Business owners know that you must spend money to make money. And while that sentiment may be a cliché, it perfectly sums up your ROI. When you put money into specific things, such as advertising or your online presence, it can increase your bottom line. However, that money spent may not be worth the return if not done correctly.
You have to track your ROI through your socials so that you can see what works and what doesn’t and formulate a plan to get rid of the costs that are not bringing you a return on your investment. To track your ROI, you first have to establish a plan.
Choose A Goal
Before you can track anything, you must set a goal. Your goal must involve the amount you’re willing to spend across your social media, website, and blog and what you expect to see returned because of your financial efforts.
For example, if you want to spend $50 a day to drum up business through your online channels, what do you expect to receive back on that investment? If it meets your goals regarding customer engagement or sales made, great! If not, you’re throwing money into a black hole and won’t see it again.
By making a clear goal of how much you want to spend and how much you want to gain from it, you’ll be able to see how your efforts are working for you in real time.
Track Your Goal
After you’ve set your goal, it’s time to start seeing the fruits of your money’s labour. You can only do this by consistently tracking the goal versus how much ROI it brings you. You need to take into account many different aspects of customer engagement. For example, you may not make a sale or gain a new client every single day you spend money on your socials. However, there are other parameters to take into consideration. They include:
- Website clicks
- Email-opt ins
- Sales from socials
- Number of new followers gained
- Downloads from your website
- The time customers or clients typically spend on your website.
Assign a Monetary Value
After you have begun tracking, you then need to figure out the monetary value of it all. That involves figuring out how much you can make from each interaction. You can look at:
- How much each website click is worth based on how much you make per click
- The average earnings from a customer
- How much more money could you make if you spent more on advertising through your online channels
Following these three steps will help you see precisely how your online presence works for you. This type of tacking plan also enables you to figure out where you may be able to put more money to get an even more significant ROI. If you want to track your ROI through your social channels or website activity but don’t know where to start, contact us today! We can help you get started so that your ROI stays positive.