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How to Drive ROI on Social Media

Want to learn how to maximize your results on social media? From creating a strategy to driving ROI, here's everything you need to know.

Posted 19 Oct 2021
How to Drive ROI on Social Media

Using social media to nurture your audience can be a powerful way to expand your outreach efforts. In fact, 92% of U.S. marketers use social media for digital marketing purposes. While traditional advertising methods may still be effective for attracting new customers, in this day and age, social media is a marketer’s best friend. With over 3.6 billion social media users and counting, by using social media marketing, your brand’s potential reach is limitless. 

So, what’s the key to maximizing your ROI on social media? In this article, we’ll show you how to create a social media strategy, and share 10 tips for driving ROI on social media to generate impressive results for your business. 

How to Create a Social Media Strategy

How to Create a Social Media Strategy

1. Define the Purpose of Social Media for Your Brand 

The first step in an effective social media marketing plan is to decide your ‘why’ — otherwise known as your mission. You can do this by creating a social media mission statement that your team can refer to whenever required. Not sure what your statement should be? It can be helpful to start with the end in mind.

Ask yourself the following questions:

  • What’s my brand’s overall mission and end goal?
  • What kind of value will my audience receive?
  • What kind of style and visual design am I going to use?
  • What will my brand voice sound like?

Summarize your answers to these questions in an easy-to-reference statement or paragraph. For example:

  • Our overall mission is to free the world from debilitating back pain. Our social media mission is to show users how our products and services can support spinal pain relief. 
  • We’ll deliver value in the form of how-to videos, product demos, and real-life customer success stories. Each post will have at least one tangible tip our audience can use to relieve pain.
  • We’ll use our traditional brand colors (purple, blue, and rose) and style assets in our posts. We’ll also use photos and videos of real customers.  
  • Our brand voice will be encouraging, inspiring, helpful, and hopeful.

2. Hire a Social Media Management Team 

Hiring and training social media experts may seem costly at first, but it can drive ROI like nothing else. If you’re a social media manager, you’re probably nodding your head right now. 

Social media managers and specialists have one core focus: to grow your social media presence as strategically and efficiently as possible. A social media marketing manager can help you with: 

  • Understanding the benefits of social media 
  • Setting your social media marketing strategy
  • Creating engaging social media content
  • Developing social media campaigns

When considering hiring a social media management team, take a hard look at their portfolio, experience, and testimonials. Ask for data that prove their tactics work better than anyone else you could hire. 

3. Set Actionable Goals and KPIs 

Setting goals and KPIs that support your brand’s mission is vital to bringing your vision to life. 

When setting goals, be specific, but also be tenacious. In other words, don’t be afraid to aim big. 

Remember the old adage, “shoot for the moon; even if you miss, you’ll land among the stars”? That’s what we’re talking about here.

At first, start by setting two major goals, such as:

  • Increase followers on Instagram from 3000 to 30,000 by May 2022
  • Increase followers on Facebook from 5,000 to 50,000 by May 2022

Once you’re on track to meeting those two, feel free to add another goal. And then another. Taking it a couple of goals at a time will help your team stay as focused as possible. 

As far as KPIs go, meet regularly with your social media manager to determine the most important KPIs and ensure you’re on track to meet them. 

4. Consistently Track and Measure Goals 

While setting goals and KPIs is crucial, it won’t do much if you’re not consistently tracking and measuring them. Not only does this keep everyone on the same page, but it also helps you determine when to course-correct.

In other words, tracking and measuring goals helps you:

  • Discontinue tactics that aren’t working
  • Double up on tactics that are working
  • Have a high-level overview of how your strategy is playing out

Consider using a centralized social media dashboard for reporting and hosting a weekly or bi-weekly strategy meeting to reflect on your tracking efforts and brainstorm improvements.”

5. Track Your Expenses

You can’t calculate accurate ROI without tracking your social media expenses. To make it easier to track expenses regularly, create a template or spreadsheet you can fill out quickly. 

Here are some examples of social media expenses you may incur:

  • Monthly post generator service
  • Graphic design and photography 
  • Influencer and affiliate fees
  • Paid ads 
  • Funnel creation 
  • Payroll for social media team

Next, it’s time to compare your spending against your goals, KPIs, and social media profits. To measure social media ROI by revenue, use the following formula: 

<Profit / total investment X 100 = social media ROI>

By applying this formula to your social media campaigns, you can ensure maximum ROI on your content. 

10 Tips to Drive ROI on Social Media

10 Tips to Drive ROI on Social Media

Now that we’ve covered the basics of creating a social media strategy, here’s our 10 top tips for driving ROI on social media. Let’s jump in!

1. Audit and Understand Your Social Data 

Understanding social data is fundamental to curating relatable, personalized, and valuable content. In case you haven’t heard the term before, social data is information your followers and other social media users publicly share. This may include their location, biographical data, what languages they speak, and other details. 

If you already have a social media presence, spend time analyzing your followers’ behaviour. Be sure to audit your current posts, engagement rates, and comments, too. If you don’t have a presence, spend time analyzing users within your target market, e.g. those who follow your competitors.

social media presence

2. Run A/B Test Campaigns 

A/B testing is an experimental process that involves changing two or more variables for the same campaign. That may sound like a mouthful, but it’s simply testing two different versions of the same campaign simultaneously and then examining which made the most impact. 

For instance, let’s say you’re testing an image of the latest line of sneakers you’re marketing. You may decide to test a version showing a frontal view of the shoes and a version showing a side view. Or you may decide to test a frontal view of blue and green shoes and a frontal view of pink and white shoes. 

Once it’s clear which version had the greatest impact, you can test it against other versions too.

3. Improve Your Targeting 

It’s important to know what channels your target audience frequents most. Once you’ve determined this, double your efforts on them. 

It can also be beneficial to do a deep dive into your target audience. What do they like? How does your brand make them feel? What are they passionate about? Curate your content around who they are so your targeting is as specific as possible. 

For instance, the open learning platform StuDocu targets young learners and college students. Since StuDocu knows its audiences love TikTok, it has prioritized targeting that platform and making relatable student content.

open learning platform StuDocu

4. Create Valuable and Shareable Content 

At this point, you’ve honed in on your targeting in a big way. You know where your audience is, who they are, and what they’re interested in. The next step? Creating valuable and shareable content your audience will love. 

Unique, high-quality assets are key – but finding them can take a lot of time and effort. Envato Elements’ ever-growing library gives you a constant supply of fresh designs that will wow your customers time and time again.

With just one subscription, you can access and download millions of premium quality creative assets. Whether you’re looking for trendy social media and branding templates, professional presentations and slide decks, unique and authentic stock photos, or dynamic video templates for your next blog post, social post, or email marketing campaign – Envato Elements is a one stop shop for creating visually rich and valuable content. 

It can also pay to:

  1. Create a content strategy (What kind of content? Why is it valuable and shareable?)
  2. Plan out your topics, keywords, hashtags, posts, and posting dates 
  3. Add posting dates to a designated social media calendar
  4. Create 90 days of content based on your topics, keywords, and posts 
  5. Schedule your posts, so they automatically post on future dates (start with a month at a time)

5. Leverage Social Commerce 

Leveraging social commerce is a strategic way to maximize ROI and boost social media profits.

Social commerce is the act of buying and selling goods or services directly on social media. For example, you can sell or buy through Facebook and Instagram Shops. Since users don’t have to leave the social app they’re on to buy something, it’s easier to make a purchase. In other words, they may feel more enticed to buy something since there are fewer barriers in the way.

To take advantage of social commerce, make a list of the social media platforms you’re targeting. Then, find out if they have social commerce features such as:

Once you’re familiar with your social commerce options, upload your product catalogs, services, and shoppable posts. You’re now open for business. 

6. Use the Right Tools 

One of the best things about being in business today is all of the helpful tools we have at our fingertips. Use auto-post generators to create social media update libraries. Visualize your strategy with social media calendars. You can even build campaigns and publish social media content with campaign builders.

If you’re looking for social media templates – from Instagram Stories to TikTok templates, then check out the full library on Envato Elements.

7. Work With Influencers 

Influencers know the social media game like the backs of their hands. But possibly their greatest skill? Being able to build loyal audiences. Consider hiring influencers to take over your social media accounts, run campaigns, and even help you strategize content.

8. Build an Affiliate Marketing Program 

Affiliates are like dedicated sales reps. In exchange for a commission per sale, they’ll sing your praises, host product demos, and encourage audiences to buy from you.

When a reader clicks on one of the author’s affiliate links and buys something, the author (also the affiliate) earns a commission. Starting your own affiliate program can help to drive sales, widen your creative community and spread word of mouth.

Envato Affiliate Program

9. Offer Deals and Discounts 

Offering time-restricted deals and discounts can be an effective way to entice on-the-fence users to give your offers a try. 

Once you’re on track to meeting those two, feel free to add another goal. And then another. Taking it a couple of goals at a time will help your team stay as focused as possible. To help you reach those goals, you can also rely on growth resources and get inspired by other brands.

10. Leverage User-Generated Content 

When a user posts content about your brand on social media, it’s considered user-generated content. Engaging with and sharing user-generated content is a strategic way to build social proof. In other words, it encourages other users to get to know you.

To wrap up…

The key to making social media work for you is maximizing your ROI, so simply follow the tips in this guide to set yourself on the right track. Craving more social media tips? Head to our blog and read to your heart’s content.

Guest Author: Vikas Kalwani

Vikas Kalwani is a product-led growth marketer and B2B Marketing Specialist skilled in SEO, Content Marketing, and Social Media Marketing. He works at uSERP and is a mentor at 500 Global.

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