They use different methods for attracting customers from social media networking sites like announcing various discounts, gifts etc, which works as an efficient strategy in social media networking. So it is necessary for organization to measure ROI from social media.
Necessary to find out Return on Investment:
Business organizations should remember to calculate the ROI which is nothing but return on investment while in the process of following some marketing strategies to analyze whether it is bringing profit or loss for their organizations.
Hence, even though social media networking is free and gaining popularity, it also includes involvement of resources of the organizations which include time, human, financial, marketing etc in to it. Hence it is necessary to measure the return on investment while investing the most important resources like time and finance.
6 Points to Measure Social Media ROI:
1. Investment bringing Profit or loss:
Though social media networking is free and easy, it costs for the organization as it involves time, money, men, machine etc. Hence one should analyze the return on investment for their organizations. Here is the simple way to calculate the return on investment.
Return on investment = Total profit – Investment
____________________ = Number of times on your investment
2. Making list of customers:
It is necessary to make a list of customers to find out which marketing campaign attracted that customer towards their products. In short, what made the customer to purchase their products is the main concern here.
3. Make sure which marketing campaigns are bringing profit:
Inbound and Outbound marketing are the two sources for marketing any product. Online activities come under inbound marketing whereas outbound marketing relates to advertising through print and electronic media etc. Hence it is essential to make sure that which is making more profit for their organizations.
4. Track the list of new customers by preparing lists:
Preparing a list of new customers for the products purchased through these social networking campaigns will show results whether they are bringing new customers to their products so that it can be analyzed to maintain their online activities more efficiently.
5. Exposure to new products and expand business:
If the social media networking brings profits you can make a list of customers of your products, to analyze which type of products are attracting more customers , which age group are purchasing etc. This data will be helpful in introducing products with better quality and more features and also introducing new products.
6. Social media networking as a future investment:
Social media networking helps in building relationship with customers and increasing the brand value of the company by exposing to millions of users on the site. Hence one can term social media networking as one of the powerful tools and also acts an future investment by attracting more and more customers for their business.
For more information on social media roi visit the links given below
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