How to measure the ROI of your Social Media Marketing Efforts

Even though social media spending is fast booming and it is discovered to be responsible for a reasonable percentage of the digital ad market, only a few of us truly know what we're getting out of it? There's no shortage of metrics to gauge performance – but even casual users understand the concept of likes, followers, retweets, and shares. Some examine referral traffic from social media platforms. These are the best ways by which you can measure the ROI of your social media marketing efforts as there is no set of universal lay down guide for it yet.

Below are the steps you can use to measure ROI

1. Identify your key performance indicators (KPIs).

Do you have a goal of driving revenue or you want to build your brand’s awareness?
Are you looking to drive revenue or build awareness of your brand? These 2 different goals determine what success looks like for your social marketing efforts.
If your goal is to drive revenue, measure ROI as a dollar value. By assigning a dollar amount to your conversion goals, it's easy to understand the impact of your social media marketing to your bottom line.
Brand awareness could mean something different to everyone. Ensure you all agree on one specific brand awareness goal to make measure ROI easier. This actually points to the fact that you have to define your goal.

2. Employ the right tools.

There are many tools available that can help you track customer interactions and engagements, analyze data, and also analyze the results and they are:

• Google Analytics: this tool is easy to use; it helps to track website traffic, conversions, and opt-ins that came from social media.
• Hootsuite Impact: This tool can measure the ROI of social media across paid, owned, and earned social channels.
• Facebook Pixels: Facebook Pixels enable you to run Facebook ads on specific web pages so you can create custom audiences and continuously optimize your ads for better revenue.

3. Ensure you analyze the data.

Once you have defined your goal, the next step is to set up your tracking. Factors such as the amount your business generates from each customer on average against how much you’re spending on your social marketing strategy can reveal to you if your efforts are paying off.
Measuring the ROI of your social media marketing investment is a process that can easily be broken down into bite-size pieces making it measurable although it might be a bit challenging.
Know more: Check this awesome tool for Automated Social Media Marketing.