“Whether a business conducts its online marketing efforts in house or hires an outside Internet marketing firm to handle the campaign, it is important for that business to have a clear understanding of whether or not its social media campaign is working and what can be done to improve performance, if necessary,” Crisafi says. “Without having a clear way to track the return on investment, business owners may never know if their social media campaign is a success or a failure.”
Unfortunately, most business owners with an online presence don’t have the knowledge necessary to track whether or not their social media campaigns actually result in increased revenue. In fact, Crisafi says, recent studies have shown that most so-called Internet marketing experts don’t even know how to measure their clients’ social media ROI.
Crisafi offers the following three tips on tracking a business’s investment in an ROI campaign:
1. Measure engagement through your “Likes” and “Follows.”
Crisafi says that one of the easiest ways to measure the ROI of a social media campaign involves measuring followers on Twitter, likes on Facebook, and all other social media websites that the business is associated with. He suggests making a spreadsheet to track the growth of fans and followers, which can help identify trends and the success of specific campaign.
2. Measure click-through rates and impressions.
A click-through rate (CTR) is the most commonly used method to measure the success or failure of ads published on social media websites, Crisafi explains. The CTR is an important measure of a business’s visibility on social networking sites. Almost every social networking site gives access to click-through rate measurements through their advertisement reporting sections. Crisafi suggests using these as a guide.
3. Measure your direct conversions.
If you are running an ecommerce website, Crisafi says that you can easily measure the exact revenue that you are making from social referrals. This can be done, he says, through Google analytics. Just be sure that they are set up to track ecommerce.
“These simple methods can help you to easily calculate your social media ROI,” Crisafi concludes. “The key to good marketing is producing an ROI calculation on regular basis. This helps you to figure out what is working and what is not.”
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