Can you measure the ROI of your social media? This is a question I’m asked frequently and honestly one I love to answer. Now, I’m sure if you asked a handful of social media “experts” how they determine the ROI of their social media campaigns you would probably get a variety of answers. And while I’m sure there are a number of correct answers, today I would simply like to share how I personally measure the effectiveness of our social media efforts.
Measuring your website’s traffic with a tool such as Google Analytics is a great way to gage where your traffic is actually coming from. We install the Google Analytics tool on our client’s websites and use in on our website as well. With this tool, you can see which social media sites are sending you the most referrals. It’s great to know where your traffic is coming from because it shows you where to focus your efforts.
“Likes” and Engagement
Tracking your fan and follower count at the beginning and end of the month also shows you the effectiveness of your social media efforts. But it’s the engagement rate that actually matters! Who cares if you have 5,000 Facebook fans if you only have 10 talking about you? The number of “likes”, comments, and shares you receive on your posts and status messages tell you if your efforts are relevant and effective.
A great practice for every entrepreneur to employ is to ask prospects, “How did you hear about me?” I personally keep a spreadsheet that tracks where my leads are coming from. Is it from a social media site? Networking meeting? Referral? Search Engine? By consistently tracking and reviewing your lead sources, you know where to focus for the biggest returns.
I encourage you to track your social media efforts starting today! You may be surprised to learn that LinkedIn refers more traffic to your website than Facebook or that you need to change up your Facebook messages to get more “likes” and increase engagement. Regardless, tracking your leads and keeping up with your stats is a great way to truly determine ROI and take the mystery out of social media.
To your success,