I clicked on an article from Twitter the other day, which lead me to an old article by Convince & Convert called: Is Our Addiction To ROI Killing Social Media. This article was written about 2 years ago, but it’s still so timely today.
Social media is not free by any means, while the platforms may be free, your time spent on those platforms is not free.
So it’s important that businesses measure ROI so that they can justify spending the time, or hiring the team to spend on social media.
But there comes a point when businesses get too obsessed over the ROI and aren’t realizing other benefits of social media outside of sales.
In fact, ROI can be measured without measuring any sales.
Fans are a measurement.
Engagement is a measurement.
Word of mouth is a measurement.
Who’s talking about you is a measurement.
Having a visible presence online is a measurement.
Socialbakers.com recently brought out an excellent infographic to showcase how and why measuring your engagement is SO important when it comes to social media.
Here’s the infograph:
All the above factors coincide with measuring how your social media campaign is doing. It’s not always about sales, but rather, about how well you’re performing in general.
Many agency’s won’t outline the exact ROI because there’s such a variety of measurement. They will talk about growing your community and receiving better engagement; both those things are part of measuring the ROI.
As long as your community is growing, then in turn, the logical conclusion would be for your sales to grow. The more people know about you and why your services or products rock, then the more people are going to be willing to buy.
That’s the whole purpose of social media; is to educate people about you and your business in a fun, positive and interesting enough light to receive the sale.
ROI is important, of course, but most businesses use it as a crutch not to move forward in social media, especially if they don’t see any results in just a few months or don’t believe that social media can actually produce sales.
Check your analytics and measure your overall use of social media to see what needs to change and shift as you move along with your strategy. Experimentation is going to be key to finding that sweet spot for your social media success.
Measuring the actual ROI will take time to even out and figure out if social media is really going to work for you. So don’t worry if you get a proposal from an agency that doesn’t talk about ROI in the traditional sense.
There are dozens of different ways to measure the success or failure or your social media strategy, but first, you have to take the plunge and dive in!