Social Media Marketing is crucial to any business success in driving sales, and advertising their products. Reaching out to potential customers through social media is something that simply cannot be overlooked. But when it comes down to doing the math, the question becomes how to measure you ROI (return of investment)?
How Far is Your Reach in Social Media Marketing
For measuring your ROI there are three methods you might find useful which are; having to be able to measure the number of conversations, your engagement, and how far your reach is. What is reach? Reach means getting your product in front of as many people as possible. The goal is to increase the number of connections you made on Facebook, Twitter, LinkedIn etc. through likes, subscriptions and clicks. By doing a calculation of how many people need to be reached before getting a conversation and dividing the amount spent on expanding your reach by the conversation value, you will get your ROI.
Engagement and Conversations in Social Media Marketing
With reach being the number of people who have seen your product marketing, engagement is the amount of people who interacted with it. It refers to anything from clicks and comments to ratings and likes. The quality of what you are advertising, as well as appealing to people to feel strong about your product, will encourage them to be more engaged. Focusing on the content that produces more engagement and promoting it, will not only expand your reach, but also increase your ROI. Conversations are actions taken by people who have seen your marketing efforts. If product selling is your goal, the sale of that product becomes a conversation. If generated revenue from conversations, reach the costs of investments put in Social Media Marketing, you have achieved a positive ROI. But it is not uncommon to have a negative one, as at times this is not the case.
When it comes to measuring your ROI and reaching your goal, all depends on the amount of time and information you put out on social media. Once you have achieved the amount of likes, clicks and shares, whether positive or negative, you will have the ability to reach the costs of investment that you put into Social Media Marketing.