Show Me The Money!

Social Media ROISeeing the return on investment for social media can be difficult if you’re not sure what you should be looking at in your analysis or metrics. If you’re looking for the wrong things, there can be missed opportunities to capture a new target audience, or to fix your existing social media strategy to make better use of your time online. Here are some tips on how to measure real ROI for your social media work.

So what is it that social media can offer you? Forget about “increased loyalty” and the like. We want things we can actually measure.

  • Increased retention of your existing customers. Engaging with, and keeping, the clients you already have is cheaper, by far, than having to get new clients all the time. Building a sense of community around your brand online is a way to keep them engaged with your business and make them feel that you are engaged with them on more than a simply professional level.

  • Increased repeat purchases. Converting those likes and retweets into sales and referrals might be tricky at first, but once your clients get into the habit of spending money with you, they will keep doing so for as long as there is value in it for them.

  • Reduced marketing costs. Even if you’re paying to promote your posts on facebook, or for pay per click advertising, it can still work out to be significantly cheaper than more traditional methods of advertising. Money you save on marketing can be put to use elsewhere in the business, or on wage increases for your staff.

  • Feedback. People are only too happy to tell you what they think from the safety and comfort of their computer. They are less likely to give you criticism in a face to face situation or a written survey. Take the opportunity to ask your online community what they think about ideas, or if there was something they weren’t 100% happy with during the last transaction. No print costs, no phone bill, and free useful feedback – it’s a win-win situation.

  • Reduced customer service costs. If you have one person employed solely to answer the questions coming in on the phones, why not get that person online instead? It’s faster, cheaper and means your clients don’t have to stop what they are doing in order to get their question answered. They’re already online, so go online. Go to where your clients are.

  • Recruitment. Are you looking for a new staff member? Need volunteers to help you with that barbeque you’re holding at the community centre? Helping to organise a busy bee at the local school? Why not turn to your online client base? If you’ve been running the rest of your social media presence correctly, they will already be engaged with you and your business, so convert it into action.

When it comes to selling social media as a real and measurable platform for engaging with your client base, do away with elements you can’t measure and stick to things you can plot on a chart. It will make the time, effort and money spent on building your presence worth it. You will also be more able to see what works and, more importantly, what doesn’t.

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