Digital Marketing

How do I calculate the actual ROI of my Social Media Marketing campaigns?

EM Asked by Emily Richards · 15-02-2024
0 upvotes 16,760 views 0 comments
The question

I am struggling to prove the value of our social media efforts to my boss. We have a lot of likes and followers, but I can't clearly show how many sales are coming from Facebook vs. Instagram vs. TikTok. What tools or tracking methods should I be using to connect social engagement to actual revenue in our CRM? I need a concrete way to measure ROI that goes beyond just "Vanity Metrics."

3 answers

0
BA
Answered on 08-02-2024

To track ROI, you must stop looking at the platform's internal "Likes" and start using UTM parameters for every link you share. This allows Google Analytics to tell you exactly which post led to a purchase. Furthermore, implement the "Meta Pixel" (and the Conversion API) on your website to track the full customer journey. If your sales cycle is long, use "Attribution Modeling" in your CRM. Often, social media is the "First Touch" that introduces a brand, even if the final sale happens via an email link. By assigning a percentage of the value to that initial social visit, you can finally show the boss the true financial impact.

0
B
Answered on 11-02-2024

Are you using a specific "Social Media Management" tool that integrates directly with your sales data, or are you doing all of this manually? 

TH 14-02-2024

Brian, we are currently just using Excel and pulling reports from each platform individually, which is a total nightmare. I’ve been looking at tools like HubSpot or Sprout Social, but they are quite pricey for a mid-sized business. Do you think these tools provide enough "Attribution" data to justify the monthly subscription fee? I really need a dashboard that shows me "Social Spend vs. Closed Revenue" in one view so I can stop guessing which campaigns are actually profitable and which are just burning cash.

0
L
Answered on 16-02-2024

Don't forget about "Coupon Codes" specific to each platform. It’s the easiest, low-tech way to see exactly where a customer found your promotion. 

EM 19-02-2024

Linda, that's such a simple but effective tip. We started using 'IG20' and 'FB20' codes, and it’s been the most reliable way to track our influencer ROI.

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