Measuring ROI
Summary of the blog: In this blog you will learn 3 basic ways to measure your ROI.
The first thing you must understand when trying to measure your ROI is understanding what ROI means. ROI stands for Return On Investment. An example of ROI is if you were a company that spends $100 a week on advertisements, you would expect something in return such as profits or clicks on a website. These profits or clicks on a website made off of your advertisements is referred to as ROI because it is what you received in return for investing.
3 Basic Measurements of ROI
Community Growth - If you invest in an advertisement, one of the most common goals for a company is to grow their online community. To measure ROI through community growth, you as a company has to decide how much followers are worth in money. If you are only willing to spend $10 for every 500 new followers and you invest that $10 and only gain 200 new followers you may want to create a new ad campaign game plan that will better target your audience/ demographic.
Community Engagement - Community engagement entails; shares, likes, website clicks, purchases, comments, photo tags, etc.. This can be measured very simply. You look at the numbers and see the growth in each area. If you set a goal to increase sales by 100% and without investing you average 10 sales a week, than for your investing to be worth it, your sales with investing should be 20. If you are not reaching your goals you may want to re evaluate your budget or campaign game plan.
Brand Love - Finally, measuring ROI through brand love. This one is a trickier way to measure ROI, especially as a smaller company. Brand love is the emotion that your customers produce about your brand. There is no specific measurement for brand love, it is just a way to increase customer satisfaction and approval, but in some cases it can be measured through the amount of positive comments and ratings/ positive reviews on your company.
