Key Metrics and Tools for Analyzing Social Media ROI

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Key Metrics and Tools for Analyzing Social Media ROI

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The likes might be piling up on social media profiles, but that doesn’t necessarily offer you complete insights. We don’t know about your strategy, but we have yet to notice businesses that last without profit. That’s why keeping your expenses and earnings in check is crucial to see if your digital marketing measures are fetching in the dough or if they are of no use. 

When discussing social media campaigns, it is the best place to advertise a business and there are a few major things to consider to ensure you receive rave-worthy results. Keeping a check of your social media ROI or return on investment is significant for ensuring results and planning a new strategy. Analyzing ROI can clarify what messaging or content types are vibing with your audience, what actions they’re taking and their impact on your website or eCommerce store and social media.

What is ROI?

What is ROI

Return on investment, or ROI, is a formula that business holders can utilize to assess their investments and analyze how competently a particular investment has achieved compared to others. An ROI calculation is sometimes utilized with other strategies to craft a business case for a proposal. 

Alex Contes, Co-founder and Saas Expert of Reviewgrower, said, “A business’s overall ROI is used to rate how competently a company is handled. If a business has prompt objectives, incorporating getting market revenue share, building infrastructure or positioning itself for sale, a return on investment might be calculated in terms of meeting one or more of these purposes rather than quick profit or cost savings.”

Measuring Your Social Media ROI

There are multiple ways to calculate and sum up social media ROI. Some businesses just compare the money spent on social media campaigns to the revenue yielded. However, others use more tricky formulas, including website traffic, leads generated, and consumer engagement.

No matter which approaches you like, you must follow this general ROI formula: (Earnings – Investment Made) x 100/ Investment Made = Social Media ROI 

Joe Troyer, CEO and Head of Growthof DigitalTriggers, said in an interview, “It is not as simple as just putting numbers and getting your result; you might wonder: “Where do I obtain the numbers for this formula?” It is the reason why most investors use social media tools for metrics. With a reliable tool developed to track your social media growth, you’ll have everything you require to use this formula appropriately.” 

Checkout thai Article:- Bereal: Fastest Growing Social Media Platform of 2024

Key Metrics to Track 

All social media metrics can provide insight into whether you’re getting closer to your objectives and meeting your milestone. But tracking the right metrics is significant in determining your social media ROI. 

Here are a few important key metrics you should consider tracking.

  1. Conversion Rate

Conversion rates carry much importance when we talk about metrics. Most businesses track conversion rates because it reports how much revenue your social media marketing is acquiring.

Your conversion rate is the number of potential consumers who take action on your page divided by your page’s total visitors. 

Henry Waddilove, Managing Director of Novus Business Connections, claimed, “Your conversion rate  has great  importance while considering all the vital key metrics for social media ROI. Social media, Conversion rate, and analytics software tend to put them front and center in your metrics. It is because your conversion rate is the major portrait of how beneficial your audience believes you are. If you’re obtaining many visitors but need more conversions, you know it’s time to switch to a different strategy.”

  1. Brand Awareness

Every brand wishes for discovery. And there’s no better time to utilize Instagram to accomplish it. The days of customers finding businesses exclusively through Google search are taken off; millions regularly find new brands on social media. 

Instagram users often start following accounts whose content they value or introduce to corporations using hashtags or the Explore page. We should acknowledge Instagram for the zestful discovery tool it is.

Checkout this Article:- How to Monetize Instagram Reels in 2024 : 9 Easy Steps {Tips & strategy}

  1. Cost-Per-Click (CPC)

Cost-per-click, or CPC, is the amount you spend per click on a social ad. Understanding the lifetime worth of a consumer for your online business, or even the average order value, will benefit you by putting this number in an important context.

A higher lifetime value of a consumer, along with a high conversion rate, implies you can afford to spend more per click to bring more potential customers to your website in the first place.

  1. Click-Through-Rate (CTR)

Click-through rates, or CTRs, show the number of individuals that click on the call-to-action links you place in your ads and posts.

CTR is hooked directly to the number of people clicking on those links, other metrics, like your applause rate (likes, impressions, and others), your CPC (cost per click), and even your average engagement rate, do not sum up into your CTR. Customers click on links to learn more about you, your product and what you offer. If your posts are tempting enough, people will only click on your calls to action. You are sure to work on your strategy at that point because ignoring low CTR is just wasting your resources.

  1. Bounce Rate

Bounce rates are perhaps one of the most complicated metrics to determine and improve upon.

The bounce rate shows the number of individuals who navigated away right after landing on your website or page. 

On social media, your bounce rate can help you measure your social media ROI and the traffic you are getting. You need to target the right audience with a high bounce rate, especially compared to similar stores and pages. The simplest way to understand and hunt your bounce rate is with Google Analytics.

Top Tools To Analyze Social Media ROI

Top Tools To Analyze Social Media ROI


Once you figure out the approach behind social media ROI, you may consider using super-friendly tools that can help you track proper metrics to analyze the result. The following are three of the most used social metrics tools around:

Google Analytics

You might have heard about Google Analytics, as it is one of the top most effective tools to accurately sum up the ROI of your social media campaigns effectively. It assists you in quickly recognizing which social media platforms bring in the most traffic and which content is gaining the most grip.

Hootsuite Social ROI Calculator

Tracking the online noise can be challenging, but Hootsuite’s social ROI calculator gets the result quickly and effectively. Establishing social media marketing objectives is crucial to utilize a tool like the Hootsuite Social ROI Calculator effectively. Without clear objectives and intents, you’ll find yourself monitoring vanity metrics like likes and followers, which don’t often accurately resonate with ROI. 

Facebook Pixel

Facebook pixel is vital for monitoring Facebook ad campaign insights accurately and more conveniently. You just need to set up Facebook pixels and conversion events on your website, and you are ready to rock your ROI using the metric it provides. 

The Facebook insights can assist you in understanding your social media marketing ROI and improve your strategy as needed. For instance, if you observe that a particular campaign isn’t bringing in any conversions, you can change your targeting or budget for that campaign or scrap it altogether.


Social media tools allow you to develop bigger and better-engaged audiences across platforms like Instagram, Twitter, Snapchat, LinkedIn and Facebook. You can optimize campaigns and assess if your social media approach performs all in one place. That’s the beauty of these social media applications and tools— they make monitoring your social media activities much less complex! 
Social media marketing is an influential tool to bring business and consumers to you. It takes consistency, aims, and plenty of hard work. Don’t allow that hard work to go to waste, and show your customers an evident social media ROI that illustrates the payoff for their business.

Written By

Divyesh Bhatasana
Divyesh Bhatasana
Divyesh Bhatasana is a Founder & CEO of Jeenam Infotech who has a passion for helping customers as a Link Building Consultant.

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