hi I'm Daria the product manager for
HubSpot social media tools we talk a lot
about how your business goals need to
align with your social media goals there
are a number of metrics you can measure
to determine your return on investment
but having a system in place for how
you're mapping social actions to those
business goals will make it much easier
most marketers are measured by how their
programs and campaigns perform and
generating leads and revenue while a
positive brand sentiment and a high
level of customer service are important
your boss wants to know that the time
you're spending on social media is
actually translating into leads and
customers essentially revenue is the
ultimate indicator of social media
marketing success but depending on your
sales cycle it can be months before
you've closed new customers from a
social media campaign because of this
delay it's important to use leading
indicators of revenue success such as
the following signups for email webinars
and events at HubSpot we even have
people sign up for reminders about our
live events product downloads and trials
purchases how many people buy your
product or service as a result of an
action in social media downloads of
marketing materials your visit to lead
conversion rate we love this one of the
social media traffic that you're
generating what percentage of those
visitors become leads sentiment analysis
how the Internet feels about your brand
can be an indicator of satisfaction
passion and loyalty competitor
benchmarking understanding how you stack
up against your competition can help you
pivot and make better business decisions
website traffic reach and engagement
this includes likes shares and comments
audience sighs and finally campaign
results
Dennis you the chief technology officer
of blitz metrics tells us the most
important thing to keep in mind when
measuring social ROI is using the same
metric that you use for all the other
channels so you've got goals content and
targeting for your business maybe the
goal is ROAS with the revenue
counterbalance maybe it's number of
leads versus a cost per lead maybe it's
a particular product launch that you're
trying to get in front of a certain
audience at a certain recall rate the
same metrics that you use for any other
channel should be the same metrics
shouldn't they be for social it's a
question of how do you measure that to
take a deeper look at how social media
could affect your business's key
performance indicators or KPIs for short
here are some examples lifetime value
how much revenue do you earn on average
from a customer lifetime value
multiplied by conversion rate how much
is each potential visit worth to you
based on the percentage of visitors who
convert average sale how much is the
average purchase from social media into
your website pay-per-click ad valuation
how much would you end up paying if you
were to use ads to achieve the same
social media results resource savings
were you able to have a customer taken
action in social that will save the
company money elsewhere for example
watching a video or receiving a social
media response rather than a lengthy
call into customer support you'll also
want to be tracking your social media
expenses so you can calculate ROI
against your marketing campaigns here
are some things to track work hours
agency or freelance costs social media
software and services content
development expenses advertising costs
once you understand what your social
media efforts cost map those expenses to
your social media campaigns to determine
your ROI return on investment the ROI of
a social media action is calculated by
dividing the net income by the cost of
this action and multiplying it by a
hundred for example let's say a business
invested two thousand two hundred
dollars on a social media campaign to
promote a new product on Facebook
and Twitter once they completed the
campaign they found they made nine
thousand five hundred dollars in profit
the calculation for ROI would look like
this
nine thousand five hundred divided by
two thousand two hundred multiplying by
one hundred
that's four hundred thirty two percent
ROI how awesome is a number like that
while we might not be able to achieve
this sort of success you'll never know
unless you're tracking your efforts it's
also possible you'll find that your ROI
is negative if so you'll want to adjust
your campaigns or make changes to future
campaigns based on your learnings and
finally make sure that you report your
findings back to your team and to your
executives when it comes to measuring
ROI the benefits are endless brands can
find new fans customers and leads adjust
campaigns to be more effective and shift
spend towards programs that will be more
beneficial to the business
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