Do you know what is Social Media ROI?

Social Media and Business Strategy

As you should know, social media should not be utilized as a business strategy, but instead develop as a business conversation. Moreover, when building your business there are four strategic options, known as Ansoff’s Matrix.

  1. Market Penetration: selling existing products to existing customers.

Image result for market penetrationSource: Total Market Exposure

2. Product Development: developing new products to sell to existing customers.

Image result for product development

Source: Tatyana Shulgina

3. Market Development: expanding your existing products into new market segments.

Image result for market development

Source: Aqdas

According to Wise, “to measure social media marketing ROI, the subject of this course, that’s exactly what we need. We need to understand the big picture to know where we’re heading with our tactics” (2017). 

If your business has a business plan, it should include numbers; to keep your business and marketing activities focused, you need measurement. Measurements will also help you make the necessary adjustments if necessary. In regards to social media, measurements are necessary for number of followers, number of mentions, number of click-throughs to your website and more. Measurement in social media is extremely important because it will tell you, as a business, the impact you have on your audience.

As you should know, your business’ goals should be SMART(Specific, Measurable, Achievable, Relevant, Time-bound)  and your objectives should convert your business strategy into plans and actions.


What is Social Media ROI?

AIDA Model

Source: 24Point

The AIDA model, shown above, shows the buying process for a product or service in which an individual goes through, and we target each of these stages in marketing and with social media. As a business you should also know that both micro and macro environment should be considered when assessing the effectiveness of marketing activity and it challenges the calculation of ROI.

The main metrics involved in social media that you should focus on are volume, engagement and website traffic; these will allow you to attract, retain and convert potential customers. According to Wise, “the vanity metrics of likes and followers do not correlate to the numbers that really matter” (2017). You will have to invest largely in time, time to learn, time to keep up to date and time to prepare and post content, not forgetting o respond and engage to customers, when it comes on to your social media presence. 

With regards to calculating return on investment based on social media, you need to consider the management tools to help with listening, scheduling and reporting. Also, you may also spend money on social media advertising, boosting your posts on Facebook, sponsoring content on Instagram or LinkedIn and promoting your Tweets.

Social Media Metrics

Volume metrics are vital because they are good for providing you with a guideline to enable you to measure progress and make necessary improvements in the time to come. Volume metrics also shows you the reach of your social media content; the larger the audience, the greater the reach. Reach is the total number of followers, connections or fans that has the ability to view your social media posts. Engagement is essential in regards to social media marketing, however, engagement with your customers is different on the various social media platforms. Engagement on LinkedIn includes likes, comments, shares and views on your updates while on Twitter, engagement is based on replies, mentions, retweets and likes on your posts. Moreover, Facebook’s engagement includes a reaction, comments and a share feature and Instagram’s engagement is likes an comments.

Applause, a third party management tool, is important to measure how many individuals are sharing your messages on social media; contents that get the greatest applause from your audience, should be continued. In all my previous tweets, I have emphasized how generating traffic on your website and social media profiles is important. In Want to know how to use Social Media Marketing for a small business?, I have provided a video link to show how Google Analytics works; it is important for your social media presence as it paints a picture of what’s happening behind the scenes of your website. You can also use Acquisition Overview to see who’s visiting your page to generate traffic. How Acquisition Overview works:

Source: Google Analytics

Measurement Tools

How to use Twitter Analytics:

Source: Cat Crawford

How to use LinkedIn Analytics:

Source: John Nemo

How to use Facebook Analytics:

Source: Thomas Joslyn

How to use Instagram Analytics:

Source: Jonathon Payne

All the video links I have provided are essential as the analytics will show you where to improve on and who views your content and what time. It’s best to utilize this feature to assist in growing your business on social media.

Analyzing Social Media ROI

According to Wise, social media marketing ROI, is the value the organization receives from investing in a project, the performance measure used to evaluate the efficiency of an investment and measure the profit earned from each investment (2017). How to calculate social media marketing ROI:

Source: ISO Training Institute

My Future

Well, it’s sad to say but it’s now the end of the semester and this may be my last blog for quite a while- or maybe not! This last blog really summed up all that I’ve learned during he semester about building a presence on social media, as a business. Nevertheless, for my future as an entrepreneur I will need to have a social media presence to develop brand awareness and generate traffic on both my website and social media profiles. The analytics and insights thee social platforms provide, is extremely useful because it basically helps you to know where to focus on more and where to focus on less.

It was a great semester blogging for you, my viewers, and I will surely miss blogging about social media weekly. Blogging about social media really educated me beyond what I expected and I really hope the information conveyed properly to you my viewers to help you with your social presence as well. Thanks for reading, HAPPY HOLIDAYS! xoxo


Wise, L. (2017, January 12). Social media marketing:ROI. Retrieved from

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