Social media as a promotional tool has several benefits that your brand needs to take advantage of. It can get you some new customers, help you break into new markets, allow you to collect feedback from actual users, and offers help and support to users who have complaints about your brand. All of this comes from zero investment if you are up for handling social media yourself. Thousands of brands which allocate budget for a dedicated social media team say that their ROI on social media is worth it, and gives them great results. So how can you get similar results?
First, understand what ROI means in terms of social media. Different brands have different goals. For some parameters like new users gained, and numbers of shares and re-tweets is top priority. For many others, conversion ratios occupy their focus and they consider new sign-ups and actual purchases to be the goal. Hence, you first need to decide what you want to achieve through your brand’s social media efforts. That will decide what your ROI is!
Once you have your targets in mind, calculating ROI is as simple as using a formula.
ROI = (Returns – Investment) / Investment
It is best to calculate this figure in terms of money. How much did you spend on hiring social media managers, and providing them with the necessary tools? How much do you think a new user is worth to your brand? Use these numbers to find out how successful your efforts have been!
Here at Studio45, we offer social media management services that give first focus to the client’s needs. We do not force our own metrics. Rather, we show the clients how we are helping them achieve THEIR goals. Get in touch today to see how Studio45 can help you get better ROI for all your social media efforts!