The Top Ways To Determine Your B2B Organization’s Social Media ROI
The exact ROI of social media is constantly being questioned. Is it worth the time? How do you determine whether or not it’s working? How does this improve my company’s sales? The right goals, tracking methods and calculations can help you figure out exactly how well social media is working for your B2B organization.
What Should You Be Doing On Social?
The initiatives you take on social media to meet depends solely on your business. However, here are a few guidelines to follow as you wade into the social media pool as a B2B company.
- Establish your business’s credibility.
When your company is being searched by potential new employees or potential customers, they might very well check out your social media presence. Do not underestimate the importance of a well organized and professional social presence, as this makes you appear more credible and shows you care about how your organization is presented digitally.
- Portray competence mixed with personality.
Social media is based on human interaction. It’s the place where you directly interact with potential customers and it’s an opportunity to show your professionalism and competency in your field. But it’s also where you can convey that you’re a business that cares about and values people. Share company experiences, spotlight employees, post insights in your business. It will go a long way in showing you know your business and you care.
- Increase leads
A strong social media presence results in an increase in leads, if it’s done right. Proper targeting and tracking will ultimately help drive more of these. You need to know what to track to determine if your social media strategy is working for you and if it’s sending you the right kind of leads.
Which Metrics Should Be Tracked?
By tracking metrics, you can determine if your social media strategy is working the way it should be. Social media goals might vary depending on your social media strategy. First and foremost, you’ll need to breakdown your bottom line into smaller goals. The best social media strategy will provide an ROI that helps your company grow - and these metrics help determine if your social efforts are working.
A key social media metric to be aware of is volume - the size of the conversation can help indicate the overall interest in your organization.
What are some volume metrics that you should check out?
- “People talking about this” (found in Facebook Insights). This determines your business’s popularity based on several engagement factors.
- Share of voice. This is the percentage of conversation about your business versus your competitors.
- Brand awareness. This is the overall number of mentions of your business online during a certain period.
- Audience growth rate. This measures the change in your business’s followers on social media overtime.
- Klout score. Use the online tool, Klout, to measure your business’s influence on a social media channel.
Volume is more than counting the amount of tweets or comments you’re receiving. You need to measure the messages around social media regarding your business - and who exactly is talking about it. Monitor these metrics from the beginning and continue to monitor any progress or changes your feeds might experience as time goes on.
Reach is the total number of fans and followers that have seen your post at any time. It’s the potential audience for a particular post based on the total followers you have as well as the followers your followers have.
Reach is not the same thing as the number of fans your business’s Facebook page has. Facebook considers a post to “reach” a person when it’s on their personal newsfeed. It translates to to equation below.
Reach = number of fans who saw a particular post / number of fans online at the time.
Engagement is one of the most important metrics in social media marketing. Retweets, repins, likes, shares and comments are all ways to indicate the engagement rate for your followers. It’s how people are communicating with your business.
Wondering how to calculate it?
Engagement = the sum of interactions across all social media platforms / total number of fans across all platforms
One of the biggest reasons that businesses and brands are on social media is to drive traffic to their actual websites, which serves as the virtual storefront.
You can track the traffic your site receives from social media channels through Google Analytics and compare it to your other channels to see how well social media is working. Traffic reports also show you how well each social media platform is performing.
A conversion is the specific goal or value point that a business establishes to determine if a certain initiative is performing well. There are several types of conversions that can be assigned to your business within B2B marketing. These can include:
- Lead generation
- A sale or purchase of a product
- Form submission
Social media is a great way to collect these types of conversions. While your primary goal is conveying a more “human” side of your brand, social media should still ultimately help you make a sale. If the traffic you’re attracting on social media does not result in a good conversion rate, then you will need to adjust your strategy.
To get a high conversion rate, it’s very important to target the largest and most qualified leads as possible. Targeting too wide of an audience or having a message that isn’t unified across your social media and website will result in useless traffic and ultimately drive down the conversion rate - resulting in a very low ROI for social media.
Here’s how you calculate it:
Conversion rate = number of conversions / traffic
Now For The Good Part - Determining Your Company’s Social Media ROI
Now that you have some tactics and measurement plans in place, it’s time to figure out if your social media strategy is paying off. Have you received more leads? Have these leads translated into sales? Have you received return business? Have you managed to attract new potential leads via social media?
To calculate your company’s ROI, use the following formula:
Social Media ROI = Revenue gained from social media - cost of social media marketing / cost of social media marketing
Once you determine your ROI, you may need to reasses your goals or change up your content before seeing the growth you want to see. Social media is about communicating your business’s story, facilitating positive customer service and providing educational content to your potential leads to help drive conversions.