According to Media Bistro, 72 percent of businesses that use social media don’t know how to measure their return on investment (ROI). It begs the question, are companies only on Facebook, Twitter or LinkedIn because they think it’s the right thing to do?
What if business owners put a simple tracking system in place and could tie a number to their ROI? Think how useful that could be when planning a campaign and deciding how much time to allocate to social media.
To be honest, we’ve found that most small business owners don’t do a great job tracking most of their marketing campaigns. The good news is these tips can apply to other campaigns, not strictly social media.
Four ways to track ROI on social media
These four ideas are super easy for anyone to implement – #1 and #4 might require assistance from your website developer or your marketing consultant.
1. Google Analytics
For those of you not familiar, Analytics is a free tool from Google that you can install on your website. It generates detailed statics about website traffic and traffic sources. You’ll be able to correlate when a Facebook status update or advertisement was published and if it affected traffic to your website.
You won’t be able to see details about each individual, but you will be able to tell what website they came from. By working backward, you should be able to more a correlation to your traffic, leads and sales.
2. Tracking Phone Numbers
We like to use tracking phone numbers for all types of campaigns – print and online. Companies like IfByPhone provide local phone numbers that you can use on your Facebook page, your website and so on. The beauty with this option is once you set it up, everything runs automatically.
The local numbers can forward to one central phone number. All you need to do is answer phone. You can pull detailed reports from your account online and compare the calls/customers with your revenue generated each week or month.
3. Coupons and Discount codes
As more and more consumers turn to the internet, you shouldn’t be afraid to use that to your advantage. Offering a coupon or deal only on Facebook can easily be tracked. Just look at the number of redemptions and the revenue it generated. Try the same thing with Twitter or LinkedIn.
4. Landing Pages
Most business owners think they should be sending website traffic to their homepage. In reality, every offer you create (i.e. – an eBook, white paper or online special) should have its own landing page. That way if you’re promoting multiple offers on Facebook, you can track how much interest each one generates (using Google Analytics, of course!)
While it may be difficult to track every dollar generated from social media, these ideas will get you in the habit of tracking your campaigns and tying a dollar amount to your effort.
If you have questions about how to measure ROI on social media, leave a comment below and we’ll be sure to respond!