Today, I want to address a question that I get a lot, and that is, “What is the ROI, or the return on investment, of social media?”
Well, it’s a really good question, and we’re all business owners here, so obviously we want to know what kind of return we get on our investment.
It’s not always very straightforward when it comes to social media marketing, and I understand that’s very frustrating for a lot of you who want to invest in social media but don’t want to do it foolishly.
Alright, so, how do we figure out the ROI of a social media marketing campaign? It’s a good question.
So, you need two things. First of all, you need a really clear goal, and you need to be able to measure your success towards that goal.
So, the way business owners often like to think is they invested X amount of dollars into social media in terms of their time, and their people, and their resources, so they should get 10X (or whatever) return on that investment.
And, that’s true in a way, but it’s also not true.
The thing is, there’s a lot of ways that social media can offer you value, and it’s not always in closing sales.
There’s a lot of aspects to your business that lead up to the sale.
So, for instance, social media can be used to improve customer service with your existing clients, or it could be used to raise brand awareness with your potential clients, or it could be used to grow your email list, which will eventually lead to getting more clients.
I’m reminded of someone I spoke to quite recently, actually, he’s an excellent businessman, but he wasn’t convinced that he should be on social media because he could only close sales in person.
So, he said to me that if he could just get in front of a prospect for 10 or 15 minutes, if he could just talk to someone for 10 or 15 minutes, he was able to close a sale 80% of the time, which is really remarkable, and I don’t doubt this for a minute. He’s very charismatic and excellent at what he does, and building rapport.
And, because of the nature of his industry, it’s very difficult for him to close a sale over the Internet, over a website, or through social media, or through an email blast, or any other way.
He’s right, he needs to get in front of his clients through Skype or on a telephone call at least, or in person for 10 or 15 minutes, and then he can close the deal.
So, my response to that was, you shouldn’t be using social media to drive up your sales, you should be using social media to get more 15-minute consultations.
So, you see what I mean? You need a proper goal to maximize your efforts on social media, and that doesn’t always mean that you should be looking at sales.
So, once you’ve got a good goal, you can figure out how to measure that goal. So, you’d probably use links that are trackable for instance. You can figure out, for instance with this guy who needs to get more consultations, if he’s getting clicks – as in, “Click on this link to book a free consultation for 15 minutes right now and I’ll answer your questions.”
And, he can track where these links are being clicked. Are they coming from Facebook? Or are they coming from Instagram? Or wherever?
Once you’ve got a proper goal in place, you can figure out how you can measure it, but it all starts with having a meaningful goal for your social media campaign.
So, that’s it for this week. I hope that made sense, and if it did, I hope you subscribe. I put out a new video every single week for you entrepreneurs. Until next week, take care.