Social media ROI comes down to having a strong understanding of what your goals are, what you plan to do, and what you’re looking to get out of it.
With more than 50 million businesses owning a Facebook Business Page and 94 percent of B2B organizations relying on LinkedIn for content marketing and distribution, it is clear that social media is continuing to grow.
With so many new businesses breaking into Social Media, it is no wonder they can often times feel overwhelmed and find it hard to determine the impact it is having for their business.
Social media ROI comes down to having a strong understanding of what your goals are, what you plan to do, and what you’re looking to get out of it.
Let’s review some key steps to building a social media strategy that results in definite ROI.
Social Media ROI Definition
ROI is getting a return. Obvious, right?
But when it comes down to how to calculate social media ROI, it isn’t just the result of revenue minus expenses.
ROI is value received in return of an investment.
The value you receive as a return on your social media marketing investment might include increased:
- Customer lifetime value: Transactions — sales
- Customer referral value: Referrals — leads, traffic
- Customer influence value: Word of mouth — branding, reach
- Customer knowledge value: Information — market research
You might be interested to know that engagement is the social media metric most important to respondents of Search Engine Journal’s 2017 state of digital survey. – Read more
