Social media spending continues to rise, with a Salesforce survey identifying that 70% of marketers are looking to increase their social spending even further throughout 2015.
The same survey also stated that 66% of marketers see social media as central component in their operations. Despite this, measuring social media ROI remains difficult, with many benefits difficult to quantify objectively, whilst others, like web traffic, are relatively easy to measure. In fact, 25% of marketers say that their biggest challenge is effectively finding the ROI on their social investments.
In this article I will run through some things which marketers can do to equate social media activity to concrete ROI.
(1) Find out how your customers found your website
Customer surveys remain a viable way of identifying how your customers have reached your website. List all the platforms you use in the survey, never pigeonholing them under the title 'Social Media'- this way, you can get an even clearer idea of exactly which social platform your traffic is coming from.
Additionally, having a customer survey allows you to cover all the traffic that's been influenced by social media but not actually come directly from links you've put on Twitter, Facebook and Instagram.
(2) Don't forgot about free tools
This is more applicable to those who have a new website and have little experience in tracking their social media endeavours. Google Analytics is free of charge and provides users with accurate information that can help improve social media strategy. Google Analytics isn't just useful for newcomers, it's used by much larger companies, with considerable success also.
(3) UTM Parameters
UTM parameters are tags which you can add to a URL in order to track the location of a source link. You can customise your UTM parameters to show you anything about how people are accessing your website, in turn giving you a better idea of where your traffic is coming from. This means that you can distinguish between hits that have come from social and those that have come from other channels.
If you see a drastic increase in traffic or sales after a social media push then it's clear that your posts on Facebook and Twitter have had something to do with it. Whenever you want to promote something, make use of hashtags and always attach links to the content/products you want to market.
As mentioned before, measuring ROI is not an easy process and shouldn't be taken lightly. These tips however should put you in good stead when it comes to measuring ROI.