Methods for Evaluating Social Media’s Economic Impact

Methods for Evaluating Social Media’s Economic Impact

Marketing is a funnel, and social media impacts every step of it. Every aspect of your business, from market research to customer service, is affected.

In order to evaluate the ROI of your social media marketing efforts, you must first recognise the benefits they provide for your business.

An Instagram remark may be quite important, even if your plan is already working. Or how much your product’s retention rate is affected by a review? It’s easier to convey the value of social media when you have data to back it up.

Here, we’ll show you how to measure your social media activities in a way that aligns with your company’s objectives.

Return On Capital Employed

Double-tapping postings or responding to Tweets takes time, but is it worth it?

Your return on investment (ROI) is there to provide answers to questions like these and many others. Social media marketing ROI may be assessed on a campaign-by-campaign or overall basis.

Return on investment (ROI) in social media is calculated as follows:

100 / Costs x (Earnings – Costs)

As an illustration, consider a marketing effort. The amount of money you make from a campaign is what you call its earnings. A single email campaign’s clicks result in your profits. Costs include the time and effort put into the campaign by everyone involved, as well as the tools and ad expenditure.

One of the most useful indicators for evaluating the effectiveness of social media campaigns is return on investment (ROI). Your time and money spent on social media marketing may now be quantified. Having these figures on hand as a marketer might help you justify why you got a new marketing software, for example.

When determining ROI, different firms use different inputs. Our guide to social media ROI will help you learn more about how to put up your company’s plan.

How do I use Sprout to track my company’s return on investment?

Shopify and Facebook Shops are just two of the many social commerce connections accessible through Sprout. These might assist you in tracing the path of purchases impacted by social media. The Tag Performance and Cross-Network Paid Performance Reports presented below may be used by users to measure ROI while evaluating the performance of a campaign in Sprout.

Traffic to a website

Sprout Social Index, Edition XVII: Accelerate, says that once a customer follows a business on social media, they perform numerous activities. 91% of customers will go to the brand’s website, 90% will make a purchase, and 86% will go to the retail location.

With these figures, it’s clear that monitoring the value that social media adds to your website visitors is an absolute must.

E-commerce websites benefit greatly from social media referral traffic. Referral traffic is defined as traffic that comes to your website as a result of a person clicking through from one of your social media posts. Nearly half of all traffic to ecommerce websites comes from Facebook, with YouTube coming in second at 24.46 percent and Twitter coming in third at 10 percent.

You may track traffic to your website by connecting your Google Analytics account or by looking at the statistics on your own website. Use UTM trackers to find out where the clicks are originating from and then take it a step further. You’ll be able to identify the source of any abrupt spikes in traffic to your website if you do this.

When it comes to website traffic data, your company’s operations have a direct impact. If, for example, you have a very strong fourth-quarter sales quarter, this will be reflected in your website visitor data. It’s also important to keep in mind if you write a blog piece that gets picked up by the media.

As such, keeping tabs on this measure is critical since some types of traffic are predictable while others are not.

The best way to track Sprout’s online traffic

You’ll be able to see more than simply where people are clicking on your website when you link Sprout to Google Analytics. Instead, you may create your UTM tracking as you’re writing your social media posts to save time and effort. When tracking is enabled, you get a more complete picture of the traffic to your website.

Awareness of a brand

Brands profit from social media presence. In order to increase the number of people who are aware of your brand as a result of your social media efforts, you should aim to raise brand awareness.

In fact, 80% of consumers think they are more inclined to purchase on social media if they are aware of the brand. Because of this, you should keep an eye on how many people you’re able to contact through social media.

There are several ways to build brand recognition, and each requires time. For example, if someone shares your article on their own social media accounts, it counts as brand awareness. Buying decisions are frequently influenced by third-party recommendations and reviews found online. 91% of Millennials and 82% of Gen Zers use social media to see what others are saying about a product or service.

In order to improve your brand’s online reputation by republishing these reviews, you should do so. Like Burt’s Bees, you may also come up with fresh material. As a result, you’ll be able to monitor your post’s connected metrics.

Use these social media marketing ideas to increase your company’s brand exposure. Impressions and reach are two of the most often utilised measures for evaluating this objective.

Analyzing brand awareness using Sprout

Sprout may be used in a variety of ways to increase your brand’s visibility on social media. It is possible to establish and follow subjects of interest with powerful listening tools. Listening Topics makes it possible to see how well your brand is doing over time.

You can keep track of the performance of your postings if you use hashtags. You can observe how each of your Listening Topics performs with particular hashtag kinds. Sprout includes a related keywords function that allows you to broaden your search options and related hashtags even more.


Engagement in social media comprises likes, reposts, followings, views, and messages received from other users. Being attentive to customer service is also important from the perspective of the brand.

Engagement can help brands increase customer service and audience interaction on their selected social media platform by leveraging their online presence. 47 percent of customers, according to Sprout’s Index, feel that a business is best in class on social media if it provides outstanding customer service. And 46% of them say that a brand’s ability to interact with its customers is as crucial.

Consumers who follow a brand on social media participate in a variety of activities. While 73% are likely to interact with the brand, 76% are likely to contact out for help. 85 percent of customers will buy from you more often if you take the effort to establish your community.

Want to know how to come up with outstanding organic content ideas? Here are a few ways to get people excited about your content: Alternatively, you may utilise these tried-and-true optimization methods to raise social media activity.

How to keep tabs on how much time people are spending on Sprout

Several publications use engagement as a statistic. At the profile, network, and post levels, the number may be discovered. Clicks and comments are used to further break down the total number of interactions.

Exactly how long does it take for someone’s direct message to be responded to? Is there even a response to this? Customer service responsiveness implies responding to inquiries in a timely fashion. With Sprout’s Inbox Team Report, you can keep tabs on how quickly your team members are responding to emails.

generating and closing sales leads

It’s a frequent social media objective to reach clients at the decision-making phase of their purchasing process. Customers seldom shop for furniture from one retailer to another. Instead, they’ll do some research and then make a decision.

In the past, we’ve spoken about how social media engagement can lead to sales and brand loyalty. Make sure that the trackers are in place.

In order to track your lead generation activities, build unique tracking links and make it easy for clients to buy from you. In part, this is due to the fact that making purchases within apps like Instagram is now lot more convenient than it used to be. Make the most of this by establishing up an online store and labelling your merchandise whenever feasible.

To help you expand your business on social media, here are nine lead gen initiatives to consider.

Sprout’s lead generation tips and tricks

Use our ROI calculator when discussing social media-driven sales. Sprout integrates with Shopify and Facebook Shops to tag your product offers for lead generating purposes. Adding a link to the product’s page while responding to a client inquiry is simple.

Retention of customers

Attracting new clients is excellent, but don’t forget about the ones you already have. 86% of individuals are more likely to remain loyal to a firm that provides onboarding content, according to a survey More than six out of ten people (63 percent) feel that after-sale assistance is a key factor in their buy decision making.

In order to keep customers coming back, put out quality material and provide excellent after-sales care. Customer retention methods such as reward programmes and feedback emails might help you keep your customers happy. Customers will be more likely to return.

Getting a new client might cost up to seven times as much as keeping an existing one. Existing customers, on the other hand, are 50% more inclined to try new items and spend 31% more than new consumers. One of the finest strategies to boost client retention is to use social media customer service.

Sprout’s client retention may be improved in several ways.

Smart Inbox is Sprout’s way of ensuring that customers stay loyal. Never miss every social media communication again with filters and customised views. Useful information such as response time, unique messages, and action rate are included in the reporting. Make sure you have the evidence to back up your assumptions that your staff is responding.

Are you making a profit from your social media presence?

Brands and companies alike may benefit from social media in a variety of ways. You can determine the worth of your marketing efforts by tracking data such as website traffic and engagement rate. Sprout includes social media since it helps support the whole marketing funnel. Brand awareness and client service are both possible with the Sprout platform. Read our newest Sprout Social Index study if you still have questions about the benefits of social media.

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