Are you measuring the wrong metrics for social ROI?

Posted: 2017-11-17 00:58:50

The world of social marketing is in flux. While this makes working in the industry exciting, it also means that there's a lot to keep up with. Which KPIs should you look at? How does social media drive profit and what's the best way to measure returns.

Marketing can indeed be quite messy, especially when it comes to estimating social ROI. However, navigating complex systems, metrics and KPIs to calculate ROI is a mandatory and unavoidable component of brand success. If all this marketing jargon makes you feel a little befuddled, don't worry – here are some tips from the Digital Marketing Magazine that are sure to guide you on your way:

Measure what matters

The first step to determining ROI is deciding on what matters most, aka profit. The goal of all businesses is to make money, so ensure that increasing revenue is at the heart of your social strategy.

This is, of course, easier said than done. Marketers must link their social media with wider business goals and attach value to their online activities; for instance, by measuring the impact on lead generation. Consider collecting data on PR spend and media coverage, or analyse how Facebook ads have influenced your sales.

Don't fret over likes and shares

Likes, comments and shares are excellent signifiers of how your content is doing, but social engagement actually tells you very little about marketing performance. In some ways, recording this data is an exercise in vanity – much like comparing the number of followers you have to that of a competitor.

Invariably, if you're a content writer, these metrics should be investigated and implemented. But these figures can only illuminate how the content is doing and not the revenue garnered through them.

To really dig deep into social value, it's paramount that marketers use meaningful performance indicators, like ROI or Return on Marketing Investment (ROMI), as these encompass intention and outcome.

It's no secret that qualifying the monetary value of social media is a challenge. In fact, according to the CMO Survey published in February 2017, just 37% of marketers say they can prove it quantitatively. But there is good news: marketers who can accurately measure ROI will find their skills in high demand. To find your next step in marketing, sign up to our job alerts today!

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