HOW TO CALCULATE YOUR SOCIAL ROI [QUICK GUIDE]

In yesterday's blog post, we learned about some of the KPIs, or Key Performance Indicators, that matter most on social media. Today, let's see how to use them to measure your social ROI.

The purpose of ROI (Return on Investment) is to measure the profitability of a campaign in economic terms. It's a percentage we get from the investment and the total revenue - a simple formula once you have all the variables it includes: (Social media revenue - Investment) / Investment = Social ROI.

Analyze the KPIs you defined earlier: actions on the website with Google Analytics or HubSpot, and actions on social media with the networks' own tools or, for example, Buffer. Now, calculate the value of the results in $: How do they lead to closing a new customer, and how much do you earn from an average customer?

Next, determine your investment. Remember that it includes everything you may have spent on your social media efforts: your campaign budgets, labor costs, paid programs used, consulting, etc.

The rest is easy: plug them into your formula and there you have it, your social ROI! Why is it so important to measure it?To keep getting resources for social media, it's important that you can show their value to your managers or clients. Just telling them you've gained more followers, or even website visits, isn't enough - you need to be able to demonstrate how they contribute to your company's profits.

We hope these tips are very helpful! If you want to learn more about digital marketing and social media topics, subscribe to our blog and YouTube channel and get all our posts delivered straight to your email.