What is Social ROI?
When it comes to social media, many businesses dip their toe in the water and then stop all their efforts when they haven’t made a profit in the first week or so. In the other extreme, they spend hours on social media but have no idea whether their work has been successful. Here’s our handy guide on what exactly is social ROI, and how to measure it.
Social ROI isn’t necessarily a direct financial return from investing in social media. Sure, many of of the times it is, but there are many other benefits from investing in your social presence. Social ROI all depends on the business objectives you’re using social to achieve.
It’s crucial not to limit your understanding of social ROI to purely financial results. Not every organisation is able to attribute financial transactions directly to social media – those without an ecommerce presence, for example, benefit from social media in ways less directly tied to revenue, but equally as valuable.
Increasing sales is just one of the many ways social media can benefit your business. Focusing purely on such a narrow objective may prevent you from identifying and measuring the many other ways your investment is paying off. Let’s take a look at just some of the other benefits.
1. Improved customer service
Operating a well-run social media page is a powerful way of improving your business’ customer service. Instant messaging is a very popular way for customers to reach your brand – in fact, 33% of consumers prefer to contact a business via social media, rather than picking up the phone. Keeping on top of customer enquiries via social is easy, thanks to real-time notifications and a handy inbox. What’s more, operating your customer service through social media is less costly than employing a customer service team to man telephones.
2. Change in brand perception
Social media can help improve perception of your brand, leading to positive engagement between you and your customers. Two of the key obstacles in building customer relationships are transparency and trust, and social media can help you to achieve both of these qualities. By posting a mixture of product-related content, industry news and personal content, you can humanise your brand, whilst cementing your position as an authority figure in your industry. You want to come across as knowledgable, yet approachable, and the right balance in content and interaction with your customers can help you accomplish this.
3. Boost in customer loyalty
This third point comes in turn from achieving benefit numbers one and two. If your customers have a great experience with your brand’s social media, they are likely to feel more tied to your business, and less likely to stray to your competitors. The same goes for potential customers – by posting engaging content and putting yourself in front of the people that matter, it increases the likelihood of them using your services in the future.
Remember the Rule of Seven – a potential customer needs to see or hear about your brand at least seven times before they take action and buy from you. That’s why posting great quality content is so important, and helps lock in those potentials for future use.
Now that you know what social ROI is, the question has to be, ‘how do I measure it?’ To accurately gauge your social ROI, you need to know what to measure your return against. Remember, that investment includes:
- Cost of tools and platforms
- Budget allocated to social ad spends
- Time spent by employees responsible for social media
In order to measure your ROI, you first need to establish a clear business objective for your social media marketing. Below are three examples:
- Business conversions e.g providing your sales team with high quality leads, generated through social media
- Brand awareness e.g. raising awareness of a product or service
- Customer experience e.g turning customers into loyal brand ambassadors by providing exemplary customer service via social media
How can I measure the ROI for these three objectives?
- Business conversions can be measured by customer acquisition, lead generation, app downloads etc.
- Brand awareness can be measured by the number of people talking about your brand, number of followers gained, shares, likes, comments, click-through-rate, web traffic etc.
- Customer experience can be measured by response volume, average response time, quality of responses etc.
How can Digital Media Team improve my social ROI?
We know your thinking it, so let’s answer the golden question. Taking on a social media management package from DMT rather than handing your social media over to a current employee, or hiring an in-house social media manager, can greatly improve your social ROI.
- Firstly the cost of our social media management is very inexpensive compared to traditional marketing methods, and massively cheaper than the salary of an in-house specialist
- Our fully-managed service helps you maintain outstanding customer service
- We post daily content, researched by experienced content writers, making you a key figure in your industry
- There’s no need to disrupt you or your employees’ working day by asking them to take care of your social media. Social media management is hugely time-consuming, and your time is valuable. We’ll take care of everything, so you can focus on your business.