by Lorna SitholeThe current climate of the world has pushed many businesses into unknown and difficult territory. It’s become a game of sink or swim and most businesses’ ability to change and adapt has become their saving grace. Sprout Social recently published “How COVID-19 has changed social media engagement,” highlighting that incoming engagements on brands’ social posts increased by 44 engagements per day on average across all networks and industries. Now, more than ever, consumers are spending copious amounts of their day scrolling on social media. Companies should be capitalizing on this shift by tweaking their social media marketing strategy to build brand awareness, site visits, and ultimately drive conversions.You may be thinking that most businesses are strapped for cash in these challenging times -- how can you convince leadership and senior execs at your company of the benefits of an investment in social? We are going to break down what social media ROI is and why your business shouldn’t be intimidated by quantifying the contribution that social media is making to the bottom line.
ROI, or return on investment, is the sum total of all social media actions that create value for a company. Companies spend time, money, and valuable resources on social media and naturally want to know what they are getting out of it. Traditionally, ROI was calculated by a simple and straightforward formula profit/investment x 100. However, this formula is long outdated, not only because no two organizations are the same, but, also, not every organization can attribute revenue directly to social media because their value isn’t always measured in dollars and cents. For example, if your organization's social media goal is brand awareness, it only makes sense that your success is measured against engagement and reach.
Why do you even need to prove ROI, you may ask? Measuring social media ROI is important because it shows the potential impact that social media can have on your business, and it can also convert various stakeholders and change the perception of social within your organization.So let’s cut to the chase, how can your company go about measuring their social media ROI?Measure your social media ROI
If you’re stuck on how to quantify the contribution that social media is making to your business’ bottom line, drop us a line at firstname.lastname@example.org or visit our marketing capabilities page. We’re here to help.
Lorna Sithole is a Social Media Manager who has 10 years experience in social media, specifically content creation, social strategy, reporting and analytics. She is passionate about helping businesses and charity organizations reach their business goals through their digital marketing efforts.
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