Top 5 Social Media ROI Metrics For The Business Owner

Assess time, money and other resources you put into Social Media

Every astute business owner wants to determine the return on investment made in all aspects of their business, including Social Media and Social Networking.  Here are five ways to determine ROI  for these important marketing media.

1. Reach – This is the number of  Twitter followers, Facebook fans, LinkedIn group members you have  and is directly related to your social media success. The more people will see your content, the more people will spread your messages.  Track how your reach is increasing over time. If you’re not attracting new followers as time goes on, focus more of your social media efforts on generating new fans and followers. You  must build your reach to increase the value you get from social media marketing.

2. Traffic to website/blog – In social media marketing, one major goal you should have is to drive traffic from social networks to your website and/or blog. Look at your website/blog’s referral sources to determine how many visitors came from social media sites. For example, when you post a blog update use bitly.com to shorten the link to your blog since bitly.com will  track number the of persons who click on the link and therefore traffic driven to your website.

3. Lead Generation– This is arguably one of  the most important metrics to use when measuring social media marketing ROI. Take another look at the traffic you’re generating from social media sites. Of that traffic, how many of those website and blog visitors are converting into leads? Of course having a lead conversion form on your website to capture visitor contact information is extremely important in this process.

4. New Customers – Now take the lead data one step further. Are your social media leads actually turning into customers? And just how many of them are? Being able to attribute actual customers gained is perhaps the most powerful indicator that the time you spend on social media marketing is actually worth it.

5. Conversion Rate – What’s the visit-to-lead conversion rate of your social media traffic? In other words, of the social media traffic you’re generating, what percentage of those visitors become leads? While this may seem like a useless metric in itself, the conversion rate can be very useful when comparing one channel with another. For example, you can compare your Facebook conversion rate to your blogging conversion rate to analyze the ROI of those channels relative to each other.

     

Use ROI to determine your success on Social Media

Do share with us your how you determine the success of  investing your resources in Social Media and Social Networking?

 

 

 

 

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This entry was posted in Marketing, Online Strategies, Social Media, Strategies and tagged , , , , , , by Sandra McCarty. Bookmark the permalink.

About Sandra McCarty

Founder of SM Business Solutions LLC, offering inbound marketing services that are both innovative and tailored to my clients needs. I use inbound marketing media such as blogging, emails and social media to help independent professionals, business owners and entrepreneurs successfully engage their target markets and increase their revenues. I am passionate about making sure my clients are satisfied and their companies experience tangible gains. A graduate of Martin J Whitman School of Management, Syracuse University, University of the West Indies and of the Royal Institute of Marketing, London. Some of my clients are; Retro Lounge & Grill, The Cybernet Place, Optic Masters, Balance & Power Inc, Long Island Entrepreneurs Meetup Group, Best Buyer's Brokers and Male Ego Ltd.

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