Is It Worth It? How To Measure Social ROI
Even though social media has experienced incredible growth over the past few years, some businesses are still struggling to understand the ROI on social spend. Given its widespread use, social media was one of the most common expenses reported in The CMO Survey. With 82% of respondents reporting social media as something that their company was investing in. Is this expense justified? Without being able to see the exact return a business gets from running social media pages it's hard to know. According to the survey, having a talented digital marketing team and paying attention to engagement can both provide insights on how well social is doing its job for your organization.
Like all forms of marketing, it’s difficult to put an exact value on reach and dollar increase in sales that social media creates. Businesses pay thousands of dollars a month for traditional marketing practices such as print ads, newsletters, flyers, and billboards, and there’s absolutely no way to know the effectiveness of those short of asking your customer how they found out about your brand. To best measure social ROI based on The CMO Survey, the AMA says to “staff up accordingly” for better reporting and use of analytics. Having a talented team running your social media is the best way to create an effective digital marketing presence and to keep tabs on the return you are getting through analytics that are carefully monitored.
Overall engagement is another way to measure whether or not the content your business is putting out is getting to the desired customer or prospect. This can be done by an owner or by a talented team. The activity you have on social media should be creating a space for your customers to engage each other and your page. If a large percentage of your followers are liking and joining the conversations you create around your brand, that's a win.
To get a better idea of the return on investment that social is providing your business pay attention to the competency of your marketing team as well as the level of engagement your pages are getting. Although it may be difficult to measure the exact monetary ROI; the analytics that are brought in, particularly the engagement levels of your audience, are the best way to estimate the reach and effect that social media is having for your company.
TL;DR: Having a dedicated team that understands social media marketing strategy and uses analytics to adjust for efficiency will allow you to see the ROI social media marketing is making for your business.