Social media marketing has expenses like any other marketing, a lot of so call social media experts like to say it’s free. While many parts of social marketing don’t attract an initial fee, it does cost lots of time, and time costs money. So it doesn’t matter if you are using a social media expert or not, there are always expenses that must be considered.

To try and determine your real business return on investment you need to understand what your goals are. It’s important when you make your social marketing goals that you are very specific about what you actually want to accomplish overall, as well as what you want to achieve with each separate social media marketing campaign.

There are several social media measurements to consider:

Ensure That Goals Match the Metrics You Want to Measure

Regardless of your goal, it’s important that you have a corresponding metric that you can measure. For instance, if you want to measure whether or not you have properly generated leads from a particular campaign, then you’ll want to be able to know what numbers to look at. For instance: you will look at where the leads came from, which efforts produced the leads, and which did not. It’s equally important to know what works and what does not.

Look at Your Numbers Prior to Any New Social Media Marketing Action

In order to know whether or not a particular social media marketing campaign worked, you’ll need to check your metrics prior to the action. For instance, if you want to get more newsletter subscribers and you have a campaign planned to do that, look at how many subscribers you currently have, this is your starting point. Measure how many new subscribers on average you have sign up on each day, week, or month in the ninety days prior to you campaign starting. This way you will know whether or not, if your Facebook advertising worked to increase these numbers. Have you gained more than you would have without advertising?

Know Exactly Why Your Revenue Went Up or Down

Business owners often cut costs and revenue can often appear to go up as a result because your cash flow will ease and you’ll have more money in the bank. But it’s just an appearance that revenue went up, the truth is, you cut costs. Pay particular attention to activities undertaken that add to your monthly costs and subtract from your monthly costs. In this way you will know whether you’ve really increased actual revenue or not. Revenues going up because of cost cutting isn’t a bad thing, in fact it’s a good thing, but you’ll know it’s not down to your social media marketing efforts..

Check Your Metrics on a Regular Basis

The typical metrics you should always be looking at are: likes, shares, comments, click-through rates, and conversions. These are always important indicators of the marketing you need to work on. If some of these metrics are doing well and others are stuck, then it can give you ideas, on the types of social marketing campaigns you might want to plan in the future.

Understanding your real return on investment lies in understanding all the factors that go into each individual social media marketing campaign, how much money does it cost, how much time and effort will it take, and is it paying off? You can only know if you keep track of all these factors.

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