ROI in SMM or How to calculate whether social networks are effective and profitable for you?

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    Use These 5 Steps to Make Your Social Media Profitable

    ROI = Return on Investment Ratio = (Return on Investment – Value of Investment) / Value of Investment

    Можно ли оценить roi в smm

    For those who don’t like to read from pictures:

    To calculate the ROI of your social media campaigns, you need to:

    1. Determine your investment income:

    • total revenue generated from the campaign
    • gross profit = revenue – cost of goods
    • net profit = gross profit – costs

    2. Determine the cost of investment:

    • The monetary equivalent of your employees’ working hours.
    • Actual costs: creative, technical, advertising costs.

    To calculate the ROI of your social media campaigns, you need to determine the value of your social media goals.

    Your goals depend on your company

    They should include:

    • Total cost per client
    • Total number of online purchases
    • Completed contact forms
    • Growing list of email subscriptions
    • Clicking on links in posts
    • News subscriptions
    • Number of pdf file downloads
    • Webinar attendance
    • Live demos
    • Video views
    • Number of comments under posts
    • Number of email replies
    • Coupon downloads
    • Use of special offer codes
    • How often your hashtag is used
    • Number of participants in the competition
    • Attending your events

    3. Next, decide which metrics will help you measure your success.

    Leads: People or organizations who are potentially interested in buying your product or service.
    Conversions: The number of leads that came from social networks and made a purchase.


    Conversion rate = (Number of conversions / Total number of leads) * 100

    Cost of your lead = cost of completed actions (for example, purchase) / number of leads

    Follower Growth = Number of followers on each social platform

    Any special indicator corresponding to a specific social network is a demonstration of the achievement of your goals, for example,

    • Shares (interactions): Shares
    • Repins (saving your pictures on the Pnterest social network)
    • Likes
    • Comments: under blog posts, on Facebook. Pins on Pinterest, Instagram posts, Twitter (these can include both mentions and tweets related to you)
    • Page Views: The total number of views on a particular page on your website; Unique Pageviews: Aggregates the pageviews of a single user within a single session.

    4. Track specific metrics

    Use social CRM programs that are related to web analytics. Tag your leads with links and their traffic sources. Find out the total recorded income received from the social campaign. Use omnichannel tracking, which shows you when customers are using multiple ways to interact. Next, link your performance to monetary value.

    5. Calculate your total costs


    • smm manager salary
    • time for marketing
    • sales manager and client manager
    • senior management time
    • lawyer consulting

    Content Costs: Creative Cost

    The cost of promotion, which includes contextual advertising, Facebook and Linkdin advertising, etc.

    Technology and analytics:

    • Tools
    • Applications
    • Reporting

    Check your savings – how much does it cost to serve your social media client?

    Measure the opportunity cost of your social campaign:

    • Find the total cost of your campaign.
    • Compare it with the cost to achieve a certain result with other forms of marketing.

    Highlight the impact of social media:

    • shopping frequency
    • total purchases
    • value of a regular customer
    • customer outreach

    And finally, update your reports – make predictions and improvements:

    Determine the value of a loyal customer (the amount of revenue from your typical customer that your company will receive in the process of interacting with your brand) = monthly income from the client * by the number of months of interaction with the client.
    Your Acquisition Value should be approximately 10% of your Customer Value.

    Prioritize by metrics:

    • The most important indicator is your efficiency
    • Set a target value for your efficiency
    • Let your first campaign set the groundwork.

    Define a way to report your results:

    Work on results in the time frame that suits you – weekly, monthly, quarterly, yearly, or all at once.

    Check the results, see what works and what doesn’t.

    To measure the performance of your social networks, you need to set goals and strategies, and you need to know what metrics will help you achieve those goals. This information and social media marketing platforms will help you accurately calculate your social media revenue.

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