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Improving social media ROI: Basic Tips and Tricks

Improving social media ROI: Basic Tips and Tricks

by Meghashree Das October 19, 2020
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Social Media ROI

Every ineradicable social media marketer knows the importance of “ROI”. The value that successful ROI brings to an enterprise gives a clear insight of how well your product or brand has been performing for a while and what measures can you take to boost it or improve social media ROI.

The real question is, is there any solid way of measuring or improving social media ROI in social media marketing? In LinkedIn research, researchers have found that about 58% of digital marketers have to prove social media ROIs for getting more budget approvals for future investments.

Amongst all the hustle, only 37% of digital marketers can prove it in their ROI metrics. All this connects the dots of how important social media ROI can be and measuring it is the key to building and refining a strong social media strategy. This blog breaks down the various aspects and methodologies that you can adopt to improve your social media marketing ROI for a successful business.

What is improving social media ROI and why is it important?

Before learning about anything within layers, let’s be clear with the basics! ROI in social media ROI stands for” return on investment”. This means, a return on investment from social media activities that a business performs to boost the same. Measuring social media ROI is important because it helps in understanding what is working and what is not performing well on social media, allowing you to shift and manifest the resources more efficiently.

Social Media ROI

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In simpler terms, social media ROI is the measure of all social media activities that add value, divided by the investments that you made to achieve desired results. Now let’s say, you have a business and you have invested all your time, money, and resources in a social media activity, how should you know what’s the return?

Here is a simple formula to calculate it: value/ investments x100= your social media ROI (percentage). The use of this formula can help you calculate the return of investment percentage, and for the rest keep reading this space!

Effective methods for improving social media ROI

  • Define your social media objectives

Defining social media objectives is laying the foundation for a complete architecture. This is where you need to define what value, in terms of social media results means to your brand or product. Building clear social media objectives help you define how social actions align with business and department goals, which is paramount in the initial stage for improving social media ROI based on them later.

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You can think about the various ways that add value to your social media investments, like business conversions, brand awareness, customer experience, employee trust, security and risk mitigation, etc. Make sure you consider all the mentioned points concerning the audiences you would be dealing with online and follow up on improving social media ROI from the gained results.

  • Target the correct audience

We have heard about this tactic/point so many times, especially when referring to social media in any aspect. Social media is all about people. When you know how to target and influence the correct audience, half of the battle can be won. The rest shall be fulfilled by the campaign’s effectiveness and how it benefits the consumer.

Social media ROI

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Therefore, for improving social media ROI work extensively upon re-engaging or retargeting people who you have known already and try to engage more like them. People who have already shown interest in your posts will visit your website or offers to know more about them. You can easily target such people who have loved your brand to further engage them in all your future campaigns and social media activities. As they say, once a consumer, always a consumer!

  • Make use of UTMs

UTMs are Urchin Tracking Modules, used extensively by marketers to track the effectiveness of their marketing campaigns across platforms, traffic sources, and publishing media. It is a simple rule, you cannot improve anything unless you know how to measure it. Here is where UTM plays a very important role in improving social media ROI.

It lets you measure your performance on social media platforms having native analytics in terms of post engagement and reach. Although native analytics does not always suffice or give a clear idea of social media ROI. They never completely indicate how much traffic your campaign is generating through social media platforms.

Social media ROI

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Especially when you are running a specific campaign, these analytical tools do not give a complete idea if the traffic is generated due to current campaigns or in general. To make this process simpler and measure the unknown, UTM parameters are the best to work with. They help in giving a clear idea of traffic coming from a specific campaign, so you get an idea of your social media marketing ROI.

There are many UTM tools that can be used if you do not know how to create one. These UTM tools save a lot of time with existing UTM templates that you can customize for the campaigns.

  • Sharing user-generated content as proofs

Consumers trust each other. A simple review with pictures under a beauty brand, a product or an appliance helps a lot for other users to believe in the genuineness of your product and brand. This at least attracts them to your website, for more information if not buying them directly. In an Olapic study, it was found that people trust social media images from other consumers seven times more than just advertising.

The psychology of customers is simple. They will be willing to invest in a product only when they are satisfied by proofs, the solid once being user-generated images of the same. About 37% people on social media buy a product due to user-generated information. These numbers are proof of how impactful user-generated content can be for improving social media ROI.

Social media ROI

Image source – Images.sqaurespace-cdn

If you share images of a particular product you bought recently, or a service being used by real people, it is great for winning their trust and gaining potential customers. This way you will be able to entice your non-existing consumers into loyal ones and thereby improving social media ROI to a great extent.

You can also work on them, by asking users to share your brand hashtag under a post for contents, giveaways, and more. This will help further in keeping a clean track of new-user-generated content and reshare it on your brand’s social media profiles. Wayfair is an excellent example of implementing user-generated content into its social media strategy.

It shares high-quality pictures from customers who are using their products, and the company invites its followers to “tap to shop” for similar products.

  • Strengthen methods that deliver results

When you use analytics tools to measure the growth and performance of your social media campaigns for a product or a brand, you get a clear picture of what has been working superbly for your brand based on the needs and people engaging and what is just not picking up. Once you have known those difference crystals clear, it’s time to strengthen the strong points before working further on the weak ones.

Use the gathered insights to optimize your social media content strategy and posting schedules, along with creating some fresh content. Focusing on the methods and tactics which has been delivering well is another solid way of improving social media ROI as a whole. For instance, let’s assume your product link is getting more and more public engagement and clicks when you introduce an offer with it.

Use this offer tactic more often for consistent growth in click-through rates. Alternatively, let’s assume that a product launch along with a give way for your brand did exceedingly well, and you managed to gain a ton of new followers. This way you know people are attracted to such give ways and you could do them often to increase followers and public engagement.

  • Join hands with influencers

Every social media platform has its influencer base. You can find them on Instagram, Facebook, YouTube, Twitter, Snapchat, and more. These influencers have a wide range of people following them, and this can be used as an opportunity! For improving social media ROI, a clever option is to partner with such influencers to boost your brand or product.

A survey conducted by Olapic suggested that about 31% of people buy something on social media after seeing it in an influencer’s post. Hence it is safe to say that social media influencers rule their domain and people highly look up to them. Therefore, they have the power to improve the reach of your product and boost brand visibility and increase ROI.

Social media ROI

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However, you must partner with the people who can influence your target audience. Not every influencer can be beneficial for a campaign or your brand. Some influencers can be very impactful for e-commerce while some for B2B marketers. Understand what type of influencers your target audience looks up to and then make a business decision.

Again, some tools help you find such influencers online to find the most relevant ones in your industry. You can conduct research using keywords and withing specific verticals to make the search operation faster and easier.

Tools for improving social media ROI:

Once you know the various methods, points to consider, measuring techniques for improving social media ROI, it is time to put the finding into action. There are many tools that digital marketers make use of for improving social media ROI, which also makes the entire process of management easier. Here is a brief introduction to some of the tools which are essential for improving social media ROI.

  • Social ROI calculator

A social ROI calculator is a free tool that can be used to calculate to the return of investment for improving social media ROI. You can use it for measuring ROI for a paid or organic campaign. All you need to do is, plug in your numbers and the calculator does all the math for you, giving ROI as a percentage. There are many agency sites, focusing on social media ROI who build such calculators and users can avail it from them.

  • Google analytics

For improving social media ROI, google analytics is one of the best tools. It is a handy, easy to use tool which is completely free of cost for use from Google and is required for tracking website traffic, conversions, and sign-ups from social media campaigns. It not only provides statistics of user-engagement but also allows you to go beyond one-off actions and track the value of your social campaigns over time by creating and tracking a conversion funnel.

Social media ROI

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  • UTM parameters

As discussed earlier, UTM parameters are one of the most important tools for improving social media ROI. These parameters are used to add short text codes to URL to track important data about website visitors and traffic sources.

When combined with analytical programs, UTM parameters give a detailed picture of your social media success, from a high level, i.e. which networks have been performing well, to the most detailed ground levels, i.e. which post/campaign drove the most traffic to a specific page. You can also manually add the UTM parameters to the links.

  • Facebook pixels

Facebook has one of the most powerful algorithms to increase the social media presence, and it’s therefore an amazing platform for improving social media ROI. Facebook pixel is a piece of code for websites that allows marketers to track conversions from Facebook Ads, i.e. leads to sales.

Social Media ROI

Image source – cdn.shopify

This way you can see the complete value each Facebook ad creates, rather than only clicks or immediate sales. Pixel feature also is used within Facebook’s ad platform or with social ad optimization and targeting tools.


Some various methods and techniques can be used for improving social media ROI, only when you know where to begin. The blog talks about the various methods that can be utilized along with the amalgamation of tools, for significantly improving social media ROI.

Once you follow the mentioned methods, measure the performances, make use of UTM parameters, use the most effective tactics, leverage real influencers in your social media campaigns, and build loyal traffic, you can optimize these tips in the future to build a better strategy and create bigger impacts.


How can I increase my ROI?

One way to increase your return on investments is to generate more sales and revenues or raise your prices. If you can increase sales and revenues without increasing your costs, or only increase your costs enough to still provide a net gain in profits, you've improved your return.

What is a KPI in social media marketing?

Social Media Metrics and KPIs are values used by marketing and social media teams to measure the performance of social media campaigns. ... Social media teams often use a number of social media channels to increase impressions and reach of marketing messages.

What is a good ROI?

GOOD ROI FOR INVESTING. “A really good return on investment for an active investor is 15% annually. It's aggressive, but it's achievable if you put in time to look for bargains. ROI, or Return on Investment, measures the efficiency of an investment.


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Meghashree Das

Digital Marketer, Writing about marketing is a passion of mine that I have been pursuing from a young age. I love to express my thoughts on paper, as well as a digital medium.

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