Hey everyone,
This week we learned about ROIs and KPIs and their usefulness to social media marketing and businesses. Nitin Goyal highlights how ROI is a key concept for evaluating the profitability of investment in businesses. In simple terms, it is understanding what you’re receiving in return for your efforts (work). I think this is a valuable and useful concept to know because it can help you analyze what’s working for your business and what’s not. Essentially, if you are making a profit from your efforts or not. This can help you improve your goals and strategies for your business, which is helpful for my sister’s small business.
Image Source: CoAmplifi
Also, Nitin also touched upon KPIs and how they are useful for determining if you’re moving in the right direction for your business. And how KPIs must be determined by the goal of your business or organization. This is useful to know for anyone in business, but more specifically this is useful for me because I can use KPIs on social media to help my sister’s small business. Her goal is to build brand awareness and engagement, so I would use KPIs like likes, views, comments, engagement rate, conversion rate, etc. to measure how many people are interacting and noticing the content posted on Instagram (the platform she uses for her business).
Image Source: Enkel
Nitin mentioned a few steps out of the five steps of measuring your digital marketing, which according to Krista Neher include 1) Defining your strategy, 2) Determining your KPIs, 3) Setting benchmarks, 4) Establishing ROI, and 5) Building a measurement program. Following all these steps can not only help my sister’s small business by figuring out what content I should produce for her, but help with her overall success and profit. To touch upon the other steps, like setting benchmarks for your KPIs. This can help evaluate the performance and if the goal(s) are being reached, in our case brand awareness and engagement. I would research industry averages and analyze our previous performance for our KPIs (likes, views, comments, engagement rate, conversion rate) to help determine this.
Image Source: Cronuts Digital
Furthermore, I would establish a return on investment (ROI) by recording all the costs associated with Instagram marketing, including content creation and any ads that we may put out. I would also define sales goals that justify the investment (content and products), and regularly evaluate whether the generated sales are higher than the expenses. Lastly, to build a measurement program, I would try to analyze my insights on Instagram weekly. I would create a performance dashboard highlighting key metrics, and be ready to adjust content strategies based on what the insights are. This method will help achieve a measurable and successful digital marketing scheme, optimizing my sister’s dipped treat business on Instagram.
References
CoAmplifi. (2023, May 2). What are Kpis, and why are they important for your business & HR?. coAmplifi. https://coamplifi.com/what-are-kpis-and-why-are-they-important-for-your-business-hr/
Cronuts Digital. (n.d.). Roi or return on investment for digital marketing efforts. https://cronuts.digital/en/what-is/roi/
Das, R. (2023, June 2). How to create a social media report [+infographic]: Statusbrew. Statusbrew Insights. https://statusbrew.com/insights/how-to-create-social-media-report/
Neher, K. (2022, August 24). Council post: How to measure your digital marketing roi: Five steps. Forbes. https://www.forbes.com/sites/forbescoachescouncil/2022/08/23/how-to-measure-your-digital-marketing-roi-five-steps/?sh=218e1c1a1ea5
Visram, O. (2022, August 31). 10 kpis to track your marketing agency’s growth. Enkel. https://www.enkel.ca/blog/accounting/key-performance-indicators-marketing-agency/