Let’s Get Social Blog Series Part 4: How to Calculate ROI

Image courtesy of Adamr / FreeDigitalPhotos.net
Image courtesy of Adamr / FreeDigitalPhotos.net

Welcome to Week 4 of the Let’s Get Social blog series. So far we have discussed how you can make the most of your social media marketing on Facebook and Twitter.  Now  we are moving on to learn how to calculate the effectiveness of  your content marketing-or ROI (Return on Investment).  We track ROI because it helps us decide how we are making or saving money through our online marketing activities.

A Short  Guide to the ROI Process

  • Reach potential customers. (Example metrics: unique visitors, visibility in search, and inbound links.)
  • Encourage those potential customers to act. (Example metrics: page engagement rate, social media shares, and the pages a person views per visit.)
  • Convert those potential customers into paying customers. (Example metrics: email or RSS subscriptions, average order value, and your social media follower numbers.)
  • Engage your new customers so they stay with you for life. (Example metrics: repeat transactions or visits, email open rates, and revenue per visit.)

The In’s and Out’s

You have learned that there are different types of metrics which are used in different ways to reach your target goal. First of all you must decide what your goal is whether it is to build a base of followers, increase brand exposure or generate more sales.

Get Your Pen, Paper and Calculator Ready! 

How much money have you invested in the different channels? 

  • Writers
  • Designers
  • Paid Ads
  • Software
  • Videographers
  • PR
  • Graphic Design
  • Marketing Automation

Compare your marketing investment and marketing impact 

  • Calculators at the ready! From experience it’s best to use an Excel spreadsheet. Line both sets of data up side by side to get a realistic numerical picture.   Use your metric data to produce an accurate and truthful table of statistics.

Simplify Your Story

  • Go back to your original objective and ask yourself questions relating to what you set out to do. For example if  I wanted to increase my brand identity, I would  analyse my database of subscribers, and  track social media  and website traffic growth. For a sales focussed objective my main considerations would be how many monthly sales leads have been generated, what is the average purchase value for your products for that month and how has this affected monthly revenue overall.

Amy Briscoe is the Founder and Creative Director of  The House of Letters a  PR and Marketing  creative communications consultancy based in Llandudno, North Wales, which specialises in marketing, PR  and creative services such as graphic design and photography.   Follow us on Facebook and Twitter for more useful articles and information!

 

 

 

 

 

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