Internet Marketing Strategy, Social Media for Small Business, Social Media Marketing, Social Media Metrics and Measurement, Social Media Tools, Social Media Training
How to Calculate ROI From Social Media
Feb 03 2013
A couple weeks ago we had a fantastic class on Social Media and ROI training. It was a huge turnout and I wasn’t surprised – learning how to
get a Return on Investment from social media is extremely important! Social media is the fastest growing trend in marketing, and it can work wonders for your business, but if you don’t know how to figure out your ROI from social media, you’re not going to get anywhere.
Perhaps you might still be thinking “why should I care about ROI?” Well, studies show that exposure to earned media (earned media being when you see a friend mention a company or product online) increases purchases. Starbucks saw a 38% increase in purchases thanks to earned exposure! Target saw a 19% increase!
Hopefully at this point you realize there’s value in social media, and now you want to increase the value. What really matters here is that you’re improving your ROI.
The reason I wanted to write a blog post after our ROI lunch was because Krista went over how to calculate ROI from social media, and it was so simple but important that we figured it was something we should share with our followers!
So, here’s the formula:
To get ROI, take your Return, subtract your Investment from your Return, and then divide that number by your Investment… this will gave you a percentage number, that is your ROI from social media!
Not that hard, right? When you hear “how to calculate ROI from Social Media” it seems way more complicated than it is. But just by learning how to calculate your ROI from social media and then focusing on how to improve that percentage, you’re going to find that you’re getting a lot more out of your social media efforts.
Need some help? Check out our ROI and Social Media online training program – it’s now available on-demand!
Now get calculatin’.
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