The holy grail of marketing, ROI, is always top-of-mind for social media marketers. But it can be difficult to pull all the pieces of your marketing efforts together to create a total sum ROI value. Whether you're spending money on marketing software or not, you are still investing time and resources in your social media marketing efforts. Understandably, you want to know your social publishing ROI.
In this blog post, we provide an example of calculating the return on investment from building brand awareness and growth. We defined building brand awareness and growth as follows:
- Generating high value earned media and word-of- mouth at scale through content publishing optimizing and social apps across social networks and the open web.
- Building a network of brand advocates and decreased costs of customer acquisition through building brand awareness.
- Increasing marketing productivity by expanding brand reach.
To increase brand awareness and growth, consider social activities such as:
- Optimizing publishing strategies to maximize engagement across multiple social networks
- Using social applications to create customizable and flexible social presences
- Placing social apps across leading social networks, mobile experiences, and the open web
Note: BestTech is a fictional company created for the purposes of illustrating this point.
BestTech, a regional competitor to Best Buy, currently has 100,000 Facebook fans and 20,000 followers on Twitter. They currently publish an average of 1,005 Facebook posts and 5,850 Tweets per quarter.
BestTech’s Facebook and Twitter Engagement Rate is 0.21% (likes+comments+shares/impressions) and 0.01% (replies+retweets/ impressions), respectively. As a result, the company sees 847,975 Facebook engagements and 61,351 Twitter engagements per year.
With a social assist average rate of 0.05% per engagement at $50 per online sale, BestTech currently estimates sales attributable to engagement valued at $22,733.
Since implementing Salesforce Buddy Media, BestTech has been able to increase their total number of outbound posts per quarter by 49% with post scheduling and team collaborating. Furthermore, their Facebook and Twitter engagement has increased by 46.5% to 0.31% and 0.02%, respectively. As a result, they now see 1,851,002 Facebook engagements and 133,920 Twitter engagements per year.
With an average of 0.05% conversions per engagement at $50 per online sale, BestTech has seen an aggregate annual increase of sales attributable to social media of $26,890, or $49,623 per year.
You can use the above example as a template for calculating your own social media publishing ROI.