Calculating the ROI in social media is an impossible task for many, most of them remain at the level of measuring KPI’s and being satisfied, however, it is necessary to see ROI options in social media since the brand impact and social actions should focus on the company to see an increase in sales or results based on that work well done and on which more and more is invested.
One method for measuring ROI in Social Media is based on calculating ROMI (Return on Marketing Investments) and ROMO (Return on Marketing Objective).
The combination of these two ratios makes calculating ROI in Social Media quite measurable.
To do this, to calculate ROI, we first calculate ROMI: ROMI includes all contributions to Social Media in a year and to calculate it, you should use the following:
All marketing expenses: (Social investment) Social media budget People and resources Technology investments
Calculate the business contribution of the social media activity: (Social Return) Percentage of sales influenced by social media (total number of leads, sales, additional sales and cross-selling).
ROMI: Social Return / Social Investment
And we also calculate the ROMO: The ROMO mainly calculates the customer engagement as a factor of the Social Media ROI. and for this we need the following ratios:
Lead Generation Effectiveness: Number of Social Media Leads / Total Number of Leads
Calculation of the effectiveness of the marketing program: Total number of followers in the different networks and their growth.
Engagement Calculation: (Number of likes Number of shares Number of Retweets Number of blog comments) / (Total number of published posts or published content)
And the ROI in Social Media will be calculated depending on the terms and formulas that you contemplate in the marketing plan, that is, if you are talking about short term ROMO serves as a reference and if you are talking about terms of one year with budgets of one year environments ROMI is your reference. The combination of both is the final ROI in Social Media, which is so important to have a proper control of your actions.