Speaker 1: If you're tired of throwing money into social media campaigns without knowing how effective that spending actually is, then this video is for you. I'm going to break down 5 tips you can use to measure your social media ROI. Because if it's not boosting ROI, it's not worth the buy. Let's get into it. 1. Expense Tracking Tracking expenses is the first step in calculating ROI. Without knowing how much you're spending, you can't measure the return on your investment. It's like baking a cake without measuring the ingredients. You won't know if it'll turn out right because you didn't track what went into it. You'll need to keep tabs on work hours, agency or freelance costs, social media software and services, content development expenses, and advertising costs, just to name a few. Essentially, everything that you spend money on to bring a campaign to life needs to be accounted for. To help you keep track, you can use a free reporting template like the one I'm using today. Feel free to find your own though, there are tons available. Just plug in your data to the costs I just mentioned, add them all together, and you'll see the total cost of your campaign. With a template like this one, you can also add your clicks, impressions, and shares to judge overall engagement. If this sounds like a lot to keep track of, do not worry, you're not alone. The good news is that we cover expense tracking and much, much more in our free Social Media Marketing course. Click the link down below to sign up. This brings us to 2. Revenue Attribution Revenue is the ultimate indicator of whether what you're doing on social media is actually helping your business. It answers the question, did people buy something? Keep an eye on metrics like signups for email, product downloads, and most importantly, purchases. HubSpot's Marketing Hub is a great all-in-one tool that lets you keep tabs on how much your social media campaigns are actually generating. Just go to Marketing, then Social, click on Connect Account to connect your social media platforms, if you haven't already, in your dashboard, navigate to Tracking & Analytics, then Tracking URL Builder. Create a tracking URL specific to this campaign. Use this tracking URL in all the social media posts related to this campaign. You can then see how much revenue can be attributed to a specific ad, email, landing page, or even website. Just navigate to the performance section of each and you can see a quick view of your revenue for that channel. So if your social media campaign led to 1,000 purchases of a $50 product, that's a direct revenue of $50,000 attributable to social media. Once you know both your total revenue generated and expenses, you're ready for the ROI equation. This is a formula you can use to calculate the profitability of an investment relative to its cost. Just subtract your expenses from the revenue, divide by expenses, and multiply by 100 to convert it into a percentage. So let's say your total revenue from a social media campaign is $50,000 and your total expenses are $10,000. Plugging these values into the ROI equation, you'd have a total ROI of 400%. That means for every dollar you spent on the campaign, you earned $4 back. Besides tracking, sentiment analysis is also a handy tool. Sentiment analysis is just a fancy way of saying you're checking if people are saying good things or bad things about your brand. This info helps you figure out if what you're doing on social media is making a difference. An easy, quick, and free way to check out your brand sentiment with social media is through hashtags. Manually search the hashtag for your business, service, or campaign on platforms like Instagram and Facebook. Check what people were saying to gauge the sentiment. The advantage is that hashtags puts all the mentions into one place for you. You can then measure how these sentiments changed before, during, and after your social media campaigns to gauge their effectiveness. This brings us to number 5. Conversion Rate Your conversion rate tells you how many people are doing what you want them to do. Like buying a product after clicking on a social media post. You can calculate your conversion rate by tracking the number of conversions generated through your social media campaigns and dividing it by the number of total visitors. Then multiplying it by 100, again, to get a percentage. So, if 1,000 people visit your site from a social media post and 50 make a purchase, your conversion rate is 5%. This metric gives you an understanding of how well your social media campaigns are driving desired actions. To see how many prospects are visiting your site, you can use Google Analytics. Just log into your account, head to Reports, and then Traffic Acquisition. Here, you should see a list of different traffic sources categorized into channels like Email, Organic Search, Referral, Direct. By clicking on Organic Social, you'll see a breakdown of social networks sending traffic to your website. Click on the specific social media platform where your post was published to see more detailed data. Now that you know where your website traffic is coming from, you can use a tool like Hotjar to figure out what they're doing once they get there. You can set up a funnel where you'll see how many users proceed through each step, allowing you to identify where drop-offs occur most. You can also use heatmaps to understand where users most often click or how far they scroll down key pages. Don't just think of all of these numbers as a way to improve your posts. They can also be instrumental in upgrading various aspects of your business. For example, product development. By tuning into your customers' sentiments on social media, you can gain crucial insights into what they love or wish was different about your products. This intel is a goldmine for identifying gaps and opportunities in your product offerings. So for Tory's Organic Greens, a company specializing in organic produce, my social media analytics revealed that customers frequently praise the freshness and quality of my greens but wish the packaging were more eco-friendly. I can now use this feedback to start looking into eco-friendly packaging options. Social media metrics can also lend valuable insights into your traditional marketing strategies. Whether it's a print ad or a billboard, tying it to a specific hashtag or web landing page can help you gauge its effectiveness more comprehensively. Your ROI data can also help sales, but not in the way you may be thinking. When your sales team uses social media for outreach, integrating hashtags or tracking URLs can produce invaluable data. This will not only help measure your team's success rate, but also improve your prospect targeting tactics. By carefully measuring and monitoring these aspects, you're not just throwing up posts and praying for profit. You now have a streamlined method to track your expenses, measure your revenue, understand public sentiment, and calculate your conversion rates. So the next time you launch your campaign on social media, you won't just be hoping for success. You may be guaranteeing it. Remember, this was just a taste. If you want to take your social media game to the next level, click the link below to take HubSpot Academy's free social media marketing course. It covers creating engaging content, expanding your reach, and dives even deeper into calculating your ROI. As always, subscribe and comment below to let me know which of these tactics you've already tried. Have you seen some results? Until next time, bye-bye. I can't find this client info. Have you heard of HubSpot? HubSpot is a CRM platform, so it shares its data across every application. Every team can stay aligned. No out-of-sync spreadsheets or dueling databases. HubSpot. Grow better.