5 Tip Tuesday: 5 Ways to REALLY Measure ROI
Social Media experts still assert that it is difficult to measure the success of a campaign because return on investment (ROI) is not linear and is dependent on the user not the tools. ROI is not a direct one-to-one conversion but a compilation of tools used correctly to influence behaviour...or something like that as explained by Buffer. I somewhat agree with this but there are a few measurable results that brands can use to determine if they should continue their outreach techniques or change up their strategy. The following five measures are what I use to determine whether our client's social media marketing is working or wack.
1. Location, location, location
It's not only important in real estate but in all forms of marketing too. Are you reaching the people who live close to your store? Are your followers in the regions where your online shop delivers? Location is a key way to determine if you are reaching the right customers for your business. Google Analytics will tell you the location of your website visitors by country and city. Country and city analytics are also available on Facebook and Instagram Insights so you can check whether your marketing is reaching the right audience. It is imperative that you add location measurements to any analytics chart because ...
Is your marketing driving behaviour? Are your customers clicking on your posts, visiting special pages you direct them toward or do they participate in your contests? Can you ask your audience to engage with you and they do it? Not everything you ask your audience to do should involve making money to be counted as a success. Engagement precedes purchasing. So if you can direct people to do what you ask you are a short step away from asking and successfully convincing your customers to buy what you sell. Measure the behaviour. Clicks, Visits, Bounce Rate, Device are all measurables that matter.
3. Offline engagement
Remember, engagement precedes purchasing. Some companies make the mistake of only engaging with their customers online. Your company should be where your customers spend their time and they most certainly spend their time on and offline. An easy way to measure your effectiveness offline is simply to measure the number of people who come into your store. Or measure the number of people who claim a coupon redeemable in store only. Find reasons to engage with your customers offline and the 'in sight, in mind' effect will drive your sales up no matter where you sell.
Is the news about your business spreading? Are people finding your business organically? Unsolicited reviews are the best way to measure your organic outreach. Search your business name online and record what people are saying about you or check your Facebook Mentions. A good reputation is priceless.
5. Compound Interest
Warren Buffet lists compound interest as one of his pivotal success factors and the same is true about human behaviour as it is about investing money. Once your core customers are truly excited about your company they spread your reputation organically, convince less-core customers to buy what you sell and drive engagement with you everywhere!
Public interest and engagement in your business should build from multiple sources and directions. The only way to build the momentum you need is to measure these core ROI factors.
What measurements do you record for your business? What do you consider a key way to analyze ROI?
Share what's important to you in the comments below.
Need help recording your numbers?
Get this FREE downloadable BLPR ROI Measurement worksheet.