If you have been following my blog these past 13 weeks, I hope you were able learn a bit about Social Media Marketing for your small business! I know that I have learned a ton writing each blog and I hope one day I can implement such information in my own company or help a friend with theirs! The best way to wrap up my blog involves a bit of information about the Social Media Return on Investment (ROI). Let’s see if your Social Media platform is paying off!

Social Media and Business Strategy
In one of my very first blog post I talked about the importance of having a business strategy. I hope at this point you have grounded your business strategy and linked it to your social media platform. Strategy involved a long-term plan of action designed to achieve a particular goal or set of goals. Social media is not a strategy! A business conversation about using social media should start with understanding the overall business strategy, this is something I have pointed out numerous times throughout my blog.
A need for measurement is very important. Measurements help us keep business and marketing activities on track. They also help us know when adjustments may be needed. If you measure what matters to your business, you will know what works and what doesn’t. Words, images, and videos you post online is not the most important, it’s about the impact they give on your audience, and it’s on the impact they give on your business sales. Another important note, you need to know what you are spending on your business and marketing activity. Put all of those numbers together, and you have your return on investments; this is the measurement that really does matter!
In deed this comes with experience but this will also come with SMART objectives. This stands for Specific, Measurable, Achievable, Relevant, and Time Related. Objectives provide us with the ability to track and measure success. Objectives translate the business strategy into plans and action. To sell more books is not a smart objective. To sell 15% more books in the next month by running a promotion on Facebook, is a great SMART objective.
What is Social Media ROI
Despite all the metrics available it’s particularly tough to know how much money you make from something like social media because it focuses so heavily on brand reputation and connections. We need to be aware of both the micro and macro environment when assessing the effectiveness of marketing activity; this is the true challenge when calculating ROI.
The most common metrics used in social media are around the number of likes for a Facebook page or the number of followers on Twitter. Unfortunately, these are not thee measurements that will tell you what’s working and what not, and they are not metrics that will impact the bottom line for your business. Measurements in social media concern our ability to attract, retain, and convert potential customers. A note to remember on this subject, the posts you make involves relevancy and quality are much more important than noise and quality.
When looking into your ROI you need to look into the money you have been spending with regards to advertising, boosting posts on Facebook, promoting tweets, or sponsoring content on LinkedIn. You may also need to invest in expertise when it comes to design input when your setting up your profiles. This all costs money which is a subtraction to your ROI. Remember though, if done properly this could raise your ROI to!
Social Media Metrics
Volume: Success on social media isn’t just all about the numbers of followers, connections, or fans you have, but volume metrics are important. This measurement is like a stepping stone to other measurements. Volume metrics show us how far social media content is circulation, it’s reach. The larger the audience, the greater the reach, but that’s only valuable if your audience is a goof fit for your business. Quality is much more important than quantity at the end of the day.
Engagement: This is a two-way game, it’s not just broadcasting, it involves a response or reaction. Engagements means slightly different things on the different social media platforms. On LinkedIn, it’s the likes, comments, shares, and views on your update. On Twitter, it’s the replies, the mentions, the retweets, and the likes of on your post. On Facebook, it involved the reactions, comments, and shares. Lastly, on Instagram, it also involved the likes and comments. You want people to interact with your content, it means they value you it. Take a look at my post regarding a really special moment for my brother. It reached many people around the nation!


Traffic: One of the major goals of social media should be to drive traffic to your website, because it’s a platform that you own. Google Analytics is a great tool you can use to help see what’s going on behind the scenes of our website. Using Google Analytics can give you the digital analytics tools you need to analyze data from all points of interest in one place, for a deeper understanding of the customer experience. You can then share the insights that matter with your whole organization.
Measurement Tools
There ae several analytical tools out there like: Twitter Analytics, LinkedIn Analytics, Facebook Analytics, and Instagram Analytics. By paying close attention to social media analytics, you can measure your performance against your social media goals. Each social media platform offers unique tools you can use. On Twitter, engagements look at the total number of times a user interacted with a Tweet. Clicks anywhere on the Tweet, including Retweets, replies, follow likes, links, cards, hashtags, embedded media, username, profile photo, or Tweet expansion. On LinkedIn, some insights you may see include the amount of views and likes your share generate or the number of re-shares on your articles/posts. On Facebook, you can see how many people have liked your page in the top right-hand corner section. Facebook Analytics provides you with insights, this also can help you track the number of active users to better understand page performance. Instagram Analytics is a new feature, and only available on a smartphone. You will then see the number of impressions your posts have received over the past week and the change over the previous seven days. Impressions are the number of times all of your Instagram posts have been seen. Do you see how all these analytical tools focus on the reach of information!
Analyzing Social Media ROI
Return on investment is the value an organization receives from investing in a project or piece of marketing activity. It’s a performance measure used to evaluate the efficiency of an investment, it’s also a measure of the profit earned from each investment. Calculating social media marketing ROI needs to start with a set of goals that line up with your business strategy. To calculate to ROI we first need the revenue from social media and the cost of your social media activity. You then subtract the cost from the revenue and then divide by the cost.
For example, from Luan Wise: “1,000 clicks from 10 social media campaign posts on Twitter, of those 1,000 clicks,500 converted to a lead by filling in a form on a landing page. Of those 500 leads, 100 ended up making a purchase. This means that our traffic to lead conversion ratio is 50%, and our lead to sale conversion ratio is 20%. We know each purchase generates 100 pounds of revenue and 500 pounds of resources were allocated to the 10 campaign posts. The campaign generated 10,000 pounds of revenue, and so the ROI is 19 to one. For every one pound spent, 19 pounds of profit was generated” (Wise,2017).
Final Thoughts
As this is my last blog post in regards to Social Media Marketing I want to leave with you a piece of inspiring advice: Social media allows us to observe what’s going on inside your industry and amongst your competitors. There’s so much value to be had, and that’s what social media is all about.
References
Smiciklas, M., & Google. (n.d.). Intersection Consulting. Retrieved from https://www.intersectionconsulting.com/2009/social-media-roi/
Wise, L. (2017, January 12). Social Media Marketing: ROI. Retrieved from https://www.lynda.com/HootSuite-tutorials/Social-Media-Marketing-ROI/504398-2.html




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