Does Social Media Marketing Improve ROI for Your Business?

Yash Prajapati
Read Time: 4 Minutes
Does Social Media Marketing Improve ROI for Your Business?
  1. The business world is naturally inclined to the online mode of marketing. Primarily because of the change in consumer behavior, digital transformation has become inevitable. The development of functional websites, purchasing the keywords, and targeting the users using the same has become the trend. Of course, if all these need to happen, the users must be aware of your brand. If that is not done at the fundamental level, then the development of websites and the keywords used will be of no use. This blog shall help you realize the criticality of social media marketing. Also, you shall understand the ways you can get a return on investment from the business too.

Social Media Presence – Is it a Mandate?

  1. While this is not a rule to run a business, if you are planning to run the organization successfully, you need to establish a powerful presence through social platforms. The advantage of using these platforms is they have become the marketplace for many such organizations like yours. The basic strategy, for you to make the customers come to you, is to reach out to them.
  2. The marketing strategy behind this is to identify the target customers for the product or the service that you offer. As such, if you are planning to target the Millennials, then Facebook and YouTube must be your major focus. Of course, Pinterest and Twitter are more on the feminine gender. That means to say if your business is all about fashion, accessories, and women-related clothing, then you must widely concentrate on Twitter posts and Pinterest pictures. Instagram plays a vital role for both genders of the same age group. Know how to make a powerful Instagram marketing strategy.
  3. If your target audience is well-educated, blindly target LinkedIn. Have a strong social media presence and constantly engage customers. The users must know who you are in the first place to do business with you. You can also conduct online marketing campaigns as such campaigns can raise traffic to your website as well.

What is the purpose of social media?

  1. Begin by identifying your business goals that social media can help with. Our business goals are often centered around money when we think of generating "ROI," or revenue for a company through social media. To increase revenue, you might attract more prospects and leads.
  2. However, these business goals are not enough to generate ROI.

How to calculate social media ROI for your business

  1. The formula used value as the starting point, instead of revenue or profit.
  2. Johnsonville Sausages, for example, has a rich social listening program. Social media is used by them to get insights into which new products should they be developing.
  3. Instead of using financial calculations, they calculate the ROI of social listening on the amount of information they can share with product development teams. Instead of focusing on revenue or sales, the value lies in the intelligence gained.

How Can Social Media Marketing Improve ROI?

  1. More than improved ROI, you can see the returns in a quick time. But there are clauses like quality and integrity. Many organizations start a social media page and use it for a while, then die off. Do not be a soda bottle fizz. The presence means a constant and consistent presence on social platforms. You need to engage the customers through quizzes, videos, posts, and more. This way, you can increase Instagram followers and boost your presence on other platforms. You must make the customers watch the posts, and then the engagement starts. Most of the leads found in such platforms are easily convertible. But the point is the synchronization between the Ads and the landing page that matters a lot in this regard. If your Ad is about a discount and the website does not have any information about it, it can also prove to be very wrong in the campaign.
  2. Most importantly, constant monitoring of the Ad campaigns and consistent presence online shall help you get the ROI earlier than you had expected. 

Customer service improvement

  • Build a loyal community
  1. It can be beneficial to set business goals that empower advocates.
  2. Remember that you can tie advocacy and building community directly into revenue with things like:
  • Referrals and references
  1. Influence comes from advocate-generated material
  2. Opportunities for cross-selling and upsell
  3. A second way to retain customers is by listening to their concerns via social media.
  4. The above-mentioned goals can provide a huge ROI with very little effort.

Monitor the right performance metrics

  1. To determine if you are meeting your objectives and achieving them, you need to monitor social media metrics.
  2. Although "vanity metrics" such as shares, likes, comments and shares are often criticized, they can be very valuable. These metrics can be used to assess the health of your social media presence, compare yourself with competitors, and determine which content resonates with your audience.
  3. If they are not in line with your business objectives, they should be considered "vanity metrics".

Consistently deliver content

  1. A blog and a photo every once in a while would not result in long-term growth and sales. For effective brand promotion and lead generation via social media, you must post consistently and often while still providing value through your posts. Find out where your business offers value and create a social media posting schedule. Stick to it. Website designing is also a key part of boosting social media ROI.
  2. Create content. When sharing content, remember the target buyer. White papers, webinars, and newsletters can all be effective ways to connect with potential customers.
  3. Curate content. You should curate content because it is not always easy to find fresh and crisp content. Find relevant news, videos, and images that you can share with others.

How to report on social media performance and ROI

  1. Now you have calculated your revenue. It's now time to make a report.
  2. Are you unsure where to begin? These are the steps to create a compelling social media ROI report.
  3. To determine which social media marketing platform is the most important contributor to your revenue, analyze each ad format and ad placement separately.
  4. Align the metrics that you wish to include in your report with company marketing objectives.
  5. You can measure and present data over a long period of time to show the impact of social media marketing efforts.
  6. Highlight key insights and data that clearly show how fewer tangible elements of your social strategy have contributed to the bottom line.
  7. You should identify the areas that are profitable and the ones that are not.
  8. Show the ability to take action and draw up changes that can be made in order to increase ROI.
Explore TechImply Featured Coverage

Get insights on the topics that matter most to you through our comprehensive research articles & informative blogs.