As a fast-growing economy, Singapore is a favourite country for many businesses. Many companies in Asia and multinationals have their headquarters or branches in this country. While that is a great thing for the economy, it is also a disadvantage to businesses in that it brings about a stiff competition. But for the bold and strategic investors who can turn this setback into an edge, it is all about the power of social media marketing.
By knowing how to use social media marketing correctly, a business can thrive overwhelming in this fast-growing economy, which is characterised by many fortune 500 companies with heavy financial muscles to take on the competition.
An important aspect of knowing how to use Facebook, Instagram, and other social media platforms to increase your traffic is to know how to measure your social media campaign. Otherwise, if you cannot measure your social media ROI, you cannot understand whether you are getting value from your social media agency or not. Here is how to measure the return on investment of your social media campaign the easy way:
Apply This Simple Math Formula
Sometimes you do not need to go through many overwhelming steps to find out whether or not your Facebook, Instagram or any other social media marketing campaign is really paying off. You can simply look at how much money you paid your agency to carry out the campaign for you and how much money you have made directly from that campaign at the end of it. You can simply use this formula;
For instance, assuming you paid the agency $1000 to market your brand on Facebook and Instagram and was able to make $15000 in sales from these two social media platforms along, then your social media ROI would be as follows:
(The total direct revenues earned over a given campaign period—Investment) x 100% / investment i.e.
(15000—1000) x 100%/1000=1400%
NB: Returns on investments are usually given as a percentage.
Sometimes social media marketing analysts like to use jargons like key performance indicators(KPIs), performance metrics, in measuring social media campaign ROI, to sound fancy and so knowledgeable, but it all boils down to the above mathematical formula.
Never mind about these technical terms to be able to calculate your social media marketing campaign ROI. Simply look at the total amount you paid for the campaign and the total revenues earned directly from that campaign and use the above formula to determine your Singapore social media marketing campaign ROI.
Benchmark Current Measurements Beforehand
Before starting a social media campaign, it is advisable that you benchmark where you are beginning. That will go a long way in evaluating your campaign’s ROI as you will know exactly where you started.
Be sure to record any KPIs you track currently such as average sales per month to see how these changes when you start the campaign. Make a record of any existing customer satisfaction scores and customer ratings you are tracking on and outside of your website. In addition, record all your current website analytics such as visitors, SEO rankings, referral links and so on. Finally, make a record of the numbers of fans and followings you currently have, if you have already set up some social profiles and have fans.
Define Your Short Term Goals and Gauge Your Accomplishments
Surprisingly, some businesses opt for social media marketing with only the ultimate goal in mind. Sure, this type of marketing is all about getting more customers to buy your products or services in the long run, but without short term goals, you may not be able to achieve the long-term goal. Your short term goals can be to get more people to become aware of your brand, to get more individuals for your email list and so on.
Nonetheless, before accomplishing your ultimate goal, you will have to first accomplish your short term goals. After all, how do you expect to get more buyers for your products and services before getting more people to know your brand and what you offer or to sign up for your email list first?
Once you identify your short term goals, measure your accomplishments. Did you reach out to more people via social media? Did you get more people to sign up for your email list? Social media platforms and Google offer amazing tools you can use to check for that information effectively.
If the answer is YES, then that would be an indicator that you are getting value from your social media marketing campaign. But if it is NO, then you do not need any other proof that you are wasting resources and effort on social media marketing.
Take Note of Any Slight Improvements in the Short Term Areas
Sometimes, a social media marketing campaign may not bring you tangible results as fast as you would expect, depending on many factors, including the market dynamics. Therefore, you should be patient and willing to accept any slight improvements in the short term areas. For instance, even if you manage to get only 20 new prospects to your email list when you expected hundreds of them, do not be discouraged just yet. As long as the cost is reasonable and the progress is constant, you should just give the campaign more time to give the results you expect. But if the cost is too high for the results you get in the short run, then you should terminate that campaign subsequently.
We would like to believe that this article helped you learn how to measure the ROI of your Singapore social media campaign the easy way. You do not need to worry about the technical terms and formulas that some professionals use to sound fancy and look very knowledgeable. Forget about the jargons like “performance metrics”, “key performance indexes” and etc when you want to calculate your return on investment. Just use the simple mathematical formula above to do that.
Finally, be sure to pay attention to the tips above when you have calculated your ROI and now evaluating to see whether the campaign is cost-effective and worth continuing or not thus you should terminate it.