Part I – Measuring ROI
As a service professional, it is important to understand how you are going to measure your social media marketing campaigns. Seeing the business value and return on investment (ROI) from your social media marketing is the difference between effectively integrating social media into your marketing mix and playing on Facebook and Twitter all day.
For social media marketing ROI success, your first step should be to conduct demographic research to identify which social sites your target market is using. Your next step should be to set goals with clearly defined levels of success.
While managing your small business marketing on your own, you have come across the word metric a number of times. All a metric is, is a standard unit of measurement or the way we measure something. Your small business social media marketing metrics should be thought of in two categories. On-site – activity that takes place directly on your website- and off-site, activity that happens on other sites (or locations) where you and your target market/customers interact.
Basic on-site metrics to measure small business social media marketing efforts
ROI: How much money are your social media marketing efforts contributing to your business? Is the cost of your investment smaller than the value you are receiving? Remember cost is not always financial; think of your time as a cost as well.
To effectively measure your social media marketing, you need a decent analytics package that allows you to track certain actions taken on your website like, completes a lead form, makes a purchase or downloads an e-book. In order to keep track of visitors who have taken certain actions, you need to label them so that you can trace that visitor back to the website that sent them to you. That website is called the referrer. Tracing your website visitors back to where they came from lets you evaluate the effectiveness of each source.