Crowdify Global

Can you measure the ROI of Social Media Marketing?

Social media marketing can be easily measured through the use of various analytics and tools. You need to clarify the objectives of your campaign and find the best stats from which to measure those goals.

Not only is measurement possible, but it is crucial to understanding what worked about your social media marketing and where to improve on future efforts.

In this post, we’re going to talk about whether social media marketing works, what effective social media marketing looks like and how to measure ROI of your campaigns.

Does Social Media Marketing Work? 

Social media is key to growing any company’s online presence. Typically, when you’re looking at a new restaurant to visit, or searching for specific services, the website appears in your search, then the social media platforms underneath.

Therefore, it is crucial that these channels are constantly up to date and portray your brand’s ethos, voice and products in a clear and concise way.

The downfall in many businesses’ structure is the belief that social media isn’t needed to grow their online and in person revenue, as they have a powerful website and in-house team. 

However, when working within the customer service realm (and all other industries), social media is critical.

 It will only grow your company’s awareness, SEO ranking, and presence in both the digital and physical space, but it has to be done to the highest standards. 

What does Effective Social Media Marketing look like? 

In order to create an effective social media presence, we ensure that brand guidelines and tone of voice are followed thoroughly. 

Through an onboarding document, weekly meetings and deep dives into both your and competitors’ channels, we build a marketing strategy tailored to achieve your goals. Whether this is to grow revenue via your website, support physical marketing campaigns, or grow your companies ranking within your industry, content plans are created in order to hit each objective.

What is ROI in social media marketing?

Return on Marketing Investment is the contribution to profit that can be attributed to marketing, divided by the amount spent on a marketing campaign.

 This is usually expressed as a percentage, and used to assess the success of an effectiveness of the strategy and execution. 

Social Media Metrics 

We assess which platforms are most beneficial for your business, and start creating content plans tailored to achieve your goals.

For example if your product is food based, we would create videos that showcased it in recipes, customers reviews, and the health benefits.

There is a huge importance and emphasis in running a successful social media marketing campaign, with 78% of representatives using social media outselling their peers. 

How to measure the ROI of a social media campaign 

Identifying the objective is the first step to measure the ROI of a social media campaign.

If your aim is to increase brand awareness within your industry, then stats you should be looking at are impressions and engagements (likes, comments, shares), whereas if you’re measuring sales, KPIs consist of monetary sales achieved through social media platforms.

In order to achieve the most successful social media campaign, actionable goals should be set.

These need to be quantifiable, with examples below:

  • Number of email sign-ups during the campaign
  • Number of website visits during the campaign
  • Number of products purchased during  the campaign
  • Number of free trials started during the campaign
  • Number of app downloads during the campaign

Because these goals all have a numerical answer, you will easily be able to measure whether or not your campaign has had the desired effect on your audience and hit objectives. 

Is there an average social media ROI? 

There is no average ROI for a social media campaign, as everything is specific for the strategy and industry in which your company is.

Why you should measure your Social Media Performance:

The most important reason why you should measure your social media performance is to assess what went well, and what can be improved for the next month. 

Based on your findings, you can then reassess your goals depending on what you are aiming to achieve with your campaign.

 Examples of new goals might include:

  • Improving brand awareness
  • Driving more traffic to your website
  • Reaching new audiences or generating leads.

For more information on how we can help you with your social media marketing, get in touch. We also work on paid social, social media design and can help you run some effective influencer campaigns too.

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