. A brand's social media is essentially its face and how the world perceives it. These platforms increase brand awareness and help companies reach their target audience. But how do you, as a digital marketer or social media manager, know if your business is getting the ROI? Likes and followers are indeed essential for growth, but it should also be mentioned that there are things beyond these that influence growth and ROI from social media.

Moving beyond Vanity Metrics

Vanity metrics are numbers that look good on the surface but are not of much use. These numbers do not offer any insights on business growth and investments. It is easy to create an appearance of success, but appearances do not always bring in results. To get organic results, businesses must connect to different metrics.

How does Social Media Marketing generate ROI?

Social Media can generate ROI in several ways. The main aim of social media marketing is to influence various stages of the customer journey and impact their buying decisions. Social media marketing is not always direct but rather a process that, when done correctly, gives tangible value. This marketing strategy is not just about getting likes but rather leveraging the social media platforms and changing customers into buyers. 

Key Metrics for Measuring True Social Media ROI

• Conversion Rates

Conversion rates are initially the percentage of users who have completed a desired action after interacting with your business's social media. Conversion rates can refer to a lot of things, such as: purchases, website visits, app downloads, and event registrations.

• Customer Lifetime Value (CLV)

Customer Lifetime Value (CVL) is the total revenue a business earns from a single customer over the duration of their relationship with the company. Social Media Marketing is designed to foster a sense of community among the customers. Customers who feel heard and valued are often highly satisfied. They will continue to be highly loyal and make repeated purchases.

• Impact on Overall Business Goals 

As mentioned before, social media marketing is not always direct. The ROI may not always be a sale, but it does affect the overall business. Social Media marketing can increase brand awareness and recognition; it can also provide real-time customer feedback and market insight, which lead to major investment returns.

• Increases website traffic and SEO

While not always the case, increased traffic from social media platforms can signal SEOs that the content is valuable and relevant, improving the overall search ranking. 

Steps to measure true Social Media ROI

Generating ROI from Social Media does not just happen. It needs planning and strategies. The modern business environment can be very dynamic, so it is important to have a flexible strategy. Some of the steps you can follow include:

1. Define Clear Business Goals and Link Them to Social Media Objectives

2. Identify KPIs and Metrics

3. Use tracking tools

4. Record your Social Media Investments

5. Put value in your Returns

6. Calculate Social Media ROI 

7. Analyze and optimize. 

Conclusion

Social Media marketing is one of the most popular ways of modern day marketing. Companies have found recognition and awareness because of social media. It is the right method to study customers in real time and reach their targeted audience. But measuring ROI through social media is not always a direct process. ROI can be in the form of customer insight, performance insight, resource management, and effectiveness of social media efforts. Social Media marketing offers a number of benefits in this digital landscape, and businesses that utilize this will surely be ahead of their competitors. At Digi-Markets, we focus on getting your ROI with expert campaigns and guaranteed success. If you need to grow your business digitally, you can count on Digi-Markets to do it for you!