🚀Beyond Money: How to Make Bank on Social Media
It's every marketer's or social media manager’s nightmare.
Being pulled into a meeting with executives and asked,
“What’s the ROI on social media?”
In other words, Is the social media strategy generating or losing money?
It can be a bit of a nightmare because it's tricky and difficult to measure by one goal—financial.
A positive return (ROI) implies that revenue generated from a social media channel exceeds the cost.
But in many cases, financial ROI in social media looks like this.
$7,000 booked from Facebook - $50K in social media costs / $40K in costs = - 82.5% ROI
Yes, negative 82.5%. Yikes.
It's a fair question, but it's not the right one.
To truly understand the "return" on your marketing efforts, you must define what "return" means for each channel.
When I evaluate marketing channels, I run them through my signature IDEAL buyer's journey.
It divides the buyer's journey into phases, allowing you to focus on what’s happening at each stage.
IDEAL is an acronym for: Introduction, Discovery, Evaluation, Action, and Loyalty.
It looks like this.
The graphic shows that social media influences each stage of a guest's journey with you.
Since there are so many points in their journey with you, attribution (the revenue source) is difficult to measure.
Here's how it works.
Introduction: making your first impression
they see you on a friend's social account (or influencer)
contests or giveaways
brand awareness ad campaigns
Discovery: gathering more information
they go deeper, exploring several pieces of content
they watch your YouTube videos
read through your FAQ posts
Evaluation: seeking social proof
check out your reviews and testimonials
how you differ from the competition
what other guests have posted about, what's post-worthy
Action: engaging with you
engagement - they comment, share, like, save
messaging app communication
strong CTA (call to action) for a limited-time offer
social retargeting ads
Loyalty: keep coming back
you engage with them - comments, follows, tagging
they are interested in new content
community perks, insiders club for events, deals, etc
Did you notice there wasn't anything about a purchase? 😯
Looking at the whole picture, it becomes clear how social media helps move customers along their journey to purchase at various stages.
What also is clear is that social media leads your guests to various places online. Those other online platforms like TripAdvisor or your website get attribution, meaning they get marked down as the revenue source.
See how measuring ROI can be tricky for social?
When you look at each stage separately, you can focus on leveraging your content to align with each stage.
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