3 Must – Know Tips to Measure Social Media ROI

Companies want to use social media to boost their success, but they often balk when the time comes to finance a strategy. With this in mind, marketing professionals must arm themselves with performance metrics that can prove that their work contributes to the overarching goals of the firm.


Measuring ROI supports two objectives:

First, you can use ROI to measure your results in real time. As you execute your strategy, you need to know whether particular tactics are accomplishing anything. When a method you use fails, you can have a chance to either adjust or replace it.

Second, you can use ROI to justify your budget and, when necessary, to ask for more latitude. A positive ROI will add muscles to your proposals and give you the financing and the freedom you need to do more.

Not with standing the benefits of measuring ROI, actually performing the measurements can challenge even the most seasoned marketing pro. To do this job, you can use the following tips.

What it is and why it matters?

No universal definition for ROI exists, so you will need to consider the context of your firm to get a specific meaning of the term. For the most part, the term infers the total amount of value gained from your social media operation.

After determining the return gained from your efforts, you should compare it to the total investment made to generate the return. Again, the amount of ROI needed to justify an investment can vary from one company to another.

You might be wondering:

How could I calculate ROI?

Suppose that you wanted to measure ROI based on how much new profits your social media activities brought to the firm. A simple calculation for the percentage of ROI might help:

(New profits)/(Social media investment) = ROI.

Using the above formula, a value greater than 100 would mean that your social media campaign was profitable.

A simple online ROI calculator would look something like this:


Things to keep in mind:

  • You might encounter challenges while tracing the source of profits.
  • Some organizations may calculate ROI in non-monetary terms.

Why ROI Matters?

You need to assess every part of your business to ensure the efficiency and profitability of its operation. To do that, you need to have metrics that you can use for comparison. In the case of your social media campaigns, ROI is an important benchmark.

Still, you must remember the importance of assessing ROI on multiple levels. After all, a successful social media strategy may expand your audience and increase the number of leads coming into your organization. In such case, gains in profitability may take a long time to materialize.

Furthermore, what happens if problems in the sales department cause such an increase in leads to go to waste? Therefore, you must analyze data from an appropriate perspective. Ultimately, you only can prove the value of your work by establishing an effective system for measuring results.

The following benefits will help you understand the importance of social media ROI:

  • You can determine whether you are efficiently using available resources.
  • You get a chance to resolve problems before they become major obstacles.
  • ROI proves the relevance of social media to the entire business.
  • It frames social media channels as essential to your collective success.

Now that you know why ROI matters, you probably want to get started. You’re probably also wondering:

How do I make social media ROI work for me?

The following tips will provide you with well-deserved answers.

1. Determine Your Social Media Goals

Naturally, well-defined goals are fundamental to ROI. Can you imagine measuring success when you don’t know what you’re trying to accomplish?


Set your goals. Before engaging people on social media, decide what you want to accomplish. Are you trying to spread brand awareness? Do you want to build the authority of your brand? Other goals might include managing your reputation or creating an outstanding customer experience.

No matter what goals you choose, you should make sure that they are consistent with your business model and realistic. After all, trying to do the wrong thing or too much of a good thing can detract from your business rather than support it.

Your goals will help determine the number of resources that you should dedicate to social media. They will also guide your content choices as well as the tone you use for your brand.

As you articulate your goals, try using the SMART approach. Your goals should be:


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