Social Media ROI: The Secret Sauce to Knowing What Really Works
Do you want to know what we get asked all the time as a digital marketing agency?
“How do I know it’s even working?”
What our clients are really asking is, “How do I know I’m making money?”
This is a reasonable question all business owners ask themselves! Normally, reports and sales analytics make it clear to a business whether or not they are making money, but social media can be tricky to see if it’s actually working.
We see this all the time with our clients. They pour their heart and soul (and definitely some dollars) into social media with no clear way of knowing if it’s getting returned. It can be frustrating, to say the least. That’s where measuring social media ROI comes in.
We’re breaking down social media ROI in a way that’s easy, actionable, and (dare we say it?) fun. By the end of this post, you'll know exactly how to measure your ROI on social media and, even better, how to boost it.
First Things First: What is Social Media ROI?
Before diving into the measuring, we need to understand social media ROI.
Social Media ROI or Return on Investment is essentially how much profit or value you are getting from your social media efforts. What are you getting in return for all the time & money you are investing in social media?
Whether your goal is to increase brand awareness, drive traffic to your website, or generate sales, measuring ROI will show you if you’re on the right track - or if something needs to change. Social media used to be about likes and followers (although we love those too) but it has transformed into a powerful business tool that can be used to increase not only your brand and ability to connect with your target audience but also your sales.
Now that we know what Social Media ROI is, let’s talk about how to turn your social media efforts into measurable results for your business.
Let’s Set Those Goals!
Before we start measuring we have to know the goal you’re trying to reach. Every business is different so what works for a skincare company is not going to necessarily work for a fitness coach. You need to establish what your goal is on social media. Do. Not. Skip. This. Part.
Here are some goals to start with:
Grow your brand awareness?
Drive more traffic to your website?
Generate new leads or sales?
Build a loyal and engaged community?
Measuring a loyal and engaged community looks like seeing how many people are engaging with your content through likes, comments, shares, and followers. Versus measuring website traffic looks at how many users clicked on your links or how many users got to your website from your social media platforms. Two different goals, and two different roads to get there.
Tracking Metrics is a Must!
Now that you have your goal, you need to figure out what metrics align with that goal.
This will help build your roadmap to achieve your goal. Tracking the right metric helps you focus your efforts on the areas that will make a difference and move you toward your goal. Spreading your resources to every area of your social media just to get some traction is a lot like throwing mud at the wall to see what sticks. So put the mud down and follow this guide to help you figure out what metrics to track:
Brand Awareness: Reach, impressions, follower growth, mentions, and shares.
Website Traffic: Click-through rates (CTR), traffic sources, and time spent on site.
Lead Generation: Form submissions, email sign-ups, or downloads from social media links.
Sales & Conversions: Direct purchases, bookings, or product inquiries that come from social media.
Pro Tip: Connect platforms like Google Analytics, Shopify, Hootsuite, HubSpot, or Instagram’s Professional Dashboard to track these metrics in one place. Having these tools connected gives you a bird’s eye view of your social media and website analytics, showing you where and how people are interacting with your business.
Boost Your Social Media ROI!
We know you want to learn how to get the most out of your social media efforts and we don’t like to gate keep. Here are some of our favorite tips:
Target the Right People: Your service or product doesn't do much unless it is in front of the right audience. Make sure your social media is being seen by the right people to help you reach your goals. If you don’t fully understand your consumer, this is the FIRST thing you need to do. Need some help with this? 65 Questions To Ask When Defining Your Target Audience.
Optimize Your Content: Quality beats quantity every time. If you’re posting just to post and have no clear why behind your them, then you guessed it, your content is not being optimized. Not only from an engagement standpoint, but for your ROI as well.
Use Paid Ads Wisely: Organic content can only do so much and if you want to boost your ROI then investing in ads is a great idea. You can test different visuals and messaging to see what works best.
Engage with Your Followers: We are hoping you already do this! 😉 But just in case, we’ll tell you again how important it is to talk to your audience. Social media is a two-way street after all. Leaving your followers on read does not lead to loyal customers that convert. Make sure you respond to comments, answer questions, and start conversations.
Test, Tweak, Repeat: Don’t be afraid to make adjustments. Regularly check in on your performance to see what’s working and what’s not. Constant optimization is the key to improving your ROI. Even the smallest tweak can lead to big results.
Final Thoughts: Adapt & Experiment
We know first-hand how ever-changing the social media world is. Don’t be afraid to experiment with your content to see what works for your business. And remember that what was working last week might not be performing this week, so adapt as you need to.
We want to encourage you but we don’t like to sugarcoat things. Remember that social media is a marathon and not a sprint. It takes patience and persistence to see the return on investment from your social media efforts.
If you feel like you’re giving everything you’ve got with no reward, then maybe it’s time to switch up the strategies or get a team who knows what they’re doing like us! 👋
Follow us on Instagram if you enjoy digital marketing tips from a marketing agency that keeps it real and honest when it comes to our world.
Until next time,
The HM Team
