|Social Media ROI = |
(Return on social media efforts – Social media costs) / Social media costs
Looking to learn more about the return on your social media investment? Using social media numbers to calculate ROI is best done by first turning them into numbers that can be aligned with your real results. The preliminary step in calculating your return on investment on social media is to determine your base figure. Using that base figure, you will be able to make a comparison with your actual sales. The return on investment can then be calculated using the comparison.
How Can Social Media Benefit Your Business?
It is common for businesses to feel that social media does not generate direct responses for their business. Nevertheless, social media remains influential. It is important for businesses to set goals for why they want to take advantage of social media management services. There are several ways in which social media can benefit a business, including:
- Increased customer engagement
- Reaching new customers
- Improved recognition of brands
- Getting users to the website
- Better communication
- Rotating business news quickly
- Regular engagement with potential customers
- Allows a business to accomplish more in a shorter period of time