Social media marketing has been a trending term for a while now, and many business owners want to be part of it and expand their audience. However, there has been a misunderstanding regarding its expectations and the so-called ROI (Return On Investment) that we want to clarify.
When it comes to marketing, there often seems like a magic mix of materials, tools, and such to which only a relative handful of top marketers have access. These marketers seem to consistently rise head and shoulders above the rest as they help to draw in lead after lead, helping sales to seal the deal time and again. The trouble is that this is a major misconception. There is no secret tool chest that these marketers are using. They simply know the correct way to spell success. And now, thanks to HubSpot and Inbound 2015, we all know just what it is that these leading marketers are doing to be so successful!
Understanding social media ROI (return on investment) requires that companies know what their desired goal is when used for marketing. One of the biggest complaints and toughest goals that marketers face today is putting social media into a measurable ROI for companies. Most companies know how important social media can be to their company growth but demonstrating the returns is another matter. To understand and put ROI into perspective companies need a plan with quantifiable goals.
In this section, we are going to use the insight of our customers to figure out our social media return. Unlike the previous section, this is a more nebulous process because it’s pretty hard to assign a hard-dollar value to something like consumer insights! But we can derive some important information from it.
In this method of figuring out your social media ROI, we will be estimating our ROI in terms of sales. However, you cannot quantify social media; there is not (as yet anyway), a way to say X interaction = Y Dollars, so we have to be creative. This is a three step process which allows you to give your social media ROI some value so you know what you have to do to make your campaign stronger.
When it comes to figuring out how to strengthen your business, it’s a good idea to start looking at how efficient your marketing has been and then go from there. For example, a team may use marketing numbers to change up their budgets and small businesses may use numbers to ask for a loan. When it comes to your own small marketing online, social and web metrics can be used to strengthen current marketing campaigns and lay the foundations for new ones in the future.