Understanding ROI
If you are spending time, money, or effort on social media, you need to know whether it’s working. That’s where ROI comes in.
ROI –Return on Investment– tells you how much value you’re getting in return for what you’re putting in. On social media, ROI is not just about sales. It also includes things like reach, engagement, leads, or even brand awareness.
But how do you track and improve this? That’s where analytics becomes useful. Let’s break it down.
1. Track Your Goals
Before looking at the numbers, ask: What do you want from social media?
- Is it more website visits?
- More followers?
- More people signing up for your newsletter?
- More sales?
Once your goal is clear, you can measure the right things.
Example:
If your goal is to increase website traffic, track how many visitors are coming from social media platforms. Google Analytics or built-in social media insights can show this.
2. Use Platform Insights
Most social media platforms have their analytics.
- Instagram gives data on reach, likes, saves, and shares.
- Facebook shows engagement and audience details.
- LinkedIn shows who viewed your posts and clicked on your links.
These insights help you understand what’s working.
Example:
If you post a video and see high engagement but low reach, it means your followers like it, but not many people are seeing it. Next time, post at a better time or boost it.
3. Study Your Top Posts
Look at which posts get the most reactions, shares, or comments.
- What time did you post them?
- What was the topic?
- Was there an image, video, or link?
Use this data to shape your future content.
Example:
Say your quote-based posts get more saves than product posts. That means your audience enjoys inspiration. Mix more of that into your content plan.
4. Track Click-Through Rates (CTR)
This tells you how many people clicked on a link in your post or ad.
High CTR means your message is working. Low CTR means you may need a better call to action or headline.
Example:
You run a post promoting a free guide. If 1,000 people saw it and 20 clicked, your CTR is 2%. Try changing the image or rewriting the post to improve it.
5. Monitor Conversions
Conversion means a visitor does what you want them to do—buy a product, sign up, download, or call.
Use tools like UTM links and Google Analytics to trace conversions back to your social media efforts.
Example:
You post a link to your store’s summer sale. With a UTM code, you know exactly how many people bought something after clicking that link from Instagram.
6. Watch Your Audience Growth
Are your followers growing steadily? Or dropping off?
Analytics will tell you how fast your audience is growing and what content brings in new followers.
Example:
If every time you post behind-the-scenes stories, you gain new followers, you’ve found a growth trigger. Use it more often.
7. Adjust Based on Trends
Analytics shows patterns. Watch how your numbers change after a campaign, post type, or time slot. Use this to make better choices.
Example:
You switch from posting three times a week to daily. If your engagement per post drops, you may be posting too much. Scale back.
