You have your business on Facebook, Twitter and Instagram, but how much is it really helping your bottom line?
If you’re actually measuring the return on investment from your social media marketing, then you are part of an enviable minority. Two-thirds of social media marketers—not just business owners, but those who do this for a living—still cannot measure the ROI for their social media activities.
Brian Sutter, director of marketing for Wasp Barcode Technologies, says there’s no reason not to. In this article for Allbusiness.com, he walks through the basic math of how to calculate a realistic ROI.
“The days of saying a Facebook like is worth $174 are long over, of course,” Sutter says. “But having a social media audience is obviously some sort of business asset.”
There are several ways to do it, but the concept is simple: It’s a matter of knowing how much your social media earns and how much it costs to make those earnings.
“With some careful calculations and some tracking, you should be able to figure out approximately how likely each new follower will become a customer,” he says. He also offers some hypotheticals on how to quantify the cost of a social media operation.