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Social media is a widespread option for generating loyalty, making your brand recognized, and converting your visitors into customers. That is why you need to know how to calculate social media conversion rate and ROI. These metrics got a lot of emphasis this year because of the coronavirus, which had a negative effect on companies, so they have to put the effort into Conversion Rate Optimization 📊, to improve their social media strategies and get back their customers or even find new ones.
In this article, you will see.
What does 'conversion rate' mean in social media marketing?
Social media conversion rate refers to the percentage of a company's website or landing page visitors, who do any type of action in connection with the company's platforms. This means that anything can be a conversion, depending on business goals 🎯.
Including but not limited to, there are some examples for conversion in social media marketing:
To make it more realistic I brought an example in connection with Instagram 😄. Here are some alternatives to turn Instagram followers into paying customers 👇:
After reading through these examples it can be said that conversion rate is a measurable action when potential customers turn into paying customers 💰. It is important that only measuring these with different types of analytics is not enough. Companies also have to keep in mind the branding exercises they make on social media, when they determine their conversion in social media marketing. So the question is:
The mathematical formula is, as follows:
Social media conversion rate (%) = Conversions on social mediaTotal clicks (visitors) X 100
In addition to the formula, you can also see in steps, how we can get to the measurement 👇:
For calculating conversion in social media marketing it can be a good idea🌟, if you segment the types of metrics in groups, such as:
Sales: This means how much money you made from the content you posted 🤑. The measuring method for this is your offline sales activity or an eCommerce system. But obviously, you need to create CTAs as I mentioned before to make this process possible. When you raise the sales, you are improving ROI, which is really important for conversion in social media marketing.
👉 Shareability: means the likes, shares, and - in some cases - the received inbound links that your post generates.
Consumability: This takes a closer look at your activities. It measures how consumable your content was, for your customers. Was it easily understandable or were you able to convey the message you wanted with it? 🤔
Brand activities: These should also be taken into account. For example, the number of Google searches or brand mentions (WOM) on social media platforms, or PR activities.
Lead generation: This measures whether your content consumed by your consumers created a lead or not because you can follow up on that.
Using these factors in your social media marketing strategy makes your conversion rate more accurate 😄🎯.
📚 To learn more about measuring performance, check our article Measuring performance in business: a step-by-step guide.
📚 Nurturing leads is essential to improve your conversion rate. To learn more check our article How to Nurture Sales Leads to Clients.
After understanding how to calculate social media conversion rate, it’s important to understand ROI, which is different from simple profit - it is a calculation that is usually used to measure the financial and other return you will receive from the money and effort you are investing in 📈- it is the effectiveness of your potential investment.
For improving ROI, calculating is esencial. The mathematical formula to calculate social media ROI:
Social media ROI (%) = Net income earned from the social media investmentTotal cost of investment in social media marketing X 100
For a more practical approach here are the steps that you should follow 👇:
Just like Conversion Rate, ROI also has different aspects when it comes to measuring. Instead of only relying on financial metrics you should have a look at the money spent on organic and paid social media efforts 👀, or social media agencies, tools, etc...
For your returns - beyond direct selling - you should keep in mind 💭 these things as well:
Your employees can understand your company's culture better with social media marketing and this leads to increased employee engagement and trust 🏅.
Your campaigns affect the consumer's attitude towards your brand. If you do them in a good way, marketing can lead to improved brand consciousness, patronage, and word-of-mouth referrals.
📚 Understanding the mix of marketing and sales can help you to improve your conversion rate. To learn more, check our article How sales and marketing can work together – joining forces to boost results
Anything related to business requires the right tools, and to improve your ROI, is not different. A Customer Relationship Management (CRM) is perfect for improve ROI, because of the following features.
If you want to improve your social media conversion rate, we really recommend you to use amoCRM. With this software, you can manage visitors and leads who contact you from different social media, life forms on Facebook Ads, messages on Messenger, WhatsApp Button, Instagram, Facebook comments and much more, an easy way to manage customers and improve ROI and conversion rate.
If you want, you can try amoCRM for free for 14 days.
Different studies among marketers showed that when they changed their sales content type into a video form, it helped them generate leads. This means that a well-produced brand video convinces people to buy the product more 🚀. So changing the sales content type you use in your sales funnel can make a huge difference to the ROI
Auditing your sales process from the beginning to the end is important because you can see where the problem is with your marketing strategy. There you should use a =well-written call-to-action.
If you take your time ⏳ to search for other options for a strategy or a problem you can find several better solutions, which save your money.
If you can increase sales without increasing your costs 😄, or just enough to still provide a net gain in profits, you are improving ROI.
Do not think that every investment you make has to provide a financial gain. But investments can bestow identifiable benefits. This means that sometimes you do not make a profit, but win loyalty which is almost equal to this.
Now, after you read through this article you have a better view of how to calculate social media conversion rate, ROI and their calculating methods. Using these strategies and tips will help you improve your marketing and speed up your growth in many areas."
amoCRM is a pioneering Messenger Based Sales CRM software that helps businesses achieve more sales and create long-lasting relationships with their customers. It is a tool that enables companies to reach better results and increase their profits.