Social Media is a versatile platform that not only attracts, engages & converts customers from omnichannel marketing & but also serves the purpose of delighting the customers by serving as a medium for delivering exemplary customer service & for the promotions of after-sales services.
Evidently, Social Media is an excellent platform for B2B marketers to promote their products & services by attracting audiences through several referral channels, engaging them by targeted advertising & ultimately by generating conversions.
A report by socilabreaks.com states that 56% of the marketers think they are unable to track the Return on Investment (ROI) from their social media endeavors & 58% of the businesses measure ROI just in terms of engagement viz. likes, shares & comments.
B2B brands & agencies have always faced difficulties in tracking the Return on Investment (ROI) from their social media endeavors, in particular, because social media ROIs weren’t linked historically with the vital KPIs encompassing the business objectives. Ideally, it is advisable to test run a campaign on social media to figure out what is working & what’s not before a tangible investment can be made.
75% of B2B buyers use social media to support their business purchase decisions. (Source: HubSpot). Hence, it is important for marketers to measure the Return on Marketing Investment (ROMI) as well as the Return on Investment (ROI) of the social campaigns.
Assuaging the pain of measuring social media ROI starts with aligning Social KPIs with the business goals of the organization that in turn need to be measurable & scalable. In the long & short of it, measuring social media KPIs starts with defining KPIs for several social media platforms & aligning them in some way or the other with the business objectives of organization at large, in particular with the optimization of sales’ conversions.
While approaches to measure Social KPIs vary for several different social media platforms they can be majorly be focusing on following parameters:
- Leads &
It should be noted that KPIs for several different social media platforms vary & the modern marketers need to be attentive to mark their presence across all of them or least the vital ones. The outreach of social media platforms has given the modern customers the liberty to research on all or some of them about their buying preferences. According to a report by Pew Research Centre, 67% of Americans get some of their news on social media, primarily on Facebook & Twitter. The prospects want to be fed with informative content resonating with their pain points on their preferred social media platforms & it’s difficult to figure out straightaway which one will work for B2B marketing & which ones aren’t that vital.
45% of the marketers have gained customers through LinkedIn (Source: Quick Sprout) & 65% of the B2B companies have acquired customers through LinkedIn paid ads (Source: HubSpot, 2018). Businesses on Twitter generate twice as much leads as businesses on other platforms (Source: HubSpot, 2018). According to a study by MarTechAdvisor, Facebook is the most popular social media channel amongst B2B marketers & is used by about 89% of them, followed by LinkedIn which is used by 81% of marketers & Twitter used by 75% of them.
Steps to Measure Social Media ROI
According to a study by Blue Corona, businesses that calculate ROI are 72% more likely to have an effective marketing strategy.
1. Defining Social Media Goals:
Social Media goals just like all other good goals should be S.M.A.R.T .: specific, measurable, achievable, relevant & timely.
Social media strategy & the metrics used to measure their outcome should be based on two factors:
- The goals of an organization at large &
- Outcomes that are expected through the social media campaigns
The metrics such as engagement, Click-Through Rate (CTR), bounce & traffic conversion rates serve as indexes for measuring accomplished social media goals.
2. Calculating ROI from Organic Social Media Efforts:
Organic Social Media activity includes publishing across social media channels to drive engagement. When measuring ROI from organic activity, it can be evaluated in terms of frequency & type (number of posts on a particular social media platform over a period of time).
Common B2B objectives to be gauged for ROI on social media include the following:
- Increasing the number of followers through different social media channels
- Increasing the referral traffic on the website from the social channels
- Keeping a track record of leads generated from the social efforts
- Determining the pieces of content that are most relevant to the audiences
Social media dashboard & reporting should include the influx of traffic from various social referral channels on the homepage of the website. The lead sources should be analyzed, documented & reported. Finally calculating the percentage of conversions through social media channels can be useful.
Conversion Rate Optimization (CRO) reflects upon a successful organic strategy for social media.
3. Employing Right Tools:
Quantification of social KPIs is possible if suitable tools are employed to measure the success of social media marketing. Tools such as Google Analytics, HootSuite, TweetReach, Klout & SEMRush are some of the most popular tools that can be used to measure Social KPIs.
4. Calculating the ROI for Paid Social Media Endeavors:
Paid social media endeavors need to be tracked as they are associated with some currency investment & some specific marketing aspirations. The paid campaigns are beneficial provided the prospects click on Call-To-Action (CTA) buttons or perform a certain expected set of actions. These actions include the ones as follows:
- Total downloads of white papers, case studies, e-books, industry reports, etc.
- Email list sign-ups
- Product demo/webinar registrations
- Event registrations &
- Total number of Sales made
Social Media ROI is calculated on the base cost of expenses such as content creation, advertising, technology (email platforms, website coding, etc.), agencies, vendors & several other resources.
5. The Invisible Currency – Reputation Building & Management:
Social Media ROI can also be managed in terms of brand equity, reputation building & management. The reviews on social media are the prime reason behind the purchase of several prospects. Moreover, B2B buyers also check for positive word-of-mouth interactions before making a purchase.
Determining & Measuring ROI from social media endeavors requires some form of benchmarking, to begin with. Social Media Optimization, which is getting the maximum output from the social media endeavors – both paid & organic, is possible only when social media campaigns measure the interactions, engagement & conversion of the target audiences with their preferred pieces of content. The social media conversions should align with the business objectives of the organization. Oftentimes, merely generating conversions through social media channels isn’t important but the actions taken by the prospects after getting converted are vital.
The true measure of Return on Investment (ROI) from social media endeavors materializes in the form of marketers being able to optimize their bottom-line goal of sales’ conversions by building a perennial sales pipeline & converting the prospects into real customers.
We, at Valasys Media, provide our customers with lead generation & nurturing services, which also leverage social media channels to help marketers optimize their overall ROI as well as their Return on Marketing Investment (ROMI), specifically from social media platforms.
For more information on our services, feel free to contact us.