When it comes to social media, the biggest frustration small business owners run into can be summed up in three little letters: R-O-I.
Social media’s ROI (Return on Investment, or exactly what you’re getting out of it) can be devilishly hard to calculate accurately, which is the reason a lot of small business owners are skeptical about whether having a presence on social media is worth the time and effort it demands.
However, in today's world, where social distancing is likely to stretch well into 2021, marketing via social media is no longer optional. It’s mandatory.
So how are business owners handling this ROI thing?
Some measure social media success by counting Twitter followers and Facebook friends. Others count reposts and likes. These are essential components to track, no doubt about it, but there are better approaches if you want the full picture.
Here are some strategies for calculating ROI that you can start using right away:
Ask Your Customers How They Found You: This strategy is the most simple, cost-effective way to calculate marketing ROI, but it's something many business owners overlook. Train your staff to ask, "How did you hear about us?" and keep your customers’ responses in a log.
Google Analytics: This is a free website dashboard add-on. With it, you have access to a wealth of insights about your website and its visitors. If you're not using it already, you should start! Google Analytics is, hands down, one of the best ways to learn about your web traffic. Click here to set it up for free.
Loyalty Programs: Developing a loyalty program takes some time and resources. You'll have to figure out what kind of incentives you'll offer and how to manage the expense of those incentives and the administration. But having such a program is an excellent way to create repeat customers and build brand loyalty. Once in place, it can pay for itself many times over.
Mailing Lists: Having a direct line to your customer is invaluable, but to maximize the return, make sure that they have a reason to keep opening your emails. It's not enough to alert them to offerings that they can already find on your site or social media. Offer your email list exclusive discounts and useful information that isn’t found elsewhere.
Facebook Ads: If you have eCommerce set up, you can track conversion rates through your ad dashboard. This is one of the most responsive and accurate ROI tools at your disposal, but it works even better if you have a clear goal for it.
We'll talk more about goal setting another time, but with these tools and so many more available to you, there is no reason you can't get a detailed picture of how your social media marketing is affecting your business's bottom line.
How’s that picture looking now?
If you need help maximizing the efficiency and effectiveness of your social media, contact me at jessie@allsocialjessie.com, or call 248.219.5106.
