24 Feb How To Track Your Social Media ROI
All that it really comes down to, is having a goal, tracking how much time you spend on social media, and how much you spend on ads vs your return.
We’ve broken down our process into 4 easy to follow steps, so you can begin to know if your media efforts are worth it at the end of the day!
1. Think Of A Specific Goal!
There are various ways social media can boost your business, but if you want to track your ROI, you need to be specific on what you’re trying to accomplish.
- Is it gaining more followers?
- Getting people to your website?
- Product sales?
- Subscribers to your newsletter/email list?
- Video views?
Once you pick an objective, the next thing you need to do is figure out the best ways to track your goals!
2. Start Tracking!
One of the biggest mistakes small businesses make is that they don’t track their results from different campaigns. Posting on Facebook, Instagram, Twitter, Snapchat and every other platform these days takes massive time out of your day, and we all know time=money.
If you aren’t measuring your results, you will have no idea what you need to improve!
One of the easiest ways to start measuring the performance of your marketing campaigns is to install tracking pixels on your website!
Pixels and tracking tools will report valuable data that can help you realize what is and isn’t working as well as it could. Sometimes the problem is so minuscule that changing one little thing can be the difference between a winning and losing campaign. 95% of the time, tracking tools will guide you down the right path.
By going to Facebook Ads Manager, you can follow Facebook’s instructions to install your “pixel” onto your website. This will allow Facebook to track exactly how people are behaving on your website, and this information can literally be invaluable for businesses!
Another amazing free tool is Google Analytics. Once installed properly, you will have insight into what all of your website visitors are doing.
Are people leaving after only 4 seconds because the site doesn’t load quick enough?
Are people doing what you ACTUALLY want them to do?
Are they subscribing or purchasing your product?
Are they coming back to your website?
How many visitors are converting into leads or sales?
These are all great questions that these tools can uncover for you.
Another way to better track your campaigns is to use bitly, or other link “shorteners”. Most link shorteners like Bitly allow you to track exactly how many people click on a specific link, so by creating different ones for different campaigns, you can gain more insight into which strategies and campaigns resulted in the best outcomes for your business!
For example, we might create different links for our Facebook page and our Instagram to uncover which platform is getting more clicks to our website.
Once you install tracking programs to understand HOW you can improve your site and user experience, you will see a massive increase in leads and sales. On top of that, you won’t have to spend as much on advertising! ?
3. “The Money’s In The List”
Instagram, Facebook, and almost all social media platforms have a way to get people to your website or landing page. If you aren’t collecting emails from visitors, you are missing out on literally TONS of money for your business!
Did you know that on average, each email lead when nurtured correctly is worth $1-$3 per month! That means that if your business is collecting 1000 emails per month, your company’s revenue should be increasing by that much as well!
To nurture your leads and keep them engaged, make sure to email them regularly with content that is not only promotional but also valuable to them! Do not just spam your list and only shoot sales letters into their inbox. Send them links to cool related videos, awesome articles, free things, and overall content that will leave a positive impression!
Gary Vaynerchuk talks about the “jab, jab, jab, right hook” approach, where ¾ of your emails should be filled with awesome content that builds the relationship. After you’ve given your subscribers that much love, the response should be much better when sending promotional offers out! Gary V. is legend when it comes to great social media ROI because the only thing he sells are his books! Everything else is free content, and people love him for it.
After you apply this method, by the time you send your list a promotional email, they will be more than happy to check it out and possibly even make a purchase since they know, like and trust you!
When you give people awesome content not expecting to gain anything, the “law of reciprocity” works wonders and will have them psychologically feeling like they should do something nice for you in return!
I’ll sum it down into one sentence…
Make sure to reward people on your list for becoming subscribers! If you treat them like your best friends you will see great results!
4. What Is One Customer Worth? (FREE Worksheet)
If you truly know what a customer is worth to you, it becomes very clear how profitable your business actually is.
Scenario 1: You have determined that in order to acquire one new customer it costs you $50, yet the average customer only generates $30-$40 for your business…
You’re in the red, and something has to change quick! This is where tracking and analytics become useful, since typically one bad lightbulb in your marketing/sales process stopped the whole campaign from lighting up.
Scenario 2: If it costs you $15 to acquire one customer through social media advertising, and that customer generates hundreds of dollars for your business, you have a winning campaign! Now just keep those new customers satisfied and scale your ad campaigns to reach more!
FREE DOWNLOAD: We’ve included a free downloadable worksheet to help you determine the actual dollar value of your customers! Just click on the image below.
Once you understand the numbers behind your customers, it’s a lot easier to understand what you need to focus on and fix in order to maximize your social media ROI!
4. Calculating Your Social Media ROI
It’s no secret that posting on social media is free, but the time you spend doing it is not. A few factors that go into calculating your investment include:
- Your time – How many hours did you spend posting, etc?
- Your social media tools – Are you paying for any premium tools to help the process?
- Your advertising spend – How much did you spend running your ads, boosting posts, etc?
All of these factors will add up to be your investment.
Lastly, all you need to do is take your average customer value, and subtract your total investment. This should leave you with something like this:
(Customer Value) $250 – $150 (Your investment) = $100 Profit Per Customer
If you are more of a visual learner and want more details, here’s an infographic put together by our friends Neil Patel and Quick Spout!