Estimating social media return on initial capital investment is one of the greatest dissatisfactions of entrepreneurs and a standout amongst the most regularly made inquiries about web based life. Honestly, social media has direct and indirect impacts that are difficult to quantify impeccably. In any case, so are numerous PR and advertising endeavors!
While you can’t quantify all SMM impacts, you should at present measure the ones you can.
1. Begin with defining your transformation objectives. That could be:
Making online purchases;
Clicking on a link to dealer website;
Spending time on landing pages;
Signing up for a newsletter, engaging in social media interactions.
2. Track conversions
- Reach. Whatever your opinion on the number of followers is, the more people see your campaign or promotion, the greater your ROI.
- Traffic. Again,your ROI depends on getting people to your website or another URL where conversions happen.
- Social media generated leads. The problem here is that you will only see leads that took some kind of online action. You won’t see lurkers: people that take no actions online but are still exposed to your product and may do offline purchases as a result of Social Media exposure.
- Customers – leads that become customers.
- Conversion rate. Tracking the percentage of visitors by social media platform or promotion piece tells you what’s working and what’s not.
3. Assign monetary value to each conversion by estimating a Lifetime Value of a Customer.
4. Collect incoming traffic and conversion numbers using Google Analytics. Compare with monetary value of those conversions
5. Decide cost per channel by including work and different expenses.
6. Utilize data from stages 4 and 5 to figure the return on initial capital investment per social media channel.