In the final part of our Social Media Return on Investment series, the social media marketers at Zest discuss tools for ROI reporting and how to assign various values to these results.
If you’ve been following our recent blogs, you probably have a better understanding of social ROI basics, and useful tips on how to measure and track your company’s goals. Now, it’s time to learn how to report those results and gain a baseline for improvement in the future.
Leverage Tools for ROI Reporting
Social ROI can be complex to define in quantitative terms, but there are a variety of tools to help make sure you get accurate data to explain the results of your efforts to other members of your company. While traditional ROI tends to be considered in terms of dollars-and-cents, social ROI involves gathering both monetary and non-monetary data results. One of the most straightforward tools you can use to gather results is an ROI calculator. Through social ROI calculators, you can enter the money spent on labor and content creation costs, as well as the data you gathered from your campaign results, to establish just how much revenue and customer value you have gained.
The next step in the reporting process is gathering data from applications such as Google Analytics or Hootsuite Impact. From there, you can create a presentation for the other members of your company to demonstrate the benefits that your social presence will bring long-term. A lack of understanding by company executives can lead to decreased communication among the digital team, confusion as to the purpose of your marketing efforts, and ultimately budget cuts. With this in mind, making sure you present your results clearly, and how those results lead to real improvements for your business, will increase the likelihood of an increased budget allocated to future campaigns.
Calculate Investment and Assign Value
One of the major drawbacks to working with a concept as new as social ROI is having to explain results that could be foreign to other departments in your organization. Finance and HR departments that tend to deal with numerical data will respond well when you can show concrete value from your investments. When calculating your return at the end of a campaign, you must consider aspects such as time and labor spent, cost of social media tools, and advertising and promotion. From there, you can assign varying values to aspects of your campaign, and how those aspects correlate to your investment.
Establishing customer lifetime value (CLV) and average sale are two ways to place value on your data. CLV refers to the value of a customer over a continuous time span and how that customer can bring long term benefits to your company. Average sale refers to the average purchase amount made through your site. Incorporating this data into your report can show your company just how valuable social media can be to your marketing strategy.
Understand Qualitative Value of Social ROI
When reporting your social ROI, quantitative data is not the only factor to consider. Qualitative results, such as brand reach, are more difficult to explain but just as, if not more beneficial. Qualitative data to incorporate into your report can include name recognition, relationship building and recall potential, to name a few. For example, if your loyal customers share your content on various platforms, it can spur word-of-mouth marketing which will extend the reach of your company name, thus leading to stronger engagement among loyal and new consumers. Thus, leveraging the various benefits of social ROI for your company can lead to short and long-term success and profitability.
Invest in Your Company with Our Zesty Digital Marketers
Companies are becoming increasingly involved in the digital arena, and it may be time for your company to see what all the hype is about. Social presence can make a huge difference in your company’s recognition and even in driving business performance, but it can be tough to know where to start. Good thing that the social-savvy team at Zest is here to help! Our digital marketing professionals can help you find the best investment strategy for your business. Contact our digital marketing team today to learn more!