How to Measure Return on Your Facebook Investment
Because we’re still in the early days of Facebook marketing, measuring return on investment (ROI) is, in a word, tough. There’s still much debate about what you can and can’t measure because in many ways, social media is considered to be a soft marketing vehicle, meaning it’s still debatable how we should measure hard metrics like dollars earned and customers acquired.
With that in mind, think about your marketing goals and what you plan to accomplish via your new Facebook marketing plan. If you start from there, you’re sure to identify areas that you can measure to track your results.
To define success, it’s essential to have a solid marketing plan. You have to know what success looks like before you start. Success may include getting people to interact and leave comments on your Facebook Page, encouraging your fans to check out your website, and/or selling your products on your Facebook Page. It comes down to aligning your social media metrics with the metrics your company is already comfortable with.
Measuring brand ROI
The best way to think about measuring brand ROI is to consider how recognizable your brand is to your target audience. It really comes down to identifying how often your fans are engaging with your Page.
The number of likes you have is important, but the frequency at which your fans are responding to your questions or engaging with your posts is even more important. You want to track how many times your fans are clicking your links and responding to your posts with comments.
In addition, you want to consider how well your existing customers can identify with your brand on Facebook. Is your Facebook branding consistent with your website, products, and or services? You want to create a bridge from Facebook to your main hub, and you do this with consistent branding.
How to measure financial ROI
The best way to measure financial ROI for your Facebook marketing plan is to set benchmarks. You want to clearly document what you’re working toward in terms of sales and how you can use Facebook as part of this strategy.
You also want to decide whether your goal is to sell directly from your Page or to use your Page as a channel to funnel interested prospects to a sales page after you build their trust and offer them immense value. Measuring your financial ROI comes down to your sales strategy for your Page.
If your goal is to sell your products or services from your Facebook Page, you need to identify benchmarks for this process. Look at how many people you manage to attract to your Page daily; track which tabs they click and how long they stay on your Page overall. You can do all this by using Facebook Insights and third-party monitoring tools.