If you are a business, you likely are trying to market yourself on the Internet. You probably have accounts on a variety of social media platforms. However, you have to pay someone to keep your social media platforms humming, meaning that you are frequently making posts and responding to customer queries. You might even be spending advertising money to try to woo customers into visiting your pages. All of this activity can add up. Here are some tips for calculating your social media return on investment (ROI) to make sure that you are getting the most for your money.
1. Calculate Your Return
The first thing that you need to do is calculate your return. This is what you get from all of the money that you are spending on social media. In order to calculate your return, you need to set a quantifiable goal. This could be increasing your number of followers or average number of likes on a post to a certain amount. This could also mean increasing the number of people who read your weekly newsletter or visit your website for more than thirty seconds. Whatever the goal is, you need to track it over the course of several weeks or months. Finally, you need to attach a dollar value to whatever you are tracking. For example, you might notice that your average daily sale on your web store goes up by three dollars every time you gain a follower. Therefore, your follower would be worth three dollars.
2. Calculate Your Investment
Next, look at all of the money that you are spending on social media, including employees, hosting costs, time spent putting together a newsletter, or money lost by refunding purchases to customers who are unhappy. One quick way to figure this out is to take the average cost of an employee who maintains a social media site and multiply it by the average number of hours you actually spend on the social media platforms. Add in any costs you pay for tracking tools or advertising and you're done.
3. Calculate the Return on Investment
Finally, calculate your ROI by taking your return and subtracting your investment from it. Then, divide the result of that subtraction by your investment again. This will give you a number larger or smaller than zero. If the number is larger than zero, then you are getting your money's worth from your social media spending. If not, you might need to rethink the amount of money you are investing.
For more information, talk to a company that specializes in social media spending.Share