The formula behind ROI is quite simple: Profit = revenue – cost of sale Investment = resource + ad spend + content (+ any additional costs)
PercentageProfit / Investment x 100 = ROI% Example: If you took £10,000 in profit from social media activity having invested £5,000 then your return on investment would be 100%.
ValueProfit – Investment = ROI Example: If you took £10,000 in profit from social media activity having invested £5,000 then your return on investment would be £5,000.
Some businesses won’t be able to attribute sales directly to social media, and tracking of lead source or acquisition is something that Matrix can help implement effectively into your business. But even if you can’t track which sales came from social media, you can still measure its return on investment. Take a look at your organisation’s other goals and objectives. If you’re planning on increasing customer satisfaction then this can be measured by tickets closed originating from social media paired with data from your customer feedback. If you’re aiming to increase brand awareness then social media ROI can be measured using reach & engagement. But with effective analytics you can also track return on investment from other customer activities such as website visits, software downloads, mailing list sends and many more actions. All of this, hinges upon having effective analytics tools which have been implemented to suit your business processes and functions. Matrix can implement analytics tools at various stages of the online and offline customer journey, both during the development of new websites software or processes or within existing websites, software and processes.