By Ini Augustine
Social Media Return on Investment (ROI)
Let’s face it. Social media can either be an entrepreneur’s blessing or worst nightmare. Yes, setting up a social media page on popular sites, such as Facebook and Twitter, is free. However, in order to maximize the reach of your site, you will have to invest in advertisements and social media managers. With limited funds available, you cannot afford to waste your money on ineffective social media campaigns. This begs the question- how can you assess your social media site’s ROI?
If you have ever created a Wordpress blog, you will understand how addictive it can be. Users constantly check their blog page’s statistics after each blog post to determine the number of followers and visitors to the site per day. A sense of accomplishment is created when the user realizes hundreds of people have read the most recent post. Tracking customer events creates a similar feeling in entrepreneurs and is critical to assessing social media ROI. These customer events include:
· the number of phone calls received per day
· the number of visits to the business’ physical location per week
· the number of visits to the business’ website per week
It must be noted, however, that tracking is most effective when it is done both before and after the social media strategy has been implemented.
Social media ROI isn’t instantaneous. Studies have shown that it takes 7 to 10 interactions before a customer decides to do business with a company. Depending on the industry you are in, it can take a minimum of 6 months and as much as several years to see results. People in sales and retail specifically usually only see results after several years. Additionally, average ticket value must also be considered. Average ticket value refers to the average sale that can be obtained from a customer who does business with a company. This value depends on the industry the company is in. For instance, the average ticket value of a BMW dealer is $1600 while that of Target is $600. Nevertheless, tracking customer events requires you to be patient and to compare these events on an annual basis. Annual revisions allow you to determine what is and isn’t working.
Make the most of your social media investment by: keeping track of customer events, being realistic, and calculating your ROI. The results of these analyses can help you to revise your marketing strategy so that your business can flourish.
Having trouble setting your social media strategy? We offer seminars too! See a list of our sessions here: Social Media Seminars