Social Media ROI or How do I measure social media success and relate that to an increase in sales or products? And how do I correlate in terms of numbers?
Actually, it’s three for digital ROI, depending on how you are set up.
1. Social vs Offline:Defining how people heard about you. 2. Social media to Offline: Defining which social media channels offers are doing well. 3. Tracking Social Online.
Digital Measurement is an important concept to understand in social media ROI. The (Return On Investment) (ROI), money lets you know what is working. We really shouldn’t really on our gut when it comes to money. Without proper digital measurement you will always be asking – why isn’t social media working?
Clients are always asking me how do you track social media ROI. And I say, “To track social media ROI just Ask, Track and Report.”
Below, I’ll show you how in this simple technique below. I also show you some tip to use online and offline to do the same. Finally, there is an example at the bottom of how to track the untrackable: customer service, and how social tracking can work offline or online. But first a little background about measurement and then ROI. You can skip if know this already.
What is measurement digitally
Measurement is one the five tactics I use in an each easy to follow digital marketing strategy. In which I help clients to define Goals, Audience, Content, Channel, and Measurement so that they can grow their business.
Social media ROI can be worked out in many complex ways. But in a nutshell, I do it this way.
Take the money generated from sales from advertising (social selling) and take away the money invested in advertising (social media marketing). (Social Media Selling) – (Social media marketing). And there you have the profit from social.
You measure your profitability in money so why not measure your social media in the same way. You can use more complex ways to impress people. But let’s get back to a few ways to implement tracking.
The Ask: Simple Social Media Measurement can be an ask.
So just ask, “How did you hear about us?”
Taken from http://vaynermedia.com/ questionnaire
The tip is that it is important not to lead the customer for example saying:
“Did you hear about us on social media? We are giving away £1000 if you heard anything about us, pretty please say yes!”
This is leading and will skew the results, and invalidate the test and lose you money. Automating this task can just mean putting a sign at till and making sure all customers are aware. For added bonuses try to attach the each customer record. If not a simple tally sheet will do. Putting the result onto a record per customer will see where the better customers are coming from.
Track: Medium Social media tracking that requires tracking:
To track online to offline use offer codes on social and see if customers ask at till. Using separate offer codes on different channels:
A quick word about Bitly. Bitly is a link shortener and will tell you what link was clicked and what part of the planet did it. It won’t tell you which channel is having an impact on your bottom line.
For those that want to track offline, just ask people to mention a code only found on that channel at the checkout or at your store.
NB: This is designed to drive shop footfall, so please think about your offer carefully.
For example, if you Tweet: ‘To win an extra smoothie shot of your choice, mention GRAPE in our Cambridge Store when you buy.’
Then you should also:
Post to Facebook, ‘To win a free smoothie shot of your choice, mention PINEAPPLE in our Cambridge Store’
Even if you keep a pen and paper at the till to, tally pineapple (facebook) vs grape (twitter) you will easily see which codes are working. This is better than no tracking at all. So implement what you can and adjust later.
Harder Digital Measurement Online
To be honest, if you are spending money advertising on social media – you should have a substantial reporting infrastructure worked out to track your ROI on whatever channel you are spending money on. You should not wait until your run out of money to say that the ads are not working.
Often in our basic analytics, we see a traffic pie chart that says how much traffic is coming from Direct, Email Social Media, Ads and we can easily think that bigger means better.
But the best way is to set up goals and ecommerce to see which part of our traffic is causing the biggest bang for our buck.
When have an ecommerce platform, turn on anyway to track the customers that come from social. You may have tagging software for the links. But you also may have an offer code at checkout. Use separate tracking offer codes per each channel and per different offers.
Signing up to google analytics and turning on the ecommerce or goal tracking part is the best way that I have found to track. Channel attribution to sales or leads.
Social Media and Web Analytics
If you sell offline but collect leads online then be sure to track that with an analytics program.
Google analytics can collect leads on you website. Set a thank you page using the goals set up on google and then find this report.
You can even integrate google analytics into Etsy.
To view your success use this report in google analytics.
Acquisition > Social > Conversions within Google Analytics and ensure you select the conversion goal you’re looking to measure.
Digital Marketing Maturity
Here are a couple of easy to implement tactics to grow your social channels. Ask customers in the store to follow you on either a channel that you are currently on – or just say that you would appreciate them liking your page once they get on the free wifi. A reward like coffee is optional.
Here are a couple of tactics to research your audience channel. As well as above having a look at people type of people in your shop, how much they spend, who are liking your page. You can also have a look at their profile ect. But perhaps once a week just ask each customer to tell you what their favourite social media channel is.
After asking open questions you might find that your audience is on Facebook, Instagram or twitter. You should let a combination of audience, content and product dictate what channel you should use to market yourself.
Social Media ROI A Difficult Digital Measurement Scenario: Social media Vs Traditional Customer services.
For example, if your business goals are to reduce costs and increase customer satisfaction.
Then you could start by looking at alternatives to some of your high cost operations.
For example, you could look at trying to reduce costs in customer services. and increase customer satisfaction part of your business goals.
You have had a recent spike in customer complaints and returns of a product and your sales are reversing.
Your Customer services team report, that once the customer understands how it works, then they are happy ith the product. However, it’s taking some time to explain this. That why the average call times are higher.
Your social media department creates a video and sticks it on youtube.
You add this to the FAQ page on your website and link to it from your customer services page.
Your phone customer calls to customer services decline and your youtube numbers increase.
As the business owner, you should spend time looking over relevant reports about your revenue and spending. Make sure you develop well thought out reports, that are easy to read and tell your what is working and what is not.
Be sure to engage the last part of your digital strategy and that is the measurement.