How would you measure the ROI in social media?

[AllThingsconsidered]

Things You’ll Need:

 

Google Analytics

PixelTrakk (or equivalent)

Spreadsheet

 

Collecting The Data

 

First make sure that there is Google Analytics code on every page of your site.

Now, what I want you to do is get familiar with the Google URL Builder. Using this free tool you will be able to generate links to your pages that are tagged up.

 

Your Google Analytics code will recognize these tags in your link and tell you in depth information about these visitors inside your dashboard.

 

Before you start posting away there are a few more steps.

 

Next you are going to set up goals in your Google Analytics account. If you don’t know how, pay someone on Fiverr, it’s a 5 minute job for someone who knows their way around.

 

Login to PixelTrakk (or equivalent), create a quick campaign. Use that link with the tags from Google URL builder as your destination URL, enter a value of the sale, and click continue.

 

Then, place your PixelTrakk tracking code on your conversion success page. For example, the download page after someone buys your product or shipping confirmation page.

 

You now have a tracking link that will track the visitor through your funnel and track the revenue generated

 

Analyzing The Data

 

Take that spreadsheet I told you to have and create the following columns…

 

New Fans

Clicks

Transactions

Costs

Revenue

Value Per Fan

ROI

 

Each row of this spreadsheet should represent a new month. As you go about your month posting to your Facebook fan page or Twitter or wherever, keep making and using these tracking links like I explained above for whenever you link to your site.

 

Once a month log into your Google Analytics, Facebook fan page insights, and PixelTrakk accounts. Fill out the numbers for new fans, clicks, transactions (actions), costs, and revenue. Don’t forget to factor in the wages of whoever is managing your fan page for your costs.

 

Divide the revenue number by the new fans number. This gives you your value per fan.

 

Finally, divide “revenue minus cost” by “cost” and multiply by 100.

 

Slap a little % sign on the back of it and you have your ROI.

 

Update this spreadsheet every month and you’ll be able to see whether your efforts are growing your ROI or decreasing it.