Understanding the success of your social media marketing campaigns is crucial for maximising your return on investment.
The steps in this checklist will get you set up to evaluate the ROI of your social media efforts (ROI)
The first step in developing a successful marketing strategy is identifying your target market. You may learn a lot about your target audience by analysing your current clientele. Go specific with your advertising.
With digital marketing, you may zero down on a certain audience. Your strategy should not be completely unfocused. The success of your advertising strategy may be gauged by the number of leads it generates.
Value In The Lead Position
Lead value is relative to the market, firm, etc. One must determine the value of a potential lead. Think about how much your likes, comments, shares, etc. are worth. For example, let’s say you spend $100 on Facebook ads with the knowledge that acquiring only one paying client would be worth $1,000. Based on this information, you can confidently assign a value of $900 to the ad expenditure.
Worth to Customers
One sale can’t compare to the value of a single satisfied client. For about how long does one of your typical customers remain a paying one? What is their total lifetime expenditure? I’m curious as to the frequency of their purchases from you. Consider all of this when estimating a customer’s worth over time. If something has a $100 acquisition cost but a $3,000 lifetime worth, it’s a smart investment.
Taking the long perspective, if the value of something is $3,000 over its lifespan but the acquisition cost is just $100, then the investment is worthwhile.
Indirect Customer Expenses
How much do new clients set you back on average? Costs associated with managing your social media accounts. Staff time for posting, scheduling, responding, and monitoring are all included. Add in any software or apps you’ll need to get the job done. All of that stuff gets tacked onto your monthly operating expenses and needs to be weighed against the additional clients you bring in via social media leads.
When a lead is created on social media, what steps are taken next? Send them to your website instead? Do you put them in a sales funnel and feed them information in a slow, steady stream? You need to track each lead until you understand how, why, and why they become a paying client. It’s crucial that you keep track of this.
Measuring the amount of people that come to your site through social media is essential. You may track which Facebook advertisements or posts led to a user filling out a lead form online by purchasing “lead conversion” ads. Indicators of return on investment may be tracked in great detail using that.
The Maintenance of Existing Clientele
Your client churn rate is another important information to have. Do people unsubscribe from your emails or services, or make repeat purchases from you? Check the Social Media customers against your usual clients. Change who you’re marketing to if you’re seeing lower client retention rates on Social Media.
Budget Plan for Social Media Advertising
- The entire marketing budget is $200,000.
- $20 000 allocated for social media marketing.
- In other words, a customer’s lifetime value is $2,000.
- Acquisition Expenses Per Customer: $200
To break even with the entire budget, you’ll need 112 new clients.
Advocacy on social media is a constant endeavour. If done properly, it may help you become an industry authority generating leads. As a bonus, it may also be used as a public relations tool, a real-time FAQ, and a place to address client concerns. The ROI of your social media efforts should take all of this into consideration.