Although most local marketing experts agree that it is important for businesses to have a strong presence on social media, it’s difficult to measure the impact it has on your company’s bottom line. For this reason, company leaders might be hesitant to spend company time and money on social media if they’re not sure it will generate revenue. However, if you can show your company’s top decision makers that social media helps to build your customer base, you’ll likely be given more resources to devote to it.
Track Your Referral Traffic
If your company’s website handles transactions online, you have it easy. Simply track the number of people from social media who complete a sale on your website. Then you can evaluate your sales over time and compare it to your social media marketing tactics. For example, say your company decides to do a Facebook ad on a new product your selling and you include a link to your website. Take note of what day you posted that ad and then compare it to the number of people who came to that landing page on your site. If the number of viewers increases, you can see a direct correlation between product purchases and referral traffic from social media sites.
Tie Social Media to Sales
To show the correlation between local social media marketing and sales, you may need to change the way you use social media. Use the platforms to reach out to customers with a specific offer, coupon, or link. If you used a coupon for a specific product, for instance, you can find out how many of your social media followers used that coupon to make a purchase.
Look at the Big Picture
Even if you can find the direct ROI of social media, sometimes the big picture is more important. Although your company’s leaders like to see direct ROI, sometimes a graph will show positive trends as a result of social media. Your company’s social media presence is likely to generate more positive online reviews, so be sure to take a look at how much your business is getting people talking online. Once a month, take a look at all of your online reviews. Record the number of positive and negative reviews your company receives each month, and see how the trends look over time.
Think of Social Media as Just One Piece of the Puzzle
Experienced marketers know to reach out to customers through a variety of media. Although social media marketing is undoubtedly a powerful way to communicate your brand, it’s not the only way. If you focus only on online marketing and social media, you could be missing an important segment of your customer base. All of your marketing efforts—whether they’re online, on print, on TV, or in person—should be integrated to produce the best results.