Measuring social media’s return on investment (ROI) is a critical part of any social media manager’s job. It allows you to understand the effectiveness of your work, demonstrate value of the exercise to the organization, and refine your strategy over time to improve returns as you learn.
I was given the task to upskill XL’s social media team on the issue this month, this is the 3rd time I’ve done these workshops for XL. The team call themselves the XL Rangers, and have been doing a great job on the customer service side for the past year, but its now time to measure those performance in order to justify their social media activities and expenses.
Generally speaking; social media ROI is a measure of all social media actions that create value, which is then divided by the investment made to achieve those actions. In other word, we need to understand the performance in tangible returns.
The most simplest formula to calculate it is like this:
(Value achieved – investment made) / investment made X 100 = social media ROI
As long as the value generated is more than the number 0, the investment made has generated value to your company. It is then to use these numbers to optimize and create better performances in the future to hit a certain number of targets to generate better ROIs. This means better strategies, refining tactics, or in other word creating a whip to make your team perform better and better.
The workshop focuses on materials such as how to measure social media ROI, refining process, streamlining production, setting objectives and targets, and executions.
To learn more about Social Media ROI or want to have the same type of exercise with your team, let’s chat on my LinkedIn page.