How to Measure Your Social Media ROI
Are you getting a return on your social media investment (ROI)? If you don’t know the answer, you could be wasting your money.
Measuring how your all your campaigns are performing, especially paid ads, is essential. If you don’t know what is working and what is not, you could be wasting your time and money.
This sounds obvious, so you might assume that most online businesses are analyzing and measuring their marketing initiatives.
Your assumption is wrong. 70% of online businesses that include social media in their marketing do not measure the ROI.
The only way to know your ROI for social media advertising is to keep a close eye on the metrics of every campaign you run.
Why is Measuring Social Media ROI Difficult?
All social media platforms provide their analytics in different ways. Some show engagement but not the sources of the traffic. Others give you demographic information without knowing engagement statistics.
Having a popular social media profile on the various platforms is great. Who doesn't like to see lots of comments, likes, and shares?
But if this popularity doesn't increase your bottom line, what’s the point? Do you fully understand the impact your social media activity and advertising has on your business?
The "investment" in ROI includes not only the dollars spent on advertising. It also includes the salaries paid to and the time spent by your social media staff.
Have you heard of Finteza? It is a set of free and independent analytics tools. You can measure the effectiveness of your social media campaigns by getting an in-depth look at your analytics in Finteza.
Start by Tracking Your Data
The purpose of social media platforms like Facebook, Twitter, and Instagram is to develop and nurture a relationship with your followers.
It can be advantageous to have many likes, shares, and comments on your posts. However, it's what your followers or fans do or how they respond that will be the integral component of ROI.
Understanding your social media traffic includes accessing the data, setting goals, and finding the right tools to analyze the results. Most social media channels offer their own insights on their platforms.
However, it can be a daunting task to manage your overall social media marketing campaigns by using each channel's built-in analytics.
It takes a lot of time and effort logging in and out of several tools and trying to reconcile data from several sources.
With Finteza, you only need to log into one dashboard. It is an independent, free, and comprehensive analytics tool that enables you to:
- Evaluate the quality of your traffic
- Get real-time data without delays and no sampling
- Create your own conversion funnels or let the system auto-create them for you
- See a detailed breakdown of your sales cycle from beginning to end
- Detect suspicious traffic coming from bots
- Configure, create, and manage targeted advertising campaigns
- Set multiple conversion goals
- Identify where visitors drop off your conversion funnel
- Modify or enhance the sales cycle drop off points
- Use the analytic tools to optimize web pages, social media posts, and landing pages to increase conversions
A significant distinguishing feature of Finteza versus other analytic tools like Google Analytics (GA) is that it is an independent platform. You control the Finteza dashboard, so you know it is unbiased and objective.
Finteza Makes Tracking Data Easy
There are two types of traffic metrics. They are quality and quantity. Most tools give you a lot of information about the quantity but are lacking when it comes to the quality of your visitors.
Sure, it's great to have a massive amount of social media followers. It's even better if they engage with you.
However, if they don't travel down your sales funnels and complete the desired action, there is no effect on your bottom line.
Being able to measure the ROI of your social media initiatives will enable you to know what is working and what is not. You will also be able to make informed decisions about where to shift resources.
Resources include time and money for paid advertising. Stop paying for campaigns with a low ROI and re-allocate funds to those that are making you money.
Get Started with Finteza
You can get started immediately by registering for a free Finteza account. Or, if you aren’t ready to register, you can use a demo of the platform without registering.
If you are ready to get started, fill out the form on the registration page. You will be sent an activation link via email to confirm your account.
Your first step is to install the Finteza tracking code. To find yours, open your account and go to settings. Copy the HTML analytics tracking code.
Paste the code into the headers section of your website so that it appears on every page of your site to get the most complete and accurate results.
Do you have more than one site or a mobile app you want to track? Navigate to the “Websites” tab and click on “New site”.
Create separate codes to track multiple sites or apps.
That’s it. Once the tracking code is installed, your site starts collecting data. However, you should give it a little time to accumulate enough metrics for meaningful results.
Setting up Finteza is made even easier because it integrates with many popular platforms. For example, Finteza integrates with some of the most popular CMS systems including WordPress, Drupal, and Joomla.
Quality over Quantity
As mentioned above, when it comes to social media advertising dollars, monitoring the quality of visitors is more important than driving traffic.
Why spend money on getting people to your site if they aren't going to make a purchase?
With Finteza's traffic quality tool, you will see the exact percentage of both the high-quality and low-quality traffic to your site from all channels.
If an ad or campaign is not performing well, improve it until it converts better or stop wasting money on it.
Finteza identifies three different levels of the health of traffic to your site. They are suspicious, medium, and high.
If you are running paid social media campaigns, how valuable is this information? You will be able to see details such as site errors and bot traffic. This traffic is not beneficial to your business and you don’t want to keep buying it.
Digital marketers and business owners know the value of social media in converting leads to sales. It sends traffic to your site from the content you create, post, and share on the different platforms or channels.
Using Finteza's comprehensive traffic quality tool, you will see which channels are sending traffic that converts.
Monitor your social media posts and campaigns regularly. Those that are not bringing in quality traffic or are not converting well should be modified, removed, and replaced until you start seeing higher conversion rates.
You can then spend more time on converting social media channels. If a social network just does not convert for you, use your bio to re-direct people to a more successful network.
Spend Your Advertising Budget on Social Media Wisely
Use Finteza's webmaster tools to identify exactly which channels your best buyers are coming from and how they get to your site.
Increase your ad buy for the most successful ads. Reduce or eliminate your advertising spend where it doesn’t generate paying customers.
Analyzing your current traffic sources and optimizing your social media content Fare the most effective ways to increase your ROI.
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By Mike Allton, Content Marketing Practitioner
Mike is a Content Marketing Practitioner - a title he invented to represent his holistic approach to content marketing that leverages blogging, social media, email marketing and SEO to drive traffic, generate leads, and convert those leads into sales. He is an award-winning Blogger, Speaker, and Author at The Social Media Hat, and Brand Evangelist at Agorapulse (formerly CMO at SiteSell).
As Brand Evangelist, Mike works directly with other social media educators, influencers, agencies and brands to explore and develop profitable relationships with Agorapulse.Follow @Mike_Allton