Regardless of how much time an effort and passion you are putting into your business, the bottom line always comes down to money. The stakeholders putting their funding and support into you and your company are focused on the singular thought, “What is our return on investment (ROI)?” Being able to demonstrate to them that you are making a profit and where that profit is coming from is so important in maintaining their support and funding. This can be even more important when it comes to your funding for social media campaigns. More and more companies are pouring huge efforts into their social media efforts (including dollars) as our generation becomes so much more technologically dependent. Here’s the thing when it comes to social media, 3 out of 4 marketing specialists don’t know how to calculate social media ROI.
Looking at Hard ROI, this is the money you are making and taking home at the end of the day. How does this apply to Social Media? You have to consider all of the social media you are using in your campaign. Facebook, Twitter, Instagram, etc. all play a role in your ROI. Determining which is the greatest vehicle for your business can be crucial to dividing your dollars and your plan of attack. For my ItWorks business, my three campaigns are my ItWorks website that customers order on, Facebook and Twitter. My hard ROI shows that I have all of my return coming from my website that I have verbally referred my clients too. This is helpful for me also to see that I need to get my butt in gear to increase my overall hard ROI!
Soft ROI for my business is the beacon of light in the distance! Here I am looking at what possibilities I have for increasing my hard ROI. Looking at the value of a fan I can see the average amount my customers are spending and then I can apply that to my potential reach and get my heart pumping. Potential of reach is the potential number of people I can get my business out to and hopefully turn into future buyers. My current fans (all of my customers and those who have “Liked” my posts/tweets) PLUS all of their friends and followers. On Facebook alone, I have to potential to reach over 6,000 people. Multiplying that by the value of a fan and my hard ROI has the potential to skyrocket! Like I said, my beacon of light!
Here’s how I plan to make more bang for my buck!