Social Media displays the same problem that the marketing world has tried to answer for years, RETURN ON INVESTMENT. Like it is almost impossible to measure the return on investment for a single billboard or ad campaign, it is also very difficult to measure the actual ROI for a social media campaign. There are several ways developed though and put forward by experts that display the worth of a "LIKE" on Facebook, the value of a "SHARE" and a "COMMENT" and the impact of "REACH". However, none of these do display a clear picture in the mind of a brand manager and no long term strategy can also be built on these metrics.
However, having a Facebook Store does give some idea for the return one can get off social media. In fact having a store on Facebook and making sales gives a good idea to small players and even brands as to how much role social media is playing in the bottom line.
A few weeks back we ran a social media campaign for a client who is launching its new clothing line. The budget spend was very minimal and we spent $ 50 in the first round to test the response. The results were as follows:
Total Users that Saw the Ad in their Newsfeed: 17,491
Total Post Like: 285
Total Page Likes: 164
Total people who saw New clothing line Collection: 1029 (photos visit)
Total number of people who showed Interest and send Query to buy: 8
People who asked for online purchase: 2
Now while giving feedback to our client as how the campaign went, nothing was as important as to how many online orders were booked. Since the number of likes, photos visited, CTR and Reach never resisted in attracting the interest and creating a satisfactory image regarding the campaign in the mind of the client as much as the amount of money they made by selling two items on social media.
Here, if a brand is operating a Facebook store to sell on Facebook then getting an estimate of ROI on social media becomes easy. It is at least the amount of profit made from selling stuff online and on top of that factors factors such as Reach, Likes and Impressions can make any sense. A store is there before vital with regards to measuring ROI for Facebook. A SM expert who writes frequently on SM about different topics.